Selecting the best credit cards that match your conditions is no easy job to accomplish.
However, before deciding to select one, you must know everything in details.
Credit cards are financial cards which enable individuals meet daily life expenses.
They also help to make payments conveniently, and build credit.
One should learn the benefits of a credit card compared to a debit card, before acquiring one.
The knowledge of how credit cards operate gives information on how you can manage debt in responsible ways.
The best credit cards in the market are not those that are cheap to acquire.
The best credit cards meet your personal needs cheaply and conveniently, and can give from time to time.
Therefore, different people have varying perceptions of credit cards they consider best.
The main idea here is that best credit cards have to show uniqueness in at least one main category.
It is difficult for specific credit cards to have favorable features, because they are not perfect.
Credit cards that offer the best interest rates in the market have little or no rewards for their holders.
Also, people with bad credit are allowed credit cards which don’t give rewards.
In such situations, high approval odds and low fees are all a customer requires. That lacks in reward offering cards.
Therefore, there is one appropriate method to use in finding the best credit cards.
The criterion is to first assess one’s needs and where they stand in regards to their credit scores.
1. Best Credit Cards for Travelers
Avid traveler need credit cards that can assist them to get elite member status in airlines and hotels.
The cards help them to earn free travel and enjoy a wide range of other perks related to travelling.
Travel enthusiasts and business people whose line of duty requires them to travel frequently prefer credit cards.
The best credit cards are those that allow them to redeem points for travel.
Even though the cards can be used to gain cash back too, they derive more worth from travel benefits.
There are three categories of travel credit cards: general travel, hotel and airline cards.
Capital One Venture Rewards Credit card is the most preferred in the travel industry.
It charges no annual fee in the first year of joining, and thereafter charges an annual fee of $95.
It is affordable for travelers given the benefits that come with owning the card.
Holders of the card are allowed to travel any time they want since there are no blackout dates.
They can stay at any hotel every time they travel, and can fly on any airline at anytime.
Other benefits they enjoy from the credit card are that they are not charged a foreign transaction fee.
Also, the miles they earn do not expire throughout the time they actively possess the card.
They are also not limited to the number of miles they can earn on a cumulative basis.
2. Best Credit Cards for College Students
Students have different financial needs compared to business executives, and normal employees.
This is why they would require different terms in regards to what they can consider as a good credit card.
The best credit cards for college students allow them to earn rewards.
At the same time, they need the best credit cards offering them interest-free financing even though it is short term.
As a student, such credit cards give you the chance to establish good credit scores.
A good credit history will help you rent your own apartment and get low premiums on insurance.
It will also allow you favorable rates on loans you might need in the coming year.
However, by the virtue of being a student, it does not mean that you automatically qualify for a student credit card.
You need to have access to income, and if that’s difficult for you, you could get a secured credit card.
Such a card requires you to deposit some amount of cash to act as collateral.
You need to have the collateral because it protects the issuer of the card, in the event you don’t settle your bill.
Discover It for Students Credit cards
The best credit cards for students in the market are many, but Discover it for students stands out.
The card charges no annual fees, and the holder earns 5% cash back every quarter of the year.
The holder earns that when they shop at different places, like gas stations, Amazon.com, restaurants or grocery stores.
Also, for all the cash back you earn, you are entitled to a dollar-for-dollar match at the end of the first year.
For the next five years, if you maintain a GPA of 3.0 and above at school, you get $20 bonus annually.
For students who are beginning the learning process on how to handle credit, this is the best credit cards that suit them.
If you make a late payment the first time, you are not punished, and you get to receive FICO score for free.
3. Best Credit Cards That Offer Cash Backs
There are many credit cards providers in the market who have capitalized on the cash back reward system.
The reason for its consideration by financial providers is its high demand in the market.
However, the best credit cards in the market depend on the needs of potential holders.
Credit cards have variations in the benefits they offer and their reward programs.
In addition to that, the annual and monthly spending of individuals is different.
Also, the value a person places on the perks offered to the card holder varies from one person to another.
Cash back credit cards are popular among many people because they are easy to understand and use.
The best credit cards in the cash back criteria are mainly from the United States.
Chase freedom and Blue Cash Everyday credit cards are leading the pack.
The unlimited version of Chase Freedom charges no annual fee and is considered the best.
It provides the holder with a sign up bonus and a flat rate as cash back.
Regardless of the amount you spend, even for any little money spent, you enjoy constant amount cash back.
You can redeem the cash back you earn each time you make a purchase for your next free purchase.
Blue Cash Everyday
Blue Cash Everyday also lacks an annual fee, and their cash back is rewarded in Reward Dollars.
From the dollars, you can redeem to purchase merchandise, get gift cards, and statement credits.
As a holder, you also enjoy 2% cash back when you make purchases at specific department stores.
You also get the same percentage when you purchase gas at gas stations in the United States.
Additional purchases made on any other places apart from the selected ones attract 1% cash back.
Their offer is good enough especially when the cash backs accumulate into more cash with time.
When you make annual purchases of $6,000 at supermarkets in the United States, you are entitled to 3% cash back.
There is another credit card worth considering, even though it does not match the standards of one mentioned.
Bank of America Rewards Credit Card, which is among the best for gas spending and grocery purchases.
Such credit cards attract no annual fee and holders enjoy a certain bonus amount when they sign up.
4. Best Credit Cards for Businesses
Entrepreneurs and business require credit cards that can provide them with the capital needs they require, with convenience and within a short period.
Business credit cards come in handy for people in the world of business.
Businesses need capital more frequently to finance their operations, more than a common employee or student would.
Therefore, the best credit cards for them would be those that give them instant capital for their startups.
The capital is also used in cash flow management and the continuous growth of their businesses.
In the startup capital category, business owners require credit cards to settle payments on purchase of inventory.
They also need it to settle advertising costs, and expenses for running the initial organization.
Those that have been in business for sometime are now running a bigger version of their initial companies.
Their demand for ready cash increases, with increase in the size of their business.
They use credit cards to purchase new machinery or repair the ones that are faulty.
They also require credit cards for payment of salaries and settling of debt accumulated over time.
There are many benefits of business credit cards especially when they are used correctly.
They can help you to separate your business finances from your personal ones.
The distinction ensures that you, your business partners and your family are protected on from liabilities of the business.
It is possible for you to go bankrupt, or another business or person could sue you in your line of work.
If the court finds that you used the assets of the company for personal benefits, you risk the limited liability protection you enjoyed prior to the prosecution.
Limited Liability Companies
Businesses can either operate as limited liability companies or corporations.
If you are guilty of misappropriation of your company’s funds for personal gain, you put a risk on your personal assets.
Business credit cards will help you demarcate your personal assets from the company’s.
They also maximize tax deductions, for example in the funding of equipment repairs.
When you use a credit card to fund the repairs within the year, you get a tax reduction when settling the payment later.
Ink Business Credit Card attracts no annual fee, and is best for spending in the office, dining and at the gas station.
It is appropriate for the daily expenses of a business, because it is accepted in most joints that serve companies.
To acquire rewards on business loyalty, consider Starwood Preferred Guest Business Credit Card.
It is offered by American Express, and rewards its holders a bonus on signing up.
5. Best Credit Cards for Airline Sector
Apart from business executives and travel enthusiasts, some people would like a bonus or reward during the few times they travel.
They require credit cards that offer the best rates and rewards in such cases.
Financial institutions have taken advantage of the demand in the market and provided a solution.
Flyers, ranging from frequent ones to business ones, and medium to small airlines require the cards.
Airline credit cards that fit in the category of best credit cards have incomparable offers in the market.
They charge no annual fee and have gone an extra mile to generate airline cobranded credit cards.
Chase Sapphire Preferred Card is the best option for spending in large airlines.
The card also provides a bonus on signing up, which has attracted more holders.
In the British region, the British Airways Visa Signature Card is the most effective for flyers.
Generally, flyers can enjoy the most lucrative perks and rewards, when they use Airline credit cards.
Although some of the credit cards charge high annual fees, they are worth it because of their benefits.
When you utilize the airline benefits that come with the card, you can recoup the expensive fee.
You can redeem earned rewards for a particular airline if your card is cobranded.
If you have a travel reward card, you enjoy the rewards on a wider scope of airfare.
6. The Best Hotel Credit Cards
Avid travelers or locals, who like to spend time in hotels, can have credit cards for that.
The benefits they can enjoy are available both in local and international hotels.
They get to enjoy upgrades of rooms they stay in and free stays when they visit the hotels.
Other benefits include discounts on travel and perks on loyalty membership of the hotels.
They get value for their money; because they can also redeem the points they earn to cover travel expenses.
Like the Airline Credit cards, Hotel credit cards also have their cobranded versions.
With the cobranded hotel credit cards, the holders redeem points they earn and dine in selected hotels.
The hotel brands that have set base in most parts of the world allow the cobranded credit cards.
When creating the cobranded cards, convenience and accessibility of the hotels is considered.
It is unlikely that a hotel which is only found in one town of a country will be put on the select list.
Customers require hotels which they can find in most places, to be able to enjoy the card benefits.
If the select hotel is only found in one location in the whole country, it is inconveniencing.
Chase Sapphire Preferred Card serves a wide range of hotels; hence it is among the best credit cards.
One can use the card to spend in the general travel and hotel scene, regardless of the location.
Providers have succeeded in attracting new cardholders, because of the sign up bonus they give.
Barclays bank is also part of the deal, in terms of providing the best credit cards.
Their Barclays Choice Privileges Visa Signature Card is among the best credit cards in the hotel arena.
It is mainly applicable in privilege hotels, which are frequented by the elite in the society.
It is difficult to find credit cards that are the best across the spectrum.
The different categories of business and the varying preferences of people determine the best credit cards.