If you’re someone who’s currently in the market for a new credit card, we can understand why you may feel like the initial searching process may be a bit overwhelming. After all, there are literally hundreds of different cards for you to choose from which can make this an overwhelming process.
So, in the effort to assist you in finding the card that is just right for your budget as well as your lifestyle, we’ve provided you with a list of five things that you should consider when comparing credit card offers below:
Compare the kinds of cards on the market. If you go to a website that lists a lot of credit cards, you are sure to see several different kinds. There are low-interest credit cards, instant approval credit cards, cards that give you bonuses for purchases, secured credit cards, business credit cards and even prepaid credit cards (and those are just a few of the options that are available). So, before you pick one, make sure to read up on all of the kinds that are available so that you can see which one is best. It takes a bit of time but you’ll be glad that you did the research to find the best deal available for you.
Compare the interest rate on each of them. Something that tends to get a lot of people into financial trouble is getting a credit card without paying a lot of attention to the interest rate that’s comes with it. Remember, a credit card is not free money. It is a loan that has interest on it. Therefore, make sure you pay close attention to the APR (Annual Percentage Rate). In most cases, if you pay off your balance in full, you can avoid paying any interest. But if you don’t, interest is a guarantee and so you need to be prepared for how much it is and keep that in mind while making credit purchases.
Compare the credit limits they have. Another thing that you should look into is what the credit limit is for each card. This is the amount of money that the credit card company will allow you to charge. If you have good credit, the limit can be thousands of dollars. If you have poor credit, the company may start you off with a few hundred dollars and then increase it over time as you pay your bills—on time.
Compare the fees and penalties on the cards. When it comes to choosing the best credit card, something else to look for is what we call “the fine print”. This would be the fees and penalties that come with a lot of credit cards. For instance, there are some that will charge you a certain amount every time that you withdraw from an ATM and there others that will charge you if you use the card more than an allotted number every month. Fees can really start to add up, so this is another thing to look into before signing up for a credit card.
Compare the incentives that the cards offer. One of the best things about choosing a credit card is looking for the one that has the best incentives. There are some that will earn you travel points or discounts to your favorite stores. There are others that will even give you cash back. So, as you’re speaking with a customer service agent for each credit card company, ask them about the incentives that they offer. It’s the final thing that can help you to make the best credit card selection.