Feature Bank of America (Accelerated Rewards) American Express (Blue Cash) Discover
1. Grace Period 25 days 25 days 25 days
2. Interest Rate 12.99-20.99% 12.24%-19.24 11.99%-20.99%
3. Annual Fee $0 $0 $0
4. Over-The-Limit Fee N/A N/A $0
5. Late Fee N/A N/A N/A
6. Cash Advance Interest Rate/Fees (variable) (variable) (variable)
7. Transfer Interest Rate 3% 3% 3%
Credit Cards Features Comparison
The credit card market in the US has numerous products from among which customers can select their best alternatives that correspond with individual needs. Since the market is highly diversified to meet the various needs that customers have, there is need to analyze the features of the various products. Different credit card needs are considered by the offering financial institution to bridge the gap between the need and the financial service. As an illustration, a single bank can provide different credit cards with different features and terms to meet a number of clients’ needs across the market. Below is an illustration of some of the features that customers would look for, in the analysis of the three credit card products as given by different banks.
Table 1. Obtained from the database (financeglobe.com, 2011)On a personal account, a credit card would serve a number of my financial transaction needs due to their convenience. However, the above features will play an important role in the determination of the appropriate type of product designed for such needs. On a personal finance management product needs analysis, a credit card must assist me to access my funds from any point of need. Such convenience will serve to avoid pending bills which are costly from personal financial management perspective. In addition, I will need my credit card to clear my online shopping which has become very fashionable and convenient during this information age. I don’t need to travel far distances to conduct my shopping thanks to the internet, which makes a credit card a necessity. Alternatively, many transactions nowadays attract discounts for credit card clearance. To this end, I need to maximize on cheap deals using a credit card and complement my saving approach to personal finance. Finally, a credit card will help me to save on costs of operating a financial account due to favorable rates when compared to the traditional bank accounts of other forms.
With regard to the need to reduce the cost of operating an account as a consideration, I will choose the credit card with flexible terms of interest, grace period and other related costs. From the above list of credit cards, Discover More Card fits well due to its relatively low interest rate. With reduced interest rates, consumer needs are likely to be handled in an advanced consideration since it is possible to reduce cost of transactions and channel the savings on other important needs. Besides, it offers attractive bonus packages to consumers amounting to 20% for making purchases from designated retail outlets. Discounted costs increase the capacity of consumers to maximize the benefits of the service offered by the provider and improve their lives. Since the use of the credit card is purely on personal transactions, this credit card offers the best alternative to consumer needs. It is perhaps important that these benefits are packaged for the ordinary consumer in one product to assist consumers in managing their finances and increase value for their money.
“The Most Comprehensive US Credit Card Database,” 2011. Web. HYPERLINK “http://www.financeglobe.com/” http://www.financeglobe.com/ (accessed 12 October 2011)