Last Chance: Take advantage and apply for the best Credit Cards of 2024

Credit cards are a widely used financial tool around the world. They offer convenience, security, and the opportunity to accumulate rewards, but they can also be a source of debt if not used responsibly.

In this article, we’ll explore all the important aspects of credit cards, including how they work, how they differ from debit cards, the best credit cards of 2024, and more. Let’s start by understanding the basics.

What is a credit card and how does it work?

A credit card is a payment method provided by banks or financial institutions, allowing the cardholder to make purchases and pay for them later. When you use a credit card, the financial institution pays the merchant on your behalf, and you, as the cardholder, must repay this amount to the financial institution by the due date of the statement. If the full amount is not paid by this date, interest is charged on the outstanding balance.

What is the difference between a credit card and a debit card?

The main difference between a credit card and a debit card is the source of the funds used to make a purchase. With a debit card, the money is taken directly from your checking account at the time of purchase. With a credit card, the financial institution is lending you money, and you must repay that amount later.

Credit cards also offer the possibility of installments and rewards, while debit cards generally do not offer these benefits.

The best credit cards of 2024

In 2024, the credit card market is more competitive than ever, offering a variety of options that meet consumers’ needs and preferences. Whether you’re looking for a card with great travel rewards, cash back on every purchase, or a low introductory interest rate, there’s a credit card that’s perfect for you.

In this guide, we highlight the five best credit cards of 2024, analyzing their benefits and what makes them exceptional choices.

Capital One Venture Rewards

Capital One Venture Rewards is ideal for frequent travelers, offering one of the best mileage accrual rates on the market.

Benefits:

Two Miles Per Dollar : Earn two miles for every dollar spent on any purchase, with no restricted categories.
Bonus Miles : Receive a substantial bonus of miles after spending a specific amount in the first few months.
Waived Foreign Transaction Fees : Travel the world without worrying about extra fees.
Airport Lounge Access : Enjoy the comfort of select airport lounges, enhancing your travel experience.

Wells Fargo Active Cash

Wells Fargo Active Cash is an excellent choice for those looking for simplicity and guaranteed returns on every transaction.

Benefits:

2% Cashback on All Purchases : Earn 2% cashback on all purchases, with no limits or specific categories.
Welcome Bonus : Receive a cashback bonus after spending a specific amount in the first three months.
0% Introductory APR : Enjoy a 0% introductory interest rate on purchases and balance transfers for a limited period.
No Annual Fee : Save with the waived annual fee, making this card a budget-friendly option.

Citi Simplicity

Citi Simplicity is known for its zero late fee policy and no annual fee, making it a hassle-free choice.

Benefits:

No Late Fees : Never pay a late fee, regardless of how many times you are late.
No Annual Fee : Enjoy the benefits of the card with no annual fee.
0% Introductory APR : Benefit from a 0% introductory interest rate on purchases and balance transfers for an extended period.
24/7 Support : Customer service available 24 hours a day, 7 days a week.

US Bank Visa Platinum

The US Bank Visa Platinum offers a long 0% APR introductory period, ideal for those who need to finance large purchases or consolidate debt.

Benefits:

0% Introductory APR : Enjoy a 0% interest rate on purchases and balance transfers for up to 20 months.
Purchase Protection : Benefit from protection against damage or theft of items purchased with the card.
Travel Insurance : Travel insurance coverage included, providing peace of mind on your travels.
No Annual Fee : Enjoy the benefits of the card without paying an annual fee.

Citi Custom Cash

Citi Custom Cash offers a flexible rewards structure, allowing you to maximize benefits on your top expenses.

Benefits:

5% Cash Back on Rotating Categories : Earn 5% cash back on up to $500 in purchases in the category you spend the most in each month, and 1% on all other purchases.
Welcome Bonus : Receive a cashback bonus after spending a specific amount in the first three months.
0% Introductory APR : Benefit from a 0% interest rate on purchases and balance transfers for a limited period.
No Annual Fee : Save with a waived annual fee, making this card an attractive and affordable option.

How is credit card interest calculated?

Credit card interest is calculated based on the outstanding balance that is not paid in full by the due date. The interest rate is expressed as an annual percentage, known as APR (Annual Percentage Rate). If you do not pay the full invoice amount, interest is applied to the remaining balance daily. The full amount of accrued interest will be charged on the next month’s invoice.

What is the credit card annual fee?

An annual fee is a fee charged annually by a financial institution for using a credit card. The amount of an annual fee can vary significantly between different cards and financial institutions. Some credit cards offer an annual fee waiver as a promotional benefit, especially for new customers or those who meet certain annual spending criteria.

What is the credit limit?

The credit limit is the maximum amount you can spend using your credit card. This limit is determined by the financial institution based on several factors, including your income, credit history and ability to pay. It’s important to monitor your credit limit to avoid exceeding it, which could result in additional fees and negatively affect your credit score.

How can I increase my credit card limit?

To increase your credit card limit, you can request a limit review from your financial institution. This can be done through customer service or via the bank’s app. The institution may ask for additional information about your income and credit history to determine if you are eligible for a limit increase.

Maintaining a good payment history and using credit responsibly can also help increase your credit limit over time.

What happens if I don’t pay my credit card bill?

If you do not pay your credit card bill by the due date, interest will be charged on the outstanding balance, along with possible late fees. Failure to pay can also result in a decrease in your credit score, making it harder to obtain credit in the future. In cases of prolonged delinquency, the financial institution may send your debt to collection agencies, which can lead to more severe legal and financial consequences.

What is the minimum payment and what are its implications?

The minimum payment is the minimum amount you must pay on your credit card bill to avoid delinquency. This amount is usually a small percentage of the total bill balance. While paying the minimum keeps your account in good standing, the remaining balance will accrue interest, which can significantly increase your debt over time. It is recommended to pay the full bill amount whenever possible to avoid additional financial charges.

How do rewards and miles programs work?

Rewards and miles programs offer points or miles for each purchase made with the credit card. These points can be redeemed for products, services, airline tickets, hotel stays, and other benefits. Some cards offer extra points for purchases in specific categories such as travel, dining, or groceries.

It is important to understand the rules and terms of your card’s rewards program to maximize the benefits.

What precautions should I take when using a credit card?

Spending Control: Monitor your spending to avoid surprises on your bill.
Timely Payments: Pay your bill in full by the due date to avoid interest and late fees.
Avoid Minimum Payments: Whenever possible, pay the full bill amount.
Fraud Protection: Do not share your card details and be alert to suspicious transactions.
Credit Limit: Do not exceed your credit card limit.

Can I withdraw cash with a credit card?

Yes, it is possible to withdraw cash with a credit card, but this operation usually has higher interest rates and may include additional fees. Cash withdrawal with a credit card is known as a cash advance and should be used cautiously, as the costs can be substantial.

What to do if your card is lost or stolen?

If your card is lost or stolen, immediately contact the financial institution to block the card and avoid fraudulent transactions. Most card issuers offer 24-hour customer service to handle these situations. The institution may also issue you a new card.

How to cancel a credit card?

To cancel a credit card, contact the financial institution through customer service. Make sure all outstanding debts are paid before requesting cancellation. After cancellation, it is recommended to destroy the physical card to avoid misuse.

Credit cards are powerful financial tools that, when used responsibly, can offer convenience, security, and valuable rewards benefits. However, it’s crucial to understand how they work, track your spending, and pay your bills on time to avoid debt and additional financial burdens. With the information and tips provided in this article, you’ll be better prepared to use your credit card effectively and safely in 2024.

We hope this guide has clarified your questions about credit cards and helped you make informed financial decisions. If you have further questions or require additional assistance, please do not hesitate to contact your financial institution.