Plastic is king in this day and age, and it's not just because it's easy and safe. It's also because many credit card companies offer rewards and rebates to stay competitive. You don't have to work too hard to find credit card offers anymore, because they will come to you. The only question is how to choose the best one for you. If you are in this situation right now, here are some simple tips to help you decide:
Never go random.
When many credit card offers seem to offer the same things, it can be tempting to sign up for the first card that comes along. Using credit card offers in this way is not a good idea. Don't choose a credit card based on a random ad, a friend's suggestion, pressure from the credit card company, or the need to make a purchase right away.
Think about what you'll do with it.
Even though a credit card can give you some financial freedom, it is still a form of debt, which is why it's called a credit card. Before you choose a credit card offer, you should think about what you'll need it for and how often you'll use it.
If you like to shop at a certain store and usually pay with credit, you might want to get a credit card from that store if they have one. When used at that place, that credit card often comes with a lot of great discounts, rewards, cash back, and special privileges.
Look for range.
In general, the more places you can use your credit card, the better, so you might want to choose a credit card that can be used both nationally and internationally. Regional credit cards are good for people who don't plan to leave their area for a long time.
Look for low rates of interest.
When deciding which credit card is best, look for the one with the lowest interest rate. Rates vary by credit card company and sometimes by the card itself, so it's in your best interest to compare them.
If you like to pay for your credit card purchases in instalments over a few months, low interest rates are a good choice for you. So, you won't have to make payments that are too high and end up paying more.
Other costs and options
When looking at credit card offers, you should also watch out for fees and penalties that you have to pay every year. There are also fees for things like transferring your balance and getting a cash advance. You might also want to see what features a credit card has, such as rebates, rewards programmes, discounts, warranties, and even insurance.
Check the small print.
Before you sign up for something, make sure you read the fine print. You might be interested in a credit card because it has low interest rates, only to find out later that the low rates are just an introductory offer and that after a few months, the APR will be much higher. Choose carefully because a credit card offer is only as good as its fine print.
Take the lead.
You don't have to take whatever credit card is offered to you, and you don't have to be passive about it. Write down what you need from a credit card and what features you'd like it to have. Then, pick up the phone and call a few credit card companies to find out what their best deals are. If you choose your credit card with more initiative, you're more likely to find one that fits you best.
