These days, you can find numerous lenders offering a diverse range of credit cards. Therefore, picking the best one can be confusing. This is because every borrower might have specific requirements that not all cards can fulfill. Whether you are looking for Premier credit card or cards with high credit card limit, you need to smartly compare every credit card offer so that you can make a reliable pick. Read further to know what is a credit card and how to pick the best credit cards.

What is a credit card and its different types
To select the best credit card, you should know about the various types of options available. Here are some popular ones.

1. Rewards credit card – As the name suggests, rewards credit cards help you earn points on every transaction made using it. Some of the varieties of rewards credit cards include travel (airline miles and hotel stay), retail, gas, groceries, and student cards.
2. Balance transfer credit card – These types of credit cards are ideal if you are already having a high amount of debt. The lender allows you to transfer the debt from your existing credit card to a new one and gives you a certain period (6 to 21 months) to pay off the entire amount without any interest. However, the card user has to pay a one-time processing fee to avail the services.
3. Low-interest credit card – Low-interest cards are a great pick if you use your credit card frequently. Debtors who have a high credit score and reliable payment history can apply for a low-interest credit card . At times, some lenders offer low-interest rates as a part of an introductory deal.
4. Secured credit cards – This is one of the best credit cards if you are trying to repair bad credit scores. One needs to pay a security deposit that is equal or higher than the credit limit of the individual to activate the services. After the score improves, the individual card user can switch to an unsecured card.

Different kinds of credit card fees and rates

• Credit card fees (processing fees)
• Annual fees
• Late payment penalties
• Foreign transaction fees
• Fixed or variable APR
• Cash advance
• Overlimit fee
• Returned payment
• Credit card limit
• Other credit card charges

The fees and rates that you have to incur depend entirely on the lender, their respective terms and conditions, the types of transactions involved, and how well you manage your monthly payments. Once you know what is a credit card, you can go ahead and choose from the best available options.

Choosing the best credit cards
While you pick credit cards, ensure that you focus on the following factors:

• Interest rate – The interest rate could be fixed or variable. The former option is independent of market fluctuations and remains the same for every month. On the other hand, the variable interest rate fluctuates every month due to the market conditions. Therefore, they could be high or low.
• Credit limit – If you feel that you can overspend, then pick a credit card with the lower credit limit. This will help keep your finances in check and also positively affect your credit score.
• Fees – Make sure that you assess all types of fees associated with the card and select the one that suits you well. For example, if you are a business professional who has to frequently handle international payments, then look for a credit card that has no foreign transaction fees.
• Rewards – If you are specifically looking for reward credit cards, then compare the sign-up bonus, introductory offers, specialized rewards in miles, loyalty points or cash back offered.
• Free credit score reports – If you want to improve your credit score, then look for the best credit cards that also include access to free FICO or VantageScore reports.
• Security – Unfortunately, credit card frauds have become a common scenario. Such situations can take a big hit on the finances and cause a long-lasting damage to the credit score. Therefore, make sure that your lender has a strong anti-theft system.You can also check credit card calculator and compare best credit cards, credit card limit of various cards, credit card balances offered by different cards, credit card fees, and more.

Best credit cards
Once you know what is a credit card and how to chose one, take a look at some of the popular credit cards of 2018 –

1. Discover it® Cashback Match™
2. BankAmericard® Credit Card
3. Discover it® ­- 18 Month Balance Transfer Offer
4. Chase Sapphire Preferred® Card
5. The Platinum Card® from American Express – Sign-up Bonus
6. Discover it® for Students
7. Capital One® Venture® Rewards Credit Card
8. Chase Freedom® Credit Card
9. Chase Slate®
10. Discover it® Secured Card – No Annual Fee
11. The Business Gold Rewards Card from American Express OPEN – Business
12. Journey® Student Rewards from Capital One®