Choosing a credit card is a bit like choosing a bank to work with, so you want to choose a credit card issuer that you can be in a long-term relationship with. There are several types of credit card companies, and they differ somewhat in where they are accepted and the features and services they offer.
So, which credit card companies are best to work with? While it might seem like a no-brainer to simply go with the best credit card deal you can find, there are several other factors to consider. Ask these simple questions to find the best credit card companies for your needs:
1. How widely accepted is the credit card?
The most widely used credit card brands are Visa and MasterCard. The great advantage of Visa and MasterCard credit cards is that they are accepted anywhere in the world where credit cards are accepted. They also are offered by many different credit card issuers, i.e., banks that offer the Visa and MasterCard brand in their own name. Some of the largest banks that issue Visa and MasterCard credit cards include Citi, Chase, Bank of America, and Capital One.
The two other popular credit card brands, Discover and American Express, are accepted world-wide but in fewer locations than Visa and MasterCard. However, the credit card landscape keeps evolving, and both Discover cards and American Express are rapidly becoming much more widely accepted. Both Discover and Amex credit cards offer some great rebates and unique incentives, so many people like to carry at least one Discover card or Amex card in addition to their Visa and MasterCard credit card.
2. What type of credit card are you looking for?
Most credit card companies offer credit cards with similar types of terms and incentives, including 0% balance transfers, cash rebates, rewards, free airline miles, and so on. However, some credit card issuers target specific consumer groups. For example, First PREMIER® Bank and Orchard Bank, a subsidiary of HSBC, primarily offer credit cards for people with bad credit. The terms of these cards tend to be less favorable than cards offered to people with good credit, so if you have good or excellent credit, these cards aren’t the best fit for you.
3. What is your main purpose in getting the credit card?
Credit card companies vary somewhat in the incentives they offer. Discover credit cards, for example, pioneered cash back credit cards, and today Discover cards still offer some of the best cash back deals around. Citicards and AT&T Universal Savings cards, on the other hand, offer some of the lowest APRs, so if you are looking to carry a balance on your credit card, start by checking out the credit card offerings of these two companies. Of course, credit card companies vary their terms all the time, so for best results, use our Credit Card Comparison Guide to find the best credit card deals.
When it comes to rewards cards that let you earn points redeemable for free travel, hotel stays, and numerous other types of rewards, the competition between credit card companies is quite fierce, and the selection of cards much greater. So if a rewards card is what you are looking for, it’s worth your while to sift through the many different offers to find the best one for your needs. For more detailed advice on what to look for when choosing a credit card, see this article from Bankrate.com—Finding the Card for Your Lifestyle.
