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How to Select a Better Credit Card


There is an intensive contest between credit card institutions, which is an advantage for the consumers. You have lots of choices today, given that you have a strong credit history and credit ratings, for choosing any type of credit card such as ones, which offer frequent flier miles, merchandize, cash back and gift cards. There are different types of cards for different types of consumers and you can get one, best suits to your requirement of spending and fulfilling the need.

Steps for selecting a good credit card:

1. Look at the history of your expenditures along with the bills of credit cards, you previously possessed. Check the frequency of the payments made in full till now and the frequency of being in balance or credit. Keep in mind that whenever your balance is in credit, you are charged with certain amount of interest, which is usually minor rate. Do all shopping at appropriate rates and don’t fall victim to any kind of reward programs because these perks are not worth paying for the amount of interest you have to pay.

2. You must make up your mind, as which reward program is most beneficial for you. For example, if you travel often, you must be interested in a credit card that offers frequent flier miles or some points for purchasing a stay at hotels. You can save some money by searching for the card, offering more percentage on airline tickets, hotel bookings, rental cards and other expenditures related to traveling.

3. Moreover, note down the policy for expiry of frequent flying award points. Some cards offer miles instead of points. Therefore, if your spending is more, you are surely going to need a card that does not put a stop to the number of miles you are to earn.

4. If you are going to use your card for buying merchandize, gift cards, etc., you got to check out different cards, offered by different companies and compare them. Understand, what can be more beneficial for you; paying in cash for those items or paying through card and getting the reward points. Likewise, know well, if there is any kind of reward program on such purchasing or any gift cards, you are able to use in reality.

5. Keep count of all the cash back reward parts in different purchase segments and contrast them with the expenditure, you were anticipating to have in that segment, as you will find out that some credit cards offer minimum of 5 % cash backs on specific purchase segments such as restaurant meals, gasoline and grocery buying.

6. Remember you must have necessary information about the cards such as grace periods, annual fees, etc. and for that you should go through the fine print on every card. Make up your mind that either the annual fee is reasonable against the award points you are getting each year or not.