Introduction
Introduction
The consumers are the key to growth in the United States of America economy, and the credit cards are the main instrument in the goods and service consumption in the economy. Banks, Brands, Stores, Airlines, Gas Stations have filiations or issues credit cards with the goal to increase sales giving to the client benefits, cash backs at an annual interest rate. The offer of credit cards in the United States of America market is comprehensive. The selection of a credit card will depend on the consumer profile and the availability of the service according to the credit score of the client.
Personal Finance Essays
The first credit card to evaluate is the Citi Diamond Preferred Card. The Bank issues both Visa and MasterCard brands. The credit card annual percentage rate is 0% for the first 21 months and from the 22nd month, the annual percentage rate will be from 12.24% to 22.24% according to the creditworthiness. The bank has a variable fee from 5 USD or 3% of the transferred amount and 10 USD or 5% of cash advance. The card has no annual fee. The annual percentage rate for cash advances is 25.49% (Citi).
The second credit card to evaluate is the Discover it® Double Cash Back. The Bank issues the card with the Discover brand compatible with the Diners logo in some countries. The credit card annual percentage rate is 0% for the first twelve months and from the 13rd month, the annual percentage rate will be from 11.24% to 23.24% according to the creditworthiness. The credit card offers the opportunity to double the earned cash back by the customer in the first year. The cash back is thanks to promotions with gas stations, home improvement stores, and restaurants. The card has the security application Freeze It! Which allow the client to put on/off the credit card against new purchases, balance transfers and cash advances. The credit card has a variable annual percentage rate from 11.24% to 23.24% for purchases and balance transfer. The fees policy of the credit card is 0 USD per year, but it applies a 3% of fees per intro balance and regular balance transfers. The cash advance applies a minimum of 10 USD or 5% of the advanced amount. The card does not apply a fee for foreign purchases (Discover card).
The third credit card to evaluate is the Blue Cash Preferred Card from American Express. The card is accepted at all the point of sales and banks where the American Express logo works. Currently, the franchise has a sign-up the offer to give back 200 USD to the customer after expending 1000 USD in the three first months with the option to give back another 200 USD in statement credit. The company offers a discount of 6% in supermarkets in the first year after 6000 USD expenses, for the other years will be 1% cash back. For gas stations and other stores, the franchise offers 3% cash back. The annual percentage rate of the credit card is 0% in the first 15 months and later a variable annual percentage rate from 13.24% to 22.24% according to the credit performance of the client. The variable annual percentage rate applies for purchases and balance transfer. The cash advances receive an annual percentage rate of 25.49%. The credit card has an annual fee of 75 USD with a minimum fee of 5 USD or 3% in intro balance transfer, regular balance transfer, and cash advance. The foreign purchases apply a 2.7% of fee (American Express).
The three credit cards have its benefits and advantages, it is difficult to find a "perfect" credit card for all the requirements of an average client, and each client has different necessities and purchasing profiles. The credit card that fits for the necessities and requirements of the author is a credit card that is accepted universally in all the physical and online stores in the country and worldwide and with a zero annual fee, in that case, Citi Diamond Preferred Card.
Conclusion
The selection of the best credit card depends on the consumer profile and the benefits that the credit card offers. A frequent flyer needs a credit card that gives more miles and ticket discounts to the client. A car user needs a credit card with discounts in gas stations. A student needs a credit card with discounts in coffee shops and bookstores. There is no such a perfect credit card for all the clients; all credit cards have pros and cons that are necessary to analyzes before o apply to a credit card.
Works Cited
American Express. Blue Cash Preferred Card. 2016. Web. 05 March 2016
Citi. Citi Diamond Preferred Card. 2016. Web. 05 March 2016.
Discovercard. Cash Back Credit Card. 2016. Web. 05 March 2016.
