Best Credit Cards for Bad & Good Credit in 2020
These days using a credit card and having a handsome credit limit is a way to show off your status. There are also people who are afraid to use a credit card thinking that the bank gives them away to put them under a continuous loop for an infinite loan system. Though it is true, it is a win-win situation for both the banks as well as for the customers. Credit cards are extremely useful if used wisely and not get greedy in the materialistic world. We have to be wise enough to know which the best credit cards to use are, which will benefit us and which will not betray us during the hour of need.
Understanding the Difference between a Debit Card and a Credit Card
To understand the need of a credit card on this planet we first need to know what a credit card is? A credit card is a similar card like we use in an ATM machine to withdraw money which we commonly call a Debit Card. It is a Debit Card because you are taking out your own money from your account that means the money is being debited from your account. Similarly, the card which we use to borrow the banks money to fulfill our desires is called a Credit Card because we are taking the money as a credit from the bank.
Reasons to Use a Credit Card
Credit Cards are very important to us these days and the reasons behind it are as follows:
- If you want to buy something important but since it is the month’s end you are running out of money. Your credit card can help you with it. You can get your thing and pay the bill when you get your salary or payment.
- Suppose you want a costly item but you cannot afford to pay the money all at once. Using your credit card to buy it will be the safest option. After buying the product you can easily convert the total amount into EMIs if the company is not offering it. So, you can make your own EMIs.
How to Get a Credit Card?
Everybody wants the best credit cards for themselves but the first stage is to know how to get a credit card first. These are the following ways to get a Credit Card:
- Banks after seeing your maintenance of account balance offer credit cards.
- If the bank does not offer you then you can either apply it from the internet banking site or directly from the bank by filling up a form.
- A pre-approved credit card is generally lifetime free, that is, annual fee is waived off though it has certain terms and conditions.
- If you apply for the credit card on your own then the annual fee is generally charged.
- Nowadays, there are certain banks who also give credit cards though you do not have an account with them. They judge you by seeing your credit score and also from the payment history of your existing credit card.
How to Judge the Best Credit Cards for You?
There are some simple steps to follow in order to find the best credit cards for you. One has to do proper research but what are the things that should be researched is important. They are as follows:
- The first thing one has to find out if the Credit Card has an annual charge or it is a lifetime free credit card. It is always advisable to go with a life time free credit card. If you are not getting a lifetime free debit card then compare the charge and get a debit card.
- A lifetime free credit card is a myth as it has terms and conditions which most people skip it. You might either have to use a certain amount within a specific period of time or some other conditions might be there as well. So find out the way the card gets its annual charge waived off. In this case, compare the terms and conditions properly.
- Different banks have different time periods of repayment of the monthly credit card bills. So, it is advisable to keep a note of that and compare it with other banks.
- Also compare with other banks about the rate of interest that will be charged if the full payment is not done within the due date.
After comparing the above points you can easily get the best credit card for yourself.