Credit Cards

Make a quick comparison of the top credit cards in today’s market before you apply for one. Find out how these credit cards made it to our top list.

From sign-up bonuses to big rewards, we have made the list of the top credit cards available today. Compare the deals these credit cards offer and find the best one that will fit your needs.

Should I Get a Credit Card?

Getting a credit card can feel like a milestone for a young adult. The first time you pull out that plastic card to pay at the store you join the ranks of your elders and are reminded of the countless movie scenes where you’ve seen it happen on a casual basis.

But beyond that moment of accomplishment, is applying for a credit card account a great idea? That will depend on how you will use it and whether the card that you obtained suits your personal needs. Getting a credit card is a long-term commitment. Many people learn it the hard way, but you can use a credit card to build your credit rating until it's high enough for you to apply for low-rate car loans, house loans, and more.

So before filling up that form, make sure that you fully understand what you are getting into. Here are some of the things that you should consider.

Benefits of Opening a Credit Card

Getting a credit card means that you’re receiving a line of credit from the financial institution of your choice. The account that you’re going to open will have a certain credit limit depending on the card issuer’s assessment of your ability to pay back the credit they give you ( your creditworthiness). As long as you stay within the credit limit that the financial institution has set, you can continue making purchases and continue making use of this line of credit.

Having an additional payment option in your wallet has a lot of advantages. For example, you will have a safety net in case you fall short of your budget.

One of the best perks of having a credit card is the reward points. Even if you have a lot of funds in your savings account, you might want to use your credit card to earn points.

The Downside of Credit Cards

Having a credit card is really convenient, but it also has its downsides. A lot of cards are an unsecured form of credit, which means that our debt is not backed up by any form of collateral. And because of this, credit card companies charge higher interest rates compared to other loans when you fail to pay down your balance.

But if you regularly pay your balance in full, you won’t have that problem.

Avoid Credit Card Traps

Nowadays, there are many credit card companies who offer a 0% APR introductory rate to entice their borrowers. It may sound like a great deal at first, but in the long run, your credit line is anything but free. After the promotional period ends, the real finance charges will kick in.