What Kind of Credit Card Should I Get?
- Types of Credit Cards
- How to Choose the Right Credit Card
- The Best Credit Cards of 2020
Trying to figure out what kind of credit card is right for you? Check out our latest blog post where we break down the different types of credit cards and their benefits.
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Types of Credit Cards
There are many different types of credit cards available, and it can be hard to decide which one is right for you. Do you want a rewards card, a cash back card, or a low interest card? Let’s take a look at the different types of credit cards so you can decide which one is right for you.
Cash back credit cards
Cash back credit cards are one of the most popular types of credit cards on the market. If you’re a savvy shopper, a cash back card could help you earn rewards on your everyday purchases.
Most cash back cards offer a tiered rewards structure, which means you’ll earn a higher percentage of cash back on certain categories of purchases. For example, you might earn 1% cash back on all purchases, and then 5% cash back on groceries or gas.
Some cash back cards also come with sign-up bonuses, which can help you earn even more rewards in the first few months of card ownership. And if you pay your balance in full and on time each month, you can avoid paying interest on your purchases.
There are plenty of great cash back cards to choose from, so it’s important to compare your options before you apply. Be sure to look at the rewards structure, the sign-up bonus, and the interest rate to make sure you’re getting the best possible deal.
Rewards credit cards
Rewards credit cards offer cardholders the opportunity to earn points, cash back, or miles with every purchase. Credit card issuers partner with retailers and travel providers to offer bonus rewards on specific items or travel bookings. In general, rewards cards offer the best value for people who pay their balance in full every month and who avoid interest charges by doing so.cash back
Balance transfer credit cards
Balance transfer credit cards can help you pay off your debt by transferring the balance from another credit card with a higher interest rate. This type of credit card usually has a low introductory APR offer and sometimes comes with a balance transfer fee. Be sure to read the fine print before you sign up for a balance transfer credit card to avoid any surprises.
Here are some things to keep in mind when you’re considering a balance transfer credit card:
– Balance transfer offers usually have a limited time window, so you’ll need to pay off your debt before the intro period expires.
– Balance transfer fees are typically 3% of the amount transferred, so you’ll need to factor that into your payoff plan.
– Some balance transfer credit cards require excellent or good credit, so if your credit isn’t great, you might not qualify.
If you’re not sure a balance transfer credit card is right for you, there are other options to consider, like personal loans or debt management plans.
0% APR credit cards
0% APR credit cards are a great way to save on interest and make a dent in your debt. These cards offer a promotional period of 0% APR on purchases and balance transfers, which can help you save a lot of money if you use the card responsibly.
However, it’s important to remember that 0% APR periods eventually come to an end, so you need to have a plan in place to pay off your debt before the APR goes back up. Additionally, some 0% APR cards charge balance transfer fees, which can eat into your savings.
If you’re thinking about getting a 0% APR credit card, here are some things to keep in mind:
-The length of the 0% APR period: Most 0% APR periods last 12-18 months, but some go as long as 21 months. The longer the promotional period, the more time you have to pay off your debt without accruing interest.
-The purchase APR: Once the promotional period ends, your card’s purchase APR will go into effect. This is the rate that will be applied to any new purchases you make with the card. Make sure you know what the purchase APR is before you apply for the card so there are no surprises down the road.
-Balance transfer fees: Some 0% APR cards charge balance transfer fees, which can range from 3-5%. If you plan on doing a balance transfer with your new card, be sure to take this fee into account when calculating your savings.
How to Choose the Right Credit Card
Trying to choose the right credit card can feel like a daunting task. With so many options out there, how can you know which one is right for you? It’s important to consider what you’ll be using the credit card for. If you plan on using it for everyday purchases, you’ll want a card with a low interest rate and no annual fee. If you’re looking to use it for travel, you might want a card that offers rewards points. Keep reading to learn more about how to choose the right credit card.
Consider your financial situation
When considering what kind of credit card to get, you first need to take a look at your financial situation. Do you carry a balance on your credit cards from month to month? If so, you’ll want to avoid cards with high interest rates. Do you frequently travel or dine out? If so, you may want a card that offers rewards for those kinds of purchases.
Consider your spending habits
When you’re trying to figure out what kind of credit card to get, the first place to start is by thinking about your spending habits. Do you tend to spend a lot on groceries? Do you travel often for business or pleasure? Understanding how you typically use your credit card can help you choose the right card for your needs.
There are different types of credit cards that offer rewards for different types of purchases. For example, some cards offer cash back on gas and grocery purchases while others offer points that can be redeemed for travel. If you know where you tend to spend the most money, you can choose a credit card that will give you the best rewards for those purchases.
You should also consider whether you prefer a fixed-rate or variable-rate card. Fixed-rate cards have an interest rate that remains the same for the life of the card while variable-rate cards have an interest rate that can change over time. If you carry a balance on your credit card from month to month, you may want to consider a fixed-rate card so that you know how much interest you will be paying each month.
Read the fine print
An annual fee may be worth it if you are getting enough value from the card to justify the fee, such as a high rewards rate, generous sign-up bonus, valuable perks or 0% APR periods. On the other hand, if you carry a balance or don’t travel often, a card with no annual fee may be a better option for you.
Be sure to read the fine print on any credit card offer before you apply. Some cards come with special conditions that can make them less attractive than they first appear. For example, a rewards credit card may have an elevated rewards rate only for specific categories of purchases, or it may require you to hit a minimum spending threshold before you can earn rewards.
The Best Credit Cards of 2020
There are many different types of credit cards available on the market, and it can be hard to decide which one is right for you. To make things simpler, we’ve compiled a list of the best credit cards of 2020. This list includes cards for people with good credit, bad credit, and no credit. Take a look and see which one is right for you.
Cash back credit cards
Cash back credit cards offer a simple way to earn rewards on your everyday spending. The best cash back credit cards give you great rewards without charging you an annual fee, and many even come with sign-up bonuses that can put extra cash in your pocket.
We’ve researched and analyzed over 100 cash back credit cards to help you find the best card for your needs. Our top picks for 2020 include cards that offer high rewards rates, no annual fees, and valuable perks like 0% intro APR periods and free credit scores.
There are two main types of cash back credit cards: flat-rate and tiered. Flat-rate cards offer a set percentage back on all your purchases, while tiered cards earn more cash back in certain categories like gas or groceries.
The best cash back credit card for you will depend on how you spend money and what type of rewards you value most. If you want the simplest way to earn cash back, go with a flat-rate card. But if you want to maximize your earnings on specific categories, a tiered card may be the better choice.
Some of the best cash back credit cards available right now include:
Capital One® Quicksilver® Cash Rewards Credit Card: This card offers a simple flat-rate rewards structure: You’ll earn 1.5% cash back on every purchase, with no bonus categories to keep track of. Plus, there’s no annual fee to worry about.
Citi® Double Cash Card: This card also offers a flat-rate rewards structure, but it pays out at a higher rate than the Capital One Quicksilver: You’ll earn 2% cash back on every purchase — 1% when you buy, and another 1% when you pay your bill. There is an annual fee of $0 intro for first year; $95 after that.
Chase Freedom®: This is one of the best tiered cash back credit cards available, as it offers 5% cash back in rotating quarterly categories (on up to $1,500 in spending per quarter) and 1% cash back on all other purchases. Plus, there’s an introductory 0% APR period for 15 months (then 16.99% – 25.74% Variable). There is no annual fee for this card.
Discover it® Cash Back: This card also offers 5% cash back in rotating quarterly categories (on up to $1,500 in spending per quarter) and 1% cash back on all other purchases. Plus, Discover will match all the cash back you’ve earned at the end of your first year — making this one of the most generouscash back programs available right now. There is no annual fee for this card
Rewards credit cards
If you’re looking for a credit card that will give you rewards, there are a few things to consider. First, what kind of rewards are you interested in? Cash back, points or miles? There are a variety of rewards cards available, so it’s important to find one that fits your spending habits and lifestyle.
Second, what is the annual fee? Some rewards cards come with an annual fee, while others do not. Be sure to compare the costs and benefits of each card before deciding which one is right for you.
Finally, what is the interest rate? Rewards credit cards often have higher interest rates than other types of credit cards. If you carry a balance on your card from month to month, be sure to factor in the interest rate when deciding if a rewards card is right for you.
Balance transfer credit cards
A balance transfer credit card can help you pay off debt by giving you a longer period of time to pay it off at a lower or 0% interest rate. This can help you save a lot of money on interest payments, which can be especially helpful if you have high-interest debt, such as from a credit card with a rates above 20%.
The best balance transfer credit cards will have 0% introductory rates that last at least 18 months, although some go as long as 21 months. These cards also come with low or no annual fees and don’t require a balance transfer fee, which can save you even more money. And if you have good credit, you may be able to qualify for a balance transfer credit card with a 0% intro APR and $0 annual fee.
Here are our picks for the best balance transfer credit cards:
-Chase Slate: This card offers a 0% intro APR on balance transfers for 15 months, with no balance transfer fee for transfers made within 60 days of account opening. After that, the APR is 16.49% – 25.24%. There is also no annual fee.
-Citi Simplicity Card: This card has a 0% intro APR on balance transfers and purchases for 18 months (then, the APR is 16.74% – 25.49%). Balance transfers must be made within four months of account opening to qualify for the intro rates (a 3% fee applies). There is also no annual fee.
-Wells Fargo Platinum Card: This card has a 0% intro APR on purchases and qualifying balance transfers for 18 months (then, the APR is 16.90%). Balance transfers must be made within 120 days of account opening to qualify for the intro rate (a 3% fee applies). There is also no annual fee.
0% APR credit cards
0% APR credit cards can save you a lot of money on interest if you use them correctly. These cards offer a 0% introductory APR period, which means you won’t have to pay any interest on your balance for a set amount of time.
This can be very helpful if you need to make a large purchase or want to consolidate debt from other high-interest rate cards. However, it’s important to remember that you will still have to make monthly payments and pay off your balance before the introductory period ends.
If you don’t, you will be charged interest on the remaining balance at the card’s standard APR, which could be much higher than the 0% Intro APR. Here are some things to keep in mind when using a 0% Intro APR credit card:
– Make sure you can pay off your balance before the intro period ends.
– Understand what the card’s standard APR will be after the intro period expires.
– Be aware of any balance transfer fees.
– Watch out for cards that charge an annual fee.