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With so many credit card companies introducing numerous offers to attract consumers, it is a challenge to make an intelligent choice and pick one credit card that provides benefits in the long run. Many offers will not be long standing and will be revoked after a certain time period, which makes the card less desirable. But cancelling a credit card leads to low credit scores, so customers continue with their credit cards. This is what credit card companies depend on, to keep up their customer base.
The first offer that a good credit card must offer is low interest rates. There are sometimes when the credit card bill cannot be paid in full, or a delay in payment occurs. Low interest rates will help in clearing off the balance quicker, and will utilize the money to pay for what has been bought, rather than interest rates.
The next offer that people should look for is no annual fee for credit cards. A credit card that offers lots of reward schemes and low APRs will usually makes up for it in the annual fee. There are cards that are packed with benefits and come without any annual fee, providing profits for consumers.
A good credit card will have some kind of reward scheme that benefits the customers, and provides perks at least once a year. Reward schemes like point systems, air miles, gas points, departmental store discounts, all provide perks to customers, but the best credit card will have at least one of these reward schemes coupled with competitive interest rates without an annual fee for the card.
Other factors like transaction fees for cash withdrawals, processing fees, application fees, and balance transfer fees also decide whether a card is beneficial or not. Every cash withdrawal will be charged a transaction fee or a processing fee, and the interest rate on the cash withdrawals will be higher than the credit card interest rate itself. Also, to decide if a card is good or bad, consumers must consider the grace period provided before the interest rates are charged on the new purchases made. When the old balance is not cleared off, any new purchase made will be charged interest rates, which will add up to the total amount.
Choosing a credit card keeping long term benefits in mind, will help in making the best choice. A long standing low APR, with a good reward scheme without an annual fee, or any hidden fees is the best credit card, one can get.