Finding the Best Consumer Credit Cards

The best consumer credit cards are not always given to the people with the best credit. I know that’s shocking right? But it’s very true. Credit card companies look at the value of the consumer and their credit history to judge which offers they send out. Don’t get me wrong, good credit is absolutely vital, but having a 950 credit score doesn’t automatically garner a consumer credit card with the best features.

A credit card company makes money on customers that carry balances over. If you’re a consumer that pays their bills every month on time and in full, leaving no revolving balance, you’ll have a stellar credit report, but you may not be offered the best credit cards available. A smart lender will send you a card with an annual fee and 0% interest rate, they may even tack on extra fees that accrue annually. A person that has a lower credit score, but still good (say in the 650-720 range), that keeps a rolling balance on a credit card will probably get a card that has 0% interest, no annual fees and probably gives miles and/or points to use at various merchants.

So why would a person with worse credit get a better deal? Credit card companies make money from interest payments and annual fees. If a consumer has very poor credit, they’re offered the high interest, high annual fee cards. A different consumer with good credit, but pays the entire balance every month, would be offered a card with 0% interest but an annual fee. Yet another type of consumer has great credit and pays the minimum payment or a little more every month. This last consumer is the ideal customer that every bank wants to keep. (Notice I used the word “offered”, because a consumer can always request a better deal).

Consumer credit cards applications are sent out to customers based on their credit history, but not necessarily the credit score. Unlike a mortgage or car loan, the credit score is not the most important factor in getting better card offers. If you receive an offer in the mail and it says “0% interest”, check the fine print for fees. If you have great credit, don’t be afraid to ask for the exact card you want. Get a card that accrues miles and points with purchase, but has no annual fee. Seek out the lowest interest rate possible. However, do not apply for several cards. Every application for credit lowers your credit score. A simple request for the credit card application of your choice with different lenders will let you read over the details of the card terms and conditions, allowing you to decide which card works for your lifestyle.

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