How to Choose the Best Credit Card

March 9, 2012

in Credit Card

I’m not against the usage of credit card because it is a great financial tool if use properly. However, it should be handled with care like a fragile glass because it will be broken if you carelessly use it. Your life will be “broken” too as a consequence.

Many people are asking me through this blog on how to apply for the best credit card. I’m not surprise about the dozens of comment I’m receiving about credit card because it gives more power for people to buy. But, on the other side, it gives also debt. Therefore, make sure to only use it if you have the capability to pay, otherwise, do not attempt to apply for one.

Good thing in the Philippines, it is harder to apply for a credit card than in other countries like US and Canada. I think it is one of the advantages in our financial and banking system, it is stricter in implementing the regulations of credit card.

Like what I said earlier, a credit card can help you in your financial ventures if it is used correctly. If you want to apply for a card, here are some of the suggestions that you may consider in choosing the best credit card for you and your family.

1. No Annual Fee

One of the features that you should be looking for the best credit card is that it must have no annual fee. Most of the credit card companies in the Philippines charge a yearly fee for using their card. However, I know one credit card offered by Metrobank which has no annual fee. I think you must check it by visiting a Metrobank branch nearest you or through their website.

The normal annual fee for a credit card ranges from P1,000 to P3,000 and any card that charges over that amount will too expensive for a fee. Before you choose a card, you should pay particular attention to this one or may be you can request to waive the annual fee.

2. Cash back rewards/points

I have been using my first and only credit card right now for more than 4 years. It’s a Samsung Bonus Point credit card that I applied in 2007 when I started working here in South Korea. One good thing why I like this card is it has a cash back rewards when you use it in partner stores and establishments. So far, I guess, the card accumulated more than $150 in cash back rewards.

Here in South Korea, we always used credit card in our purchases because of tax incentives and the cash back rewards that you can get. If we use cash, we cannot get some tax refunds at the end of the year so we rather use a credit card than cash when paying for something.

It is also convenient to use a card since you don’t need to bring lots of cash when you’re going to supermarkets. There’s no problem about credit card here because almost all stores, restaurants, marts and business establishments accept credit card for payment.

best credit card

3. Ease of application

The best credit card should be easy to apply. It should have a simple process of application and a detailed information about its features, fees and benefits that you can get.

You should look for an online application of the card you want since it will be more accessible to you anywhere you are even if you are outside the country or far away from the nearest bank. Remember you also need to submit some requirements even you apply online. The only difference is you fill out the application forms via the Internet.

4. Low charges and fees

You may start comparing cards by visiting the websites of your prospect cards that you want to get. I think all important information including fees and charges will be found in their website so there will be no problem about getting this info.

From the list you have, select the card with the lowest fees and charges, considering also the other features and benefits that it offers to card holders.

5. Additional perks and bonus

Some card companies give bonus in the form of gadget giveaways when you get a card in them, zero-installment plan on purchases of gadgets and appliances and so on. Make sure you also know this stuff so can take this advantage in the future especially if you are planning to buy appliances for your house.

6. Ability to pay bills online

The best credit card is the one that has a feature of online bills payment. It should allow you to pay your card bill through Internet banking and your bills can be viewed online.

Sometimes it will be hassle to go to the bank every time you will pay for bills. If you can do it online, it will be a great convenience and you will save a lot of time and money.

Applying for the best credit card is not easy because you have to consider many factors before you can get it. It is better to study first which credit card companies will be the best choice considering the suggestions I mentioned above.

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