Whether you need a new credit card to earn some extra cashback or get those travel rewards, it’s difficult to pick the correct one in a market with so many options. Here are some tips to help you out.
Things To Consider
You’re rewarded a bonus simply by signing up for a credit card or for spending a minimum of $500 up to $3000 in your first 3 months; bonuses range from $500 cash back in the initial year to 40,000 flyer miles for availing the credit card.
Low Initial Interest Rates
Certain banks offer initial interest rates as low as 0% with their credit card packages however rates are expected to increase once the introductory period has passed.
Waived Annual Fees
Unless you are found to have ‘poor credit, some card providers do not require you to pay your annual fee in the initial year; take note that the more rewards your card offers, the higher you annual fees will be in the succeeding years.
Avail of a "free round-trip ticket" promotion or redeem frequent flyer miles by subscribing to certain bank cards tied in with airlines.
Opt for More Security
Look for credit cards that do not only have magnetic stripes but also EMV (Europay, MasterCard and Visa) chips, which facilitate proper authentications as well as house your financial data; the EMV chip and pin transactions helps prevent fraudulent activity.
Be Aware Of Catchy Clauses
Certain card provider’s award cash backs in a rotating fashion, each category in rotation corresponds to a season wherein given items are normally shopped for.
Rewards such as travel cards are only available for certain periods of time; be aware that you may take a while to earn the necessary points to avail of them.
Greater cash back rates normally require you to spend more money to get money back; they are also usually given at higher rates during your first big expense then tend to drop dramatically afterwards.
You lose reward points for a given month if you miss payments and in some cases you may need to pay a $25 reinstatement fee to have your points returned.
Some Of The Best Credit Cards
Chase Sapphire Preferred
Bonuses: 50,000 points for first 3 month purchase of $4,000 equal to a $625 travel bonus, 0% annual fee on the first year, reward rate of 1%
Bank Americard Travel Rewards
Bonuses: 20,000 point for first 3 months purchase of $1,000 equal to a $200 travel bonus, rewards rate of 1.5 per dollar; 0% annual fee
Discover it Cashback Match
Bonuses: matches cash back with your purchase at the end of the first year for card members, rewards rate of 1%, 0% annual fee