Choosing a Credit Card That Works For You

How To Choose A Credit Card
Have you ever wondered how important it is to choose a credit card that is right for you? There are many different credit card companies and referred to as issuers. Issuers could mean banks or credit unions. When you’re looking into credit cards, you should research them carefully.

If you plan on making sure it is paid off each month, an introductory interest rate and any balance transfer fees shouldn’t be a big problem. But, if you are going to need to transfer any amount of existing debt to a lower interest one, there is a chance for a more significant issue to happen.

Introductory interest rates are exceptional because they are usually below the average interest rate. Some interest rates could be as low as 0% for balance transfers. If you have any existing debt and the interest rate is a lot higher, this option could help you. Try to find an issuer that has fees around 3% and “uncapped.” Uncapped means the charge will apply to the whole amount transferred. It can be tricky if you decide to choose a credit card with the best introductory period as some credit card companies may be 12-15 months others are much shorter and can be 6-9 months.

You might see there is cash back, or a reward offered on purchases, and some may provide certain rewards, some times based on points. When trying to find one offering the best cash back offer, look for one that offers 1-5% cash back on purchases. For the most part, the ones that offer cash back on purchase have a higher interest rate because the rate only applies to specific purchase categories. There are other kinds of rewards that credit cards may offer, including:

Airline rewards
Hotel rewards
Music rewards
Rebates for future purchase
Points for free items

Some credit cards will let you choose your reward. Look over your spending habits when deciding which reward card would benefit you the most. You must carefully choose one that will reward you for the same purchases you already make. Sometimes having a reward card can be a bad thing. If you are carrying a balance, rewards will offset because of the interest you are paying, and if that is the case, maybe focusing on trying to find a card with the lowest rate possible. Remember to use your rewards before they expire.

Many factors come in to play when searching for the right credit card. Make sure you read the terms and conditions, especially anything to do with any card interest before you sign up for it. Once you have received the card, making sure the balance is paid every month avoids being charged interest. In the event, you have to choose one that is new to pay down any high-interest debt, make sure there are not any hidden fees.

Other smart tips include:

Keeping a check on your credit score
Determining exactly what your specific need
Assessing criteria that qualify
Narrowing down your options