Not long ago, credit cards could only be issued by banks while nowadays, even supermarkets have their own financial products, including insurance policies, credit cards and so on.
When shopping for a credit card, it is crucial that you should choose a credit card that gives you a grace period, so you have a few extra days to pay off any outstanding balance. It may sound like an insignificant detail now, but this feature will help you avoid paying very high interest in case of late payment.
It also provides a best cushion for those who have a tendency to forget about their monthly payments or, for one reason or another, can not meet their monthly obligations. Therefore, try to steer clear of credit cards that do not offer a grace period even if you pay in full every month.
Because the credit card market is becoming increasingly competitive, certain credit card issuers offer some very interesting incentives so opt for a credit card that comes with incentives.
These incentives include loyalty points, cash backs, and charitable donations.
Credit Card Loyalty Points
Loyalty points will accrue more quickly if you use your card often and, depending on the card issuer, you may spend them on a variety of products or services.
Most of the time, these points can be redeemed to purchase any good or can be used as a reward to the customer where he or she is rewarded with a vacation or wins an item that is way valuable than the amount spent with the credit card.
Credit Card Cash Backs
If you find a credit card that gives cash backs and suits your specific needs, consider getting it. Many card providers, especially those in the UK and US, share the commissions paid by merchants to the bank for accepting credit card payments with the card holder.
The cash back is usually between 0.5 % and 2% of the net expenditure made on the card. It can be credited into your credit card or awarded to you by cheque. This is very beneficial to the card holder and I suggest that you out for a credit card that offers a high percentage in cash back.
Credit Card Charitable donations
It’s also advisable to look for a credit card that makes charitable donations on your behalf. Many are the times we forget to donate merely because the expenditure on the credit card does not allow us to do so.
Some retailers in many countries usually set up a place where customers can make charitable donations but most of them are usually money based, so if you prefer using your credit card because you don’t like the idea of going out with cash in your wallet, you won’t be able to donate anything.
There are credit cards that allow holders to withdraw money from an ATM and also to transfer the amount of money from a credit card to a new one.
Make sure that you keep all of the above tips in mind when looking for a credit card and, if you are not sure which one is best for you, every credit card issuer has a call center that you can call to ask as many questions as you like.