Regardless if you have no credit profile or are established, there’s likely a credit card perfect for you on the market. Your credit, financial circumstances and debt status will dictate the cards that you qualify for.
How you plan to use the card is also integral in choosing the best credit card. It can be for daily spending, frequent holiday or business travel, or an entirely different purpose.
With the vast range of cards, it’s easy to become overwhelmed with the choice. Fortunately, sites like Kredittkortinfo.no inform prospective cardholders, allowing for easier decision-making.
Types Of Credit Cards for Different Purposes
Your objectives must be weighed when searching for the best credit card, whether you want a rewards card, one to help repay accumulated debt, build a credit history or raise your credit score. Here are types of credit cards credit cards to consider based on which you qualify for.
Fixed rewards credit cards
With some credit card types fixed reward rates are offered on all eligible purchases, any category. That means regardless of how you use the card, it will provide a consistent redeemable value like point, miles or cash back in benefits.
The cards with bonus rewards for cardholders with certain spending that they primarily use their card for like dining, travel, gas come with a higher-value benefit in these categories. This allows you to get the most from your buying habits.
Build credit
Those with no credit profile or a limited one will be ineligible for certain reward programs, but several cards are designed to help cardholders build a credit profile and raise their scores. Some include the following.
Secured cards
When you have no profile or limited history, a secured card can help establish credit and develop a score. These cards require you to make a deposit upfront for an amount the issuer approves as a credit limit.
If you can’t keep up with the balance or don’t pay the installments, the merchant keeps the deposit to recover the debt. If you do well and show the issuer financial responsibility, you can graduate to an unsecured card.
Student card
Prospective cardholders of at least 18 years of age who are enrolled in college can qualify for a student credit card that allows new members to build a history or establish a score without paying a deposit initially. Some cards are available with no annual fee and have reward options.
Low APR
Some cards allow lower APR to transfer high-interest balances and make large purchases for a promotional period.
Balance transfer cards
A balance transfer card offers cardholders a low or no introductory time period to transfer high-interest balances and pay them off before the promotional period ends. This is a roughly 12-18-month time frame. Your money goes wholly on the principal saving a considerable amount and getting the debt paid faster.
Some cards offer 0 percent interest for large purchases that can then be paid off in that time frame. The thing to remember is that once this promotion expires, the rates will go back to a standard percentage.
What Features Are Most Important
Aside from the types of cards that you have to choose from, several features are offered with each and are equally important to consider. Go here for tips on choosing a credit card. We’ll explore the features more in-depth for fully informed comparisons.
Less interest
For eligible cardholders, like those with excellent credit, getting an interest rate below the average is possible. This is only really relevant if you plan to carry a balance from one month to the next instead of paying it in full every month.
The ideal card for this situation would be a low or 0 percent introductory APR. The 0 percent promotional APR only lasts for a brief time frame and then can go to a low or average rate.
But ideally when you have a credit card regardless of your credit score or the interest rate, it’s recommended to keep balance low and manageable so the debt can be repaid each month. This means no interest will accrue.
Cash-back rewards
Some cardholders prefer to earn rewards for what they spend. Depending on the card, rewards are offered at various rates for an array of eligible purchases.
The annual fee
Some card issuers charge an annual fee, an amount you pay each year in order to keep the account functional regardless of the usage.
When looking at a rewards card with an annual fee, it’s essential to decide if you will take full advantage of the rewards, enough so the yearly fee is
Avid travelers will find a travel reward credit card an excellent choice. Some of these cards are associated with a specific provider while others offer rewards that can be used with different travel providers.
In this vein, you can change your miles into cash or redeem these as statement credit for purchases like lodging, fuel, airline tickets, dining, and more.
Online banking
Online banking offers an organized approach to managing cards and the installments. Cards that offer online resources like interactive tools, including financial calculators, plan purchases, track spending, plus mobile apps – these are the cards to consider when looking for the best choice.
Banking apps can be used to pay the monthly installment or set up autopay to ensure there’s never a delayed or missed payment. Most issuers charge late fees for payments that go beyond the due date and exceed the grace period.
Flexible rewards redemption
Some cards allow redeeming rewards however you like, whether you choose to redeem them for a cash deposit in your checking or savings or if you prefer a statement credit. Some cards allow cash back at checkout when shopping with an online vendor, as a charitable donation, or toward a gift card purchase.
Applying For Multiple Credit Cards
Many cardholders find it challenging to select the best card and wonder if applying for multiple ones might be worthwhile. It’s better to check eligibility before formally applying for any card by prequalifying. This results in just a soft credit pull by the card issuer instead of a hard pull. This won’t impact your credit score.
It will give you an idea of which you’ll likely be approved for, and then you can apply for the ones you want to add to your portfolio. With applications, issuers will do hard credit pulls, resulting in a temporary drop in the credit score.
The score will rise relatively quickly when making consistent, on-time payments, keeping the balance manageable, and not carrying the balance to the next month.
Final Thought
Once you find the best credit card to suit your needs and purposes, you’ll receive an agreement with the terms and conditions. It’s vital to read this carefully including the fine print so you understand each aspect of the card including the rates, fees, restrictions involved.
The more familiar you become with your new credit card, the greater value you’ll gain with its use.
