14 Expert Tips for Finding the Perfect Credit Card for Your Needs
Having a good credit card is a wallet essential. The odd thing is that not all credit cards are the same. In fact, every credit card is vastly different, and you need to find a card that works with the way you spend money. Take a look at these 14 tips for assessing credit cards that will help you pick the best card for you. When you have a good credit card, your spending power and earning potential will greatly change!
Note: The content of this article is for informational purposes only and is not a substitute for professional advice. Always consult with a qualified professional for advice tailored to your individual circumstances.
Assess the Annual Percentage Rate
All credit cards will charge you an annual percentage rate (APR). This is how much you will pay if your card carries a balance between billing periods. You will pay more interest on credit cards with a high APR. It is always best to choose a card with the lowest APR possible. Even if you intend to pay all of your credit card debt each month and avoid APR fees, you never know what may happen! Those percentage payments can add up and cost you a ton of money in the long run.
Look at the Credit Score Requirements
You cannot get approved for a credit card without a good credit score. The higher your personal credit score, the better card you will be able to get. People who have good credit scores will qualify for credit cards with low APR, better rewards programs, and lower fees. If you have a bad credit score, you may be stuck getting a credit card with high interest rates and low spending limit. Start your credit card search by assessing what cards you qualify for.
Consider Annual Fees
Some credit cards charge a flat rate annual fee. These cards often have benefits you may want to pay for, such as high cash-back percentages or a lower APR. Consider if these benefits are worth the annual fee. Remember that the fee will automatically be charged to your card each year, an expense that can be surprising on your bill if you do not remember it is coming, If you do not think the benefits outweigh the cost, consider looking for a card with no annual fee. There are plenty out there!
Consider the Rewards Program
Almost every credit card has a rewards program that makes the card appealing. Some credit cards offer cash-back deals on groceries, gas, or restaurants. Other cards may have a point system to help you earn gift cards to a specific store. Always choose a credit card that has a rewards program you will use. These rewards can add up very quickly and are one reason why people love to use their credit cards for everyday purchases. You may even want to pay your bills with your credit card just to get those rewards! Just remember to pay your monthly bill so your credit card balance doesn’t add up.
Check Introductory Offers
Credit card companies always want you to sign up and be approved for their card. They often offer fantastic sign-on deals that you should take advantage of. From instant cash deals to 0% balance transfers, you can save a lot of money (or earn some money) just by applying for the right card. Signing up for a credit card when the deal is at its peak is smart shopping!
Look at Fraud Features
Credit card information is stolen all too often. It is something you, unfortunately, need to consider when choosing a new credit card. This is especially common when you use your credit card frequently online, where hackers and credit card theft are very common. Most credit cards come with some fraud protection. Choose a card that is highly rated for its safety and customer service. You can worry a little less about credit card theft when you have a protected card.
Consider Credit Limit
The credit limit of your credit card often depends on your personal credit score. If you have a nice, high score, you will likely get a nice, high credit limit. If your score is low, you may only be approved for a few hundred dollars of credit. Think about how much credit you need, how much you qualify for, and how much you intend to use. Sometimes, the highest credit limit card isn’t the best choice. Consider the limit when assessing which card to choose from, but make sure you look at all the other features, too!
Think About Balance Transfers
Many new credit cards will offer a 0% APR on credit card balance transfers. If you currently hold a large balance on a different credit card, consider moving it to a new card with a 0% APR. You can avoid paying interest on that balance and save lots of money. Many people get into a pattern of moving balances from one card to the next just to take advantage of the 0% APR. This may not be a bad idea, especially if you are working on paying off your card.
Look at the Grace Period
Many credit cards will offer you a 0% APR for a specific number of months. This can be very beneficial if you want to make a big purchase and pay it off without interest. You may be able to find a credit card that gives you up to a whole year of low or no-interest payments. Take advantage of these deals anytime possible. Just remember that the 0% won’t last forever.
Ask About Foreign Transaction Fees
If you plan on traveling to a foreign country, you will need a card that does not charge foreign transaction fees. Some credit cards will charge you for using the card in a different country. While the cost may not be high, it can add up quickly, especially if you are on vacation or in a different country for an extended period. Also, remember to alert your credit card company when you plan on traveling. This will ensure your card is not turned off or declined for possible fraud. YOu don’t want to be stranded in a foreign country without a working credit card!
Look for Extra Perks
Some credit cards offer some fantastic additional perks. In addition to low APR or cash-back programs, some cards may offer travel insurance, airport lounge access, or purchase protection. Think about the benefits that may be important to you or that you will use. Do you want cash back, or would you rather have a lower APR? These perks can set one card apart from another!
Look for Hidden Fees
Make sure you look at all the fine print when choosing a credit card. We know it can be a lot to read, but you will be surprised by what you find! Many credit cards may have hidden fees that you must be aware of. There could be fees for exceeding your credit limit, flat rate fees for missing payments, or even fees if a payment is returned due to insufficient funds. Learning about these fines will help you decide if a specific credit card is really worth it or not.
Think About the Brand
Most credit cards are backed by big brands like Visa, Mastercard, or American Express. However, some smaller cards may not have one of those essential logos on the front. Some vendors will not accept certain types of credit cards, which can hinder your ability to spend. You want to choose a card that you can use anywhere, not only in a local store or shop. Look for those big brands that will give you the most options.
Look for Family Plans
Some credit cards will allow you to have multiple people on one account. You can link your family members’ cards to the same statement, either dividing the credit limit or setting a specific limit for each card. This is great for couples and also for those with kids that they want to include on the account. Look at how the credit card can be shared and if that plan works for your family.
