By Rick
A credit card used to be a nice thing to have but in recent years has become essential. Without a credit card it’s nearly impossible to rent a car, spend a night at a nice hotel or shop online for everyday necessities. Even though you can navigate around these restrictions with a lot of clever financial aerobics, having a credit card just makes it easier.
Even if you simply use the card to make these purchases and pay off the balance immediately, the fact that these retailers know you have credit allows you to do all these things much easier. Choosing the perfect credit card for your needs takes a little work and many people wonder “which of my credit card offers is the best for me?”
Watch the interest rate
When comparing cards there are few key things you’ll want to take into consideration. The thing that should be at the top of your list is the interest rate on the card. Even though you normally use the card responsibly and intend to pay off your balance each month when the bill arrives, there may be months you’ll want to only make the minimum payment required. In this case the balance you leave on the card will incur an interest charge, which can be substantial. Comparing the interest rates between cards is the first step in deciding “which of my credit card offers is best”.
Know your limits
The next thing that most people compare is the amount of credit available to you on the card. This credit limit may determine how useful the card is for doing the things you want to do. If you have a small limit on the card you may not be able to use it on a longer vacation to cover the accommodations you need for your family. Even though most credit card companies will normally increase this limit over time, when deciding on “which of my credit card offers is best”, you’ll want to compare the initial limit on the various cards. Most credit card offers will give you a minimum you can expect to receive if approved for the card.
Points, points and more points
Most cards these days have some type of rewards program tied to your use of the card. Some of these grant you reward miles on airlines or hotels and others offer you cash back every month based on your spending with the card. All other factors being equal, you’ll want to choose a card with the rewards program that best fits your lifestyle. If you do a lot of traveling, find a card that provides a discount on car rentals or hotel rooms. If you don’t leave home often, a card that offers discounts with certain merchants every month might suit you better. The key is to do the comparison between cards. Even though this shouldn’t be a major factor in your decision, it does affect how useful the card is for you and needs to be taken into consideration.
The key in answering the question of “which of my credit card offers is the best” is comparing all these factors between any cards you’re considering. When you list the thing most important to you, the choice will be clear and you’ll be on your way to enjoying your new credit card.
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