Credit cards are handy financial tools that allow you to make purchases without worrying about paying for them immediately. This is a rather attractive proposition, but nothing comes without a price. Credit cards can also make you end up in debt if you don’t use them wisely. Read on to know more about credit cards and the top companies to approach if you want to apply for one.

The fundamentals
Using a credit card is like taking a loan. It’s a hassle-free process of borrowing from the bank, and the interest rates vary from 0% limited time balance to as high as 30%. Your credit scores, income, assets, payment history, and economic conditions determine your Annual Percentage Rate or APR. Your application has a higher chance of being approved with a low interest rate if you have a positive and reliable credit history.

Repayment
You need not repay the total amount due every month. Credit cards provide you with the flexibility of paying the minimum amount due and let you carry forward the rest of the loan to the coming months. That said, clearing just the minimum dues for months on end is one of the most common ways you could end up in debt. This is because the interest on the total amount due accumulates over time, and it also means you will be considered a higher risk.

Credit card contracts
Credit cards always come with contracts, and you should read the document carefully before signing it. Pay attention to the mentioned credit card limit, the APR that sets the interest charged on carried-over balances, whether the interest calculation method is daily account balance or fixed or variable APR, and the grace period. Additionally, consider the fees payable for cash advances, balance transfers, exceeding your credit limit, and the annual fees for the card. You can also contact customer care to get these details.

Top credit card companies
It’s important to compare credit cards as different companies have different payment processes, credit rates, and contract terms. Identifying the most beneficial card will need a little bit of research, but it will help you save big in the long run. You can also make the most of offers and credit card rewards, so look for cards that offer incentives for stores you frequent, along with lower interest rates.
Here are some of the popular companies you can apply with:

• American Express
  American Express is a well-known credit card company that offers cashback and rewards on several cards. You can earn reward points on your purchases with the American Express Membership Rewards® program. The annual fees can be expensive, but you can also find affordable no-annual-fee cards. The one downside of opting for this company’s credit cards is that you have to pay some of them in full every month. These include the company’s Platinum Card®, the American Express® Gold Card, and the American Express® Green Card.
• Chase
  Chase credit cards are one of the most popular choices among many. The company offers plenty of cashback and rewards credit cards, and many of them have zero annual fees. You can earn up to $200 or more bonus for spending a particular amount in the first few months after account opening. The Chase Ultimate Rewards® program is, inarguably, the best reward program among creditors, which makes the company a preferred choice among credit card users.
• Citi
  Their extensive selection of credit cards is the reason Citi is a popular company. You can earn ThankYou® Points on your purchases, and Citi also offers cashback and travel cards and low introductory APR on balance transfers. Plus, you can grab exciting offers linked to partnered companies like Costco, American Airlines, AT&T, and Expedia. Citi has an efficient and robust banking department and is one of the country’s largest banks.