Four Steps to Landing the Best Credit Card for You
Credit card companies are growing more aggressive than ever, trying to win as many new customers as they can. The result? Piles of credit card invitations and offers in your mailbox. But how do you choose which piece of plastic to use? TotallyMoney advises consumers to be more discerning when it comes to choosing credit cards, especially during these difficult times when debt is at an all time high. Here we round up the major considerations you should look into before selecting your next card.
Interest Rate
The first and most important thing you need to check on your credit card is that of it’s APR or annual percentage rate, which you can divide into 12 to know how much you will be charged monthly. This interest rate is a major contributor to your expenses and so the lower they are, the better for you. If possible, look for companies that offer 0 percent credit cards, which cuts down on additional interest charges for your purchases for at least a period of 3 to 6 months.
To ensure that you make an informed choice, here are some of the questions you need to ask prior to signing off on your credit application.
Will the APR be for a limited time only?
Do you need to comply with a minimum purchase requirement to keep the current interest rate?
Will the disclosed interest rate be subjected for further approval? Will it vary upon review?
These questions will help you assess whether that particular credit card gives you more value for your money.
Annual Fee
Most credit card companies waive the annual fees for first time clients as a means to attract more customers. In comparing annual fees, it is best to know the exact terms of payments. Will they be divided into 12 months, or would you be required to make an outright payment? More importantly find out how you can waive the annual fee altogether.
Rewards
One factor that differentiates one credit card from the rest can be seen on how they reward their clients. Though recent credit card regulations and economic setbacks have prompted many credit card providers to cut back on their customer rewards program, it still pays to choose one that can provide you with the best rewards that are appropriate for your lifestyle and spending habits.
Ease of Use
Lastly, choose a card that offers you the most convenience. This includes everything from making purchases as well as accessing your account, making international purchases, and coordinating with their customer support.