Consumer Reports Choice: The Best Credit Cards

The October 2008 Issue of Consumer Reports has made their selection of the best credit cards currently available. It is an interesting selection and the reasons for their choices are also very educational.

You may easily view our website www.creditcreator.com for the latest updates on credit card rates and offers. We offer all the credit cards suggested by Consumer Reports. Credit card interest rates are constantly changing and so this is dated material.  It is important to always view the terms and conditions section of the online credit card application of your choice to find the most up-to-date offers and credit card information.

Consumer Report’s Best Low Interest Rate Credit Cards – These are considered “the best” because they offer no fees on balance transfers and in addition they generally offer lower fees on late payments. The interest rates of most credit card offers will jump up considerably higher when a late payment is made, but in the case of these cards there are liberal allowances for late payments. For example, the Capital One Platinum Prestige credit card will not raise the APR interest rate to the higher default interest rate unless you have made a late payment (3 days beyond the due date) two times in a year.

• Capital One Platinum Prestige – 7.9 % APR* on both balance transfers and on-going purchases
• Iberiabank Visa Classic — 0 % APR* on balance transfers for 6 months, 4 to 6 % APR* on balances there after, 5% to 7% APR* on cash advances.
• Clear from American Express – 0 % APR* for 12 months, 10.99 to 14.99 % APR* for ongoing purchases, 5.99 % APR* fixed rate for the life of the transfer
• Simmons First Visa Platinum — 0 % APR* on balance transfers for 6 months, 8.95 % APR* for balance transfers, 7.25% APR* on purchases

*All of these rates are subject to change.

A low interest credit card or balance transfer credit card is the type of card you will need if you plan to carry a balance on your credit card from month to month.  But if you pay your credit card balance at the end of each month, then you a  rewards credit card may be a good choice for you.  Rewards credit cards include cash back credit cards with cash back rewards of up to 5% as well as air miles rewards credit cards that reward your purchases by offering you free air miles on purchases. In addition, gas cards offer very good opportunity to get a reduction on your gasoline purchases of up to 6%.

Consumer Reports has reviewed the best cash back rewards credit cards and the best gas cards for those who pay off their balance at the end of each month.

Consumer Report’s Best Cash Back Credit Cards – The interest rates on all of these cards are moderate to high, but these cards are chosen for those is who pay off their credit card balances each month.

• Capital One No Hassle Cash Rewards* – This is one of the most straightforward cash back rewards programs. There is no ceiling on the card so you can spend as much as you want and receive rewards of 2% on gas and groceries and 1% on all your other purchases.
• Chase Freedom Visa* – 3% on three categories where you spend the most but only up to $600 a month in purchases, 1% after that and 1% in all other categories.
• Discover More* – 5% in various categories up to $400 per quarter and .25% to 1% on other purchases. Discover offers double points if you purchase gift cards from their partners.
• Blue Cash from American Express* – 5% cash back on purchases at supermarkets, gas stations and drug stores (and 1.5% on other purchases) but you have to spend $6500 within a year to qualify. Otherwise if you spend less, your cash back rewards is .5% to 1.5%.

* All of these percentage rates are subject to change. Please be sure to read the terms and conditions when you apply for a credit card.

Consumer Report’s Best Gas Cards – The interest rates on all these gas cards are moderate to high, because these cash back gas cards have also been chosen for those who plan to pay off their credit cards at the end of each month. Again, you need to read the terms and conditions of the credit card you choose because the percentages may vary depending on the gas station you use.

• Discover Open Road – 5% gas purchases and auto maintenance purchases for a maximum of $100 a month in purchases. .25% cash back on other purchases for spending up to $1500, then the percentage goes to .5%. Once you have spent $3000 in a year the percentage goes to 1%.
• Chase PerfectCard MasterCard – 6% cash back on gas for up to the first 90 days and 3% thereafter on spending for gas up to $500 per month.
• Chase BP Visa – This is a gas card cash back program that was selected by Consumer Reports in this credit card review as one of the best gas credit cards but is no longer available from Chase.

In addition to the best credit card options Consumer Reports also reported on some of the worst credit card options which included:

• New Millennium Visa or MasterCard
• HSBC American DreamCard
• First Premier Bank

See the full story on the Best Credit Cards from Consumer Reports here.  We at www.CreditCreator.com offer a variety of other options which are some of the best credit cards for business, students, retired people, consumers etc.