Having a credit card can either be a blessing or a curse, and sometimes even – a little bit of both. However, what can help to make this a more positive experience is finding the right credit card for your needs.
With that being said, deciding which card is the best one is not always an easy task. Of course, this action can be made to be more straightforward by first accessing your financial needs and next, doing some research on the available credit card options.
After doing both of these tasks and deciding which card type is right for you, you can then move forward with pinpointing which exact card you will go with. This however, is another process that will require some further research in order to ensure you do in fact choose the best option.
Following these steps, perhaps you have concluded that a Rewards Credit Card is your card of choice, and if so, then you will need to sift through all of the existing rewards cards as well, and settle on the most desirable one. Here are some tips on how to find the right card for you.
4 Ways to Find the Best Rewards Credit Card
1) Identify Your Reward Needs
Since you have already decided that a rewards card is right for you, your next step can be to examine the different types of reward and loyalty options that each card can offer. Here you will learn that you are likely to have 2 main loyalty options that include, rebate/cash back programs and Reward Points Programs.
Rebate/Cash Back Cards, typically entitle a card user to receive money back after making purchases, as well as the ability to redeem them after a certain period of time. These cards are normally associated with a certain retail centre, so that users will then redeem these rewards in the form of money or a gift card to be used towards purchases they will make in that same retail location.
On the other hand, credit cards that enable users to accumulate points through a points program, can be used to collect rewards towards various retail locations. There are also many points programs that are specific to travel-related expenses. For those individuals that are frequent travels, these points can be extremely beneficial as they can receive significant travel rewards in the process.
In the end, since rewards cards can serve rather unique purposes, as the card holder you will need to access your needs and determine which rewards program is the best fit for you.
2) Weigh the Benefits of a Higher Interest Rate
In order to also help you decide whether a rewards card or at the every least, which rewards card will be the most suitable choice, you will need to pay attention to the interest rates. The reality of rewards cards is that typically they do offer higher interest rates than other types of cards.
An important part of this decision is that you decide if you can afford to manage a card with high interest. This type of card may be best for individuals that are able to pay off their balance in full each month, so you will see if it will align with your spending and payment habits. If you can’t pay off your bill in full each month, then you will want to be sure you can keep up with the monthly payments, as interest will accumulate even further with higher rated cards.
In addition to ensuring you can afford to maintain this type of card, ultimately you want to be sure that the rewards also make this experience worth your while.
3) Be Aware of the Hidden Costs
You are already aware of what a rewards card can do for you, you have also taken into account the higher interest rate. Next, you will need to examine some of the other key features, such as other potential ‘hidden’ costs.
To begin with, annual fees may range across these cards so this should be taken into account when you choose the right rewards card. For example annual fees can start at $0 and typically go as high as $120 per year.
In terms of hidden costs, you will also want to read the fine print when it comes to the annual fees as sometimes a card will initially offer an annual fee of $0 for the first year or a certain set of months and then another annual fee amount will kick in.
Lastly, other fees to watch for can include, cash advance fees and balance transfer fees. All in all, it is important to be clued in to all of these fees so you do not end up being charged additional costs that will also make it challenging to keep up with your credit card payments.
4) Utilize Credit Card Comparison Tools
With all of the above details to consider, how will you actually go about securing the most affordable and effective rewards card for your needs?
A valuable resource to aid with this search are the plethora of online credit card comparison tools. If there is a specific financial institution you want to go with you can opt to go directly their website and compare their range of credit card options. Alternatively, if you want to expand the scope of your credit card search, you can instead use a comparison site specially designed to search and compare credit cards as well as other forms of credit.
For example, RateSupermarket.ca, can help you sort through your reward card options and compare the unique features of each, as well as identify the best deal possible.
Ultimately, these sites also enable you to connect with lenders who are providing these card offers. For further convenience, you can apply for the credit card directly from the site as well.
When all is said and done, there are many aspects to consider when you are looking for the best rewards credit card. By examining all of your options, the unique features of these types of cards, you can then align these card choices with your personal financial needs. In the end, the more educated decision you can make, the more efficiently you can manage your credit cards, as well as get the most from your rewards program.