How to choose the best credit card for me?

What is the best credit card for you?

After reading this article, you will know what the ideal card for you is: one that offers you an accumulation of points or one that gives you travel benefits.

You did your research, analyzed your spending habits, read the small letters, and decided that you want to choose a credit card with reward options; But which credit card is the best? One that offers you money back on purchases, or a credit card with travel rewards, which provides airline miles and also gives you advantages such as tickets to VIP lounges at airports? The answer, of course, depends on your lifestyle.

If you want to take advantage of the rewards you will get in each purchase, we invite you to reflect on what you intend to acquire in the short, medium and long term, and this is part of the key to deciding on the card you are going to request.

Rewards programs seek to reward customers for the use of the credit card; Therefore, here are some tips that can help you evaluate what kind of rewards best fit your needs:

Analyze your credit card expenses …

Before applying for a credit card, check your past expenses to find out where most of your money goes. Do you frequently use your credit card to buy at the supermarket? Is your monthly balance high because you use it for all your expenses, including flights, hotel stays, and dinners?

“This analysis can help you evaluate the best rewards credit card for you,” says Roman Shteyn, CEO and founder of Reward Expert, that, if you make everyday purchases, such as pantry or gasoline, a points credit card with a refund Cash can make more sense. But if you frequently use your card for flights, hotel stays, or car rentals, it can be a smart strategy to look for credit cards with specific travel rewards.

Think beyond…

Even if you use your credit card for daily purchases instead of travel, consider your plans.

For example, a credit card with travel rewards can be a smart choice, even if you’re not a frequent traveler, says Shteyn: “A credit card for travelers could make life-long adventures, such as wedding trips, more affordable. or anniversary,” continued “Combining travel credit card rewards with point card rewards opens up a list of opportunities such as staying in a private villa in Cancun.”

Do not let go welcome bonuses

Regardless of whether you choose a credit card with an accumulation of points or a travel rewards card, many offer welcome or anniversary bonuses, which include additional rewards if you spend a certain amount within the first months of using the card. Consider using your credit card instead of cash or debit in the large purchases you make to maximize your rewards, making sure you always pay the balance in full and on time.

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Maximize the rewards

While travel rewards and cash reimbursement provide tangible benefits, it is essential to consider the work involved in redeeming the bonuses. For example, travel rewards may have blocked dates that hinder their use during peak periods, as well as during vacations. Also, travel credit cards often offer special promotions during specific times of the year.

Maximizing rewards means you will have to monitor your credit card offers and promotions. If you decide not to use miles or points to travel, you can check how else you can use them. In many cases, this could mean redeeming your points to make purchases through the catalog or online shopping portal of the credit card.

If keeping up with unique offers is a tedious thing, a credit card that rewards you with cash might be right for you, since it may be easier to have control of these types of rewards.

Read the small letters

To take advantage of the rewards programs offered by your credit card, pay attention to the terms and conditions, the colloquially called “small letters”:

  • You may not be able to earn rewards on individual transactions, such as balance transfer.
  • Late payment fees or interest charges will not be taken into account for the accumulation of points or miles.
  • Failure to pay the credit card on time may result in the loss of points, cash or miles.
  • To redeem the rewards, you may have to reach a certain amount of spending per month.
  • Know how often you have to redeem the rewards and what is the validity of the points, since not all programs allow cardholders to accumulate points or miles indefinitely.
  • In which establishments or businesses can be used.
  • If you have a registration fee and what is the payment date.

Any credit card that you decide to have, one of the things that financial experts recommend is to make the total payment of the monthly expenses, which will avoid generating interest and commissions, and in this way obtain all the benefits and rewards.

Meet the rewards programs that Credit Cards offer you.

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