What You Need To Know About Credit Cards

Whether you are shopping online, making hotel reservations, or catching a cab, most of your transactions require some form of cashless payment like a credit card. These days it is a necessity to have one on you at all times.

With all the different issuers, banks, discounts, and benefits, choosing the right credit card for your lifestyle requires some research. The Credit Review breaks down some of the basics of credit cards and the best way to get the most efficient use of your credit line.

What Are The Benefits Of Having A Credit Card?

You are probably familiar with two of the most widely accepted credit cards in the world -- Visa and Mastercard. These cards allow banks to extend convenient, portable lines of credit to their customers. Financial institutions work with these payment networks to offer a wide array of card options, with varying interest rates, benefits, rewards programs, and discounts.

Depending on your creditworthiness, you can receive extra benefits such as:

• Fraud protection
• Auto rental insurance
• Hotel stays
• Discounts on airfare
• Travel expenses

Additionally, a relatively recent trend is for brands -- and not financial institutions -- to offer credit cards with benefits tailored to their specific products. For example, the popular ridesharing services Uber and Lyft (which require payment by credit card) are launching their own imprint cards that offer discounts and rewards tied to their specific products. Similarly, online retailers like Amazon are offering cards which provide various benefits when used to purchase products from those retailers, such as interest-free periods or monthly payment plans with special interest rates for large purchases.

Aside from rewards and convenience, credit cards allow you earn cash back, protect yourself against credit card fraud, and build your credit by keeping your credit utilization low and paying them off on time.

If you have outstanding unsecured debt, you can use a 0% balance transfer card to consolidate your credit card debt. This is a great method to combine all of your debts into one low-interest debt with the same payment date. However, this is not the only method to relieve your debt and improve your financial health.

Although these card features and bonuses are great, not all consumers qualify for them. In case your credit score is not high enough to qualify for credit cards rewards, you can contact a credit repair service for assistance. These companies offer a free consultation to help you decide if their services are right for you.

With so many options to consider, sifting through all the different cards and issuers can seem like a daunting task. Fortunately, there are numerous online credit clearing houses which allow applicants to filter and sort the available offerings based on metrics like interest rates, rewards programs, and discounts.

When looking for a credit card, it’s important to consider how the card will be used and how it can provide the maximum benefit based on your lifestyle and spending habits. Visa and Mastercard, though popular, are not the only options when it comes to credit, and a little extra effort when choosing a card can result in significant savings and other financial benefits in the long run.

What are some benefits I can receive with a credit card with good credit?

• Rewards programs
• Fraud protection
• Auto rental insurance
• Hotel stays
• Discounts on airfare
• Travel expenses
• Interest-free periods
• Cash-back