Choosing a credit card could often be a very tedious task. It could be confusing with so many options and different features. Comparisons with each other could also put customers in a dilemma. There are a few reasons why one needs a credit card. Firstly, one gets rewarded for purchases, which doesn't happen in case of cash transactions. Secondly, one can go for online shopping and find lot of deals which are hard to get in real stores. Lastly, credit card purchases always have a record which you can refer and save for your accounting.
Choosing the right card once again depends on your priorities. Credit cards are given out by companies based on the salary bracket. Given the options, one must always give the foremost priority to the brand name and the company issuing the credit card. The bigger the brand name and the longer it has been in industry, lesser is the chance of fraud or hidden charges. Once you evaluate that, the best credit cards are those whose regular rates are the lowest. If you are someone who has lot of outstanding dues, then choosing a credit card that offers zero interest rate for the starting period of 18 months or an year is a better option. However, such a card comes with its fair share of disadvantages.
Once you are sure of the regular interest rate, rewards of the credit card are what most people look for. These rewards come in various categories. People who love travelling can choose credit cards which give free air miles for every purchase. Similarly, some credit cards have collaborations with major brands, malls and stores which let you take a discount for all your major purchases. Some credit cards have a cash back offer which means part of your money spent is returned to you. However, most of the cards have a cap on such cash back deals.
Another important advantage of choosing the right credit card is building of a credit history. Therefore if the interest rate of a credit card is high or the discount is less jeopardizing your monthly payments, it might spoil your credit history that will stay forever. Hence choosing a good credit card is extremely important. Apart from convenience of online shopping, it should have sufficient deals to let you make some saving. This will justify the risk of missing payments and paying high interests.