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There are certain features of credit cards that have made them popular among users. These features can be summarized in to the following points:
- Credit cards facilitate cash less transactions.
- They are easy to carry and use.
- They give easy access to cash.
- They can be used anywhere and anytime.
While all the above points are the basic feature that all credit cards of any company have, there are some special features that help in selecting the best of the card from the lot.
Best credit card features
1. Interest rates: The interest rates that the credit company charges on every transaction are a very important feature when selecting a credit card. The terms and conditions that the company has decided, the charges levied for late payment and defaults, grace period offered for repayment of loans etc all are some of the factors that decide the annual fees charged by the financial institute.
2. Rewards offered: There are some credit card companies that offer reward cards to its users. These cards give users the opportunity to claim cash back, rebates on merchandise, air travel points etc. These are major attractions for the card users.
3. Most of the credit card rewards remain valid for a certain period of time only.
These reward points then expire if not used and the users will not be able to benefit from the rewards allotted. It is therefore necessary that the users when looking for credit card features also has a close look in to the grace period or the time limit for which the reward points remain valid. Some companies have the facility to roll over a part of the reward points to the next billing cycle. Therefore all those credit cards with lesser redemption limits will be advantageous for the users.
4. The interest rates charged by the credit card companies vary according to the purchase made, balance transfer and cash advances. The late charges levied for late payment, annual fees and other charges should be summed up to compare with the rewards that are offered by the credit card company. Sometimes these charges are found to be more than the rewards offered by the credit card companies.
5. Some financial institutes use the no annual fee incentive to attract customers. Care has to be taken that the card company is not charging surplus amounts in exchange for the no annual fee offer.