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How To Pick The Best Credit Card

When it comes to your credit score, one of the largest factors are your credit cards. This is one of the reasons why it is so important to make sure that you get the best credit card for you. Each credit card is different, coming with different terms, rates and features. By knowing which card best suits you, you can properly manage your credit cards better, and in turn raise your credit rating. If you need some help picking out the best credit card for you, here are some things to consider.

  • Interest Rates – This is probably the most significant factor. While your specific interest rate (or APR) will vary depending on your current credit score, most credit card companies will provide you with a range that it will fall in between before you sign up. You can use this range to try and guess where your APR will fall. If you have a good credit rating, it will be on the lower end of the range, while if you have a poor score, it will be on the higher end of the range. This is the amount of interest you are going to need to pay on balances, so you want to pay close attention to it, and try and get the lowest possible rate.
  • Perks – Another thing you want to think about when getting a credit card is the perks that come with it. Does it offer you cash back points? Maybe travel rewards? Or does it give you discounts at certain stores? Think about what comes with it, and if these perks are at all beneficial to you. If they are, then consider getting that card. Make sure you use the rewards however, or they are just going to go to waste.
  • Credit Limit – The fourth thing you want to consider is the credit limit. This is the amount of money you are able to spend with this card. This number will also vary depending on your credit score, but the higher this number is, the better. Credit limits will generally go up over time as you use the card, but if you can start with a higher limit, that would be good. There is not much point in getting a credit card if you can only use it for a couple of purchases before it is maxed out.
  • Fees – Next, look at what fees come with this card. What are the charges if you miss a payment? Is there an annual fee? What if you spend more than your limit allows? Credit card companies try and charge a fee for everything that they can, so you want to know about these in advance. Think about how they will affect you, and if you are going to be able to afford them. You don’t want to be hit with so many fees that you can’t pay them when the bill arrives, so doing your research is vital.
  • Introductory Benefits – Lastly, most credit card companies will offer bonuses to people who are new. Things like no interest for a year, or waiving the first annual fee are common. So for example, if you have a large purchase that you need to make, you could get a card with no APR for a year, then take your time paying it off since there won’t be any interest charged. Look at the benefits that come with signing up, and think about how you can best use these before you decide on a card.

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