Guest Post by FDL
Which Credit Card Is Best?
art by tru.ca
Being smart about limiting the number of times I drag out that plastic instant loan maker is a given.
We all recognize how much easier it is to go for the ‘unnecessary’ purchase when plastic is involved.
That little monkey that sits on my shoulder screaming “I have to have those shoes right now or I will surely die” or “but it’s such a great price” in a calmer, more practical tone, wins more often when a credit card is involved.
Personal failings aside, for many of us there is a time and place to have a credit card available-times I prefer a credit card over a debit card.
Credit over Debit Cards?
- for online purchases
- for dining out when the card will be taken out of your sight
- for hotel stays and rental car use
- to keep better track of expenses
Credit cards have a place in my life. I simply do not always have a checking account balance large enough to accommodate a large unexpected hold on my account that is the norm with some of the uses listed above.
I always pay off my credit card balance every month and that helps me muzzle that beast on my shoulder.
Have I made the case for keeping a credit card? I am trying to convince myself as well as you, but I will be keeping plastic in my life.
So, now the question is: Which card is best? I hope you didn’t think there would be a simple answer. With some research, here’s what I found.
How to decide which credit card:
JD Power says, American Express is the credit card issuer of choice for four years running. The survey by J. D. Power and Associates looks only at customer satisfaction with the issuing card company.
It’s all about communication. Am Ex does the best job of communicating with their customers. They also have a less risky clientele, a fact that is not overlooked by the folks doing the survey. Discover came in second, again all related to excellence in customer communication.
Reward Cards
What about rewards? What card fits your needs? Again, that is not a simple matter either. There are several sites available to look at what is out there, what is offered, and what might be best for you. An article that listed a couple of good sites was at bucks blog. Of course, there is some rivalry for who gives you the best advice-good for you and me-so a short comparison of the sites is revealed.
- Credit Card Chaser has a search service listing different criteria that you choose.
- NerdWallet is new and tries to list every card out there which is their way of finding a niche in a crowded market. Not all of the cards listed are sponsors.
- Credit.com gives info on only 100 sponsored cards. Their COO states that sponsored or not, all the info is accurate.
- CardHub.com lists a 1,000 cards. They admit to giving preference to sponsored cards.
By the way, ‘sponsored cards’ give the websites a chunk of change when someone applies for a card using that site.
OK, now we know that choosing which plastic is complicated, too. Since I love misery, what did that CARD Act passed last year by Congress do to my rewards? And oh yeah, what do I actually get for my ‘rewards’ anyway?
I’m exhausted just thinking about all this research. Stick around, I’ll get back to you with all that info.
Until next time,
FDL blogs for Fast Declutter Your Home, a clutter and organizational website.
Reader Questions:
- What is the criteria that you use for choosing a credit card?
- Do you have a personal favorite and why?
- Do you believe credit cards are evil and should be banned from the planet?
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