Credit cards are financial instruments issued by banks or financial institutions to their customers for the purchase of goods and payment for services. These cards are thin metallic plastic cards also referred to as plastic money.
They are convenient ways of carrying out financial transactions without physical cash. They are also revolving lines of credit. This means that issuers advance the holder a certain credit limit that they can spend within a billing circle. A billing cycle is the period in which a card holder can spend up to a certain amount and pay back at the end of that period.
Every issuer has an agreement with its customer about the terms and conditions that come with using their cards. Someof the condition includes the spending limit, due date for payment and the minimum amount that can be paid.
Due to the popularity of this financial instrument and how much people have come to rely on it there are a lot of issuing companies that offer different options. These options are so many that making a choice is confusing. One way that one can make an informed choice is by making use of credit card testor comparison sites.
In this article, we will briefly discuss the benefits that these review or comparison sites offer.
What Is Credit Card Test?
Credit card test in this context refers to the comparison ofcredit cards based on the features and terms that each offers. This exercise helps the consumer to choose the best option for them. There are a number of these tests available and they include basic comparison tools online and more in- depth quizzes. These tests use your financial history and credit score to give you an accurate comparison result.
Every consumer who wants to apply for this financial instrument should endeavour to use the best kredittkort test (credit card test) to find the best option.
Benefits of Using Credit Card Tests
The following are some benefits of using these tools:-
Saves Time
One of the greatest benefits you can get from using any form of these tools is time saved. Instead of you having to spend hours researching and comparing cards online to find out which one has the best reward programs, interest rates and fees, this tool does the job for you. You get a clear picture of what works best for you without spending so much time on research.
Helps You Find the Option that Aligns with Your Spending Habits
Every one of these financial instruments has its best features and benefit that it avails the holder. All cards are not created equally; some are best at cash back rewards while others are best for travel miles. So if for example you travel a lot, it will be best for you to get an option that comes with travel rewards. Similarly, if you use your card for daily expenses such as groceries and gas, you will do well with an option that comes with cash back rewards.
With the best of these testing tools, you can quickly sieve through the cards and find the ones that align best with your lifestyle and spending habits.
Helps You to Avoid Fees
Every credit card comes with fees and though they may look insignificant at first, they can quickly accumulate and begin to eat into whatever benefits and rewards it comes with. These testing tools help consumers to find cards with the lowest fees, favourable terms and conditions and most rewards.
Offers Unbiased Recommendations
Researching the various card options by yourself can be very tedious and may be tainted by personal biases. Some review sites may be sponsored by issuing companies and as such will have no choice but to favour their sponsors. With credit card tools however, recommendations are made strictly based on the spending habit of the consumer and their financial goals.
Helps to Improve Your Credit Score
A consumer’s credit score is one of the most important things that banks or issuing companies consider when reviewing applications for ‘plastic money’. A low score stands the risk of rejection while a high score stands the chance of approval.
When you take this test, you get to know factors that are affecting your credit score and this will help you know how to improve your score.
Compares All Types of Cards
These tests are not meant for any particular type of card; you can use them to compare all kinds of cards. So whether you are comparing balance transfer, secured or no-annual fee cards, you can get an accurate comparison. This will ultimately help you know the best type for you.
Benefits of Owning a Credit Card
One may wonder why the fuss for this ‘plastic money? All over the world, it is known that these plastics come with a number of benefits. These benefits include earning rewards, building credit, digital tools for managing accounts and protection against unauthorized transactions.
Let’s briefly talk about earning rewards with your cards:-
Earning Rewards
The following are rewards that you can earn from your card(s):-
Cash Back – Cards that offer this reward, give you a percentage of the amount you spent on purchases like gas, entertainment, dining and groceries. They are great for people whose spending habits tend towards the afore-mentioned.
Travel Rewards– Cards with travel rewards are great for frequent travellers. The system here is that you earn rewards based on miles or points as stipulated by the issuing companies. These miles or points qualify you for vacation rentals, hotels, airline upgrade, cars, hotel reservations, cruises and more. There are cards that allow you to redeem your points with items outside of travel stuff.
Points– This reward system is calculated in different ways by different issuing companies and redemption system also varies. Before you get this kind of card, note that the reward system vary based on the issuer. This therefore means that you must understand all that it entails before you go ahead to get it.
Conclusion
From the foregoing, you can deduce that having plastic moneyin this day and age is almost non-negotiable. However, we have stated that one must put in some work before deciding on the one to get. You can either use a credit card test or you do the work yourself.
Whatever option you choose for determining the best credit card for you, ensure that you remember all the tips that we shared here. They will surely come in handy.