Credit Cards: A Credit Card is a very thin and rectangular piece of plastic or metal card that is issued by financial institutions. It allows you to borrow funds from a pre-approved limit to pay for your purchases.
However, the limit is decided by the institution issuing the card based on your credit score and also history. A Credit card is the most simpler way to access a line of credit.
Benefits of Using Credit Cards
Credit Cards can be a very costly tool for earning rewards, traveling, handling emergencies or unplanned expenses, and also building credit. Below are some benefits of using Credit Cards
- One-Time Bonuses
There is nothing such as an initial bonus opportunity when getting a new credit card. Most times, an applicant with very good credit or excellent credit can get approved for credit cards that provide bonuses worth $150 or more than. - Rewards Points
Credit cards are built to allow cardholders to earn one or more points per dollar in spending. Many reward credit cards offer a bonus for certain categories of spending like restaurants, groceries or gasoline. - Safety
Also Paying with a credit card makes it very easier to avoid losses from scammers and fraud. If by any chance, your debit card is used by a thief, the money is missing from your account immediately. Credit Cards networks like Visa and Mastercard provide zero liability coverage for unauthorized purchases as a way to help and encourage usage of their cards over cash or check.
Some Other Benefits of Using Credit Cards
- Grace Period
When you make a debit card purchase, your money is gone immediately, but when purchasing a credit card, your money remains in your checking account until you pay your credit card bill. Also when paying regularly with a credit card you do not have to watch your account balance so closely. - Insurance
Most Credit Cards comes with various number of consumer protection that so many people do not know they have, such as rental car insurance, travel insurance, and as well as product warranties that might exceed the manufacturer’s warranty. - Universal Acceptance
Some certain purchases are quite difficult to purchase with a debit card. For instance, when you want to rent a car or rather stay in a hotel room, you will definitely have an easier time if you have a credit card. Also, when you are traveling out of the country to a foreign country, merchants will not always accept your debit card, even if t has some vital bank logo on it.
Best Credit in 2021
There is no doubt that there are many credit cards available to consumers that it can be quite difficult to select the best card. There is no one size fits all credit card, rather options for different types of people like road warriors, traveler, foodies, end even someone searching to build credit.
Meanwhile, below are some of the best credit cards of 2021 that can be of help to build credit, save on interest charges, and also earn you over $3,000 in cash back over five years.
- Best cash-back credit card: Chase Freedom Unlimited Card
- Travel card: American Express Gold Card
- No annual fee credit card: Citi Double Cash Card
- Best no annual fee travel credit card: Discover it Miles
- Best for College Students: Discover it Student Cash Back
- For Building Credit: Petal 2 Cash Back, No Fees Visa Credit Card
- Best Rewards Card: American Express Gold Card
- Entertainment Rewards credit card: Capital One Savor Cash Rewards Credit Card
- Balance Transfer Credit Card: Citi Simplicity Card-No Late Fees Ever
- Best secured Credit Card: Discover it Secured Credit Card
Best Rewards Credit Cards in 2021
A rewards credit cards can allow you to earn points, miles, or cashback for purchases made with the card. Rewards credit cards are a great way to get most of your everyday purchase. The more you make use of your card, you will get a little something in return, which is usually cash back or travel rewards.
Some cards provides a flat rewards rate on all purchases, while some other offer a boosted rathe most especially spending categories, such as trvale or dining. Here are the Best Rewards Credit Cards you can select and choose from in 2021
- Citi Custom Cash Card
This is a game changer for providing a rewards system that adjusts to match your spending. With this card’s 10 eligible bonus categories, you might not have to worry about changing up up your credit card techniques, even if your spending is diverse from month to month. - Wells Fargo Active Cash Card
If your credit card rewards technique is hands off-the wells Fargo Active Cash Card might be a match. With no annual fee and unlimited 2 percent cash rewards on purchases, what you have to do is use the cad and redeem your rewards when you are fully ready. You do not have to worry about categories or spending caps. - Capital One Quicksilver Cash Rewards Credit Card
This is one of the most straightforward cash back rewards cards which is an easy cash-back program of 1.5% on every purchase with no rotating bonus categories or rewards matrix to keep up with. However, this card charges no annual fee, no foreign transaction fee, and your rewards won’t expire for the lifetime of the card.
Other Best Rewards Cards to Choose From
- Chase Freedom Unlimited
You will earn unlimited 1.5% cashback on eligible purchases with Chase Freedom Unlimited. If you are searching for a simple way to earn great cashback rewards, there is no doubt that this is the right card for you. - Capital One SavorOne Cash Rewards Credit Card
This provides cashback on dining and entertainment without an annual fee, which makes it a great card for on-the-go rewards seekers. And also no foreign transaction fees if you like to take the experience overseas.
Common Types of Rewards Credit Cards
- Cash Back cards
- Business rewards cards
- Travel rewards cards
Pros and Cons of Rewards Credit Cards
A reward card can be a great way to earn very profitable points, miles, or even cash for the purchases you are already making. But there are some downsides to be aware of before applying. Below are a few pros and cons to having in in mind whenever you shopping for your next rewards card
Pros
- Little to no annual fee: Many rewards cards do not require a fee
- Sign-up bonuses: Rewards cards can come with kind sign-on bonuses, most particularly
- when compared to other types of credit cards
- Additional Benefits: You can gain access to additional bonuses and benefits depending on the card and issuer like generous sign-up bonuses or also like airport access.
Cons
- Good credit scores often required: The cards that provide the best rewards programs are typically good to excellent credit scores
- Rewards caps: Some travel cards carry earnings caps, which might reduce the value of the credit card, most especially if the APR is higher nor there is huge annual fee.
Credit Cards: Who Should Get a Rewards Credit Card?
- The aspiring Traveler
- The Foodie
- The Student
- Small-business owner
- The everyday shopper
How to Choose a Rewards Credit Card
Here is some important information you will need to know when selecting a rewards card.
- What types of purchases do you spend the most on like grocery stores, dining out, travel etc.
- How much effort are you willing to put into managing your earnings
- What kind of rewards you are like and you are interested in like cash back, travel, etc.
Best Student Credit Cards
One of the most vital steps of young adulthood is responsibly building credit. A lot of people do not know that the length of time your oldest credit card has been open can seriously influence your credit score.
However, getting your first credit card when you are a college student can be an amazingly smart move that ends up saving you millions when you finally graduate and start searching into buying your first car or also a house which is great.
- Bank of American Cash Rewards for Students
- Discover it Student Cash Back
- Journey Student Rewards From Capital One