How to Decide Which Credit Card to Get

When getting a credit card, you are likely going to use that card for a long while. Switching the credit cards you use can be a major hassle so since you will likely have a long-term relationship with your credit card provider, you need to pick the right one.

Decide How You Will Use the Card: You need to decide the purpose of the card. If you want it for general spending, find a card with a lower interest rate or generous rewards.

Determine if You’ll Have a Balance: If you plan to carry a balance then the interest rate is more important than any sign-on bonus.

Look at Your Spending Habits: If you don’t plan on carrying a balance for your credit cards then finding a card that is matched to your spending will be beneficial. There are different types of cards that give bonus rewards for certain kinds of purchases, including travel, gas, restaurants, business spending, and groceries.

Research the Credit Cards That Are Right for You: When you have an idea of what you are looking for, research the specific cards available to find the best offers for the card category.

Compare Card Terms and Offers: Since there are different kinds of cards in each category you want to compare the options carefully. Some of the things you should look for include APR, rewards, minimum payments, sign-up bonuses, the annual fee, and other fees.

Decide if an Annual Fee Makes Sense: Paying an annual fee may mean you get a lower interest rate and more generous rewards. In order to decide if this makes sense for you, you have to do the math. This means comparing the interest charges, the perks, and the added rewards. Don’t disregard a card with an annual fee until you run the numbers.

Find Out about Qualifying Requirements: Finding a card you love won’t be helpful if you don’t qualify for it. Many creditors don’t specifically state the minimum requirements but make it clear that cards may only be open to people with great credit.