Friday, December 2, 2022

How To Choose The Best Credit Card

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Best For Cash Back: Capital One Quicksilver Cash Rewards Credit Card

How To Choose A Credit Card (Thatâs BEST For You!)

Earn $200 cash bonus once you spend $500 on purchases within 3 months from account opening.

1.5% cash back on every purchase, every day.
INTRO PURCHASE APR 0% for 15 Months
Balance Transfer Fee 3% of the amount of each transferred balance that posts to your account at a promotional APR that we may offer you. None for balances transferred at the Transfer APR.
Foreign transaction fee
  • Pros & Cons

This card earns an unlimited 1.5% cash back on every purchase with no caps on how much you can receive. Plus, you’ll earn a one-time cash bonus of $200 when you spend $500 on purchases within three months of opening your account. New cardholders will also enjoy no interest for 15 months with a 0% intro APR offer. There is no annual fee or foreign transaction fees on international purchases.

  • Simple rewards program with a solid return

  • No annual or foreign transaction fees

  • One-time bonus is relatively modest

How To Find Credit Card Deals

The savvy credit card user shops around for good deals, knowing that he or she can save a bundle in fees and interest charges. Thousands of financial institutions and other organizations offer credit cards.

The first step to take is to make sure that your credit is in good standing. If it is, you will have a lot of opportunities, and they will be on good terms for you. If your credit is not good, there are still opportunities, but they are fewer, and the terms are not as good.

Best Credit Card For Bad/rebuilding Credit

  • 19.99% interest rate on purchases
  • Not available to residents of Quebec

Do you have a less than stellar credit score thatâs making it difficult for you to get approved for new credit or loans? Maybe itâs because you were irresponsible with credit in the past, youâre new to Canada, or you hit a financial rough patch and had to go through a bankruptcy or consumer proposal. Whatever the reason, the Home Trust Secured Visa can help rebuild your credit.

The card has virtually no application requirements and youâre basically guaranteed to be approved. All your payment activity is reported to the credit bureaus, so when you use the card responsibly and make payments on time, you can gradually rebuild your credit score and get lenders to trust you with credit and borrowed money.

Like all secured credit cards, you must provide a deposit as collateral that will be equal to the size of your credit limit. You can provide a deposit of as little as $500 all the way up to $10,000. Your deposit will be reimbursed in full when you close your account, provided you donât owe any balance of course. The card doesnât have an annual fee and carries a standard interest rate of 19.99% . If you donât use the card at least once for a consecutive 365 day period, you will have to pay a $10 inactivity fee.

Why we like it:

Recommended Reading: Closing Chase Credit Card

Optional Credit Card Balance Insurance

When you apply for a credit card, you may also be offered credit card balance insurance, also called balance insurance. Balance insurance is optional insurance thats a separate product from your credit card. You dont need to buy credit card balance insurance to be approved for a credit card.

Balance insurance may help make credit card payments if you:

  • lose your job
  • become critically ill
  • die

Balance insurance has important limits on the coverage it provides. Read your certificate of insurance carefully and ask questions if you dont understand whats covered.

Best For Balance Transfer: Citi Simplicity

How to Choose the Best Secured Credit Card
Either $5 or 5% of the amount of each transfer, whichever is greater.
Rewards Earning Rate This card does not offer a rewards program.
  • Why We Chose It
  • Pros & Cons

We chose the Citi Simplicity as the best balance transfer card primarily due to its exceptionally long 21-month 0% APR introductory period along with consumer-friendly terms like no annual fee and no late fees or penalty rates.

While Simplicity offers no rewards, we don’t consider that a negative in the case of a balance transfer card, as rewards can tempt counterproductive additional spending when trying to dig out from debt. Citi does charge a $5 or 5% of the amount of each transfer , but the length of the introductory period justifies the extra cost in terms of savings potential.

  • Outstanding 0% APR offer for 21 months from account opening on balance transfers

  • 0% introductory APR offer on new purchases for 12 months from account opening

  • No late fees, penalty rates, or annual fees

  • High fee for balance transfers

  • 3% foreign transaction fee

Read Also: Cabela’s Club Black Card

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How To Use It Correctly

I believe that the above is enough information to help you figure out precisely how to pick the perfect high limit credit card for your specific company. Does this mean that you are done with the learning process and that you can now start using one of those cards the way you want to and hope that youll get the best out of it? Well, if thats what you want to do, nobody will stop you from it. There is a great chance that youll get the benefits of these cards even if you dont get any tips on how to use them correctly, because they were made precisely to help businesses grow and Im sure that growth is benefit enough for you.

In any case, it would be a good idea for you to learn a bit more about how to use cards like these and make the most out of them, since you definitely want everything to be as perfect as possible when your business is in question. The good news is that there is nothing complicated about using these. So, I am simply going to point out a few things that you should keep in mind when using them, with the actual goal of making sure that youre getting the best out of them.

Scaling your business requires you to have a good cash flow. So, when using a high limit credit card, it is important for you to find the perfect balance between generating cash and actually spending it, and thats something you should keep in mind at all times. You certainly get the significance of it.

Recommended Reading: Apply For Cabelas Credit Card

Costly Balance Computation Methods

Different cards might appear to offer the same APR, but the balance computation method might not be the same, which could cost you very different amounts. Again, credit card disclosures have to tell you which way the company uses to determine your monthly charge . The method that results in the lowest balance each month will be the cheapest card for you.

Do You Want To Use It On Vacation

How to choose a credit card

Most credit cards have international transaction fees, so if you plan on using one while on vacation with your school, you might want to consider an overseas credit card for schools. These credit cards dont incur fees if you use them in another nation, so theyre an excellent way to keep track of your vacation spending.

Using an international credit card, for example, can reduce the amount of cash you need to carry and eliminate the hazards of running out of money while traveling. However, you should avoid exceeding your credit limit or making late payments because you will be charged a fee.

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Pick The Type Of Card That Fits You Best

Once you have a better sense of where you stand from a credit perspective, you can shift your focus to which type of card makes sense for you. As you may already have noticed, there are a ton of cards to choose from, each with pros and cons depending on your goals, budget and credit standing.

Generally, the best card for you will fall into one of the categories below.

Choosing The Right Credit Card

To work out which is the right credit card for you, its important to think about how youre going to use it.

You want to use it for your day-to-day spending and will always pay the balance off in full.

Focus your search on cards offering rewards such as cashback or air miles.

You want to spend on your card but cant always pay off the full balance every month.

Look for a card charging 0% on purchases or, if none are available, focus on cards with a lower APR.

Youre hoping to reduce the cost of your existing borrowing.

Search for a 0% balance transfer card. Or, if youre planning to spend on the card too, see if you can get a deal offering 0% on transfers and purchases.

Pay off your overdraft.

Search for a 0% money transfer card. These allow you to pay cash straight into your bank account and can help to pay off your overdraft.

You want to use your card abroad.

Look for a card specially aimed at travellers. Make sure you look at what exchange rate and what fees you will be charged for foreign transactions and cash withdrawals.

You want to rebuild your credit score.

Search for a credit builder card.

Some cards come with benefits or rewards including:

  • air miles
  • cashback
  • free travel insurance
  • a concierge service, like a personal assistant over the phone anything from hotel bookings to ordering food for home delivery.

They usually come at a price, such as a higher interest rate or an annual or monthly fee.

Find out more in our guide Cashback credit cards

Read Also: Cabelas Visa Club Points

How To Cancel A Credit Card

To cancel a credit card, you can contact the issuer and ask them to close the account. Youll have to pay off any outstanding balance in full before the account can be closed. Keep in mind that closing a credit card can have an adverse impact on overall credit score. If youre thinking about closing a card that youve held for a long time, your credit history makes up a portion of your score so closing it can ding your credit.

You may want to consider asking the issuer if you can do a product change to a card without an annual fee or to one thats a better fit for your spending patterns.

Save Money On Credit Card Debt

How To Choose The Best Balance Transfer Credit Card

Balance transfer credit cards help you pay less interest on your debt. Like 0% intro APR cards, these cards have 0% intro APR offers that apply to balance transfers instead of purchases. You can transfer your balance from credit cards with high interest rates to a balance transfer card with a 0% intro APR.

According to research by The Ascent, the average credit card balance reached $5,897 in 2020. If you have that kind of debt, knowing how to choose a credit card with a balance transfer offer can score you big savings. Use our balance transfer calculator to see how much you could save.

Recommended Reading: Synchrony Shopping Cart Trick

Discover It Balance Transfer: Best For Balance Transfers + High

Why we picked it: The long 0% intro APR offer of 18 months on balance transfers , combined with the generous credit card rewards make this a great choice for anyone who wants to pay off debt faster while earning cash back rewards on everyday purchases.

Pros: This no-annual-fee credit card gives you the chance to earn 5% cash back on purchases in different categories each quarter, up to $1,500 in combined purchases per quarter . New cardmembers will also enjoy Unlimited Cashback Match: Discover matches all the cash back you earn at the end of your first year.

Cons: If you want to finance a large purchase, new cardmembers only have six months of the 0% intro APR on purchases .

Who should apply? If you have high-interest debt, this credit card could give you 18 months of interest-free payments . For those who need more time and have excellent credit, the low-interest payments will still help you come out ahead.

Who should skip? If you dont like the hassle of enrolling in quarterly categories to earn the cards maximum value, youll be better off with a flat-rate cash back credit card or an option that doesnt require you to keep track of bonus categories.

Read our Discover it® Balance Transfer review or jump back to this cards offer details.

Compare Credit Card Interest Rates

A credit cards interest rate may be an important factor if you regularly carry a balance. A balance is the amount of money you owe on your credit card. The higher the interest rate, the more interest you’ll pay on an outstanding balance. A lower interest rate card may save you money over time.

The interest rate may not be an important factor in choosing a credit card if you:

  • pay your balance in full every month
  • dont take out cash advances or make cash-like transactions

There are many credit cards with low interest rates available. Some low rate cards charge an annual fee. Even if there is a fee, a low rate card may be a better option.

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For Dining And Transit: Bmo Eclipse Visa Infinite*

While the TD First Class Visa Infinite covered above earns a solid flat reward on your everyday spending, the BMO eclipse Visa Infinite offers a strong boost in particular categories, which are broadly defined, too. Youll earn 5 BMO Rewards points on food and transit spending. That means in these categories youre getting a return of 3.5% per $1 when redeemed for travel . Other categories earn at a rate of 1 point per $1, which is just 0.71% in travel rewards. But theres a unique perk to make up for that: Youll receive an annual lifestyle credit of $50 to spend as you please. Also, travel insurance and new mobile device coverage are included.

  • Annual fee: $120
  • Welcome offer: Earn up to 60,000 points and a $50 lifestyle credit on the account.
  • Earn rate: 5 BMO Rewards points per $1 on food purchases, including groceries, restaurants and delivery, as well as gas and transit purchases including taxis and rideshares 1 point per $1 on everything else Income requirement: $60,000 personal or $100,000 household
  • Additional benefits: Travel insurance up to $1,000 in new mobile device coverage Visa Infinite privileges

How Many Credit Card Rewards Points Can I Earn

How to Choose the Best Credit Card!

Typically, credit cards do not have a limit to how many points you can earn. That said, there may be limits on how much spending will qualify for a category bonus. For example, the Amex EveryDay® Preferred Credit Card* offers 3 Membership Rewards points per dollar on U.S. supermarket purchases, but only up to the first $6,000 in purchases per year. Purchases over that amount will earn 1 point per point.

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What Is An Annual Percentage Rate

Each month, if you haven’t paid the balance in full by the due date, the credit card company applies the APR to the account balance to compute the finance charge for that month. The finance charge is the dollar amount you pay to use the credit.

Because a federal law, the , requires that the APR be calculated in a standard way, you can easily compare the cost of credit among various credit card companies. The APR is the best indicator of the actual interest you will pay. If different APRs apply , the credit card company must disclose those as well.

If a credit card company offers you a card with a less than stellar interest rate, it might be required to give you information about its decision. In any event, you can ask the credit card company why your APR is so high, and you can always get your and figure it out yourself. Armed with this information, you’ll be in a good position to figure out what you need to do to improve your credit history and get a better APR down the line.

Getting A Secured Credit Card

To get a secured credit card, you may have to pay a one-time application or set-up fee. This fee isn’t part of your security deposit. You may not get it back if your application is turned down. Your card may have an annual fee.

Check with your financial institution to make sure your deposit is insured. Your financial institution usually holds your security deposit. It may also make arrangements with another financial institution to hold the deposit.

Make sure you understand all the terms and conditions associated with a secured card before you accept it.

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