Credit cards are helpful payment solutions for many reasons. Their flexibility and mobility gives you the ability to pay for things on-the-go.
Along with their flexibility, credit cards give you the ability to borrow money and buy things that you might not be able to afford at the time. While we do not recommend you getting accustomed to this, credit cards have helped many people make purchases when they are in a bind.
If you are unsure about what credit card might be best for you, there are a number of factors to keep in mind before signing any paperwork.
What you see being advertised for certain services might not be what they seem on the surface. Avoid scammy offers when you are looking for a new creditor.
What Credit Cards Are Best
Finding the right choice for you will differ from someone else based on your needs. In addition to the credit cards you evaluate, be mindful of the rewards for cardholders.
Take advantage of the different programs that are offered by the top credit card companies in the world. Reward programs can range from points-based systems to cash-value and even prizes.
Popular Credit Card Reward Programs:
- Cash-back reward programs
- Travel reward cards
- Gas rewards cards
- Student credit card programs
- Small business credit cards
- Hotel reward points cards
- 0% APR
One of the most common types of credit card reward programs are cash-back credit cards. Creditors are willing to give you 2-3 times the amount of money you spend back in the form of cash-back rewards. You can redeem these over the course of time as you accumulate more cash-back rewards.
Frequent travelers tend to join travel reward credit card programs that include either flier miles from airlines or points from hotels.
Small business owners can join certain small business credit card programs that benefits them and their needs. This can include perks for cardholders like access to office space, relationships with vendors and cash-back rewards as well.
If you are a student, make sure you take advantage of student credit cards. Student credit cards are fantastic for building your credit score early in your life and you will see favorable offers as well.
If you are a small business owner, having three credit cards is not a bad thing. However, if you are not a business owner, it is recommended to limit the amount of credit cards in your name to one or two cards. Having too many open cards can damage your credit score and lead to a bad credit rating.
Comparing Credit Cards
Whether you are new to paying with plastic or are a frequent swiper, there are a few other things to keep in mind when comparing credit cards.
There are many different ways to improve your credit score and it is helpful to be proactive about boosting your score.
Things to Consider When Comparing Cards:
- Annual or monthly fees if any
- Online website/mobile app
- Reward programs
- Special access and offers to cardholders
- Customer service
Credit card companies are willing to go to the extremes to get new card members to enroll with them. Make sure you evaluate different components of each card so you can be sure about your enrollment.
Annual or Monthly Fees
Make sure you check if there are any fees involved with credit cards. Most cards tend to include an annual fee which you can negotiate to eliminate or reduce with certain companies.
Online Website and Mobile App
It is helpful to have an easy-to-use website and mobile application to monitor your card; make sure your new card includes these features.
Rewards, Special Access and Exclusive Offers
All card holders are eligible for some type of reward program; do yourself a favor and take advantage of every reward possible. These benefits often include special access to events or exclusive offers for card holders.
The importance of customer service cannot be overlooked when you are enrolling into a new reward program. You are spending your hard-earned money on essentials; you should not have to deal with poor customer service.
Customer service is the key differentiating factor that is stressed when making any financial decision. When you are making your final choice on who to enroll with, make sure you hold each company accountable for their customer service; you deserve the additional care.