The best credit cards on the market are not just a matter of cost and convenience, according to a report by CreditCards.com, which analyzed more than 3 million credit cards to find the best deals.
“They’re really good value, they’re flexible and you can change them anytime,” said Matt Stahl, a senior marketing strategist at CreditCamps.com.
“It’s like a portfolio for your portfolio, but with a lower risk.”
Credit cards have evolved over the past five years as consumers have grown more concerned about their credit and how much they owe, and have taken on more responsibility.
The average annual interest rate on credit cards increased from 0.25 per cent in 2007 to 0.6 per cent last year, according a report from Wells Fargo Credit.com.
“In the last five years, the average annual credit card payment has increased from $19,800 to $31,300, said Dan Leggett, a credit card analyst at Wells Fargo.
The biggest increase in average annual payments has been for cards with introductory offers.
Some cards, such as Visa’s Sapphire Preferred and American Express’ Platinum Preferred, have seen annual increases in the range of 4 to 10 per cent, said Leggette.
There are some cards that have increased their average annual payment over the last year.
Citibank’s American Express has increased its average annual fee from $25 to $39.99, while Chase has seen an average annual increase of 10 per 100 people.
Some cards with lower annual payments include:Chase Sapphire Preferred, 0.7 per cent;American Express Platinum Preferred 0.3 per cent