Best Credit Cards – Types of Credit Cards – Credit Card Rewards – 0 Credit Card Interest – Credit Card Limits – Applying For a Credit Card

On the first day of July, credit card users invaded google search engine looking for the best credit card companies that offer the best credit card features, benefits, offers, and rewards. In this post, you find the Best Credit cards of July 2020 and other information about credit card usage that will help you through the year (2020) in applying, and managing credit cards.Best Credit Cards

Here is a list of the Best Credit Cards for the month of July, August, September, October, November, and December 2020. The below current list of the best credit card of July 2020 is credited to www.nardwallet.com and www.creditcards.com; trusted credit card review sites.

  • Citi Double Cash Card – 18 month BT offer – Best for Flat-rate cash back
  • Citi Diamond Preferred Card – Best for Longest 0% period for transfers only
  • Discover it Cash Back – Best for Bonus rewards
  • Citi Diamond Preferred Card – Best for Longest 0% period for transfers only
  • Citi Double Cash Card – 18 month BT offer – Best for Long-term value: 0% period for transfers + rewards
  • Blue Cash Preferred Card from American Express – Best for Cashback — families (groceries, gas, commuting, streaming)
  • Chase Freedom Unlimited – Best for Unlimited 1.5% cashback on all purchases
  • Chase Sapphire Preferred Card – Best for Easy-redeem travel rewards and a bonus
  • American Express Gold Card – Best for Big rewards on everyday spending
  • Chase Sapphire Reserve – Best for Bonus travel rewards + high-end perks and no foreign transaction fee credit card
  • Chase Freedom Unlimited – Best for 0% intro period and flat-rate cashback
  • The Blue Business Plus Credit Card from American Express – Best for 0% Intro APR period
  • American Express Blue Business Cash™ Card – Best for 0% intro APR + cash-back rewards
  • Deserve EDU Mastercard for Students – Best for College Students
  • Discover it Secured – Best for Rewards plus a path to an unsecured credit
  • OpenSky Secured Visa Credit Card – Best for No credit check
  • Discover it Student chrome – Best for Simplicity and value
  • Deserve EDU Mastercard for Students- Best for no credit history and international students
  • Discover it Student Cash Back – Best for Rewards for good grades
  • Delta SkyMiles Gold American Express card – best airline miles credit card
  • Credit one bank visa credit card – best credit card for bad credit
  • Citi Simplicity – Best for a Balance transfer
  • United Explorer Card – Best for Airline Flights
  • Wells Fargo Cash Back College – Best for Students
  • CitiBusiness / AAdvantage Platinum Select® Mastercard- Best for Small Business Owners

Your Journey to Best Credit Cards Usage

This post presents all you need to know about credit cards. Especially for credit card beginners. We will start with the basics.

What is a Credit Card?

In a nutshell, a credit card is simply spending money you don’t have. Credit cards are issued by Credit card companies and Banks with leading credit card issuers such as Discover, Capital One, Visa, MasterCard, CitiBank, Chase, Bank of America, American Express, Wells Fargo, Synchrony Financial, U.S Bank, Barclays US, Credit One, USAA, and PNC Bank to cardholders.

The Credit card is a means of paying for goods and services purchased both online and offline. A credit card is always issued to cardholders with a reached agreement between the cardholder and the issuer on when to pay the amount spent or credited and the agreed charge.

Credit Card Explained

A credit card is an agreement between a cardholder and a financial group, in most cases Banks, to issue an amount of money in a plastic card, with hope to pay back in the future for present spending or purchases. When you apply for a credit card the financial group lends you the money you need and in return expects you to pay them back over a period of agreed time with an additional fee, called an interest rate if you do not pay your balance in full and on time each month.

How Does Credit Cards work?

Let’s say you applied for a credit card from a financial group and you are issued one, always in the form of plastic card or metal card but with information inscribed on it and when you want to buy something you transmit that information to a merchant, who communicate to the bank or the financial institution who issued the card to you. @creditcard #creditcard

The bank pays the merchant and the bank to debit the current amount paid from the total amount borrowed or credited on the card during credit card application with the hope that you will pay in future, so the bank is taking a financial risk in that situation because you might not pay the bank back. However, if you don’t pay on time, you attract interest.

Credit Card Rewards – Credit Card Reward Program

A lot of people are using credit cards because of their reward system. Like who doesn’t want to be rewarded for buying things they ordinarily want to buy. Banks and credit card issuance companies made it in a way that credit card users earn rewards when they make purchases with their credit cards.

To do that, they introduced two major ways of rewarding customers or card users; Cash Back Reward and Points or Miles Rewards. Cash Back Rewards comes in the form of a percentage credited into your credit card balance after you have made purchases, some credit card companies pay your cashback rewards into your bank account while some pays you in check.

Rewards: Cash Back & Points or Miles Credit Card Rewards

All credit card rewards program and the system falls under cashback and Points or Miles rewards mostly designed to entice customers to spend more with their credit card such as;

  • Air Travel Miles Cash Back – Credit card companies liaise with airline companies to give card users miles cash back, for instance, American Express Gold Delta SkyMiles card and Hawaiian Airlines World Elite MasterCard.
  • Cash Back on Purchases and Payments – Card users are offered a percentage of cashback when they make purchases, pay bills, or shop online with their credit card.
  • Introductory Rate Period on Purchases and Transfers – Credit Card issuers collect low introductory interest rate (certain amount paid when you exceed agreed on credit card payment period) sometimes covered in balance transfer charges
  • Discounts or Gift Cards – cardholders can also enjoy rewards in the form of discounts and gift cards but sometimes in selected products, services, and places.
  • Insurance on Rental Cars – cardholders also get rewards as insurance on rented properties including car rental.

How to Use Credit Card Rewards

Most of the time, Cashback and reward points or miles can be redeemed as a statement credit for your monthly bill, deposited on your bank account, used for online purchases, or issued as a check. Miles and travel-specific points are always redeemed for discounted flights and hotel rooms through travel booking portals or through their respective partner brand toward flight tickets.

Key Points

  1. Most credit card companies only give 1–3% cashback.
  2. Some rewards redemption has an applicable accrued amount. (Simply put, a certain reward amount before you can redeem).
  3. Travel rewards like miles or points apply only to purchases or costs related to travel, like hotel bills, restaurants, and gasoline.

How to Keep Track of My Credit Card Rewards

You can keep track of your credit card rewards and know when you are rewarded so you can redeem your rewards. To do that, you either check your reward account on your credit card site when you log in to your credit card account, through the app or through billing statement.

Note: Credit card rewards are credited according to the issuers’ terms. This simply means, some rewards don’t get credited into your reward account instantly, some get credited but don’t allow you to withdraw or use it till the end of the month, some convert your rewards into your credit card charges and bill payment.

Key Reward Terms

Flat Rate – Flat rate is the amount of reward offer for customers for every purchase made with their credit card in the form of cashback, points, or miles. It might come as a 1%, 2%, 3%, or 5%. The highlight is that it applies to every purchase made.

Bonus Reward Program–In reward bonus, a cardholder receives a cashback bonus of 1%, 2%, or 5% depending on where you shop and what you buy (products/items). These rewards are generally funded by a fraction of the fees that a merchant pays to a credit card company to accept credit cards called interchange or merchant discount. This fee can be fixed or variable and can vary based on the merchants’ negotiated agreement with an acquiring bank/credit card issuer.

How Credit Card Rewards Programs Works?

The reward process is simply, a cardholder makes purchases with his card through a merchant, your card issuer checks the eligible rewards your purchases fall, and credits your reward account. Card users redeem reward by accessing your card account online; either the users make a withdrawal of the reward, uses it for applicable purchases in a designated store or online stores, or in an airline site, restaurants, or pump station.

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Credit Card Interest

Let’s liken credit card to loan, when you get a loan or borrow money from the bank there is always an interest rate associated if your failure to pay back in the agreed month or period you should pay. Assuming you borrowed money now and agreed to pay back in two months, if by the end of that two months you refuse to pay back, there will be an interest rate charge usually in percentage.

But if you pay in the agreed two months period, there won’t be interest applied. Though some Banks or credit card company gives a period of grace. Some people called the “Window Period” where if the agreed payment time elapses, you can still pay the exact amount borrowed with window period, some back might give a week, a month, or even a 3 months grace period.

When Do You Owe Interest to a Credit Card Company?

Most credit company issuers if not all, don’t charge any interest rate on their credit card. However, a card user accumulates interest when the period of balance payment elapses, and the agreed amount for each period either monthly or annually goes unpaid, In other words, if you pay your balance in full each month/year, you will never owe any interest.

Types of Credit Cards

Just like everyone doesn’t exist at the same financial level or spending, so does different types of credit cards needed to satisfy the spending needs of people. Credit cards come in different types based on customers spending culture; What they buy, when they buy, where they buy, and as well as their response to credit card balance payment of repayment when due.

The variety in customer spending culture necessitated the issuing of different types or forms of credit cards. We will start with the list and go ahead to say one-two things about each credit card type though we might not cover all the list.

  1. Secured credit cards
  2. Hotel credit cards
  3. Airline credit cards
  4. College student credit cards
  5. Cash-back credit cards
  6. Low-interest credit cards
  7. Zero (0%) Interest Credit cards
  8. Balance transfer credit cards
  9. Small business credit cards
  10. Credit cards for bad credit Card Users/ Subprime credit cards
  11. Credit cards for fair credit
  12. Credit cards for building credit
  13. Rewards credit cards
  14. General travel credit cards
  15. Standard Credit Cards
  16. Charge Credit Cards
  17. Prepaid Cards
  18. Limited Purpose Cards
  19. Fuel Credit cards
  20. Shopping credit cards

#1: Secured Credit Card –Secured credit card is usually issued if an amount equivalent to credit card limited is deposited which can be refunded when the cardholders pay off their credit card balance or bill. The more deposit a customer makes the higher the credit limit.

#2: Hotel credit Card – It’s a brand of a credit card issued with hotel names on the card, indicating that the card is only usable in that hotel. Most hotel credit cards offer bonuses and redeemable points.

#3: Airline Credit Cards – Similar to Hotel credit cards is an airline credit card with the name of an airline company or brand on it, which simply tells card users it’s valid only at the airline. Most come with lots of reward programs, earning miles, perks for different uses such as free or discount airline lounge, free checked bags, preferential boarding, seat reserve, and lots more.

#4: College student credit cards – these sets of cards are designed for only college students, knowing fully well that college students in most cases don’t have a credit history and don’t quite have a high paying job. It as well comes with rewards, discounts, and bonuses.

#5: Cash-back credit cards – as the name imply, cash-back credit cards offer cash to customers withdrawable at banks, ATM machines, and in some cases issued as checks.

#6: Low-Interest credit cards – Low-interest cards are designed for users who carry a balance over. This is mostly issued to users who don’t have stable income sources and might have needs from time to time to carry a balance over from months to months. That way the accrued interest won’t be high.

#7: Zero Interest credit cards – Zero interest cards works similar to low-interest the only difference is that cardholders aren’t billed for carrying cash over to another month. In the end, they will still be subject to only pay what they borrowed.

#8: Balance transfer credit cards – these set of cards allows balance transfer from a high-interest credit card rate to a low or zero interest credit card and even in most cases give the cardholder a grace period of one year to offset the owed debt.

#9: Small Business credit cards – these sets of cards are issued to small business owners and startup entrepreneurs with credit card perks for employees.

#10 Rewards credit cards – Rewards cards are designed with user’s spending in mind, in that, it offers users a percentage of their spending or simply put, users earn points, miles, and bonuses on purchases made with their cards.

#11: Credit card for fair credit – these cards are designed for credit users with an average credit score.

#12: Credit card for bad credit – these sets of cards are designed for customers with poor credit scores.

#13: Credit card for building credit – these sets of cards are issued only to excellent credit card users with good credit scores.

How to Choose the Right Credit Card

In choosing a credit card, you will first need to know the type of credit card best for you, the best credit card issuers, and your qualifying power. When I say qualifying power, I mean to say criteria for applicants.

Your journey to choosing the right credit card starts with you, make a decision of card type, check your credit card score to know which credit card company to apply for their credit card.

Things to Check before Applying for a Credit Card

There are considerable factors to look out for before applying for a credit card, things that when carefully checked you wouldn’t regret applying for a credit card with a particular credit card issuer. Before you apply check for;

  • Accessibility
  • Compare credit card features.
  • Rewards, perks, and Incentives.
  • Fees, charges, and Interest rates.
  • Credit limit.
  • Application process.
  • Credit score minimum and maximum criteria.
  • Introductory Interest rate (APR)

Credit Card Limits

The credit limit of a credit card is also one of the features. Credit card limits depend on the type of credit card held, whether it is a secured card where the credit limit is determined by how much the cardholder deposits, regular cards where the credit limit is usually determined by the card holder’s salary and premium cards which usually have the highest credit limit.

There are other incentives offered by credit card companies and they also consider these additional incentives as features of credit cards. Credit cards may offer incentives such as rebates on purchases made, frequent flier miles or phone call minutes, insurance for some purchases, travel accident insurance, amongst others.

How to Build Credit – Rebuilding your Credit Card History – Building up your Credit Score

Generally, there is no FastTrack to building your credit or rebuilding your credit card score, as it took you time to damage your credit, so also will it take time to rebuild it back. Be it as it may, there are credit building habits that when adopted soon your credit score is rebuilt. Habits like;

Building Credit Option #1:PAYING YOUR BILLS which is the most time-honored way of building credit. In a nutshell, the only way to get good credit from bad credit is to change behavior.

There are no quick fixes for this. It takes time and discipline to rebuild credit history. You can’t pay service for a quick fix. Often the fix recommended is worse than just paying your bills. If you have a bad credit history and would want to rebuild for a good credit history another option to look into, seek a secured credit card.

How to Use Secured Credit Card to Rebuild Credit History

Using a secured credit card as the best credit rebuilding option is simply putting up the credit limit in cash upfront. In the event that you didn’t pay up your credit bill, the amount secured will pay it for you. That’s the most effective means of securing yourself against not paying your own credit card bill. If you pay up your bills, your secured amount will be refunded and in turn, help to rebuild your credit history.

In sum, Use a secured credit card, pay your bills every month, and stick to it for a year. Pay every other payable bill also, try to settle or repay any amount gone to collections. All of this will help rebuild your credit card history and boost your credit score.

Building Credit Option #2:CREDIT BUILDER LOAN/ SECURED LOAN

Another way out of bad credit history is to get a CREDIT CARD BUILDER LOAN Or SECURED LOAN which primarily helps to rebuild your credit card.

How to Use Credit Card Builder Loan to Rebuild Credit

The builder loan is a borrowed money locked in an account by the lender in most cases community banks or credit unions till the loan amount is cleared by the borrower. The best thing about a builder loan is that it works like an accountable savings system. Where you are held accountable to your spending. And when you offset the loan your payment reports are sent to credit bureaus.

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That been said, you still have other options for rebuilding your credit card score/history or bad credit. The next way to build credit is to go for a credit CO-SIGNER.

Building Credit Option #3: GO FOR CREDIT CO-SIGN

Credit co-signing is a way of bringing in a trusted third-party that pays your credit loan or unsecured credit card bill if you fail to pay up. Your co-signer can be your spouse, child, friend, or relative. One thing to remember while co-signing is that your co-signer is subject to risk.

The last option we have for you that will help build up your credit score/history and make eligible for a credit card or loan is to gain authorized user access from people your trust and that trust you; family members and spouse.

Building Credit Card Option #4: GET AUTHORIZED USER ACCESS

You can as well rebuild your credit score when you become an authorized user with a good credit score cardholder. It makes for the fast generation of a FICO score but before gaining authorized user access be sure the credit card issuer reports authorized user access spending and payments to the credit bureaus, anything otherwise is a waste of effort and time.

You can as build a positive credit history by getting credit for bill payments.

Building Credit Option #5: APPLY FOR CREDIT FOR BILL PAYMENT the last option we will discuss in our list today is to get credit for the bills you pay such rental bills, housing, cell phone, and other utility bills. Credit for bill payment is issued by companies such as rent-reporting services such as LevelCredit, Rental Kharma, Rent reporters, Rock the score, ClearNow, PayYourRent, CreditMyRent, etc, and cellphone & utility company like Experian boost (https://www.experian.com/consumer-products/credit-score.html?cc=van_tvr_boost), etc. Why this helps to rebuild your credit is that most of these companies add your bill payment history and activities to your credit reports.

In all we have said, remember this fact, July 2020 hasn’t changed anything neither will the rest of the months do (August, September, October, November & December). The change of the month and year do not suddenly introduce new ways of avoiding accumulated habits over time neither will the new year 2021 do; Infant let someone come up with the best ways to build credit in 2021 if there are no consistent positive habits built over time to override the bad habits you have already no change or magic will happen to your credit score or history. Bad behavior over time is what got you bad credit. Only good behavior over time can rebuild it.

So we will leave you with a new credit building habits you will need to adopt as a backup or support to the credit building programs and means we have discussed, habits like;

  1. Make sure you always pay your credit bill on time and pay up 100% of it.
  2. Don’t ever go over (spend beyond your credit limit) your credit limit. Advisably, we would recommend keeping your credit utilization; the percentage of your credit limit used, between 25% to 30%.
  3. Don’t ever apply for several credit cards within the same time-space or period. Space up your application recommended application interval might be in a space of 6 months after your first application.
  4. Never consider closing your credit account. Though they’re exceptions but let be something worth closing your account. I would recommend you seek advice from credit card experts on when and what reasons to close a credit card account.

In all this, make sure all your credit reports are ends with credit bureaus, a more edge is to always check your credit scores and reports. 

You can check your credit scores and reports in some personal finance websites and credit card issuers sites for free.below is the list of the best free credit scores and report checker sites

Sources for Free Credit Scores – Best credit Score & Reports Sites – Websites to check your Free Credit Scores and Reports – Where to View your Credit Scores & Reports

There are countless sites and credit issuers site you can check your credit scores and report for free, but we are going to be listing the best-trusted sites.

  • WalletHub
  • Credit Karma
  • Quizzle
  • Credit.com
  • Bankrate
  • Mint
  • Lending Tree
  • Compare Cards
  • Free Credit Score
  • Wise Piggy
  • Equifax
  • Credit Sesame
  • Identity Guard
  • Credit Reports and Scores
  • My Score
  • Free Scores and More
  • SmartAsset 360
  • Credit ID Protect
  • Fast 3 Credit Scores
  • AARP
  • Privacy Guard
  • Trusted ID
  • True Credit
  • TransUnion
  • CreditRport.com
  • Experian
  • Credit Check Total
  • MyFICO

How to Apply for a Credit Card – Credit Card Application Process

You need to be aware of the basics for the credit card processor and how it works, so when you apply and your application is declined you won’t take it personally. First, the credit card issuer doesn’t know who you are, they basically draw their decision of who is eligible for their credit card access basically from the information provided and the analysis performed on your credit history.

If it’s your first time applying for a credit card then you don’t need to worry about the latter. But your personal information plays a major role as to whether you will be eligible or not for a credit card with a credit card issuer or company. Personal information such as your income, employment, assets, and lots more. Down the line, I will share commonly required credit card eligibility criteria for most credit card companies.

How to Apply

There are stages in credit card application, the final stage is the approval stage, where you get approved by the credit issuer and have your credit card mailed to you. The final, final is when you activate your credit card on the online site of the issuer because most if not all credit card issuers these days requires activation before you can use your card or spend the money though a few allow you to make mini purchases without activation but must be activated for a bigger purchase.

Here is the rundown of the application process;

  1. Choose the right Credit Card Type & Credit Card Issuer or Company – you need to figure out the best card for your needs or spending and identify a card issuer or company that issues such a card. (Things to consider when choosing a credit card type and credit card issuer or company; card charge, the annual fee, interest rate (APR), late-fee or over-limit fee charges, and types of rewards redemption programs).
  2. Visit Credit Score Site and Check your Credit Score – With your score you will be able to identify which issuer is most likely to accept your credit card application and issue you a credit card. (Credit card scores range from 300 to 900, with the best score at 900. The average score at 650, good score at 700 and poor score anything below 620).
  3. Make your research on the service offers of the credit card Company or Issuer – a credit card issuer might have amazing credit card offers and reward programs at the surface but has bad customer service or a back view challenges accessing those promised benefits, rewards and discounts. So you need to find out from people who have used a card from such issuers, check online review sites as well as carefully read the terms and conditions of the credit card company. Bad credit card issuer choice might affect your credit card history in the future, so choose well.
  4. Make Available every required information from the credit issuer – the next stage is to online and applies for the credit card from the credit issuer site. But before you proceed to apply, make sure all the required information is readily available.

How to Fill a Credit Card Application Form Online – Apply Online – Apply Via Telephone – Apply in Person – Apply Via Mail

Remember, that most credit card issuer offers different options or ways for customers to apply for their credit card, some of which is; customers can apply for a credit card on their online website, over the telephone, application through mail, and in-person application.

But before you proceed with the application process go through the company website and check for all the required information. Once you have assembled all the information, you can either apply online, by telephone, in person, or with a copy of the application that you will send via the postal service (mail).

Here are some basic personal, employment, asset, etc information frequently asked by a credit card issuer.

  • Driver’s license number
  • Social security number.
  • Work phone numbers
  • Previous residence
  • Referrals
  • Name
  • Email address
  • Current home address
  • Personal Phone number
  • Employment status
  • Annual income
  • Monthly income
  • Bank account
  • Investments
  • Birthdate
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After you’ve provided all the information required during the form filling process, the issuer goes on analysis with your details to find your credit history, scores, reports, and your loan behavior, debt, and your past credit applications.

After the analysis, if you meet the eligibility criteria, you will be approved with notice and when you will be mailed your new credit card alongside the activation process to follow to start making use of your credit card. Most times mailed in days, depending on the terms of the credit card company.

However, if you are didn’t get approved, if your application is declined you will receive a message or a decline letter telling why your credit card wasn’t approved. Below is the list of eligibility criteria commonly required by most credit card issuing companies.

Most Credit Card Issuers Eligibility Criteria

Though different banks and credit card issuance companies have different eligibility criteria they’re most commonly seen criteria among Banks and other credit card issuers. They’re as follows;

  1. People who are 18 years and above can apply for a credit card.
  2. The person must have a bank account in their name.
  3. The applicant is required to have a good CIBIL score of 650 and above (depending on the type of credit card the person is applying for, some rebuilders credit card company accept credit card score below 650).
  4. The income of the applicant should be regular and stable, as it ensures timely repayment.

Documents required for Applying for a Credit Card

Here are important and non-negotiable document a customer or credit card applicant must provide during the credit card application process;

  1. Identity Proof: Passport/ PAN Card/ Driving License/ Voter-ID etc.
  2. Residence Proof:Aadhar Card/ Voter-ID/ Utility Bills/ Bank Statement etc.
  3. Income Documents: Salaried Individual (Last 3 months salary slips, latest 6 months bank statement showing salary credit), Self-employed Individual (Latest Income Tax Returns with the computation of income or certified financial documents, Proof of Business Existence).

Note: In the event, you are already using a credit card, income documents are not required. Instead, you are required to give the front copy of the credit card you are already using and the latest statement within the last 15 days.

How to get easy approval for a Credit Card – What Credit card can one easily get approved upon application

In the real sense, there is no fast root to getting approved by credit card Company, and there is no guarantee that you would apply for a credit card would be accepted.

The only guarantee one has is when the person meets almost if not all of the eligible criteria especially the most important criteria that assure a credit card company of your repayment. So, someone with an excellent credit card score, a good income without several credit cards open, or holdings has the highest qualifying power when he/she applies for a credit card.

In our recommendation, if you are looking forward to rebuilding your credit, a secured credit card would be the best fit for you, more so, if you are still struggling with your inform and don’t have an excellent credit score, you might need to go for a store credit card than a credit card issued by banks, as store credit card comes with a low credit limit.

Is it good to have Multiple Credit Card – How Does Multiple Credit Card Contribute to my Credit Score?

Your holdings of multiple credit cards might ruin your chance of getting credit card approval. But if that’s the case, how many credit cards should you have? To answer that question, I would say, how many credit cards you should have depended on your credit needs and your ability to manage multiple cards effectively.

I have come across people who carry one credit card loaded with all their credit needs and have also come across people who have different credit cards for their different needs and purchases. It all depends on individual choices and the best of your credit card usage experiences.

Though a lot of people go for multiple cards because of the rewards programs, discounts, points, bonuses, and perks offered when you have a particular credit card for a particular need. My take out point is, there is no set limit to the number or quantity of credit cards, secondly, storing up multiple cards has no effect on your credit score if well managed. More so, keeping just one card is all wisdom cool.

Is there such a thing as too many credit cards?

If you can control your spending then keeping multiple credit card accounts isn’t a big issue, it’s not even an issue at all, rather a benefit. In analyzing your credit card history, scores, and reports, FICO algorithms look at different factors that contribute to poor credit but there is no such thing as having multiple credit cards. One important fact for FICO is credit utilization.

Credit utilization (UTIL) is the ratio of what you owe on your card(s) and what your credit limit(s) are. Lower percentages are better like we said before between 25% to 30%. Credit utilization is calculated both on an individual card basis and also on a combined card basis. Having a large number of cards means you have a larger combined credit limit. That can only help drive your UTIL lower. Which is a positive effect on your credit?

Beneficial Reasons for Carrying Multiple Credit Cards

In time past, I have come across people who carry 4 or 5 cards who for different purposes because of the accumulative benefits, discount, and rewards on specific card needs offers. Many people carry gas card because it gets them $0.25 off per gallon, others need a Citi card because it gets them 2% cashback on every purchase, others prefer to also have AmEx because it gets them 4% on dining out and US Bankcard because it gets them 5% back on groceries. People also carry a specific because of reliability, flexibility, higher credit limit, and accessibility like Discover Card, Capital One, and lots more.

That’s not to say, there are no ups and down with carrying multiple cards, but the basis is effective management.

Credit Card Companies – Credit Card Issuers

We have been using the term credit card issuers and companies, now let’s know who they are and what they do. Credit card companies or issuers are the financial institutions mostly Banks or credit unions that issue credit cards to consumers and service their accounts in exchange for annual, bank charges and transaction fees, not excluding interest rate that comes along overdue repayment.

It’s very important to know the best credit card company to go for and what makes them best so you know the right company with favorable credit offers for your financial needs and spending. They’re vital things and differences to take note of when the subject of credit card companies comes up. Credit cards go along with an Issuer, network and most even have co-brands.

I might not go in details who a credit card issuer is, what they do, what a credit network is, and what they do, the same goes with co-brands. One thing to keep in mind is that credit card issuers are banks and credit union who issues and maintains your credit cards accounts.

Credit card networks serve as a linking up bridge for transactions such as Visa & MasterCard are networks, American Express, Discover serves as an issuer as well as a network. While co-brands cooperation, stores, hotels, restaurants who partner with an issuer to have a particular credit card for their service or product spending alone.

Furthermore, Visa and MasterCard as earlier said are networks that process card transactions which simply mean, in no way do they issue credit cards and they are the leading credit card networks globally with 99% global acceptance.

Best Credit Card Company

You won’t say for sure which credit card issuer or company is the best as customer satisfaction differs. However, according to a customer satisfaction study carried by J.D. Power on major credit card issuers. The study came up with three powerhouse credit card issuers; Discover as the first best, seconded by American Express, and lastly the USAA.

A table representing J.D. Power 2018 Credit Card Customer Satisfaction Study

Credit Card IssuerSatisfaction indexPower circle rating
USAA8705
Discover8365
American Express8305
Barclays8063
Chase8043
Capital One8033
Industry Average8013
Citi7973
Bank of America7913
U.S. Bank7813
Wells Fargo7772
Synchrony7622
Credit One7182

You can make your choice of the best credit card to apply in the month of July 2020 from the statistics of the above study. If you want to know the best credit card of July 2020, you can refer to the top on this post, there you will find the list of the best credit card to apply in the month of July, August, September, October, November and even December of 2020 and be rest assured you are making the right application choice.

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