Thursday, November 5, 2015

Credit that's Right For You: What To Look For in Your Next Credit Card

Once you’ve built up your credit, it becomes easier to get new credit cards. The card you started with may no longer be the best deal out there for you. 

Take the time to look at new options and carefully consider what type of credit card will make the most sense for you. The following list can help you narrow down your choices.

Interest Rates


The cards interest rate is probably one of the most important factors to consider when you choose a credit card. High rates mean that you’ll pay more money overall, so it’s usually best to look for cards that offer low rates. 

However, if you plan to pay the balance off in full each month, the interest rate may not play a significant role in your decision.


Rewards


These days, so many credit cards offer rewards that it seems silly to even consider a card that doesn’t offer you anything. Rewards typically come in the form of airline miles that you can use for travel or cash back. 

Different activities can earn you higher rewards, so consider whether you’re likely to earn those higher rewards. Additionally, some cards can offer you special discounts on merchandise. This is particularly true of store branded credit cards that can only be used at certain stores.

Fees


The downside to some credit cards is that they come with annual fees. Don’t be fooled by signing up for a card that waives the fee the first year. You don’t want to end up with a surprise $80 charge once your credit card hits it’s one-year anniversary. 

If possible, the best card is a card with no fees. However, sometimes, you may find that the rewards that you can earn from the card make the card a good deal despite the fees. It’s always smart to run the numbers.

Convenience


Convenience may not be something that a lot of people consider when looking at credit cards, but it can be a big plus. For instance, Visa and MasterCard credit cards are accepted at most stores, while American Express is more limited. 


You might also find that having a credit union credit card through the same bank as your checking account is convenient because you can always easily log in and see your account balance and transfer money between accounts. 

At the very least, you probably want a card that allows you to make online payments.

Getting a new credit card is an important decision. It’s smart to weigh all of the options before you make your choice. Prioritize your needs to make the best selection.


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