There are a lot of credit card options out there for you. However, not all of them are good for you. Picking the right credit card is essential if you not only want to keep yourself from getting into debt, but also keep your credit score high. Below are some things that you should think about whenever you are looking to get your next credit card. Getting stuck with a credit card that is bad for you can cause you a lot of problems down the road, so try to stick to this guide as best as you can.
The main thing you want to think about when getting a credit card is the interest rate on it. You want this rate as low as you can, so you don’t end up owing more money than you have to. Your interest rate will most likely vary depending on your financial situation, but you can get a rough idea as to what your interest rate, or APR, will be. Then you can compare it against other cards that you are looking at and decide if it is a good rate.
Another thing to look at is if the card has an annual fee. This is the amount of money that you will have to pay each year just to own the card. If you don’t plan on using the card much, or having it very long, an annual rate may not be good for you. Some cards have annual rates because they offer lower interest rates or better rewards. The annual fee shouldn’t be a primary consideration, but you certainly need to keep it mind when searching for a card.
Next, look at the rewards the come with the card. Some cards will give you cash back on each purchase, while others may offer you rewards points. In some cases, these rewards will last forever, while sometimes they are only for the first year. For example, some credit cards will give you no interest charges for a year. This can be great if you are looking to make a couple of big purchases, but don’t have the money to pay for it yet. Look at all of the rewards that come with a card and think about how beneficial they will be to you. There is no point in getting a card with travel rewards if you don’t travel at all, so make sure you are going to get good use out of the rewards.
Lastly, you want to know what the credit limit will be on the card. This is the amount you can spend on the card, so you want this limit to be as high as possible. In most cases the limit will start low, and go up as you use the card more. However some cards start at a higher limit than others, so just check and see if the limit is high enough for you.
Keep in mind while looking through cards that you need to be able to get the card. If you have a poor financial history, or a low credit score, you are not going to be able to get a card with great features. You need to find the balance between a card with good features, and something that you can get. You don’t want to apply for something you have no chance of getting, as it may harm your credit score. The key is to know what you want, but also be realistic and know what your options are. If you can do this, you should have no trouble finding a great credit card.