Credit cards make purchases easy and convenient, and the fact that there is no need for upfront cash means that credit card holders can own the products that they want now, and pay for them later. As more and more banks compete for the same pool of customers, credit cards are becoming more and more varied to cater to the needs of different people. So whatever that you think you need may already have been offered by several banks.
These banks compete on many different grounds. Of course, the most obvious competitive advantages for any credit card to have is the lowest APR (or annual percentage rate), and cash back rebates. The APR is the yearly interest rate that the bank charges for any outstanding amount. To stay competitive, most banks have offered APR as low as ten percent or less. But as a consumer, be cautious about compounding interest rates. What may appear as a small amount, if not paid off in time, may snowball to an unmanageable amount. So always try to pay off credit cards bill on time. As for cash back bonuses, these are incentives to encourage credit card holders to use their cards. After all, that's how banks earn the bulk of their profits. Whenever someone charges a purchase to their credit card, the banks earn a percentage off the total purchase amount. That means the more often the cards are used, the more the banks make. So in order to encourage credit card holders to keep using their credit cards, they have come up with attractive cash back rebates. Rebates for special selections may be as high as five percent, but most common purchases, rebates are often at one percent. Still, this can amount to substantial savings if the spending is on big ticket items such as computers, electronics or travel packages.
Usually, banks will go out of their way to encourage potential customers to sign up for credit cards. They will waive the annual fee, and may even waive the APR for the first six months or so. On top of that, most banks these days will approve credit card applications even with no income proof. So anyone can easily apply for credit cards and get approved quickly.
Credit card applications can be done online, which makes it very convenient for people to compare credit cards. Of course, every looking to apply for credit cards will compare factors like APR, cash back bonuses, as mentioned above. As it is getting harder and harder to differentiate credit cards based solely on APR, most banks have resorted to offering different cash back schemes. So the main incentive these days, for credit holders, seem to be revolving around which card offers the best discounts. The best credit cards will get you better discounts on a wider network of merchants. For sure, International banks who are bigger and have better connections are able to offer better cash back schemes. So you may wish to look towards the more established banks for your credit card applications.
Spend some time at credit cards comparison sites, and apply for the ones that you think will be worth your time.
