The best credit card is the one that offers features that are most likely to be utilized. To confuse matters further, the majority of providers offer a single 'selling' feature. Many consumers are attracted to credit card rewards when they have a large, outstanding balance. It is important to perform a few numerical calculations to assess how much a card feature can save a consumer if they aren't just looking for a low interest credit card.
Best Credit Card - Reduce Credit Card Fees and Charges
According to Demos.org, the cumulative value of credit card fees and charges rose from approximately $69 billion in 1989 to $1.8 trillion in 2006. Consumers that tend to accrue charges because of missed and late payments will find that the optimal card for their needs has the lowest range of charges for not-compliance with T&C's.
Low Interest Credit Card Vs Credit Card Rewards
Customers regularly regard cards offering rewards as the best credit card. An Aite Group survey found the US consumers felt that credit card rewards were the second most important reason for selecting a card. Furthermore, Comcore discovered that 66 per cent of respondents would switch their primary card if offered a better set of features.
Low Credit Card Interest Rates - The Best Credit Card for Borrowing Money
US consumers that don't pay-off their balance at month end may find that a low interest credit card is the next best to the one offering an interest-free credit card balance transfer. A Consumer Action credit card survey of 41 cards from 20 banks discovered that the average interest rate customers were charged was 13.54 per cent. Interest rates were available from as low as 6 per cent, but were as high as 22.75 per cent.
Interest-Free Credit Card Balance Transfers - Best Credit Card Deals
The most popular card for customers who don't pay their bill in-full each month is one that offers an interest-free credit card balance transfer. The higher the amount owed, the more they stand to gain. According to an Experian marketing insight snapshot, US consumers aged over 60 had an average balance of $763 per card. This has increased by 4 per cent in just 2 years.
How to Select the Best Credit Card Deal
Identifying a quality low interest credit card can prove to be a challenge for any consumer. Whilst a reward credit card offering cashback or airmiles may benefit some people, an interest-free credit card balance transfer is more likely to help those who don't settle their full balance in-full.
Sources
Experian marketing insight snapshot, March 2009
Consumer Action credit card survey, July 2008
Disclaimer: This article in no way attempts to give legal or tax advice. One should consult a licensed attorney, tax advisor, or other qualified professional.
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