Taxes, Lawyers, Business & Debt
Which Credit Card Suits You the Best?
Shopping for a credit card is much like shopping for clothes or shoes- the fit is just as important as the style. In this guide, you will learn how to shop around so you can find the credit card that suits you the best.
1. First, you should determine how you will use your card. If you need a card just for emergency purposes, choose one with no yearly fee and a higher credit line. If you like to travel, choose a rewards card that allows you to earn points toward air travel, vacations or cruises, and that offers perks such as travel insurance. If you are planning to use your card for daily purchases, consider a cash-back rewards card.
If you support a particular cause, choose a card that gives back to your cause, such as your favorite charity or your alumni group. Other cards allow you to show your passion for a hobby or sport, such as football or baseball. If you are looking to transfer balances from other cards in order to consolidate debt, choose a card with a lower interest rate than the one you already have; and if you plan to pay the balance in full each month, rewards and benefits may be more important than the interest rate. However, if you expect that you will carry a balance at most times, shop around for a low interest rate that lasts beyond the "teaser period".
2. Mix and match card benefits and types to find the best fit for you. For example, private cards can only be used at certain places, such as department stores. Standard cards come with fewer benefits and lower lines of credit than premium or platinum cards, which offer higher limits and features such as purchase protection, travel insurance, and product warranties. Rewards cards offer things such as travel vouchers, merchandise, discounts at your favorite stores, or even cash. There are also cards that let you show your support for a charity, a sports team, or your alma mater.
3. Most importantly, you need to take the time to shop around. It may be tedious to read about interest rates and fees, but taking the time to do it now will keep more money in your wallet later. Be sure to review each card's terms and conditions thoroughly before you make the application; information about fees and rates is required to be prominently displayed. The card TOS should also list details on benefits, APR for purchases and transactions, fees, penalties, rewards, warranties, rebates, and discounts. The card's fraud protection policy and whether it is accepted in the places you are planning to use it are also important considerations.
It may seem like it takes forever to find just the right credit card, and it can be tempting to just settle for the first credit card that mails you an application. By taking your time and comparing rates, fees and perks of different card types, you will find which credit card suits you, your life, and your budget the best.