Most people out there need a credit card. It is not always the case that you need a line of personal credit, but credit cards are essential when you are shopping online or purchasing through an online merchant. They are also particularly handy when you are traveling, plus they are also a useful backup – for those emergency situations when you do not have any cash on you but need to pay for something essential.
But which credit card is best? How do you know which credit card is right for you? There are so many different offers out there, so many companies are anxious to give you a credit card that it can be a bit overwhelming and confusing.
Here are some hints and tips to help you make the right decision as we look at what are the best credit cards to have.
Which is the best credit card to get?
Your main decision really is whether to get a standard credit card or a secured credit card. The difference between the two is that a secured card (sometimes also known as a debit credit card) is only spending your own money – no credit is actually issued. Standard credit cards give you a personal credit limit (that is set by the financial institution at the time that the card is issued). This enables the user to spend up to the set limit. Any expenditure that is not paid off in full will incur a credit interest rate that will be added to the overall amount owing.
Which are the best credit cards to have?
The best type of credit cards are the ones that give you benefits over and above just a personal line of credit. Credit cards that are linked to reward programs can be very effective ways to accrue air miles or other reward options while you are going about your day to day shopping or expenditure. The downside with this type of card is that they can sometimes attract high fees or charges so they are best utilized when you are able to pay off the full amount outstanding each month before the interest charges are applied.
So next time you are thinking about switching credit card providers, or just overhauling your personal finances, remember to think about your personal circumstances, think about your financial objectives, think about what you need, and which credit card is best for you.