Best Credit Cards

Written by Kathleen Gagne
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Out of all of the hundreds of credit cards offered both by mail and online, which cards are the best credit cards? The answer to that is simple; the best credit cards are the ones that meet your specific needs and that don't cost you an arm and a leg. The key issue to finding those great credit card deals is knowing a few things about how credit cards work.

Credit Cards 101

Basically, when you obtain a credit card, you are getting a loan from a bank or other credit card vendor. You don't have to use that loan, but you can spend up to the amount granted to you by the lender. For access to those funds, you will have to pay a monthly fee called interest. No interest is charged if you don't spend any of the lender's money; however, once you spend any portion of the allotted amount, you will have to pay interest until your balance gets to zero again.

There are other costs associated with getting a credit card. If you have established great credit, you will be eligible for the best credit card deals such as low interest rates, no origination fees, and no annual fees. Most people are somewhere between excellent credit and bad credit. That leaves a wide range of good credit cards from which to choose. Obviously, it makes sense to look for credit card offers with the lowest fees and interest rates.

If you have poor or bad credit, the best credit cards for you might be very expensive with high interest rates and exorbitant fees. In spite of the expense, however, getting one of these cards and paying your monthly bill on time each month can help you to reestablish good credit. Note that secured cards are not recognized by credit agencies as part of rebuilding credit since you must deposit in advance the amount you will be able to charge. Again, the best credit cards are the ones that suit your needs exactly.

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