In this cashless era, credit card is an essential thing to carry wherever you go. Therefore, you need to choose carefully based on what you need. Whether you are a traveller, student, or businessman, you can get all the necessary information in this article. For instance, the APR (Annual Percentage Rate), the bank interests up to their deals and benefits. In other words, everything will be compared in details here.
What is a credit card?
Credit card is a payment card issued for users that can be used to pay for goods and services. Just like debit card, credit card lets you pay right when you purchase something. However, with the debit card you spend the money directly from your bank account, where the credit card lets you borrow money from the issuer. In other words, you are in debt for what you buy using the card.
The provider usually sets a limit on how much you can spend using the card issued. Further, the limit depends on what type of card you are eligible to. The higher your limit means the higher your payment capability.
https://pagead2.googlesyndication.com/pagead/js/adsbygoogle.js
(adsbygoogle = window.adsbygoogle || []).push({});
You can apply for a credit card online or at a bank. After that, when your card is ready to use, you are obligated to pay an interest. It is called APR (Annual Percentage Rate). However, not all banks charge you APR. Some banks also have no APR that will let you pay the right amount of what you’ve spent. That is to say, there’s no additional fees. Therefore, it’s important to compare every credit card wisely to ensure you get the best rates.
How credit cards work?
In terms of credit cards usage, you need to pay off the borrowed money in arrears. For instance, you pay for January’s bill in February, February’s bill in March and so on. However, this doesn’t mean you have to pay the full amount of what you use within the month. In other words, you have to make some kind of repayment each month at least in minimal amounts. But, paying in minimal amounts means you will stay in debt for a long period.
It is also important to pay in time to avoid any additional fees because of the late payment. The lack of payment consistency will give you a negative impact. It won’t only give you a bad reputation, but also make you harder to borrow money in the future. So, it’s best to use your card wisely.
https://pagead2.googlesyndication.com/pagead/js/adsbygoogle.js
(adsbygoogle = window.adsbygoogle || []).push({});
Types of credit cards
There are many types of credit cards, vary from the standard to the specialty ones. For instance, standard type usually has the ability to transfer card balance onto the other card with low interest.
This type is the most common and are universally available from most banks and financial groups.
The other type like rewards credit card offers you cashback and reward points. This type allows users to earn a bonus for making purchases with the credit card. There are seven major types including cash back, general reward, hotel or travel point, retail rewards and gas cards. Each of them gives rewards for users who use the credit card often which will be accumulated to get redeemed.
For travellers, airline mile credit cards are also very engaging. This because the card type offers reward points that can be redeemed for plane tickets.
On the other hand, if you had bad credit in the past, you can still apply for a credit card. This usually happens because your credit score is less than satisfactory, so you need to rebuild the poor histories. This type of credit cards require collateral for a security approval.
Further, there’s also a special credit card that is made for business and student with many enticing rewards and features. For example, the business credit cards offer special business rewards, expense management reports and higher credit limits. On the other hand, student credit cards are mostly used to help them build a credit history.
All of them are available in three biggest providers : Visa, MasterCard and American Express. The three of them act as the bridge between the retailer and the bank. You can use those three networks in almost everywhere.
https://pagead2.googlesyndication.com/pagead/js/adsbygoogle.js
(adsbygoogle = window.adsbygoogle || []).push({});
How to compare the credit cards?
- Make sure you choose the right type of card. There are three major classes : secured cards, regular cards and premium cards. Secured cards require a security deposit while the regular cards have additional features with no security deposit needed. Lastly, premium cards offer higher limits with extra beneficial features like travel insurance and more.
- Do a thorough research about the card grace period. It is the number of days you have to pay for your bill in full.
- Learn about how the finance charge calculated. Companies usually use several methods to calculate your amount due and this can make a big difference for users.
- Keep in mind about the card annual fees, balance transfer fees, late payment fees, over the limit fees and more.
- Check if the card has a low interest in cash advance feature. Who knows if you need an emergency money but has no one to ask for.
- Note the credit limit that will be given for each card. It will be determined by your credit history or it may be a standard for everyone.
- Look for the best bonuses and rewards programs. These will surely benefit you in some way.
- Pay attention to the interest rate (APR). Every credit card has a different interest rate and you can choose based on your capabilities. Avoid a fixed rate card if you don’t have a stable economy condition. To clarify, the federal law allows card issuer to change the rate with just 15 days prior notice. Whether it will go high or low, you don’t have the authority to control the change.
https://pagead2.googlesyndication.com/pagead/js/adsbygoogle.js
(adsbygoogle = window.adsbygoogle || []).push({});
What are the requirements to get a credit card?
You must be at least 18 years old to apply for a student credit card or 21 years old for the standard ones
You need to proof that you are part of the country citizens by showing your Social Security number
Make sure that you have a source of income and you can proof your finance responsibility
To apply for the standard credit cards, you need to have a positive credit history. If you can’t proof this, you can still apply for credit cards but with the secured type. This type need a collateral to secure your payments.
https://pagead2.googlesyndication.com/pagead/js/adsbygoogle.js
(adsbygoogle = window.adsbygoogle || []).push({});
TOP 10 US CREDIT CARDS
|
No. |
Credit Cards Name |
Short Descriptions |
What They Offer |
Advantages & Disadvantages |
|
1. |
Chase Sapphire Reserve |
Chase Sapphire Reserve is a credit card that is good for luxury travelers because they offer bonuses that are very enticing. For instance, they give annual travel credit, 3x points for travel and dining and many more. |
|
Advantages :
Disadvantages :
|
|
2. |
Chase Sapphire Preferred Card |
Chase Sapphire Preferred Card is a credit card that was designed for travelers. Unlike the Reserve ones (refer to no. 1), this card offers lower annual fee with 2x points for travel and dining purchases. |
|
Advantages :
Disadvantages :
|
|
3. |
Citi Double Cash Card |
Citi Double Cash Card is a credit card that tops the Forbes list because of their cashback rate on all purchases with no annual fee. |
|
Advantages :
Disadvantages :
|
|
4. |
Blue Cash Preferred From American Express |
Blue Cash Preferred is a credit card issued by American Express. This card is highly recommended for everyday use because of the huge rewards rate. |
|
Advantages :
Disadvantages :
|
|
5. |
Discover It Cashback |
Discover It credit card is best for people who likes to get big rewards on everyday purchases in few categories. For instance, in Amazon online shop platform, grocery stores, gas stations, restaurants and the others. |
|
Advantages :
Disadvantages :
|
|
6. |
Citi Diamond Preferred Card |
Citi Diamond Preferred Card is the best card for balance transfers. You can get 0% intro APR for balance transfers and purchases within the first 18 months which is one of the longest than the others. |
|
Advantages :
Disadvantages :
|
|
7. |
Blue Cash Everyday From American Express |
Unlike the Preferred ones (refer to no. 4), Blue Cash Everyday card offers standard cashback for daily use at U.S. supermarkets, gas stations, select department stores and the others with no annual fee. Therefore, the card is recommended for people who shops often because it gives you captivating perks to begin with. |
|
Advantages :
Disadvantages :
|
|
8. |
Chase Freedom Unlimited |
The best feature that is kind of appealing from Chase Freedom Unlimited card is their cashback rewards. This because they give many bonuses and cashback offers including grocery stores, travels, dining at restaurants, drugstores and the other purchases. |
|
Advantages :
Disadvantages :
|
|
9. |
U.S. Bank Cash+ Visa Signature Card |
U.S. Bank Cash+ is a Visa credit card that offers cashback up to 5% in wide variety of categories. So, this card is best for everyday spending. |
|
Advantages :
Disadvantages :
|
|
10. |
Capital One Quicksilver Cash Rewards Credit Card |
Capital One Quicksilver is the best cashback card because it offers no categories and limitations which make everything become simple. |
|
Advantages :
Disadvantages :
|
https://pagead2.googlesyndication.com/pagead/js/adsbygoogle.js
(adsbygoogle = window.adsbygoogle || []).push({});
AETOTAL.COM 