How to Choose the Best Credit Card (Part 1)

How to Choose the Best Credit Card (Part 1)
  • Opening Intro -

    For many people, credit cards may all seem the same – a licence to spend in advance.

-------------------------------------

But in reality, there are many variants of credit cards, and it may be worth exploring the right options to fit one’s needs. Yes you read it right – there are different types of credit cards aimed at different types of customers. Read on, and you will understand which card should you switch to next:

1. No fee card

If you are looking for the most basic credit card, with minimal fees, just to help you with your expenses until your next pay check arrives, then this is a good option. Unlike most credit cards, a no fee card has no annual fee or joining fee. However, banks need to make money out of the cards.

So, the flipside is these cards come with high interest rates in case you default (that is, not pay back your credit card bill within the given time period, normally 30 – 40 days from the date of issue of your monthly card statement).

These rates may vary around 20% and depends on the institution and the market you are operating. If you think you can manage your expenses and pay your bills in time and do not wish to pay an annual fee, this is the card for you.

2. Low fee card

Similar to the no fee card, a low fee card charges a bare minimum annual fee in return for a few privileges or shopping benefits to incentivize customers. Once again, interest rates in case of customer default is high – so steer clear if you think your expenses are mounting and you cannot repay in time

3. Low rate card

The third category, as the name suggests, charges lower rates (normally 5% – 10% lower) than the no fee card rates. If you feel you cannot manage your expenses, may default from time to time and desperately need a line of credit, then this is a better option than any other credit card.

Also, if you are transferring your credit card balance to a new card, this is the best option as the rates charged are the lowest among all credit card types. Just to take an example, if you owe $100 and have defaulted, then you may have to shell out $20 for a low fee card whereas a low rate card may charge you $10 – $15, thus helping you save $5 for every $100 of your card balance. If you struggling with your expenses, every penny counts!

Stay tuned for Part 2 coming soon!

Consumer Tips reference:

card purchasing management

 
Bestseller No. 1
Galaxy S8 Plus Wallet Case,Galaxy S8 Plus Case, Galaxy S8 Plus Leather Case,KUMIHO Luxury Vintage Flip Case Cover with Stand Function Credit Card Slots for Samsung Galaxy S8 Plus (Brown)
  • Perfectly Compatible with your Galaxy S8 Plus.Our handmade design gives that classic feel while offering a left-turning cover and a perfectly-curved case without rough edges or trimmings. We designed our case to exemplify the power and beauty of simplicity.
  • Lightweight, Thin and Classic Design: Ultra slim folio type case to minimize bulk & weight
  • 360 Protection : Your durable book style case wraps around the entire body of your Galaxy S8 Plus to provide 360-degree protection and security for your iPhone, cash and cards.
SaleBestseller No. 3
Best RFID Blocking Credit Card Holder, MaxGear™ Stainless Steel Card Holder Case for Travel and Work, Steel Metal Slim Wallet , Credit Card Case for Business Cards, Credit Cards, and Driver License
353 Reviews
Best RFID Blocking Credit Card Holder, MaxGear™ Stainless Steel Card Holder Case for Travel and Work, Steel Metal Slim Wallet , Credit Card Case for Business Cards, Credit Cards, and Driver License
  • Card Protector: The RFID protection card holder can perfectly block unwanted RFID scanners, includes RFID blocking technology to prevent unauthorized access to personal information, designed to block RFID readers from scanning your credit cards, debit cards,driver licenses, banking information, smartcards, RFID driver's licenses and other RFID cards
  • Lightweight: It easy to carry in your pocket or purse more easily than a money clip, to protect your card from physical damage, credit card cases are small enough to keep hidden in your front pocket or purse, offering you the perfect solution
  • Shiny But Sturdy: Using high quality aluminum and stainless steel materials from top manufacturer, it is constructed by strong metal which make it more durable than plastic; CAPACITY for up to 6 CARDS.

Last update on 2017-06-27 / Affiliate links / Images from Amazon Product Advertising API

-------------------------------------------------------------------------------------------------------------

end of post idea

-------------------------------------------------------------------------------------------------------------

Helpful article? Leave us a quick comment below.
And please give this article a rating and/or share it within your social networks.

Categories: Credit Cards

Write a Comment

Your e-mail address will not be published.
Required fields are marked*

Time limit is exhausted. Please reload CAPTCHA.