Not all credit cards are alike, even the ones issued by the same bank. Some banks offer cards with lower interest rates, rebates, points, discounts, and other perks just to entice you into getting one. While you have a lot of options to choose from, finding the right card for you might be tricky. To know more about finding the best card for you, here are a few things you have to consider:
Do you frequent a certain clothing boutique? Do you buy your groceries from the same supermarket chain frequently? If you have the following shopping habits, then you might want to opt for retailer cards. Retailer credit cards used on partner stores will reward clients with points, discounts, rebates, and others. Find out if your favorite shop has a credit card for you.
Travel/airline/frequent flyer miles
Frequent travelers, rejoice since there are credit cards specifically designed for you. There are credits cards on the market that reward users with travel points and airline miles for every swipe. Some banks even go the extra mile as they also include hotel room upgrades, discounts, and other perks that will benefit every traveler. However, be wary of the expiration date through, as some miles accumulated from credit cards have expiration dates. Ask your bank regarding the terms and conditions of their airline miles.
Cashback/Rebates credit card means exactly what they say: you get rebates whenever you make a purchase using your credit card. While cash back cards are ideal for those who use their cards often, remember that some cash back cards have certain conditions to be met. Some cards give you a fixed amount of rebate regardless of how much you spend, while others have tier-type systems where rebates are based on how much you spend or where did you use your card.
Usually labeled as “gold” or “platinum” cards, premium cards are only offered to clients who have maintained a spotless credit record over the years or those who can afford high credit limits, usually based on the clients’ annual salary. Aside from having the lowest interest rates, premium credit lines come with exclusive perks and services. Some premium cards include rewards like 24-hour concierge service, personal assistance, worldwide travel, and auto insurance, and first-class amenities upgrade such as airline seats or hotel rooms.
These are just some of the perks you have to maximize if you’re applying for a credit card. While getting these rewards may drive you to spend more, keep in mind that you are getting a credit card for convenience, and not for points and other promos.