Often asking yourself what are the best credit card offers? Today, credit cards become the inseparable part of regular people’s life. Everyone now has a card or even two: in fact, credit card application rates are now below 50% for those who receive offers.
But if you’ve never had a credit, the choice between ample of option and possibilities may be puzzling or confusing.
You may start asking questions like: “Should I get a credit card? What type? How will it affect my credit?” And it isn’t so easy to answer at once, because you can’t afford to take the very first offer – unless you have troubles.
This article will help you to deal with applying, using, and benefiting from credit cards. No matter if you have three cards or don’t have a single one, this guide will be your perfect match.
Why Do You Want the Card?
And the first question arises – what is your main reason to obtain a credit card. Do you fall under one of these major categories?
Most people have bad or not enough credit to do anything. Getting a credit card to build credit is all about responsibility. So before getting a credit, get a card and use it just a little at a time to build a good history.
Investing in a Major Purchase
If you already have good credit and a solid history, but need a credit to afford a big purchase, you’re falling into this category. Credit card is a great opportunity to increase your available budget, but you must be sure in your income and its sources, unless you want to find yourself drowning in credit card bills with high interest rates.
And remember that you shouldn’t juggle credit cards for a long time, the risk is too high. It’s better to pay off your purchase quickly.
Taking Advantage of Rewards
When getting a credit card, you should also consider the rewards. For example, if you travel quite often, you shouldn’t miss the opportunity to use credit card providing additional miles. Cash back is a great offer, too. It may add up to 1.5-2%.
Those with Credit Card Debt
Sometimes it’s a smart decision to get another credit card, even if you have one. For instance, you can find a credit card with 0% APR to reduce the burden of payments. Once credit card debt starts to interfere with your ability to pay your other bills, it can be suffocating.
Important Credit Card Variables
To make your purchase of the credit card happy after, consider the five main components of the contract.
- The Annual Fee
This is a non-negotiable fee that is charged every year for the use of the card. If you pay your bills on time, it doesn’t go away. We don’t recommend getting a card with an annual fee unless you can advantage of the rewards (more on that below). Also, some credit cards come with introductory promos that don’t charge a fee only for the first year.
Interest rates are often overlooked because everyone thinks they will never have problems paying their bills. Most APRs are 25-30%, but some can go down to 11% if you have good credit history. Sometimes there is introductory 0% interest aimed at those who want to make a big purchase and pay it quickly before promo is still up.
It’s worth mentioning that rewards can be of every shape and size, so it’s up for you to decide which one is the most beneficial.
- Late Fees, Transfers, and Advances
Credit card companies often charge hefty fees for being late to pay the bill. If you want to transfer your money onto another card, be sure to pay a percentage-based fee, which varies from 3 % to 5 %. For those with multiple credit cards, it may turn into a constant loss of money. Other fees include cash advance fees, “overdraft” fees and foreign transaction fees.
Credit Limit Terms
Credit limits will vary based on credit scores. If you don’t have any credit or bad credit, you may need to go the secured route. Secured cards essentially allow you to set your credit limit by the amount you deposit.
Building Credit Tips
Building credit is the most important thing for everyone, regardless of their credit history. There’s no such thing as too much credit. For first-timers, building credit can seem like an elusive concept to take actual control of credit score.
The most obvious way to start improving credit before even getting a card is removing debts. There are two ways to do it: to pay them fully or to get them erased. You can legally delete your file with debts older than 7 years. But it doesn’t mean that they won’t be collected from you anymore. It is just not to impact the credit score.
Pay Bills On-Time & in Full
Sounds obvious, but having a history of full credit card payments that are never late is very good.
Save for Large Purchases
Don’t use a credit card to bail you out or enable a purchase that you probably can’t afford. If you need to buy something really expencive, try to save money.
How to Choose Best Credit Card Offers
When purchasing your first credit card or your third card, you want to receive long-term profit. Check out all the awards and offers possible. For those who do not have the best credit, but want more rewards: be careful.
It’s easy to get into the trap of spending more than you earn. Also pay attention to all these bonuses when registering on the table. Many of them are associated with unrealistic goals for most member states. Is it possible for you to spend thousands in the first three month to get a $ 150 bonus?
Just to be honest about how much you can afford to pay every month. This basic rules for using credit cards refers to any income or status. The few discounts and interest rates you pay also reject the biggest rewards.
Our Picks for Top Rewards Card
Now when we just touched the foundations of how to choose a credit card, it’s time for shopping. There are a number of big offers, indeed.
Here are some of the best credit cards for prizes and bonuses.
Capital One Quicksilver
This card will always be associated with the voice of Samuel Jackson. We also can recommend this card due to its reward, both for new and established accounts. You get a bonus of up to $ 150 for only $ 500 purchase in the first three months.
We think it is a really good bonus. It equals to eat out and having a few shows for most people. The Quicksilver card has 1.5% of the income paid per purchase.
This is a no-nonsense card that will make you to spend a fortune getting a reward. Your cash reward will never change. This is a long-term you’ll want to use.
The Best Travel Rewards Cards
Capital One Quicksilver was awarded with our first choice for cashback reward. There are several winners for the travel bonus. But we want to say it’s usually difficult to earn lots of travel points
The regular travel bonus will allow you to spend $ 3000 in the first 3 months and get 50-70,000 points for that. It is about $ 1,000 on average. If you can afford it, it’s a great bonus.
And now let’s continue the list:
Chase Sapphire Preferred
In the first three months, you get $ 50,000 after spending $ 4,000. It is obvious quite high, but it’s worth it.
Loyalty program of Chase’s Aircraft is the most popular. The points can be exchanged to perks and discount.
Do not confuse this card with a “Reserved” Sapphire card.
It costs $ 450 a year, and it can receive a $300 loan in a year.
Bank of America Travel Rewards
This card allows you to increase the travel point or mileage and convert them to your balance. You can shop around as much as you want, because you don’t need to worry about the different airline offers. This card comes with 25,000 bonus points spent over the first three months of 2,500 dollars. There are no annual fees and high rewards compared to most companies.
Good Credit Is Smart Money
Credit cards are useful when they are used with a good life management abilities of the owner. When you have a strong, well-planned future and financial control, a credit card is a great tool.If you live your life without a plan, than credit card is another variable. Always remember there is a huge chance to mess up your life with all these credit debts. But learning how to use money smart, is the key to future success.
Hope this guide of how to choose one from many best credit card offers will help you in future.