How to choose a credit card: 10 tips to help you choose the right one

From annual fees to monthly spending limits. From fees to reimbursement methods. Here's everything you need to know about credit cards.

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credit cards

The choice of credit card cannot be left to chanceUnderstanding the main features and benefits offered by each card, evaluating the monthly limit, annual fee costs, and commissions are all preliminary steps necessary to make the right choice. In fact, there are numerous types of cards, each with its own characteristics, suited to everyone's different needs. Here are 10 tips for choosing them.

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The annual fee

Il annual fee varies depending on the credit card And, in some cases, it may be zero. But be careful: if the annual fee is zero, check the amount of any fees charged when making withdrawals. They may be higher to compensate. As for "traditional" annual fees, they typically range from €35 to €130 for cards with the highest limit.

The monthly spending limit

Generally the so-called basic ceiling, that is the monthly spending limit is 1.500 euros, but it can also be higher For special requests, and also for businesses, which may require a higher limit than individuals. This is a feature to consider before choosing the card.

The cost of commissions

Keep in mind that the cost of fees remains the same, except abroad. While transaction fees could once be as high as 4%, they now can't exceed 0,3% of the total spend. That is, unless you use your card abroad.

Refund methods

When we use a credit card, the bank advances some costs for us which then have to be reimbursed. different types of reimbursement and the main ones are the balance, when the refund is a single charge the following month (which is the classic one), installment plan, when it is performed in installments of a certain amount, revolving, or in installments but of variable amount, and Prepaid, with immediate refund.

Check information about blocks and replacements

Blocking your card in case of loss or theft is very important but it is a good idea Find out in advance about the blocking methods, timescales and any costsAlthough the blocking request is free, like the replacement, additional fees are sometimes required to expedite the process. These fees are not excessive, but they are still worth considering.

Commissions for using the card abroad

If you travel abroad frequently, it is better to immediately opt for a credit card designed specifically for this purpose and evaluate the cost of additional commissions, which are added to interest rates and exchange fees. Some cards also offer special offers for travelers. It's best to check.

Visa, the most popular circuit in the world

The Visa circuit is the most widespread in the world, therefore preferable if you travel frequentlyNot to mention that, compared to, for example, MasterCard, it has lower exchange rates.

Evaluate whether it is worth choosing a prepaid card

Compared to credit cards which are linked to the current account, Prepaid cards can be disposable or rechargeable. While disposable cards are no longer usable once the credit is used, rechargeable cards can be reloaded multiple times until they expire. The advantage of prepaid cards is that, on the one hand, they can be requested even without a current account, and on the other, in the event of theft, there's no risk of losing everything in your current account, only the amount loaded. They're ideal, for example, if you frequently shop online.

Withdrawal options

All Credit cards allow you to withdraw even without noticeAnd it's possible to request the portion of the annual fee paid for the months following the cancellation. In any case, to be safe, when applying for a new card, carefully read the information regarding this point to avoid any surprises.

Online comparators

Online comparators allow you to do this in just a few steps compare different types of credit cards by simply entering some informationFrom the type of usage to the type of card you're interested in, to the monthly usage limit. This data is compared to offer you the cards best suited to your specific needs.

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