We all know that there is a lot of fierce competition between credit card companies these days. On the one hand, it is good, because of the many options available, you can choose the most suitable card. On the other hand, it’s bad because you run into problems with the choice and the most difficult question – “which is the best?” And that can completely confuse you. Don’t be afraid, in this article we will tell you how to compare and choose a credit card.
If you have a good credit history, you can choose any card offered by different banks. There are different types of credit cards. These can be credit cards that return money, gift certificates and bonuses (also called bonus miles), the best way to get a good card is to choose the card that best suits your cost style and your cost style. needs.
Since there are different types of cards, you must first choose the type of card:
– standard card,
-paid credit card,
business credit card,
-student card or
-sustainable customer card, etc.
Choose the best rate, depending on how you use your credit card. If you pay the balance in full every month, prepaid cards are the best option. If you use the card to transfer funds, you should choose a low interest rate card to transfer the balance.
For people who travel frequently, for example, a ticket or points that gives miles to people who fly frequently are the best option. In this case, it will be good to choose a card that pays a large percentage of your travel expenses, such as plane tickets or room rates at the hotel.
Find out the annual interest rate. Most credit cards have a different annual interest rate on sales transfers, purchases, and cash withdrawals. Make sure you know the annual interest rate for each action. Also, you need to know when ATMs, stores, or credit card bills are being paid late.
When choosing a card, you need to understand that this is not a temporary allowance, but a long-term source of money when they are urgently needed. That’s why you choose a credit card because it offers a discount when you register, or because you give a discount at your favorite store. You need to pay attention to the terms and conditions of the card.
There are 2 payment systems around the world: Visa and MasterCard (take them as examples). These cards are accepted worldwide. It is difficult to find a payment terminal that only supports Visa cards and does not support MasterCard or vice versa. If you want to pay abroad with your card, you need to know some differences and you decide which is the most suitable.
You’ve probably heard many times that “Visa is an American payment system and MasterCard is a European payment system.” It is completely wrong. We can confirm this by comparing the names of payment systems – VISA International Association Service and MasterCard Worldwide. The main currency of the Visa payment system is the US dollar and the main currency of the MasterCard payment system is USD or EUR, respectively. This is the difference between these payment systems.
Banks, when they make agreements with payment systems, usually open one or more important accounts. Banks often open USD accounts for mutual settlements for Visa and EUR accounts for MasterCard transactions.
The conversion will happen if you want to return your card account in a currency that is open. If you pay abroad, part of the conversion is done according to the fees of the payment system and part of it according to the rates of your bank. Moreover, the conversion is often done between more than two currencies. For example, if you have a Visa card, your account is open in Japanese Yen (JPY). You want to pay for the ticket at a French restaurant. The JPY-USD-EUR conversion will be done as follows. The same applies if your MasterCard account is open in Japanese Yen (JPY). The JPY-EUR conversion will happen this way. You may notice that in the second case the conversion is lower. To avoid conversion, use different cards in different countries. For example, in Europe, Cuba, Africa it is better to use MasterCard, in the US, Canada, Latin America, Australia – Visa.
Your credit card allows you to make purchases immediately without withdrawing money from your bank account. It is impossible to refuse this type of equipment, even if we understand that we are actually “borrowing” money. Be careful when choosing a credit card, read all the information about the commission, fees and any other important information.