There are billions of credit cards around the world, or to be more precise there are 2.8 billion scattered across the entire planet. The western world has the most of them. In the US alone, there are more than 1 billion. In Average, every American holds four credit cards in their wallet.
This is not a common practice for the rest of the world, but most people have one in their pocket. Altogether, there are nearly 3 billion cards making trillions of dollars in debt. In the US alone this debt is nearly 1.5 trillion. See more about these numbers on the link here.
If billions of people use credit cards, it means that this is common practice, and you should get one too. Still, you must know how they work and how to choose the best one for you. Thousands of companies around the world are issuing their own cards, which means that the choices are endless.
When you’re searching for your first card or looking to get a new one, you must know what features are important and how to get the best one for you personally. Not everyone will find every card suitable. Some will find one more useful than another, which is why you need to know what you’re looking for.
In this article, we’re talking more about what is the right kredittkort, and what you need to know before getting one. Follow up if you want to know what to look for and what are the most valuable things that you should be looking at when choosing the best.
1. Look at the features they offer and see which one works for you best
Credit cards are made for people with different needs. Not everyone is going to apply for one because they want to be secured at every moment in life. Some will get it because they need money urgently and they don’t appreciate applying for huge loans.
They find the credit card option the most suitable, which is the reason why banks and financial institutions create different features for them. They usually have different names, but you must understand what these features are before applying for one.
To do this you need to look for various card issuer’s offers and see what these various cards offer. If they have the features that you’re looking for specifically, then you’re asking for the right kind. If they don’t have the features you need, then keep looking until you find the one.
For example, if you need a credit card for a specific need and you’re planning to return the money as fast as possible, then you’re looking for a credit card that is going to come with a 0% interest rate for the first few years. Until the interest rate applies, you will return what you borrowed.
2. Mind the interest rates
The interest rates of credit cards are going between 8 and 25%. It depends on how eligible you are for one, and the policy of the company. Some of them are going to ask for more, while others for less. If your main concern is having low-interest rates, then look for a card that will provide this.
The cards that offer a 0% interest rate are not going to offer this forever. It will be provided only for a fixed period, after which they will go back to the standard. The interest rate on cards is calculated annually, which means that if the first year is 0%, and you return the funds during this time, you won’t pay anything in terms of interest.
Searching for a card with a low interest rate should be a priority for everyone that is thinking about which card to apply for. Aside from the other features and benefits, this is the main reason to go through various banks and search for the best option. Never settle until you find one that offers a respectable interest rate.
3. Look for rewards that work for you
All credit cards offer some kind of reward for the products you put on them. The more money you spend through them, the bank will offer a percentage of what you spent back in your favor. Let’s say that you spent $5,000 with your card – the bank will offer a reward in return.
Depending on the company and the intensity of spending, you may get valuable rewards. Many companies offer free flying miles for those that often buy tickets through their credit cards. Some will offer free products from your favorite stores, and some will give you a cashback option.
The cashback option is something that lots of people find an interesting benefit because it gives you the chance to get some of the money you spent back on your account. No rewards, no calculations – strict cash back on your account that you can use however you want.
4. Make sure your income can cover you
If you don’t have a steady job or income that will cover your monthly expenses, then you shouldn’t apply for a kredittkort and spend money through it. It’s going to be extremely hard to return the funds if you have no income and be sure that every cent you spent must be returned with interest.
When you’re applying for one, make sure your income is high enough. Also, make sure your credit score is in order because else you’ll get poor terms that you’ll have a hard time meeting. Instead of struggling to return the funds, you want a card that will help you live a better life.
If there’s no way to return the monthly borrowing, then you’re going to dive into deeper debts until you’re unable to come back and be debt-free. That’s why you must wait for a high enough income before applying for one.
5. Opt for high-security cards
Before deciding, go through the internet to find out which cards have the best security. Not all of them are the same, which is why you must do your research. Some of them have outstanding security, while others are easily hacked and lots of people lose their money.
You want a kredittkort that will be insured and the funds on them will be protected. Even if someone hacks you and steals the money, you’ll alert the bank and they will block the card for further use. The money will be returned to you, and the insurance company will then try to catch the thieves.
No company can protect you hackers and thieves, but some will insure your money and you’ll have no worries about losing them because of hacking. You’re safe knowing that nothing can go wrong. That’s your best option when safety is in question.
Never apply for the first credit card you see out there. There are tons of options to choose from and it’s worth paying more attention to this. Search a little more and find the features that work for you best. Mind the security, interest rates, rewards, and personalization. Only decide to get one when you’re sure that there’s no better option on the market at the moment.