When choosing certain banking products, such as the best credit card, we have to take into account what our needs are, since based on these we will choose one or the other. In addition to financing, credit cards offer many more services that we have to consider in order to find the best one, so we ask ourselves, what should we take into account when choosing the best credit card?
Depending on the credit card you choose, you can access some advantages or others, therefore, in order to help you choose the best one for you, we are going to list the most important characteristics of credit cards, which you should take into account when choosing one:
Credit card fees
The expenses that we will have to face not only for using the card, but for having it, keeping it, withdrawing cash from the ATM. Financial entities must detail the commissions that they are going to apply to their clients at the Bank and inform users in detail before making any type of modification so that they know what they are contracting. The main commissions are:
* Commission for card issuance
* Commission for renewal
* Commission for non-payment claim
* Overdraft commission
* ATM cash withdrawal fee
Many entities offer free credit cards and many others will offer them free for a period of time, which is usually the first year, and during the rest of the years there will be a maintenance fee, so it is important to look at whether we are only exempt from paying it the first year or it is free forever.
Another thing that must be taken into account is in which ATMs we can withdraw money for free with the credit card, if we have the possibility of entering money by introducing it and all the services that we can access with it (transfers, discounts …)
Credit card interest
To know the interest that the use of a credit card entails, you have to look at the AER, the annual equivalent rate. You must pay special attention to this aspect, since it is an indicator that reveals the effective cost of deferring purchases that we make with the card as the AER includes the interests, commissions and expenses of the credit card and helps us to compare the cards offered by different financial institutions.
Preset payment method
Keep in mind that default credit cards usually have a payment deferral of about two months with interest that is around 20% AER. When we hire the card, we must contact the financial institution or access our client area to choose the financing option that suits us best. The WiZink Plus card offers the following types of payments for your purchases:
- Total payment : you will receive a monthly receipt with the total amount you have spent that month. With this payment method you will not generate interest.
- Fixed amount : you can choose the monthly amount to pay
- Percentage : you can choose the monthly percentage to pay, this must be at least 5%
- Minimum payment: with this method you will pay the minimum amount possible, which must be at least € 18
Credit card grace period
The grace period consists of the time from the end of the billing cycle to the due date of the payment you have made. It does not suppose a period during which the entity finances you for free, but the time during which you can “put in order” the balance of the card, and thus avoid the interest charge.
Credit card debt limit
Each one must know what their debt limit is, that is, the maximum they can spend now and pay back in the future, since the money spent through the credit card is a loan that must be paid back and the sooner it is done, the less costs we will have to bear.
It is best to avoid having too high a limit on the card, since it is easy for the debt to accumulate and in the end it becomes a huge ball that we cannot cope with. But, in this regard, the best credit card will be the one that suits our financial possibilities.
Does the credit card have discounts?
Some credit cards apply discounts for making purchases in certain stores, discounts on fuel or welcome promotions.
Insurance that includes the credit card
A little-known feature is the insurance that credit cards have, some very useful, such as travel insurance, which can have important coverage and cover you in case you have bought the ticket with it. For example, the WiZink Plus credit card includes free accident insurance and 24-hour travel assistance and purchase protection insurance, among others, with some of the following overages:
- Free accident insurance and 24-hour travel assistance from WiZink Plus
- Travel accident up to € 150,000
- Medical assistance in another country up to € 45,000
- Repatriation by death
- Hospitalization outside the country for more than 10 days
- Lost or delayed luggage
WiZink Plus Purchase Protection Insurance
- Theft or breakage of purchases
- Robbery at an ATM
It is possible that many times we get carried away by the announcement of the bank that offers us a free credit card but as you can see there are many more characteristics to look at to find out which is the best credit card for us.