How To Choose The Right Credit Card

Credit cards are not a meaningless lifestyle choice made by millennials all over the world. Are you even aware of the fact that credit card rewards you for spending money? The rewards that they have now come up with are literally life-changing. If your credit card is not bringing any value to your life, then maybe it’s to evaluate the credit card that you own and swap it for a better one. We’re breaking down how you can (finally) choose a credit card that fits your objectives, and how you can maximize the potential of your credit card points.

1. The Three Major Difference That Can Make Or Break Your Credit Card Game

Obviously, the biggest luxury of owning credit cards are the different kind of rewards that they offer, but not every credit card provider makes it easy for their consumer to understand its reward system. Right now there are three kinds of credit card reward system right now, points, miles, and cash back.

As the name suggests a cashback reward system pays back its user a certain percentage of the money spent on purchasing, statement credit, in cash or checks. Cashback is ideal for those who don’t want a fussy reward system, because most of the cash back rates are explained in percentage. For example, if you buy something worth $100 with Wells Fargo Cash Wise Visa Card, which offers a cashback of 1.5% on all purchases, it’s easy to understand that your return on that particular purchase is $1.5. When redeeming cash back you’re allowed to choose cash back options such as gift cards offering merchandise, travel, and entertainment.

Read: How To Get Cash For Credit Card Points

Our Picks Of The Best Reward Credit Cards For 2018

A credit card that offers points instead of cash rewards every purchase in points, which can be exchanged for a variety of goods, some which even include cash back. Many of the point’s credit cards give bonus categories that allow you to earn enhanced rewards, although the maximum reward spending limit is not very common. When compared to cash back, points are a little trickier to understand, because not every credit card is worth the same amount. Some of the credit card companies give their credit card points a set value, how you choose to redeem your credit card point impacts how much you get out of them.

A lot of credit card holders choose to sell credit card points to us, Sell My Miles, because we give excellent value for Amex, Wells Fargo, All Nippon Airlines and many more. You also have the option to redeem your points for travel through cards such as Chase Ultimate Rewards, whose point value increases by 25% when its used for travel purposes.

This is why points are a firm favorite amongst users because they provide more flexibility. They’re a commodity with actual value to them, and we solemnly swear that you can get the most value for your points when you sell your credit card points to us.

Read: How To Get The Most Out Of Your Travel Reward Credit Card Points

Lastly, and certainly not the least credit card holders can also opt for a miles based reward system. This reward system is associated with your frequent flyer account, rather than your credit card account. Which means you can still able to keep the miles that you’ve earned even if you choose to close your credit card account. Also, co-branded credit cards come with other perks that are related to flying, such as free checked luggage or lounge access. Some airlines, however, restrict the reward system by letting users only book “reward seats” which can be a little frustrating. When credit card holders can’t find a reward seat and don’t have an alternative perk that has the same value, they choose to sell their miles instead.

If you’re someone who can’t find a reward seat and you have miles from cards such as Etihad, Emirates Skywards or JetBlue, then we can take them off of your hands for the best possible price. You won’t have to stare at a screen willing a reward seat to pop up, just earn some extra cash on the same day you sell your miles.

Read: A Guide To Help You Choose Cash Back Or A Miles Credit Card. Which Is Best For You?

2. How To Get The Most Out Of Credit Card Points/Miles

Co-branded credit cards or travel credit cards give users points, miles or another reward, and they come in two different types, general and co-branded cards.

General travel credit cards: These types of credit cards are bank-branded with rewards that can cover a large number of travel expenses; an example of this is Chase Ultimate Rewards.

Co-branded credit cards: These types of cards are branded (or affiliated) with either an airline or a big hotel chain. They usually allow you to redeem rewards within one loyalty program, making it very limited in terms of rewards.

Why You Should Get It: Those who like to assign rewards for vacation, a travel credit card can surely help and might give extra perks as well. Travel credit cards are beloved by travel enthusiast because it makes them feel like they’re saving up for something bigger. It gives people reason to set goals and to look forward to something in the future. Additional perks include free baggage, access to the business class lounge, and no foreign transaction fee and so on. Travel miles and points can be sold to merchants like us, who buy miles at an incredible price. Selling miles to us is one of the easiest ways to earn cash in the safest way possible, and without even getting up from your chair.

The exchange of miles is done without any hassle, making it easier for both parties involved. The payment for the points is made as soon as the points are transferred. There are multiple payment options that you can choose from, opting for the one that suits you.

Read: Should You Go for A Cash Back or a Miles Credit Card?

3. Which Card Should I Choose?

When you’re planning on signing up for a credit card, be realistic about how you’re going to use it in the long run. If the interest rate isn’t an issue for you, then we recommend that you opt for a card that offers higher reward rates and redemptions.

Read: Everything To Know About Marriott Rewards Program

4. Be Aware Of Your Financial Habits & Needs

Let’s admit the obvious, most of us hate doing our finances. The process of making a budget can be stressful and it’s tough to reconcile your wish list with your actual needs. Sadly, this is part of life and one must accept it. It’s very important to sit down and think about how you actually spend your money. It’s one of the first steps that will take you closer to a credit card which will be beneficial for you, rather than hinder you. Experts can’t stress enough how important it is for you to have a clear understanding of your credit history and credit score.

5. If You Want To Earn Credit Card Rewards

Reward-based credit cards are great for you if you want to pay off your credit card statement in full every month and never incur interest. Such credit cards have higher APRs, but on the other hand, offer massive sign-up bonuses and give users points, miles or cash back on every dollar that is spent.

When looking for a travel credit card that is an ideal match for you, keep an eye out for cards that deliver the highest rewards for the categories you tend to spend the most on. Big spenders should think about getting a credit card with an annual fee, only if your rewards earning would cover the cost. For someone who is hoping to use the credit card for traveling aboard, look for one which doesn’t have any foreign transaction fees.

If you don’t want to struggle with the shortage of award seats, spending caps, loyalty tiers and ever-changing bonus rewards, consider a card with flat rate cash-back rewards.

6. Do You Want To Save On Interest?

There are some people who don’t sign up for credit cards because they’re scared of interest. if you’re scared of interest then go for a card which has an introductory 0% APR and ongoing low-interest rate. Use your credit card only during emergencies, or if you have an irregular income and don’t be scared to carry a balance from time to time.

Some credit card companies often let their users create their own debt payoff plan on the online web portal, which is a valuable tool if you’re overburdened with debt. Credit cards with low-interest rates waive of late fees or penalty APR. Do your research and look for a credit card that fits your lifestyle. The credit card that you choose should also give you enough time to pay off your debt without any interest. if you’re thinking about carrying balances over a couple of years, opt for a card with a low going APR.

7. Some Credit Cards Offer Trip Cancellation

This is big for those who love to travel a lot. If for some unforeseen reason you can’t make the trip, you would be stuck with a big credit card statement. Credit cards that offer travel reward provide some sort of trip cancelation insurance to their users. The insurance covers all or most of the trip if you get seriously ill and have to cancel your travel plans. Many credit cards also cover travel accidents, lost luggage, and car rentals.