The market is full of credit cards. There are hundreds, even thousands of offers out there. Did you know that according to several mail monitoring services that there were over six billion credit card applications sent out through the mail in just one year? That is a whole lot of different opportunities. But, are they good opportunities or bad? Do you know how to tell if there is a better credit card among those that you are considering or you do simply send in the offer that’s mailed to you?
When it comes to looking for a credit card that is worth the money you are spending, there is more to the process then just signing on the dotted line and sending the reply card back. You should do your homework, spend some time learning about the options that are out there and select the card that fits your lifestyle the very best. The good news is that there are 5 main things that you’ll need to look for in a credit card and those are listed here.
#1: The Interest Rate
There is nothing more important in a credit card then the amount of money it will cost you to actually use that credit card. With so many people finding out all too late just how costly 22% or higher is on their loans, it is very important for you to shop around. You should spend some time determining the best possible rate for you. Don’t assume that you’re getting it, either. The main thing that plays a role in the interest rate you are qualifying for is your credit score. If your credit score is good, then you deserve a low interest rate. After all, it is the price tag attached to your credit.
#2: The Fees
It can be a wonderful thing to accept a credit card that offers no annual fees. But, then, there are some that charge annual fees, one time only account set up fees, additional card fees, and then there are membership fees, too. Fees are expensive. It is not uncommon for some that have less than perfect credit to receive a credit card with a $300 credit line of which $240 of it is already applied in just fees for the first year. The lower the fees are, the better the card.
#3: Rewards?
Let’s face it. Credit card companies are earning a pretty penny and can often afford to give something back right? If you have good or better credit, then you can apply for reward credit cards. These give you back something in return for doing business with them. It may be in air travel, in gas, or even in cash back. But, there is something to know about reward cards. They aren’t simply going to give you something in return. Most rewards credit cards actually have a bit higher interest rate than others without them. But, you can get around this if you apply for your credit card and pay off the balance each month. That way, you won’t be charged any interest charges and still get something back in return. When applying for these credit cards, realize that they are all different with different percentages of pay back. Look for those that offer you the best possible rate of return.
#4: Introductory Periods
To lure you into the credit card application, credit card companies like to offer what is called an introductory period. During this time, there are discounts applied to your card. You may not have to pay as much interest during this time. These are outstanding credit cards to consider as long as you know what you’re doing. First, make sure you know how long the intro period is. Second, know what the interest rate is on what you’ll use the card for. For example, cash advances may not qualify or the introductory rate may only apply to purchases or to balance transfers. Finally, make sure you find a credit card that offers an interest rate after the intro period that is comparable to other cards you currently have or better.
#5: Customer Service
While it may not make much sense to consider this to some, to others it is a goldmine. For example, if you like to do your bill paying online, select a credit card that offers this feature. Not all of them do. If you need to make a cash advance, you’ll want to be able to take money out at the type of ATMS that are near you. You want to know the details of how the company works so that you can be sure that you are getting something of what you really want, not a company that will change its terms in the first 30 days on you.
Understanding these factors will help you to make the most out of the credit card choice that you make. Spend a few extra minutes on this, and get something back in return: your money.