Credit Card Comparison Tips
In my last article on credit cards, indeed credit cards can be friends and allies in achieving financial freedom if you know how to use them properly. But without discipline, it can be your worst move to avail them as they can literally be a ‘blackhole’ that can drain your finances.
Being in a good credit standing, I have received a lot of offers from credit card companies. Usually, I will be interrupted at work by credit card telemarketers and they will offer me various credit cards asking me if I want to get a free credit card from them. Then they will start marketing and will tell each and every benefit of availing that credit card.
In the United States, there were definitely a large number of credit card companies and the problem lies on getting the best credit card. Which credit card has the best benefits? Which one provides the best rates?
Instead of talking to different credit card telemarketers and relationship managers of these credit card companies to compare, all you need to do is visit credit land and compare credit cards by cash rebates, point rewards, and hotel and gasoline rewards.
Here are some of the best things to consider when choosing the best credit card:
Interest Rate. Many credit card companies have an initial interest rate of 0% for a certain period of time. How can credit card companies profit from it? The catch is after the initial period, the interest rate will revert back to its higher standard rate. It will be an advantage for you if you have a shorter payment period. However, if you have a longer payment period, say for example, more than a year, then standard interest rates should be one of the things you should consider. Compare and scout for the least standard interest rate. Don’t be blinded for initial introductory interest rates.
Penalty Rate. Credit card companies implement finance charges and penalty fees just in case you missed your due date in paying your bills. Compare and scout for the least penalty rates and least finance charges.
Foreign Transaction Fees. A lot of credit card companies charge their users if they used their credit cards in other countries. Compare and scout for credit cards that do not have an add-on foreign transaction fee for every purchase that you made out of your local country.
Annual Fee. We all know that credit card companies also impose annual fees which are automatically debited in our credit cards. Therefore, to find the best credit card, we should compare and scout for the one with the least annual fee. Alternatively, if we have a good credit standing, we may request for a waiver of the annual fee and if they cannot waive it, then threaten them to cancel your credit card!
Cashback. Some credit card companies have cashback features as benefits to the users. Compare and scout for the credit card with bigger cashbacks as an advantage.
Rewards and Discounts. As an added benefit to the users, credit card companies tie up with several other merchants to provide users certain rewards and discounts with them. Compare and scout for the credit card with the minimum purchase or minimum conditions to avail of these rewards and discounts. Also consider the number of merchant establishments where you can possibly avail these rewards and discounts.
Credit Limit. Lastly, compare also the credit limit especially if you are a shopping addict. Just be sure though to watch for your due dates to avoid accumulating heavy credit cards debts.
These are the things that you need to compare when comparing credit cards. Moreover, you can also learn the latest news about credit cards like debt collection laws, credit card score and debt management programs.
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Tagged with: credit cards • money
Filed under: Personal Finance
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8 comments
This blog’s is becoming popular each time I visit bro. On the topic - I used to have about 5 credit cards, but then the headache in managing debts so I decided to trim it down to just one gold card now.
Banks always call and offer new cards but I prefer not to be enticed. Credit cards are probably one of the best tools for banks to achieve their goals - make people buried in debts.
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Thanks bro. Just now, a credit card offered me another card. I agreed because of the free Calvin Klein shades. But I won’t use it and will just leave it at home. For the annual fees, I will cancel it just before they charge annual fees.
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nakaka temp talaga gumamit ng credit card. I have 4 CCs na, buti natuto akong itago yung 3 at gamitin yung 1 lang. Hehe. Bigla na kasing dumarating yung ibang credit cards pag nalaman nila history mo sa isang credit card. naku pow. wah!
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Hey, that look very interesting!
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Jehz, I agree. We must know how to discipline and manage our finances. Otherwise, we will be buried in debts. A friend of mine once had a huge amount of credit card debts amounting to more than 100K in 3 credit cards. Good thing he’s now paying it diligently and has reduced it on a manageable level. He said he will cancel all credit cards once he successfully paid them. Na-trauma na ata. Ayaw na sa credit cards.
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Informative post. I have four credit cards and I don’t use it often. Just when I short of cash or when we buy gadgets or appliance with 0%.
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One of the easiest ways to compare credit cards is to use a site that lists the cards fees and charges side by side so that you can see the differences at a glance. It can save you a lot of time.
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