Many financial experts agree that credit cards are a must-have for all savvy consumers, and for many good reasons. A credit card can be good for your financial well-being if you use it well since it can help you access emergency cash, build credit, and track your spending, among other reasons.
However, choosing the right card for your needs can be challenging. There are numerous cards available, each offering a wide range of rewards, protections, insurance, and unique perks. As such, the best criteria for selecting a credit card should always be your needs and spending habits. Here are some of the best credit card options to consider.
Balance Transfer Credit Card
A balance transfer card is a type of credit card that offers low-interest rates for a set period of time, which can last up to 19 months. The idea behind this card is to transfer your credit card balance from a card with a high-interest rate and pay the balance off on your new card before the promotional period expires. This way, you’ll enjoy a lower interest rate when paying back your balance. Finding the right balance transfer card for your unique needs is undoubtedly essential if you want to enjoy potential savings. Leading personal finance websites such as Wealth Rocket can help you find a great balance transfer card.
Wealth Rocket is a personal finance platform that offers its readers valuable advice on investment, savings, budgeting, insurance, taxes, and credit card usage. Their article on the best balance transfer credit cards highlights some of the best credit cards you can consider for a balance transfer. You’ll typically require a good credit score and meet the minimum income requirements for the card to qualify for one. The CIBC Select Visa is one of the best cards you can consider if you’re looking for a balance transfer card. This card offers zero interest on transferred balance for up to 10 months. Also, you’ll only be able to move half of your credit limit with this card, and it’s also available for new cardholders who apply online. The Scotiabank Value Visa card is another solid choice to consider since it gives a 0.99% interest rate for six months and a low, regular interest rate of 12.99%. What’s more, this card doesn’t come with a balance transfer fee.
Travel Credit Cards
A travel credit card is the best credit card to have if you’re a frequent traveler and can take advantage of the many perks this card offers. These cards offer you rewards in the form of miles or points that you can use for travel-related purchases like hotel rooms and plane flights. In addition, some travel credit cards can offer more benefits like airport lounge access, free checked bags, and miles bonuses. As such, they come in handy when going overseas since you may encounter hefty fees if you make hotel reservations or withdraw cash abroad using your existing card. Basically, a travel credit card helps you reduce the cost of using a card in a different country.
Although the travel rewards offered by this type of credit card can be lucrative, travel credit cards come with annual fees and high-interest rates. As such, you should weigh the value of the rewards you’ll earn against what you might pay in annual fees or interest if you carry a monthly balance. Also, it might not be worth taking this type of card if you can’t take full advantage of the little perks this card comes with. American Express, CitiBank, Chase, and Bank of America are some of the best credit card issuers who offer this type of credit card.
Cash Back Credit Card
A cash-back credit card is a rewards card that refunds a small percentage of each purchase you make as a reward. These cards can help you simplify your finances, enjoy extra perks that you can’t get with a debit card, and earn rewards on spending. A cash-back rewards card is also an excellent option for your first rewards credit card. However, applicants may need good credit to be approved for a cash-back credit card. Also, using a cash-back card makes sense only if you pay off your balance in full monthly and never exceed your limit, or the interest you’ll pay can outweigh the rewards.
There are numerous credit cards to select from based on your spending habits and needs. The points above are examples of some credit cards worth considering for your finances.