Finding the Best Credit Card

by: Morgan Hamilton
When you start your hunt for the best credit card what you're really searching for is the best credit card for your particular situation and needs. You may, for instance, be someone whe travels a lot for business or pleasure. Travel credit card discounts may be the best credit card option for you. You may be someone who has bad credit. There are credit cards especially designed for folks like you - these would be the best credit card options for your circumstances.
If you are a shopaholic, for example, the best credit card for you might be one that gives rewards in the way of incentives and percentages back on purchases. Of course, there are some things that make a card the best credit card for many, if not most, credit card users. These are the ones with the lowest APR (annual percentage rate) and the lowest annual rate. Some cards - in fact, many - have no annual rate at all. One such card may prove to be the best credit card for you, assuming that there aren't hidden fees that ultimately cost you more than you've saved in lower APR or annual fee.
Keep in mind, though, that the better your credit history, the lower the APR you're going to find on a credit card. If your credit is poor the best credit card you're going to find, unfortunately, is going to be one with a higher than average APR. That is, until you improve your credit standing. There are alternative credit cards for this situation, too.
Other factors to consider in determining the best credit card for you is whether you generally pay off your credit card debt each month or whether you carry over a balance each time. The reason this is an important factor in deciding the best credit card for you is that some credit cards offer a grace period on this carryover - others do not, and, in fact, tack on hefty penalties for doing so.
Fleet, AFB Industrial and Wachovia Bank all have twenty day grace periods on their credit cards - clearly the best credit card choice for those who don't pay the balance each month. All other factors being equal, of course.
Another best credit card factor to be considered is whether you typically use your credit card for cash advances. This rate can vary considerably, and some even have no fee attached to a cash advance request. This, like anything else, depends on credit rating. USAA's best credit card offer for cash advances, for example, is a free cash advance. It's highest percentage fee is nine percent. Fleet and Wachovia both charge four percent.
The other important factor in determining your best credit card is how much traveling you do. If you're flying the friendly skies on a regular basis a credit card that lets you rack up credits for each flight you take may save you more than opting for one that doesn't whose APR is lower, or the annual fee less costly.