Gone are the days when credit card options were restricted to two or three flags. Today, the products are vast and made available by a variety of institutions, such as banks and finance, in partnership with retail store chains, frequent flyer programs and even supermarkets.
The sheer amount of offers, however, can make it difficult for you to decide which credit card is best for you.
In order not to make a mistake, you need to analyze items such as interest rate charged, annuity, limit, relationship with the bank and benefits that are offered. Read this text and learn how to choose the best credit card for you:
The interest rate charged is an important factor when choosing the best credit card, mainly because, although it is always recommended to pay the invoice in full, you need to consider the possibility of partial payment if any unforeseen.
What you should note at this point is the Total Effective Cost, which is the cost of borrowing and involves interest, taxes and any other cost to the consumer. The annual fee and your information is required. Remember that the lower the fee, the less you pay if you delay the payment.
Annuity is another relevant point in your search for the best credit card. Many products do not charge anything at the time of contracting, but you need to be careful because the value of this fee may be higher than the financial budget from the second year using the product allows. Protest’s simulator can be useful for analyzing products that offer the best rates and lowest annuities.
Limit that you really need
When it comes to deciding which credit card is best, many people fall into the trap of sticking only to the limit offered. Of course, having a purchasing limit that is sufficient for the consumption profile is important, however, choosing a product that offers a limit far beyond your financial reality can be very dangerous.
The most out of control get excited about the “credit” and spend without thinking about tomorrow. Result: When the invoice arrives they realize that they have no money to pay the full amount. Not so much at sea, not so much land: the best credit card is one that has a sufficient limit to what you need and at the same time a value you can afford.
Relationship with the bank
Having a relationship with the bank often makes it easier to acquire the credit card. In addition, it is common for financial institutions to offer various types of advantages to those who are already an old client, such as free annuity, participation in frequent flyer programs, etc.
When choosing the best credit card for you it may be interesting to look for your bank first. So be sure to consult your bank’s credit card simulators.
Club benefits, mileage system, scoring system, travel assistance… The benefits offered are also essential when choosing the best credit card. Consider your lifestyle to choose the product that will offer you the most benefits. Those who like to travel can choose a card that converts the amount spent in miles, for example.
Even after finding the best credit card for you, some caution in using the product is critical: avoiding making only the minimum payment, as even finding the most competitively priced option card interest rates remain the most expensive on the market. Cardboard wage extension: use it wisely and enjoy!