Best credit card: 5 steps to choosing

Having a credit card offers several advantages. It allows you to organize your finances, pay for purchases the following month, pay for high-value products in installments, and receive benefits. Without a doubt, using a credit card can be very beneficial. 

However, it can also be a major villain if you don't know how to use it correctly. Among the essential precautions is choosing a credit card. After all, there are many options to choose from. 

Brazil is one of the largest credit card markets in the world and the largest in Latin America.

The number of credit cards issued in the country has grown significantly in recent years, as has the number of establishments that accept this form of payment.

For some time now, the number of transactions made with cash has been decreasing. 

Therefore, in this text, you will understand how to choose the best credit card. Here, you will check out:

• The importance of choosing the best credit card
• 5 tips for choosing the best credit card

The importance of choosing the best credit card

We already know that credit cards have become essential in the lives of Brazilians. Today, withdrawing cash is becoming increasingly rare, and card transactions are becoming increasingly simplified.

Some factors that contributed to this growth were the ease with which Brazilians could access this type of credit, greater security in transactions and the possibility of purchasing online. 

But with so many options on the market, what are the main criteria to use when choosing a credit card? This varies depending on each person's needs. 

Why are you looking for a new card? To accumulate points? If so, you need to look for the brand with the best points program.

Want to get benefits? Research the benefits offered by each institution. Want to pay for purchases in installments? In this case, it's best to look for the one with the lowest interest rates. 

With so many cards on the market, it can be difficult to choose the one that meets all your needs. Continue reading to learn how to choose the best card for you. 

5 tips for choosing the best credit card

1. Identify your needs 

The first step to knowing which card is best for you is to assess your needs. After all, you know your needs best.

Before applying for a card just because your friend has one or following your bank manager's advice, consider your own needs. For example, if you travel internationally a lot, it's worth choosing a card that doesn't have international card fees. 

2. Research your options 

It's very common for people to apply for the card at the bank where they have a checking account. But that's not the only option. You can apply for this service at various banks and financial institutions, even if you're not a customer. 

This detail offers a huge advantage to consumers, as increased competition forces companies to do their best to stand out. Therefore, do your research to understand what each company offers before choosing your ideal card.

3. See all fees 

Each bank has its own fees. In fact, the same bank may have different fees for different types of credit cards. This is a very important factor in your assessment. 

Interest is charged when a customer is late, fails to pay, or only pays the minimum amount on their bill. And even if none of these things are in your plans, it's important to consider. 

The annual fee is also a criterion that needs to be considered, regardless of your objective with the card. The annual fee is not a mandatory fee, and the less you have to pay, the better. 

Currently, it is possible to find several credit cards on the market without annual fees or with annual fees subject to certain limits set by the institution. 

4. Evaluate the benefits 

Typically, higher annual fees are associated with membership in benefits clubs. Remember our first tip: assess your needs to determine whether the benefits are worth it. 

The answer lies in evaluating your routine. One of the most common benefits of credit cards is exchanging points for airline miles. If you make a lot of purchases with your credit card and travel frequently, this benefit will be very beneficial. Otherwise, the expenses may not offset the benefits. 

Some companies also offer points exchange for products, discounts on purchases of certain products in certain stores, half-price tickets to movies, shows, or even cashback. 

These differences tend to attract attention, but remember, they only make sense if you really need what's being offered. 

If you're a loyal customer at a department store, for example, the card offered by the employee might be interesting. These cards often offer better payment options and exclusive discounts. 

5. The flag 

Today, we have several card brands on the market. The main ones are Mastercard, Visa, American Express, and Elo.

Although card machines accept more than one brand, it is very common for some cards to not be accepted at a specific establishment. 

Some flags are recognized worldwide and accepted almost everywhere.

Some are only accepted in Brazil or require agreements with other international brands to be accepted abroad. For example, Elo is accepted abroad thanks to its partnership with Diners Club. 

If you intend to use your card for international purchases, a card with greater international acceptance should be considered, such as Mastercard or Visa. 

Aside from acceptance, the cards work similarly. They all allow users to make purchases online and in person, allow installment payments, and offer credit and debit functions on a single card if you have an account with the bank. 

Use your credit card responsibly 

Using your credit card responsibly will prevent future financial problems. Don't take out installments you can't afford, and avoid spending more than you earn. 

One of the things that most contributes to debt and default among Brazilians is the misuse of cards.

This often happens because people view their credit limit as extra income, money they can use when their salary isn't enough. 

Never forget, the card is not extra income, it is an additional bill in your budget. 

Credit card debt is dangerous if you lose control. High interest rates can be incurred. 

After all the tips we've given you so far, you're more than ready to consider which credit card is best for you. Consider the features we've suggested and make the best decision. 

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