Are you getting a new credit card? If yes, then you might be wondering which one you should choose and how you can know which one is the best for you. Don’t worry because I am here to give you the answer to the question, what credit card is best for you?
Best credit cards fulfill all demands of the holders, and different factors would decide which one is the best. However, Citi Double Cash Card, Chase Sapphire Preferred Card, Chase Freedom Flex, American Express Gold Card, and Chase Sapphire Reserve are well-known for providing the best credit cards.
Let me enlighten you about the best 5 credit cards and their features. Here, I would also mention other factors that you must know before choosing the best credit card for you:
5 Best Credit Cards For You (Complete Comparison Table)
Though a lot of credit cards are available, the listed ones are the top 5 and most popular credit cards. These cards offer reliable service.
Here are the 5 best credit cards for you with the complete comparison table:
| Parameters | Citi Double Cash Card | Chase Sapphire Preferred Card | Chase Freedom Flex | American Express Gold Card | Chase Sapphire Reserve |
| Welcome Bonus | None | 100,000 points | $200 | 60,000 rewards points | 60,000 extra points |
| Annual Fee | $0 | $95 | $0 | $250 | $550 |
| Regular APR | $13.99- $23.99 (may vary) | 15.99%- 22.99% | 14.99%- 23.74% (may vary) | Depends on the pay back time | 16.99%- 23.99% (may vary) |
| Credit Score | 700- 749 | 700- 749 | 700- 749 | 700- 749 | 750- 850 |
| Reward Rate | Up to 2% | Up to 2X | Up to 5% | Up to 4X | Up to 3X |
From the above table, we find:
Best Credit Card In Terms Of Annual Fee:
Citi Double Cash Card and Chase Freedom Flex offer a 0% annual fee which is the best deal for you. With these cards, you can save up on the annual fee.
The most expensive annual fee is charged by Chase Sapphire Reserve which is $550 followed by American Express Gold Card ($250), and Chase Sapphire Preferred Card ($95). However, choose such a credit card which is very useful to purchase kitchen items, dirt bikes, motorcycles, ATVs, and UTVs.
Best Credit Card In Terms Of Credit Score:
From the chart, it is evident that Chase Sapphire Reserve offers the best deal in terms of credit score which is 750- 850.
The rest of the cards offer 700- 749 credit scores which is more or less good but not the best.
Best Credit Card In Terms Of Regular APR:
APR is what comes with every credit card. But the less the APR rate, the less you need to repay.
Among these five options, the lowest APR rate is offered by Citi Double Cash Card followed by Chase Freedom Flex, Chase Sapphire Preferred Card, Chase Sapphire Reserve, and American Express Gold Card.
As you can see from the chart, American Express Gold Card has no definite APR rate, and it depends on how long you take to repay. So the APR rate can go to any extent and can be extravagant for you if you don’t repay quickly.
3 Factors To Analyze Before Choosing The Best Credit Card:
Credit cards are used distinctly for different people. This is why you must choose the one that fits and suits your purpose and criteria. And to know which one is the best, you have to analyze some specific factors.
Here are the 3 factors that you must think of before picking the best credit card:
1. Your Purpose:
Why have you decided to get a credit card? Do you want it as a backup for emergencies or unlimited shopping? Or maybe you just want to pay your monthly bills using a credit card.
Your purpose of getting a credit card would decide which one is the best. For example, if you want to pay bills only, you won’t need to think of APR as you pay back on time. If it is for emergencies, even then you can go for any card. If you spend around 30% of your credit limit, you are in the safe zone.
But if you want to spend lavishly, go for a card that offers a large credit limit. However, don’t spend irresponsibly as you may need to pay high interest and other fees. Watch your expenditure.
2. Interest Rate:
No matter which credit card you get, it always comes with an interest rate. Now, the interest rate would vary from company to company, issuer to issuer.
As you may have noticed in the chart, Chase Sapphire Preferred Card offers a fixed APR. Other cards have a variable interest rate. This means the rate can fluctuate depending on a number of factors. In contrast, American Express Gold Card charges interest depending on when you pay back.
Other factors that affect the interest rate are the credit limit, how much you exceed the limit, when you repay the balance, etc. So check the interest rate and understand if it is compatible with you or not.
3. Credit Limit:
Credit limits of cards vary. Credit limit refers to the limit that you are allowed to spend using the card. Exceeding the limit would cost you more interest. Also, there are other factors associated with the credit limit.
You must choose a card with the credit limit that you need. It is always suggested controlling and managing your credit card expenditure and not spending lavishly if you struggle to pay back.
So choose a credit limit that you need and can pay back. Because if you can’t, you have to face consequences like a bad credit score, poor credit report, paying high interest, etc.
Besides, if you have a bad credit history, you won’t get a higher credit limit. If you are eligible for a high credit limit, decide carefully and think if you can repay on time or not.
Conclusion:
Now you have learned about top-notch credit cards and how to handpick the best one. You should scrutinize the aforementioned factors and decide which one would serve your purpose the best.
So, all set to get a new credit card?
