There is no single answer to which credit card will always be the best deal at any given point in time. For every individual, the ‘best’ card can vary from person to person. To further complicate this, the terms offered on cards by the major credit card companies vary from month to month with new promotions always coming along to lure card users to them. That said, there are some things you should always consider to ensure you are getting a good deal on your credit card as they come with a myriad of potential perks and benefits. This article will take a look at the two most popular reward programs and some other extras that should be considered.
Cashback cards can offer a good reward system for those not interested in air miles or retail shopping perks.
This reward program is very common and provides a mechanism for getting some of the cash you spend back. Some cashback cards offer a set percentage back on all purchases whereas others might offer a higher rate on specific purchases like online shopping or dining out. Cashback cards will payback typically 1-2% of the total amount spent, with higher percentages for specific types of purchases. This means that if you spend $2,000 a month in credit card purchases the annual reward can be nearly $500.
Travel credit cards allow a user to accumulate points they can use for many rewards such as hotel stays, flights, and access to exclusive airport lounges. Many of these cards will offer an attractive sign-up bonus, though this always needs to be compared to the rates charged to make sure the sign-up bonus isn’t being paid for in other ways. While dollar for dollar travel cards will typically pay rewards at a higher rate than cashback cards, be wary of an annual fee and high interest rates. The best way to take full advantage of a travel card is to pay your balance monthly and be sure to use the card actively enough to balance any annual fees.
Balance transfers are the best way to save money on interest payments when carrying a balance. The majority of credit card issuers will offer the option of 0% interest for up to 18 months when you bring the balance from an existing credit card to a new card. This can be useful when deciding to consolidate credit card debt or move to a new credit card that has preferable terms.
Concierge service is becoming a highly sought-after program and today many credit card issuers offer access to a service that can take care of errands and tasks for the user. This can include booking flights, making hotel reservations, or booking tickets for sporting events and concerts. If you have a specific request don’t be shy, many times a concierge service will accommodate whatever they can.
While often overlooked, certain cards will offer phenomenal insurance perks. If you need medical services while on vacation overseas or your car breaks down on the side of the highway, your credit card issuer may have you covered. While not considered by many this can be incredibly handy and lead to significant savings. Anyone who’s rented cars in the past knows that the insurance fees can cost as much as the actual car rental, and when using the right credit card these fees can be completely avoided.
When getting a good deal on your credit card be sure to take a look at these programs as well as others that are offered. Depending on your spending habits and your goals there is undoubtedly a card very well suited to your needs.