There are a lot of choices available when choosing a credit card. We have consolidated a few top considerations to think through when selecting a credit card to save your time and money.
Credit Card Use
Before you shop for a credit card, the best question to ask is how you intend to use it? Some credit cards are catered to those who like to travel, other gives higher amount of cash back for different spending categories whilst others give you a 0% APR for a certain time.
If you are a business entrepreneur that often carry out business entertainment expenses, the best option is perhaps to look for a card that offers rewards when uses at restaurants. Whatever the case may be, be sure to answer this question before your search for your next credit card.
Annual Percentage Rate
Annual Percentage Rate or APR as commonly seen, is the annual rate you will be charged upon any balance you carry. Regardless of what you intend to use for the card, the best deal is to find a card with the lowest interest rate.
However, most of the cards has have a higher interest rate by nature. However, if you search hard enough, you may find some banks offer a credit card with nearly half the rate of the market.
Rewards & Fees
Most credit cards today offer some kind of reward program. Some give you cash back for certain purchases, others give you rewards in the form of gift cards, and some will give you rewards in the form of travel miles if you plan to travel a lot via airplane.
When comparing credit cards, keep in mind tip #1 above, and seek out the card that has the best rewards program based on how you intend to use the card. If you travel for work, perhaps
you want to find the card that offers the best program to build up your frequent flyer miles to save on travel costs.
Many credit cards will also have an annual fee when applying for a popular rewards credit card. Keep these fees in mind when weighing out how good the rewards program is. A mistake often made is finding a good rewards card with excellent cash back options, but you didn’t consider that $150 annual fee until it’s too late.
You can’t put a price tag on service and convenience today. While searching for a good credit card, consider looking at the overall reviews of the issuer and the card. The last thing you want is to apply for a credit card and discover they provide the absolute worst customer service when a dispute arises.
Another part to consider is how accessible the company is and how user friendly their online banking is. Having a difficult to maneuver app or online banking platform just adds to the headache when seeking answers and documents for your credit card.
Your credit limit may be approved for a higher amount at some banks than other. In most cases, people seek the card that gives them a higher credit limit because it offers more flexibility and financing options when budgeting. However, you may also seek a lower credit limit if you want to monitor how much you spend. If this is you, often times you can request a lower credit limit than approved for.
Be sure to compare the pros and cons of each credit card, and don’t make any impulse decisions.
We hope that these 5 tips will allow you to choose the right credit card and these tips could potentially save you a ton of time and hassle resulting from choosing the wrong card and issuer.