Credit Card Ratings

Credit card ratings usually refers to consumer comparisons of different credit cards showing which is said to be better. Another use of the term is with reference to investment in such areas, but this is a much rarer and more specialized use of the term. This article will focus on the use of the term in the more common consumer comparison meaning.

It is easy to find comparisons of credit cards on the internet, with different scores given to different aspects of their performance, such as overall satisfaction, fees, billing and payment, rewards etc. For example, one such comparison rates American express and Discover card as best, with National City and Wells Fargo next.

However, it should be realized that many such comparisons are biased as the business which makes the comparison makes money out of the results in some way such as by advertising on the same page. So it is obvious that such a comparison is unlikely to rate a card that they are making money from advertising, as really low, because they won't make them so much money. So don't believe too fully what you see in such comparisons.

Another vital point often overlooked is that any comparison which says that one card is "better than" another, is not really correct. The reason for this is that each individual's financial situation and financial needs are different. So what might be the very best card for one person might not be suitable at all for someone else. So really there is no "best" card, and the intelligent approach is to first consider ones own financial needs then find one which best provides benefits that help your own situation.

One of the most useful offers for some people is zero interest for an initial period. If applied to purchases this can be beneficial for those who need to buy certain items, and if applied to balance transfers this feature can avoid all interest payments on existing borrowing, by moving the existing debts onto the new account.

Rewards are another area which can offer great benefits to some people, but different people might benefit from different rewards. Some people might find cash-back most useful, especially if it has higher percentages on categories which they spend a lot such as gas. Others might find air miles or special discounts more valuable. There are even cards such as the Disney Credit Card which offer a whole range of benefits relating to a specific merchant. While not of much use to many people, such specific rewards might be of huge value to particular consumers.

So while credit card ratings can be of some value, it is much more sensible to consider your own financial needs more than some averaged overall comparison.