How do I Choose the Best Credit Card?

There are many credit cards available in the market and to choose the best one from the ones available becomes a tough task. The options are so many and all companies try their best to outdo the others in the market which makes the whole scenario very confusing.  The confusion often leads to the people taking wrong decisions. They do not understand which is the best card for them and succumb to the marketing people’s pressure and the promises made by them.

There are a few things which one should keep in mind while choosing a credit card. The first point to take into consideration is the annual fees. There are some cards in the market which levy annual fees which makes owning the card very expensive. The fees they charge is a lot and as there are many banks which still provide a card without fees so it is always a better option to go for the cards offered by these banks. With so many options it does not make any sense to use a card which has annual fees.

The second point to keep in mind is the interest rate. On the outstanding balance all cards charge an interest rate. Any cash withdrawn or any advance also attracts interest rates. The interest rate varies from card to card and thus one should be careful and choose a card which has a low rate of interest. The interest rate should be low for a long period of time and not for the first few months.

The next thing to keep in mind is the perks that come with the credit card. All cards come with many perks and a proper comparison of these is very important before one chooses a card. The perks range from waive of fuel surcharge, free groceries, air miles, discounts at stores, car rentals and free insurance besides the many others. These vary with cards and are also very valuable. One should look at all the perks that different kinds are offering and then decide on the one which will maximum benefit for you and your family members. There are also dividend and cash back offers which one should consider.

These three things are very important to look at and should be the basis of comparison between cards when one wishes to choose from the many options available.