The best credit cards come with plenty offers that you can’t get with any other product or bank loans. Such offers range from things like a huge sign-up bonus, price protection, travel insurance, and cash-back rewards. Listed below are rankings of 2016’s best credit cards.
Discover it® Cashback Match™
As a new card member, they will match up all the cash back you earn at the end of the first year.
You can earn up to 5 percent cash back in the new bonus in categories such as restaurants, gas, Amazon including others. There is also unlimited 1 percent cash back on all other purchases. The card has no expiration on rewards as well as no annual fee.
For three years in a low, Money magazine has named this card as the best credit card for balance transfers. It has a $0 introductory balance transfer fee for any transfers made during the first 60 days of account opening. It has no annual fee.
Chase Sapphire Preferred® Card
It is the best credit card for travel rewards according to money magazine. You can earn up to 50,000 bonus points once you spend $4,000 on purchases in the first three months of account opening. You can redeem your point through Chase Ultimate Rewards®. $0 annual fee for the first year, then $95. It has $0 foreign transaction fee, and its chip enables to enhance security.
Best optioned cards for people with bad credit
With a poor credit, your options for a credit card become limited. However, you can rebuild your credit with these cards.
Capital One Secured MasterCard
It has no annual fee. It has a credit limit of up to $3,000. It offers all the credit building benefits if used responsibly. A minimum security deposit will get you a $200 credit line. The amounts of deposit vary based on creditworthiness. With no late payments, the interest on this secured card is 24.99 percent.
Milestone Gold MasterCard
It offers a pre-qualification process that won’t incur a hard credit pull. This means it won’t further dent credit. Requires no security deposit. It has a 23.90 percent APR and $300 credit limit. It has an annual fee of $35-$59 depending on creditworthiness.
Navy Federal Credit Union Rewards Secured Credit Card
This card has no annual fee, foreign transaction fee or balance transfer fee. This card offers an affordable option to rebuild credit.It requires a security deposit of $500 but comes with an APR as low as 9.24 percent. You can also earn rewards.
Reason as to why credit cards are good for your credit
Holding a credit card is good for your credit score. Credit cards are powerful financial tools when used responsibly. They give you a greater insight into how you make borrowing and debt management decisions.
They help you keep track and stay on top of your day to day spending. They help you build a credit card history. Using your card regularly and making payments on time tells potential lenders you can be trusted.
Risks with credit cards
• Damage to your credit score if payment is not made on time
• You could lose money on late fees
• They allow you to borrow and build up more debt than you can handle
• Can lead to difficulties in getting loans in the future
• High-interest rates compared to other forms of credit like personal loans
You can apply for a credit card online once you have met eligibility requirements. All you have to do is visit online credit card special applications for details about terms and conditions of an offer. Determine your goal for having a card, do you want cash back? Scoring free fights or are you looking for safety?. Apply for a credit card that best suits your needs.
Credit cards are hard to qualify for if you have limited or bad credit experiences. Sometimes a small installment loan can also help to build a little credit to get you started. Either way, make sure to only bite off what you can chew. With a responsible lending history, life can be good. Keep in mind, credit card lenders will give you more than you need. It does not mean to use all available credit. Remember, whatever you borrow, you have to pay back. If you do not, your chances for obtaining credit in the future can be ruined. If you do get into a situation where your APR’s for your credit card balances get high and your minimum payments are not making any headway, you may take a look at personal loans to consolidate for a fix APR and monthly payment with a set end date paid in full.