Differentiating one credit card from another can be difficult. And if you fail to review all of your credit card options, you risk missing out on low-interest rates, cash-back bonuses, and other perks.
Believe it or not, picking a credit card may be easier than you think. Now, let's take a look at three tips to help you separate the best credit cards from all others.
1. Shop Around for the right one
There is no shortage of credit cards available. Thus, if you shop around, you're sure to find a credit card that is right for you.
Think about why you want a credit card in the first place. Then, you can tailor your search for the perfect credit card accordingly.
For example, if you're a college student who needs a credit card to cover the costs of books, food and other expenses, you may want to focus on the best credit cards for students. These credit cards may offer incentives or savings tailored to students like a student rate or benefits.
On the other hand, if your goal is to find a credit card that scores you discounts on groceries, gas and other everyday purchases, you may want to search for the best credit cards for rewards. That way, you can sign up for a credit card that helps you save money day after day.
Use sites like Credit Sesame to check different credit card options to find a card that works for you. Want travel points for your vacation? Looking for balance transfers? Want cash-back options? Search credit card options that fit your needs and check your credit while you’re at it to make sure everything is running smoothly
2. Establish a Checklist
With a checklist in hand, you can weigh the pros and cons of any credit card, at any time.
As you develop a credit card checklist, here are essential criteria to include:
- Annual Percentage Rate (APR): Price you pay for borrowing money. For instance, if a credit card has an APR of 5%, you'll pay 5% interest on any balance that remains on your card after you pay your monthly billing statement. However, you can avoid paying interest on credit card purchases if you pay your balance in full each month by the due date.
- Annual Fee: Yearly charge administered to credit card holders. Some credit cards require an annual fee; also, this fee may accrue interest over time if a cardholder fails to pay the full amount.
- Minimum Repayment: Total you are required to pay each month. A minimum repayment amount usually falls around 3% of the total balance due on a credit card.
Develop a checklist of credit card criteria, and ultimately, you can find out exactly what separates one credit card from another. Use sites like Credit Sesame to check different credit card options to find a card that works for you. Want better rewards? Looking for balance transfers? Want cash-back options? Search credit card options that fit your needs and check your credit while you’re at it to make sure everything is running smoothly
3. Ask Questions
Credit cards can be complicated, particularly for those who do not understand the fees and conditions associated with them. Fortunately, credit card companies employ knowledgeable professionals who are happy to address your credit card concerns and queries.
If you have questions about a credit card, ask before you sign up. Remember, it is always better to err on the side of caution, especially when it comes to choosing a credit card. And if you are uncertain about a particular credit card, ask questions so you can get the information you need to make the best possible decision.
Ready to sign up for a credit card? Use these tips, and you can select a credit card that will serve you well both now and in the future.