When it comes to choosing the best credit card for the average person, there are several factors to consider. Credit cards offer a range of benefits and features that can cater to different financial needs and lifestyles. In this article, we will delve into the key aspects that determine the best credit card for an average individual and provide some recommendations based on these considerations.
Firstly, let's understand what makes a credit card suitable for the average person. For many individuals, the primary reason for having a credit card is convenience. They want a card that they can use for everyday purchases, online shopping, and travel. Additionally, they may look for rewards programs that offer cash back, points, or miles that can be redeemed for various benefits. Some people also value low interest rates or zero-percent APR periods for balance transfers.
To begin our analysis, let's break down the key factors that influence the choice of a credit card:
1. Rewards Programs: The most popular rewards programs include cash back, points, and miles. Cash back programs allow you to earn a percentage of your purchase amount back in the form of rewards that can be redeemed for statement credits or gift cards. Points programs typically reward you with points that can be redeemed for flights, hotel stays, merchandise, or other perks. Miles programs are similar but often focus on travel-related rewards. It's essential to compare the rewards offered by different cards and choose one that aligns with your spending habits and preferences.
2. Annual Fees: While many credit cards come with no annual fees, others do have them. These fees can range from $0 to several hundred dollars per year. If you plan to use the card frequently and benefit from its rewards program, an annual fee might be worth it. However, if you only use the card occasionally, it's important to factor in the cost of the annual fee against the potential rewards earned.
3. Interest Rates: The interest rate is the cost of borrowing money on a credit card. Higher interest rates mean more money you pay over time. Look for cards with a low or zero-percent APR for a certain period, which can be beneficial if you need to transfer debt or make large purchases. Always read the terms and conditions carefully to understand the full implications of any interest rates and fees.
4. Credit Score: Your credit score plays a significant role in determining the terms and interest rates offered by credit card issuers. A higher credit score usually translates to better terms and lower interest rates. Therefore, it's essential to maintain a good credit score by making payments on time, keeping credit utilization low, and avoiding unnecessary debt.
5. Customer Service: Good customer service is crucial when dealing with credit card issues or concerns. Look for cards that offer 24/7 customer support through phone, email, or live chat. This ensures that you can get help quickly and efficiently when needed.
Now that we have covered the key factors to consider, let's provide some recommendations based on these criteria:
Chase Freedom Flex: This card offers a generous 5% cash back on select categories each quarter (up to $1,500 in combined purchases), plus 1% cash back on all other purchases. There is no annual fee, and the introductory APR is 0% for 15 months from account opening on purchases and balance transfers. Chase also has excellent customer service.
Citi Double Cash Card: This card offers 2% on every purchase with no limits on 1% of those purchases (for eligible categories) and 1% on all other purchases. There is no annual fee, and the introductory APR is 0% for 18 months on Purchases and Balance Transfers. Citi also has a robust customer service reputation.
American Express Blue Cash Everyday: This card offers 3% cash back on eligible purchases, including up to 6% at U.S. supermarkets on up to $6,000 spent per year. There is no annual fee, and the introductory APR is 0% for 18 months on Purchases and Balance Transfers. American Express also provides excellent customer service.
BankAmericard Cash Rewards: This card offers 2% cash back on purchases and an unlimited 1% cash back on all other purchases. There is no annual fee, and the introductory APR is 0% for 18 months on Purchases and Balance Transfers. Bank of America also has a strong reputation for customer service.
In conclusion, choosing the best credit card for the average person requires careful consideration of their personal financial goals, spending habits, and priorities. By evaluating the rewards programs, annual fees, interest rates, credit score requirements, and customer service options, you can make an informed decision that aligns with your needs. Remember to read the terms and conditions thoroughly before applying for any credit card to ensure you understand the full implications of the offer.