What is the best credit card? Is it an elusive fairy tale that doesn't exist or is it a tangible item that you could one day obtain?
Believe it or not, the best credit card is indeed out there, but one person's best credit card is another man's nightmare.
Here are seven questions to help you find the best credit card for you.
1. Do You Hate a Balance?
If you pay your balance off in full each month and you can't stand the thought of accruing interest, a rewards credit card is probably the best credit card for you. After all, you don't pay interest anyway so a low-interest credit card isn't going to do you any good.
You may as well be rewarded for your good spending habits and take advantage of the perks that rewards cards have to offer.
2. Do You Have High Debt?
If you carry large amounts of debt on your credit cards, a low interest credit card will be the best credit card for you. Rather than paying more for rewards (that don't pay for themselves, no matter what they tell you) you will pay much less in interest and will be able to get your balances paid of faster.
3. Are You Planning To Make a Large Purchase?
Need to buy a stove, fridge, television or other big-ticket item? Then consider getting a credit card with a low introductory APR. If you only need six months to pay off a large purchase, a credit card offering an intro APR of 0-percent for six months is the best credit card for you.
4. Do You Travel Frequently?
Are you a jet-setter? Do you like to travel the world? If so, the best credit card for you would be a travel rewards card. In fact, some travel rewards cards even let you double dip.
What does this mean? Certain credit cards not only offer you miles for the purchases you make, but also allow you extra points for each dollar spent, which can be used for room upgrades at hotels and other travel perks.
5. Do You Believe in Charity?
If you like contributing to charities, you might be surprised to find out that there's a credit card out there specifically for you. While some cards offer rewards, others will donate 1 to 2 percent of the amounts you charge to a specified charity.
While these cards also have higher interest rates than the low-interest credit cards, if you pay your balances in full each month they are a great way to do some good without spending anything out of your pocket, making them the best credit card for you.
6. How's Your Credit?
If your credit has taken some significant hits lately, a secured card may be the best credit card for you. While a secured credit card does require a security deposit (acting as a savings account for you), it is a great way to rebuild your credit history and improve your creditworthiness in the eyes of lenders.
7. Are You All About Appearances?
Are you the type of person who really doesn't care about interest rates, but you definitely want perks and you want to be recognized as the upper-class, respectable individual you are?
Then a carte blanch card (such as Diners Club and American Express) is the best credit card for you.
As you can see, the best credit card for one person isn't necessarily the best credit card for everyone. After you have answered the above questions, look for an offer that matches the best credit card for you.