There are a lot of credit cards being offered to customers in the market. Each of these credit cards has its own terms and conditions, rewards and rates. In such a scenario, it is quite hard for customers to choose the best credit cards based on their income and expenses. The best credit cards are not necessarily the best rewards credit cards, but rather the cards that choose the customer the most. Here are some aspects that make some credit cards better than the others.
Low interest rates
Irrespective of what rewards a credit card offers, the best credit cards are the ones with the lowest interest rates, especially for those people who have high expenses and revolving debt. Low interest rates ensure that the outstanding balance doesn’t increase exponentially due to accruing interest. Rather, low interest rates keep the credit card debt under check making it possible to repay it off as quickly as possible.
No annual fees
For some good credit cards, the annual fee in the first year of opening the credit card account is waived off. This makes for a saving anywhere between 50 – 150 dollars which is quite substantial. Annual fees only add to the outstanding debt and if you are really not utilising the rewards on such credit cards, you are paying the fees for absolutely no reason.
No currency conversion fees or other hidden charges
If you are one of those credit card customers who travel a lot, currency conversion fees which is charged every time you swipe your credit card abroad, could hurt you adding to your outstanding balance. But, there are some good credit cards, where the fee is kept to 1% which Visa and MasterCard charge on all your transactions. Some credit cards are even better as they waive off that 1% as well so that for the customer it doesn’t matter if he or she is spending in their own country or abroad. There is no additional charge. Similarly, the best credit cards usually do not have hidden charges or penalties that add up on the outstanding balance.
Useful rewards without stringent caps
The best rewards credit cards are those where the rewards are useful and allow you to make a saving. A cash back offer for example, where 1- 2% of your monthly bill is given back to you in the form of a rebate on the next monthly bill, is very useful and doesn’t need you to take any troubles availing it. There are other rewards like discounts where you are required to spend stipulated amounts to avail them. Such rewards are of no use and in fact, lead you to spend even more.
Add on services
There are credit cards which offer round the clock assistance and a helpline. There are credit cards which offer travel insurance, roadside assistance, luggage replacement reimbursement and lost card replacement. These are very good cards because all these add on services prove useful at one point of time or the other.