There are no specific rules to determine what is the best credit card on the market. Credit cards have different features, and the features that you prefer may be disliked by other credit card users. Everyone has opinions regarding which credit card is the best. But in the end, it is your responsibility to research various credit card features and determine the best card for your spending habits.
You Never Carry a Balance
Never carrying a balance is an excellent credit card habit to adopt. This is paramount to avoiding high consumer debts and the fastest way to acquire a prime credit rating. Since you’re the pillar of self-discipline and know the importance of paying your balances in full each month, why not reward yourself with a rewards credit card? These types of credit cards are perfect for frequent credit card users who never carry a balance. You can earn points on every dollar that you spend and then redeem these points for gift cards, cash and merchandise. And if you travel often, you can apply for a travel rewards card and redeem points for airline miles, hotels, cruises and car rentals.
You Pay Only the Minimum
If you pull out your credit card to pay for a high-ticketed item or a home improvement project, and you can’t pay off the balance in full, you need a credit card with a low interest rate. A good credit score and an excellent payment history opens the door to low-rate credit cards, but you’ve got to shop around or ask for a better deal. Don’t expect your credit card company to voluntarily reduce your present rate. Interest is how your credit card company makes money — the more they charge you, the more they earn. But this doesn’t mean that you can’t ask for a lower rate. If your card company can’t fulfill your request, start shopping for a credit card with fewer costs.
You Don’t Want an Annual Fee
Annual fees and reward credit cards go hand-in-hand. And typically, the more perks a credit card features, the higher the annual fee. These fees can be as low as $59/year or as high as $450/year. But here’s the thing, if you’re looking for a simple credit card for emergencies and infrequent purchases, you can opt for a basic, no-frills credit card and skip the perks and incentives. No perks equals no annual fee.
You Don’t Have a Credit Score
Looking to build your credit history and credit score? Don’t waste your time applying for an unsecured credit card with a major bank. There is a strict criteria for credit cards with these banks and you need a good credit history. The best credit card for someone without a credit history may be a secured credit card. There is no credit check with these cards, but you’re required to pay a security deposit as collateral. Limits are also modest, but they can increase as you demonstrate creditworthiness with timely payments.