- Why Use a Credit Card?
- How to Choose a Credit Card
- The Best Credit Cards of 2020
- How to Use a Credit Card Responsibly
Trying to figure out what credit card is best for you? Check out our latest blog post where we explore the different types of credit cards and their benefits!
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Why Use a Credit Card?
Credit cards can be a great way to build your credit, if used responsibly. You can also use credit cards to earn rewards like cash back or points that can be redeemed for travel. Credit cards can also help you manage your finances by offering features like budgeting tools and spending alerts. However, it’s important to choose the right credit card for your needs and to use it responsibly. Let’s take a look at some of the best credit cards out there.
A credit card is a small plastic card issued by a financial company giving the holder an option to borrow funds up to a certain limit in order to purchase items or withdraw cash. In other words, it is a short-term loan that must be repaid with interest.
Credit cards are becoming increasingly popular as they are convenient and easy to use. You can use them to make purchases both online and in brick-and-mortar stores, and you don’t have to carry around cash or checks. In addition, credit cards offer many perks, such as rewards points, cash back, and extended warranties on purchases.
One of the main reasons people use credit cards is to build credit. By making regular, on-time payments, you can improve your credit score, which can make it easier to qualify for loans and get better interest rates in the future.
How to Choose a Credit Card
There are many factors to consider when choosing a credit card, such as your credit score, spending habits, and whether you want a rewards card. If you have good credit, you may be able to qualify for a card with a low interest rate and a generous rewards program. If you have bad credit, you may still be able to get a credit card, but it may have a higher interest rate and fewer perks.
Consider Your Spending Habits
One of the best ways to choose a credit card is to consider your spending habits. Do you tend to spend more on travel, dining out, or shopping? There are many different credit cards available that offer rewards for your spending habits. If you are a frequent traveler, you may want to consider a credit card that offers rewards for travel expenses. If you dine out often, you may want to consider a credit card that offers rewards for dining expenses. If you shop often, you may want to consider a credit card that offers rewards for shopping expenses.
Compare Interest Rates
The biggest factor to consider when choosing a credit card is the interest rate you will be charged on purchases and cash advances. Interest rates can vary significantly from one card to another, so it pays to shop around and compare rates before you apply.
Some cards offer 0% interest on purchases for a promotional period, which can be helpful if you are planning a large purchase or need to carry a balance for a short time. But be sure to read the fine print carefully, as these promotional rates often revert to a much higher rate after the promotional period ends.
Other card features
In addition to interest rates, there are several other factors to consider when choosing a credit card, including:
-Annual fees: Some cards charge an annual fee just for having the card, while others waive the fee if you meet certain conditions such as spending a certain amount each year.
-Rewards programs: Many cards offer rewards such as frequent flyer points or cash back on your purchases. If you are a frequent traveller or spend a lot on your credit card each year, these rewards can be valuable.
-Balance transfer offers: Some cards offer 0% interest on balance transfers for a promotional period. This can be helpful if you are carrying debt on another card with a higher interest rate. But again, be sure to read the fine print carefully as these offers often come with high balance transfer fees.
Compare Rewards Programs
Most credit cards these days come with some sort of rewards program attached. Whether it’s cash back, points toward travel or discounts on everyday purchases, there’s a good chance you can find a card that will give you something back for using it.
When comparing rewards programs, it’s important to consider how you typically spend your money and what would be most valuable to you. If you spend a lot on gas and groceries, for example, a card that offers cash back or points on those purchases would be a good choice. Or if you travel frequently, a card that offers point bonuses for travel-related expenses or comes with perks like free checked bags would be a better fit.
There are also general rewards cards that don’t focus on any one particular type of purchase but offer cash back or points on all spending. These can be a good option if you don’t spend heavily in any one category but still want to earn rewards on your everyday spending.
The Best Credit Cards of 2020
2020 has been a year of change and upheaval, and your finances are probably feeling the strain. If you’re looking to make a fresh start in the New Year, now is a great time to consider getting a new credit card. But with so many different cards available, it can be hard to know which one is right for you. In this article, we’ll go over some of the best credit cards of 2020 so that you can make an informed decision about which card is best for your needs.
Wells Fargo Cash Wise Visa® Card
Wells Fargo Cash Wise Visa® Card is a great choice for a credit card, offering a variety of perks and benefits that make it a good option for many consumers. One of the biggest selling points of this card is the cash back rewards program, which gives cardholders 1.5% cash back on all purchases. There is no limit to the amount of cash back that can be earned, and rewards can be redeemed for statement credits, gift cards, or merchandise. Another great perk of this card is the 0% intro APR on purchases and balance transfers for the first 15 months (after that, a variable APR of 14.49%-24.99% applies). This can be a great way to save on interest if you need to make a large purchase or transfer a balance from another card. There are also no annual fee and no foreign transaction fees, making this an ideal card for those who travel frequently.
Citi® Double Cash Card
The Citi® Double Cash Card allows cardholders to earn 2% cash back on all purchases – 1% when you buy and 1% as you pay your bill. There’s no limit to how much cash back you can earn, and it’s easy to redeem your rewards, either as a statement credit or direct deposit into a Citibank checking or savings account. You can also redeem your rewards for gift cards or merchandise through the Citi ThankYou® Rewards program. There’s no annual fee for this card, making it a great option for cash-back seekers who don’t want to pay an annual fee.
Capital One® Savor® Cash Rewards Credit Card
The Capital One® Savor® Cash Rewards Credit Card offers good rewards and a sign-up bonus for a relatively low annual fee. You’ll earn 4% cash back on dining and entertainment, 2% at grocery stores, and 1% on everything else. There’s also a $300 welcome bonus if you spend $3,000 in the first 3 months.
If you dine out often or enjoy going to the movies or concerts, this card can help you earn some serious cash back. There are no foreign transaction fees, so it’s also a good choice for international travel. However, if you’re looking for a card with more flexible rewards, you might want to consider another option.
How to Use a Credit Card Responsibly
Credit cards are a great way to build credit and earn rewards, but they can also be a tool for financial ruin if not used responsibly. It’s important to understand how credit cards work before you start using them. In this section, we’ll cover everything you need to know about credit cards so you can use them responsibly.
Make Payments on Time
One of the most important things you can do to use your credit card responsibly is to make payments on time. This means every month, without fail.late payments can result in expensive penalties, and they can also damage your credit score. If you’re having trouble remembering to make your payment on time, set up automatic payments from your checking account. That way, you’ll never have to worry about it again.
Another important thing to remember is that you should never carry a balance on your credit card from one month to the next. This is because of the high interest rates that credit cards charge. If you can’t pay off your balance in full each month, you’re better off using a different form of payment.
Keep Your Balance Low
Credit cards can be a great tool for building credit and managing your finances, but only if used responsibly. One of the most important things you can do to keep your credit in good standing and avoid expensive interest charges is to keep your balance low.
Ideally, you should only charge what you can afford to pay off in full every month. This will help you avoid interest charges and keep your credit utilization low, which is a key factor in your credit score. If you can’t pay off your balance in full each month, try to at least make more than the minimum payment so you can start chipping away at your debt.
Keeping a low balance on your credit card will also help you avoid fees for going over your limit. Most credit card companies charge a small fee (usually around $25) if you go over your credit limit, so it’s always best to maintain a balance below your limit to avoid these fees.
Monitor Your Credit Score
Your credit score is a number between 300 and 850 that lenders use to determine your creditworthiness. In other words, it’s a measure of how likely you are to repay your debts. The higher your credit score, the more favorable terms you’ll be able to get on loans and credit cards.
You can get your free credit score from a number of sources, including Credit Karma, Credit Sesame, and NerdWallet. Once you have your score, check it regularly to make sure there are no errors and that your score is where you want it to be. If it’s not, take steps to improve it by paying down debt and maintaining a good payment history.