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What are the factors that determine best credit cards?

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Finding good credit card deals are not as easy as it seems. Though most people assume they have found the best credit card to adorn their wallet, it will not be long before they regret their folly. Finding the right credit card is not just dependent on your instinct. You need to do some groundwork and understand the various aspects of the credit cards before you choose the best credit card that meets your requirements. Let us take a look at some of the factors that need to be given a thought before considering the right credit card deal.

Annual fee

The annual fee is a fee that you will have to pay to the credit card lender in order to use the card for the next 365 days. The annual fees on standard cards are reasonable, but the fees for credit cards that offer rewards are on the higher side. Most often than not, credit cards that offer low APR also have high annual fees. However, there are lenders who do offer some great perks on their cards without charging a dollar as annual fees. It is these cards that can be classified as best credit cards.

Annual Percentage Rate

The annual percentage rate is the rate of interest that you will have to pay on the card for the purchases made using the card. If you decide to pay the amount used on the credit card before the grace period ends, you will not be charged any interest. However, opting to pay over a few months will attract some interest on the outstanding balances. Cards that offer reasonable rates of interest (below 10 percent) can be classified under best credit cards. But, cards that have high interest rates should be avoided since such cards can lead to insurmountable debts.

Rewards

When choosing the best credit card, you need to keep in mind the rewards being offered by the cards for the purchases you make using them. Today, almost every card that is available offers some reward or the other to encourage customers to continue using them. The best credit cards with rewards are the ones that offer rewards such as cash back, discounts, travel and merchandize without charging high fees.

If you are keen on getting nothing short of the best from the credit card industry, it is imperative that you take these factors into consideration and make your choice.

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