Credit Card Comparisons
Do you already have a credit card? Or are you on the verge of getting one, and do you want to utilize all the features and possibilities of a credit card? Whatever the reason is, you want to get one. It’s always smart to compare credit cards first. The credit card is getting more and more popular as a payment method, especially while traveling, and almost everyone has one. Some services and products are only available if you have one. Think about renting a car or purchase something online.
In most cases, you can just ask your regular bank to get one apart from your regular debit card. Sometimes it’s a little bit more complicated. This is because there are quite some requirements you have to meet before you get to send that prestigious plastic or metal card by mail. One of the smartest things to do is first to do your due diligence and research which credit cards suit your needs and spending habits the most. Our advice, therefore, is to compare credit cards offered by different companies, at least on price per year, limits, and interest rates. Did you know you could even get exclusive perks provided by certain credit card issuers if you apply for a credit card with them?
What is a credit card correctly, and how do they work?
With a traditional debit card (the bank card of your average current account), you just pay for something, and the amount gets immediately withdrawn from your bank account. With a credit card, you pay in a store, restaurant, hotel, or online, and you repay the credit card issuing company later. So basically, using a credit card is a form of borrowing money, basically. This loan is virtually free if you repay the amount due within a month. You could choose to repay this amount automatically. To do this, you need enough money on your current or savings account, of course. To apply for a credit card or any credit in general, you need to meet specific criteria. You need to show a decent monthly income, and your Credit Score at your current Credit Bureau will be checked. Almost every credit card issuer will do a financial background check on its new clients. They will look at certain things like how you manage borrowed money, your credit score and possible payment defaults, current ones, and ones in your past. If you have a payment default on your existing mortgage or other loans,s for instance, this is noted with your Credit Bureau, and it might be tough, if not impossible, to apply for a credit card. If you want to compare one credit card with another one, you will see that the most differences will be in the spending limit (basically the height of the loan your taking). Apart from that, it’s worthwhile to compare different credit card fees. These fees do add up and can vary greatly between credit card issuers. The most common perks offered on credit cards, like insurances on certain bought products, are mostly the same among issuers.
Comparing Credit Cards
The credit card is widely used in the United States ever since the ’50s. Back then, it was mostly a privilege for wealthy business people and travelers. Europe followed suit around the late ’60s. The biggest credit card issuers like Visa, MasterCard, and American Express have put a tremendous effort the last decades to expand the number of service points or places where you can use their issued credit cards. The bigger that network became, the more interesting the usage of credit cards became for the general public. Nowadays, almost every hotel, restaurant, store, and car rental agency accepts credit cards. Apart from that, it’s just convenient to always have a credit card on you in case you need to purchase something unexpected. Because of this, it has also become increasingly more important to compare different credit card issuers. It’s because of so many people wanting to use them, that the issuing companies offer all kinds of perks and have exciting promotions from time to time. Did you know you could even compare cheap credit cards and not pay anything for your first year of usage?
Compare Credit Cards
The amount of users and credit cards has exploded in the last few years. Nowadays, millions of credit cards are in circulation, and more than 28 million places accept them in over 200 countries. A lot of people that need extra spending and financial space choose to compare several credit cards before getting one. While comparing credit cards, make sure to follow these tips and tricks:
– Is your income high enough? There is always a minimum amount to be paid each month within the grace period. If you don’t have a job or a regular income stream, you won’t be getting one.
– Is your passport still valid? You need to show or send a copy of your passport before getting one.
– Do you suspect your card being misused? Every issuer has a fraud department. If you’re the victim of unlawfully use of your credit card for one or multiple payments, you almost always get reimbursed.
– Are there any extra perks? Yes, most purchases with a credit card are automatically insured. Some companies offer additional gifts and perks for their users. Think of airport lounge access and concierge service.
– How long does it take to apply and get one? In most cases, you will receive your credit card, after comparing issuers and choosing the right one, within two weeks.
– Still, need more details or explanation? Read our other credit card related articles