The Best Credit Card for You

The Best Credit Card for You
by Ismat Sarah Mangla
Wednesday, July 1, 2009
provided by

All credit cards are not created equal. Here are a few we like.


Simmons First Visa Platinum
Courtesy: Simmons First

Why we like it: Very low rate

If you're looking for a low rate, you can't get much better than 7.25%, but you must have excellent credit to be approved. Bonus: There are no balance transfer fees, though transferred balances don't get a teaser rate -- they go right to 7.25%.

Interest rate: 7.25% variable
Grace period: 25 days
(http://www.simmonsfirst.com/, 800-272-2102)

Schwab Invest First Visa


Courtesy: Schwab.com

Why we like it: Great cash-back rewards, no foreign transaction fees

You earn 2% unlimited cash back on every single purchase you make. You must have a Schwab One brokerage account, but there are no fees to open or maintain the account. Bonus: If you're traveling abroad, this is the card to take with you -- it charges no foreign exchange transaction fees.

Interest rate: 13.24% variable
Grace period: At least 25 days from the statement closing date
(http://www.schwab.com/, 866-724-9223)


Citi Forward


Courtesy: Citigroup

Why we like it: Shrinking APR

Citi Forward just might be the model for all credit cards in the future: Stay under your credit line and pay at least your minimum amount due on time three billing periods in a row, and your purchase APR will be reduced by 0.25%. It can be reduced a maximum of eight times for a total reduction of 2% during the lifetime of your account.

Interest rate: 12.24% variable
Grace period: At least 20 days if you pay the total balance in full by the due date every billing period. If you do not, you will not get a grace period.
(http://www.citiforward.com/, 800-456-4277)

Pentagon Federal Visa Platinum


Courtesy: PenFed.org

Why we like it: Cash back for gas guzzlers

The rewards on this credit union card are hard to beat, especially if you're a road warrior. Earn 5% back on all gas purchases, 2% on supermarket purchases, and 1.25% on everything else. You must join the credit union to apply, but if you don't meet membership requirements, you can join the National Military Family Association -- open to anyone -- for a one-time fee of $20. PenFed is also promoting a great balance transfer for life rate -- 2.99%. (Balance transfer fees are 2.5% of the loan, capped at $100.)

Interest rate: 13.99%
Grace period: 25 days on average
(http://www.penfed.org/, 800-247-5626)

Clear from American Express


Courtesy: AmericanExpress.com

Why we like it: Free from fees

If you're looking for simplicity, go with this card. It charges no fees of any kind -- late, over-limit, balance transfer, or cash advance fees. You earn an unlimited 1% back on every purchase; you automatically receive a $25 American Express shopping card for every $2,500 you spend.

Interest rate: Starts at prime + 8.99%
Grace period: 28-31 days if the previous balance shown on each billing statement is paid in full by each respective due date.
(http://www.americanexpress.com/, 800-223-2670)

Blue Cash from American Express



Why we like it: A lot of cash back

Big spender who pays down your balance each month? This is the card for you. After you spend $6,500 in a year, you earn 5% back on all purchases at supermarkets, drugstores and gas stations and 1.5% back on everything else. (Before you reach $6,500, you earn 1% and 0.5%, respectively.)

Interest rate: Starts at prime + 7.99%
Grace period: Up to 20 days, if the previous balance shown on each billing statement is paid in full by each respective due date.
(http://www.americanexpress.com/, 800-223-2670)