Not every credit card that promises a few good things is a good one. In reality, you don't really know how good a credit card is until you read the small print that tells you everything. Comparing a few of the more open and upfront (on the ad) features might give you a starting point, but you should dig a little deeper if you want to get a good credit card.
Pick the kind of credit card you think will help you the most. If you travel a lot, you can choose between air miles cards or driver cards, or you can get a rebate card for general shopping. You can also get a specialty card from a bookstore if you buy a lot of books, or a credit card for entertainment if you often go to that kind of place. You should take some time to find out what kinds of credit cards are out there. Choose based on what you usually spend the most money on each month.
Look at the interest rate as a good place to start. The interest rate can be anywhere from 9.99% to a little over 18%. Those with good or excellent credit get the lowest interest rates. For everyone else, the rate on the card will be a little bit higher. You should try to get a card with the lowest possible interest rate. Even though you might not have to pay any interest the first year, keep in mind that you will have to pay it the second year. It can also start up all of a sudden if you pay one credit card bill late.
Then you will need to check to see if and when the credit card lets you transfer balances. This small but great feature can save you a lot of money if you can get it with no fees and 0% APR interest. Be sure to find out when you can make the transfers, though, because some cards require you to list any transfers when you apply and you can't make any more after that. Find out how long it will be before you have to pay interest on this amount. It could be anywhere between three months and as long as the amount that was transferred.
Next, you should look at the first offer. This includes the balance transfers and tells you how long you have to make new purchases and pay no interest on those charges. Your introductory offer and your balance transfers may have different time limits.
Lastly, compare the amounts of rewards. When you make your first purchase with some credit cards, you get a lot of points or miles. This is great, and this kind of deal may not be available on other cards, so it can be a big help. Be sure to check, though, to see if there are any fees or restrictions that could take away from this great value. Also, many, but not all, credit cards will give you a percentage of your average purchases, like how much you spend on gas, food, and medicines.
By paying off your credit card in full every month, you can save more money because you won't have to pay interest or late fees. Avoid credit cards that require you to keep a minimum balance.
