Thursday, February 2, 2023

What’s The Best Type Of Credit Card To Get

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Hotels Runner Up: Marriott Bonvoy Brilliant American Express Card

6 Best Credit Cards for Beginners 2020 Edition

Earn 75,000 Marriott Bonvoy bonus points after you use your new Card to make $3,000 in purchases within the first 3 months. Plus, earn up to $200 in Statement Credits for eligible purchases at U.S. Restaurants within the first 6 months of Card Membership. Terms Apply.

$450
Rewards Earning Rate Earn 6 Marriott Bonvoy points for each dollar of eligible purchases at hotels participating in the Marriott Bonvoy program. 3 points at U.S. restaurants and on flights booked directly with airlines. 2 points on all other eligible purchases.
Foreign transaction fee
  • Pros & Cons

Our choice for the best hotel credit card runner-up is the Marriott Bonvoy Brilliant American Express Card because of its generous welcome offer, annual credit, and yearly free night worth up to 50,000 points. New cardholders can earn 75,000 Marriott Bonvoy points after making $3,000 in purchases within the first three months. You’ll also receive up to $200 in statement credits for purchases at U.S. restaurants during the first six months after opening your account.

Each year the card offers a $300 credit for eligible purchases at participating Marriott properties. Plus, there’s a $100 property credit on eligible stays. While traveling, you’ll also enjoy unlimited visits to over 1,200 lounges in over 130 countries thanks to the complimentary Priority Pass Select membership.

Meet Our Credit Cards Expert

Ben Woolsey is Investopedia’s Senior Editor for Credit Cards. He has more than 30 years of experience in the financial services industry, including marketing for banking and financial institutions such as Associates First Capital and Bank One. Prior to Investopedia, he managed credit card content for CreditCards.com and Bankrate.com.

To see the rates and fees for the featured American Express cards, please see the following links:

Applying For A Credit Card

You can apply for a credit card:

  • on line
  • at a bank or building society.

You will have to fill in a form and the credit card provider will check your credit record with a credit reference agency, to see if you are credit worthy.

Your credit record shows information about how you handle your finances, such as your bank account and any other borrowing you have. It tells the provider whether you are a good payer and about any court orders you have had in the last six years. You can check your credit record yourself by contacting one of the credit reference agencies. There is a small fee.

For more information about your credit file and how to contact the credit reference agencies, see Being refused credit in .

When you fill in the application form for a credit card, be careful to make sure all the information you put is correct. If you are not sure about how to complete the form, ask the credit card provider for help. You will have to sign the form to say all the information is correct and any false information you give may be seen as fraud.

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Choosing The Best Credit Card Offer

While it may be tempting to try and discover the best credit card offer out there, the truth is no single credit card offer is better than another in every single category. Choosing the right credit card offer for you all comes down to which card is going to provide you with the most value. That answer will change based on your financial situation, spending habits, etc. When considering a credit card offer, asking yourself certain questions is the best way to determine how a card will fit into your finances. Think about these questions when a credit card offer catches your eye:

Whats my credit score?

The better your credit score, the more likely youll qualify for a credit card with excellent perks and terms. You can review your credit report by requesting a free copy from AnnualCreditReport.com and there are a variety of ways to check your credit scores for free.

If your credit score isnt where youd like it to be, work on improving your credit by taking action. Find out how to make a plan to improve your credit.

Once you have a good idea about where you are in your credit-building journey, youll want to find credit card offers that are in line with your financial position. Our CardMatch tool can help you see what offers you might qualify for without placing a hard inquiry on your credit report.

Do I plan to carry a balance?

Am I looking to pay off existing credit card debt or a large purchase?

What are my current spending habits?

Can I qualify for a sign-up bonus?

What To Consider When Comparing Credit Card Features

Credit Card Debt

Theres no such thing as a one-size-fits-all credit card. Each cardholder will have their own unique set of wants and needs and its unlikely that one credit card will tick off every box. When determining which credit card offers the best set of features to fit your must-haves, compromise is the name of the game. If youre hoping to land a card that comes loaded with premium frills but doesnt charge an annual fee, youll have to choose one or the other.

When narrowing down the type of card thats right for you, ask yourself which of the following features you hope to avoid and which you absolutely cant do without:

Fees

While its unlikely that youll be able to avoid paying credit card fees altogether, you can at least keep them to a minimum depending on the type of card you get plus all the extras youre willing to sacrifice in exchange. Not all credit cards charge an annual fee for cardmembership, but those that do typically offer better perks and consumer protections. These fees can range from $35 to as much as $699. Are annual fees worth it? That all depends on how much use youll get out of your cards specific set of benefits, which is why its so important to find a card that matches your lifestyle.

There are other fees to watch out for too. Frequent travelers may want to avoid a card that charges foreign transaction fees. Meanwhile, someone hoping to tackle an existing card debt via a balance transfer would want to avoid a card with a high balance transfer fee.

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Home Trust Secured Visa*

You might be new to Canada, have a problematic credit history, or are just starting out on your own financially. There are many reasons why you might need to build or rebuild your creditbut whatever the case, youll want to take steps towards achieving a healthy credit score. Thats where the no-fee Home Trust Secured Visa can come in. Unlike with conventional credit cards, its easy to be approved for a secured cardyou just need to be a resident of Canada and have a deposit. The Home Trust Secured Visa tops our list for its low minimum deposit and $0 annual fee. With this card, building your credit score is simple and affordable.

  • Annual fee: $0

How Much Do You Spend

If you use credit for the majority of your day-to-day spending, picking up a rewards credit card with an annual fee can be well worth it. Sure, youâll have to pay about $120 or so just to carry the card, but in return, youâll gain access to more rewards, bigger sign-up bonuses, and lucrative perks. Over time, those benefits combined can deliver far greater value than the annual fee.

For instance, the BMO World Elite Mastercard charges a $150 annual fee but offers three times the points on dining, entertainment, and travel purchases, two times the points on all your other spending, a 35,000 point sign-up offer, complimentary travel medical insurance, and access to airport lounges. Itâs easy to see how you could come out ahead with this card, even when factoring for the annual fee.

That said, if youâre new to credit cards or just casually use plastic to pay for a few purchases , odds are, you wonât earn enough rewards on a card to offset any annual fee. Additionally, if you donât value perks like travel insurance, a no fee card will be a better fit and help you avoid paying for perks that you won’t be taking advantage of anyway.

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Are You Paying Your Credit Card In Full

If you pay your balance in full most months, you may benefit from a rewards-earning account. Take a look at some of your spending habits and then consider finding a card that will reward where you spend the most. Here are a couple of options depending on whether you’re spending more on travel, groceries, or general spending.

For Dining And Transit: Bmo Eclipse Visa Infinite*

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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

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Small Business Credit Cards

These cards are designed for entrepreneurs and small-business owners. Their rewards and perks are tailored toward businesses, and they offer perks like free cards for employees and tools to track expenses. They’re a step below corporate cards, though when you apply, the issuer takes your personal credit history into account. See our best small business credit cards of 2021.

Citi Double Cash Card: Best Balance Transfer + Everyday Rewards Credit Card

Why we picked it: The Citi Double Cash touts an uber-competitive balance transfer offer in the form of an 18-month 0% introductory APR on transferred balances . Cardholders earn 2% cash back on all purchases , making it the top flat-rate, no annual fee cash back credit card on the market.

Pros: This card includes a bevy of easy redemption options with the Citi Double Cash, including statement credits, direct deposit into a checking or savings account, mailed checks or gift cards.

Cons: The Citi Double Cashs biggest drawback is its lack of sign-up bonus which many 1.5% flat-rate cash back cards, like the Capital One Quicksilver or Chase Freedom Unlimited, do offer so youll sacrifice a short-term boost for longer-term value when you apply.

Who should apply? If youre looking to transfer a balance, but want a card that ultimately earns rewards, the Citi Double Cash is right for you. Its unique rewards structure, which lets you earn an extra 1% cash back when you pay off purchases, serves as an added bonus for people who want to earn rewards in a way that encourages responsible use.

Who should skip? Anyone in the market for a sign-up bonus will want to look elsewhere.

Read our full Citi Double Cash Card review or jump back to this cards offer details.

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Check You Credit Score And Credit Report

The first step is to check your credit score and . There are numerous free resources available, such as from Capital One and Discover Credit Scorecard, where you can check your credit score. Plus many of these services offer insight into factors that affect your credit and offer advice on how to improve it. You don’t have to be a customer of Discover or Capital One to use these services.

FICO Score ranges

  • Very poor: 300 to 579
  • Fair: 580 to 669
  • Very good: 740 to 799
  • Excellent: 800 to 850

Once you know what range you fall in, you can use that information to fine-tune your credit card search. Consider cards that require credit equal to or less than yours. If you have good credit, consider cards that state good or fair credit requirements.

Even if your credit score falls within the good range that doesn’t guarantee you’ll be approved for a credit card requiring good credit. Card issuers look at more factors than just your credit score, including income and monthly housing payments.

What’s The Difference Between Visa And Mastercard

Here are 10 Types of Credit Cards to Suit Your Needs

This is one of the most common questions about credit card companies. Just about every place that takes credit cards takes both Visa and Mastercard, with only a couple of exceptions , so consumers are left wondering whether there’s a difference at all.

The most important thing to remember is that neither Visa nor Mastercard issues credit cards. These companies are just payment networks that process transactions. Most of the benefits that come with a card are provided by the card issuer, not the network. And since their acceptance rates are nearly identical, you’re better off focusing on the features of individual cards rather than which network they operate on. Read more about Visa vs. Mastercard.

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Important Credit Card Terms

Annual percentage rate : The annual percentage rate is charged for carrying a balance on a credit card, expressed as an annual percentage. With credit cards, the APR is the same as the interest rate.

Balance: The amount owed on a credit card, including all unpaid transactions and fees. The balance at the end of a statement period is called the statement balance.

Balance transfer: Moving a balance from one credit card to another. This is usually done when the new card offers a lower APR. Not every credit card offers balance transfers, and many of the cards with this feature charge a balance transfer fee.

Cash advance: Withdrawing cash from a credit card, most often through cash advance checks, using the card at an ATM, or by wiring money with the card. Cash advances usually have a higher APR and start accruing interest immediately, so it’s a poor way to use a credit card.

: A is a revolving line of credit issued by a bank and connected to a revolving line of credit. The cardholder can use their credit card for purchases and possibly other types of transactions, although this depends on the card.

The credit card’s spending limit. This can vary based on the type of transaction. On credit cards that offer cash advances, there is typically a lower credit limit for cash advances than for purchases. A transaction that would exceed a card’s credit limit will be declined unless the cardholder has opted to allow over-the-limit transactions .

How To Improve Your Credit Score

There are several steps you can take to try to improve your credit score. First, check your credit report to make sure there arent any errors that could be having an adverse effect. Paying your bills on time, every time will have the single biggest impact on your score. After payment history, the next biggest factor in your credit score is the amount of debt you have. Since credit reporting agencies dont have your income information, they use something called credit utilization instead of a debt-to-income ratio.

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Pine Labs And Onecard Announce Partnership

Pine Labs has partnered with OneCard to provide an extension in EMIs for OneCard credit card holders. OneCard is the countryâs first mobile-based credit card, while Pine Labs is a merchant commercial platform. Under the partnership, individuals can avail EMIs in the case of high-value purchases at Pine Labs PoS terminals across India. Pine Labs is targeting tech-savvy individuals that have opted for the OneCard. Individuals who make a purchase of more than Rs.2.7 lakh can convert the transaction into EMIs. Apart from India, Pine Labs has also started EMI payments in Malaysia.

14 September 2021

What Credit Card Should You Get

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Advertiser Disclosure

Advertiser Disclosure: ValuePenguin is an advertising-supported comparison service which receives compensation from some of the financial providers whose offers appear on our site. This compensation from our advertising partners may impact how and where products appear on our site . To provide more complete comparisons, the site features products from our partners as well as institutions which are not advertising partners. While we make an effort to include the best deals available to the general public, we make no warranty that such information represents all available products.

Editorial Note: The content of this article is based on the authors opinions and recommendations alone. It may not have been reviewed, approved or otherwise endorsed by the credit card issuer. This site may be compensated through a credit card issuer partnership.

Citi is an advertising partner

Getting a credit card can be a complicated process, especially if you dont know how to choose the right credit card.

Choosing the right credit card one that fits your specific situation can have a tremendous impact on your budget and financial well-being. The right choice can end up saving you hundreds of dollars annually.

Here we’ll walk you through several parameters and questions to help you navigate through the sea of card offers so you can apply for the right credit card for you.

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