Tips for Finding the Best Credit Card for Your Financial Needs

by : marsel

Do you think you need a credit card? At the present time, the average American family spends more than what they really should per month. In this regard, they turn to credit cards to help them make payments when they are low on cash. Statistics shows that an average US credit card owner has about four different types of cards in his wallet. The Federal Reserve Bank even states that a huge part of consumer debts is attributed to credit cards, while the rest lies in home loans, auto loans, and others.

If you are set on applying a credit card to help you out with your monthly expenses, there are some pointers for review. Note that signing up for a card means you are opening yourself to be committed to make payments on time, every month. Plus, remember that credit card companies earn from the interest that their cardholders pay, and they may even impose charges on certain credit card related services.

So what are your criteria for judging a winner? Since there are dozens of credit card companies out there, how do you decide? First, why not check out the list of already reliable card issuers. According to, the top 10 card companies in the US as of 2006 are: Bank of America, JPMorgan Chase, Citigroup, American Express, Capital One, Discover Card, HSBC, Washington Mutual, Wells Fargo, and US Bancorp. Of the types of credit cards, Visa credit cards take about 54% of the market share for US card holders, while Master Card credit cards take 29%.

You can check out your bank or card company of choice online. A smart thing to do is learn about the company profile, the types of cards and differences between each one and what will you get out of being a client of theirs. Find out if you can make applications online, so things will be easier and less of a hassle for you, especially if you have a busy schedule.

When choosing a card, be sure you know what your financial needs are. Do you want a card that gives you discounts? Do you want a credit card that offers airline miles for every purchase made? Is there a card out there that allows online transactions? Are you hoping to get a credit card with low interest rates and reasonable fees? These are important points of consideration, so you get to narrow down your credit card choices better.

Also, explore the rates and fees that these credit card companies impose on their card holders. It will be preferable if you get a grace period per month, so you have enough time to make payments. Some credit card companies allow you to access your billing statement online, and make payments online as well. If you want cards that earn you points for the purchases you make, then you can select one that offers reasonable rewards in exchange for points. Some rewards come in the form of discounts, other products, and also electronic gadgets which are shown in the company catalog.