Credit cards can be a blessing or bane. If you can understand the features of a credit card and use it to its potential, you can save a lot. Hence, it is important to choose the right credit card that fits your requirement. You can earn great rewards that allow you to shop at discounted rates or for free.

If you want to choose the best credit card for yourself, first, you need to look at all features and benefits it provides. These features should align with your expenditure and lifestyle. For example, if you are a frequent traveler, you need a credit card that gives you more air miles; using a cashback card might not be a good option for you.

Features of the best credit card
Here is the list of features that you should look for in a credit card.

• Sign-up bonus
  Many credit card issuers offer great sign-up bonuses. For example, a credit card might provide you with 10000 points as a welcome bonus if you spend $1000 in the first three months. You can use these points to shop, buy tickets and merchandise. So, look for a credit card that provides a max sign-up bonus to you.
• No annual fee
  Most credit cards don’t charge any annual fee. Some do charge, but that is also reasonable, like $99 per year while offering $600 or more in value.
• No APR penalty
  An APR penalty is when your credit card company raises your interest rate if you are late paying bills. For example, if you have a $6000 debt with 16% APR, you will have $960 as interest. Now, imagine if your APR jumps to 30%, now you have to $1800 as interest. Many cards don’t have this feature, but it is still best to study all the details about APR before you apply for it.
• Low-interest rate
  The best way to avoid any penalty or interest is by paying your credit card bills every month. But, for some reason, you cannot make full payment or occasionally carry a balance, then you should look for a card that offers the least interest rate.
• No foreign transaction fees
  This type of card is best for those who travel abroad a lot. Without this feature, you will see a fee related to currency exchange on your statement if you spend money abroad. If you are a frequent traveler, this feature can help you save a lot of money.
• Cashback
  Cashback is a reward offered by credit card companies. You can earn cash back just by making purchases using the card. There are plenty of cards that offer 1.5% to 2% cashback. Some cards offer up to 5% if you use your card at a specific store. So, look for a card that offers maximum cashback.
• Miles
  Miles are travel points that you earn by booking flight tickets and making travel reservations. You can use the points to book your plane tickets, accessing the airport lounge and sometimes for booking hotels as well. Some credit card companies have a direct deal with airlines that offer more points when you travel using that airline.
• Points
  Similar to air miles, you earn points just by using your card for buying or booking things. These points can redeem these points to get gift cards, discount coupons, movie tickets, and more.

Top credit cards to choose from:

• Citi Double Cash Card (Cashback Card)
• Chase Sapphire Preferred Card (Travel Card)
• Amazon Prime Rewards Visa Signature Card (Points Card)

A credit card provides a lot of benefits, and if you choose the right one, it can help you save a lot of money. So, before you apply for new credit, consider the points mentioned above.