Choosing the best credit card isn't as complicated as some people make it seem. Granted, finding the best credit card does require doing a little research and a little arithmetic, but it's a fairly straightforward process. With credit card deals and offers changing almost daily, it's impossible to point at one credit card and say "This is the best credit card for your wallet." Rather, there are specific traits to look for when comparing credit cards - and the most important traits vary depending on how you intend to use that credit card. If you're looking to apply for a new credit card for any purpose, here are a few rules of thumb that will help you choose the best credit card for your purposes.
- Which is the best credit card for everyday purchases?
Not long ago, our parents would have been aghast at the thought of whacking things like groceries and petrol onto a credit card. Times have changed. With rewards credit cards and cash back credit cards paying you for using them, it only makes sense to use them wherever possible. The best credit card for everyday purchases is the one that offers you the highest rewards for using it. Of course, you should also be certain that you're not being charged annual or monthly fees for using the card - those can offset cash back and rewards points rather quickly. Some extra points to consider:
- If you shop a particular store or brand consistently, is there a credit card that gives you extra cash back or rewards points for using those stores and brands?
- How is your cashback attributed to you? Do you get an annual cheque? Must you put in a claim for it? Choose the best credit card that offers you the easiest method of getting your cash back. - Which is the best credit card for long term purchases?
If you're intending to use your credit card to purchase high ticket items and pay them off over several months, then the best credit card is one that offers a low rate of interest on new purchases and balances. Look for credit cards that offer a low APR - and be certain that you make your payments on time to keep that low APR. - I travel overseas a lot. Which is the best credit card for me?
If you travel a lot and are prone to use your credit card for cash advances and overseas purchases, be sure that you check the terms of using your credit card outside the UK. Most credit card companies charge you extra for currency conversion, and many charge you an additional fee for ATM withdrawals outside the UK. Often, the best credit card for use outside the UK won't have very attractive terms for most other uses. You may do best to keep one credit card strictly for use overseas. - Which is the best credit card for balance transfers
Again, the balance transfer offers change frequently. The only way to determine the best credit card to use for balance transfers is to compare credit cards with each other and choose the one that offers the best all around deal. Be sure to check the conditions for keeping the low balance transfer rate, as well as the length of time that the low rate applies.
It's easy to compare offers to find the best credit card so there's no excuse for not doing so.
