Credit Card Comparisons: Find a Credit Card that’s best for you
Credit card comparisons when you apply for a card are essential if you want to save on your credit card costs. By selecting the card features that will benefit you the most, you can save hundreds or even thousands of dollars each year.
Cash Back Credit Cards: These cards actually pay you to use them. Generally. cash back cards offer up to 1% back on regular purchases. Some offer up to 5% cash back on specific items such as gas, groceries and utilities. These specialty items vary between credit card companies. So be sure to compare credit cards to find the cash back features that you will use most often.
Reward Programs Cards: Rewards cards give you points for your purchases which can be redeemed for merchandise, airline tickets, hotel stays, gift cards and more. Some offer multiple points on select purchases. Again it is wise to make credit card comparisons to find the reward features that are the most valuable for you. “Reward programs can be great deals for consumers, but the key is to shop around, make smart use of the rewards and avoid pitfalls,” according to FDIC Community Affairs Specialist Lekeshia Frasure.
Balance Transfer Credit Cards: Are you paying too much in interest on your credit card balances? Then it is time to apply for a balance transfer card. These cards come in two types:
0% balance transfers and purchases. These are always introductory offers that last for a limited period, usually from 6-15 months. They are a great way to avoid interest costs while you work on paying down your balance. Be aware that when you make a transfer, you will still have to pay a balance transfer fee, which is usually 3-5% of the amount transferred. Cards offering 0% on purchases are especially useful if you are about to purchase a high-ticket item. They give you an opportunity to extend your payments without paying interest charges. Finally, not all cards in this category offer 0% on both balance transfers and purchases. Make sure you choose the card with right benefits.
Low fixed rate balance transfers and purchases. These cards offer a permanent low, fixed interest rate for the life of the balance. They can be a great boon if you are paying high interest rates on your current card.
Travel, airline and hotel credit cards: These cards are a variation of the reward points theme. Travel credit card purchases earn points toward free airline tickets, hotels and vacation packages. Their advantage is that you usually have the freedom to choose from a broad range of airlines or hotels when you are planning your travel. Airline credit cards earn points for a specific airline. If you already are a member of an airline mileage program, then you can more quickly earn points for free flights. Hotel cards have a similar theme as airline cards, putting your earned points towards free hotel stays.
Cards for People Whose Credit Needs Improvement: If your credit needs improvement, or you have no credit, then you will pay higher interest rates, and you may need to pay an annual fee for your credit card. You might need a secured credit card, requiring that you keep a savings account that can be used as security in case you default on your bill. The fees and interest rates can be steep, but this should not discourage you from applying for a credit card. Use your card regularly, making sure that you make all your payments on time for your credit card and all your other bills. This will improve your credit score, and after some time, you may qualify for an unsecured card with a lower interest rate and no annual fee.
For a better understanding about how to find a credit card that saves you money while serving your needs, consult a credit card guide. Why should you take an hour of your time to make credit card comparisons? That hour could save you several hundred dollars a year in lower costs and better benefits.
Related reading:
Secured credit cards – Secured credit cards are the solution for everyone trying to rebuild their credit rating. Prepaid credit cards are perfect for people with bad credit or no credit at all.