Choosing the best credit card can be a tricky proposition. There are literally a mind boggling number of credit card options available to choose from. The number of different credit products being offered has exploded with more and more options being added every year.
This explosion of available credit options is a double edged sword. There are so many to choose from that people often just give up and chose a card based on whatever offer they may received in the mail recently. Sorting through the hundreds of options can be time consuming and confusing. On the other hand, the increase in options have required the card companies to become more competitive. The need to be more competitive has resisted in some pretty handsome perks and competitive rates.
There are three general things that bought to be considered carefully when choosing the best credit card for you. These three items are as follows:
1. Annual fees. Some cards continue to charge an annual fee. This fee tend to be in the range of $ 100- $ 250 per annual and is charged to the credit card in January of each year. Given the plethora of non-fee options it is surprising that some cards still charge the fee and people continue to pay it. Given the options, there is no good reason to pay an annual fee. With some research you will be able to find an identical products that does not carry a fee.
2. Interest rates. Every card charges a set interest rate on any outstanding balance. A cash advance contributions interest right away. The interest rates are in an approximate range of 5-18%. Some credit cards offer very low teaser rates (like 0%) for the first six months. Chose a credit card with a low interest rate over the long term. Be careful of choosing a card with an attractive teaser rate as the interest rates on these cards can jump dramatically.
3. Perks. Hundreds of credit cards offer perks. These perks range from air miles to free groceries to store discounts to free insurance on car rentals. The "perk" options are varied and quite valuable. Most perks equate to roughly 2-4% of the value of every item charged to the card. There is no good reason to ever use a card that does not offer at least a 2-3% perk. Look around at the different types of perks and decide upon the perks that would best benefit you and your family. For those who can not decide, some cards offer a simple cash back option or dividend.
Therefore, in summary, there are three things that should be carefully considered before choosing a card. First make sure there is no annual fee or initial fee. With all of the options available, there is no reason to ever pay an annual fee. Second look at the longer term interests rates being charged. Choose a card with a low long term rate and do not be tricked by the initial teaser rates. Thirdly, choose a card with a "perk" that best suits your needs and lifestyle. If you can carefully consider the three elements mentioned above you will have no problem choosing the best credit card.