Looking for the right credit card?

May 18, 2015

When you're thinking about getting your first credit card or obtaining a new credit card it’s important to see beyond the appearance of the card.

There are many aspects to credit cards and you should pay attention to each one of them. Some of the basics you should consider include: what is your purpose for getting the card, what is the interest rate, is this a good match for your credit ratings and what the benefits are that come along with the card.

Have a purpose in mind

With so many options available today, you can often find a credit card that meets all your requirements. Selection becomes easier when you have in mind how are you going to use your credit card. For example, some common uses include business, personal, and emergency uses, among others. Each use has specific requirements and these should be matched up to the card you are considering, e.g. look at credit card interest rates, introductory rates, and of course, the benefits of the card.

Consider the interest rate

Before accepting terms on a new credit card, you should pay attention to interest rates. Remember, the payment of interest will be your responsibility. Many people skip this point in credit agreement disclosures and then get mad when they realize the interest they have to pay. Usually, low interest rate credit cards do not come with a low introductory rate. However, a low interest rate credit card can help you better manage your credit. Low introductory rate cards typically are limited to a fraction of the total time of the contract. There are many examples of high and low interest rates, and you may wonder what is considered an attractive interest rate. 11% is usually considered an acceptable interest rate. The majority of credit card issuers base the interest rate they offer on your credit report, so always bear that in mind.

On the other hand

The type of credit card that you qualify for depends a lot on your credit record. So you should always pay attention to your credit history. Today there are credit cards for people with all types of credit including low, medium or high credit scores. So pay attention to the categories that may be most applicable to you and consider cards that reward someone with your level of credit.

Enjoying the benefits

These day’s credit cards often come with awesome benefits. Some common examples include “cash back" bonuses on purchases, reward points that can be used for airfares and hotel rooms, or even points that you can redeemed for valuable merchandise. If you like really enjoy shopping you should choose a credit card that offer cash back, and if you are someone who travels frequently then the best option may be a credit card that gives you points redeemable for plane tickets or hotels discounts.

So choose your card wisely, and pick the card that is right for you. This will save you time and money. It may take time and research, but in the end the investment you make will be rewarding.