Credit cards with low APRs. Credit cards that give to charity. Credit cards that pay you cash back. Credit cards in your favorite color. With so many available, how do you choose the best ones for your use? Once upon a time, it was fairly simple. You simply chose the card with the lowest APR and could be fairly comfortable in knowing that you'd be paying the lowest amount on your fees and interest rates. Times change, though. Now that there are literally dozens of banks and various entities putting their imprimatur on the faces of your plastic, it's a whole lot more confusing choosing between various options. So how DO you choose between credit cards to get the one that suits you best?
- Know why you need a card.
Knowing what you need is the first step toward choosing the right tool for the job. Do you need a card for emergency expenses only? Then you'll need one type of credit card. Are you looking for a card to use everyday? Then there are certain features that you'll want. Before you start choosing cards and comparing them with each other, think about how you intend to use the ones you get. Once you know how you intend to use them, you'll find it much easier to choose the right ones for your purpose. - Learn about the features and terminology.
It's always easier to understand things when you understand the language that's being spoken. If you don't understand terms like APR, interest free period and balance transfer, take a look at some of our other articles that offer definitions for important credit card terms. - Decide which features are important to you.
While all credit cards can be used to make long term purchases, some of them are better suited to it than others. Likewise, you can swipe your everyday purchases on most major cards, but you'll get the most benefit from it if you use ones that offer a good rewards or cash back scheme. Once you know how you intend to use your them, you can decide which are the most important features for you. In general:
- For long term purchases or carrying a balance, choose a card with a low APR
- For everyday purchases, choose a card with a good rewards scheme
- For paying off credit card balances at low rates, choose a card that offers a balance transfer scheme
- Compare credit cards in your narrowed down fields.
Once you've decided on important features, you can narrow your field of choices to those cards that offer the features you want. Your next step is to compare those against each other, matching feature for feature to decide which one offers you the best deal. You'll find many online sites that can make the process of comparing features easier where they've drawn up comparison charts for you with all of the best credit card deals that are currently on offer.
Choosing the right credit cards isn't as difficult as it seems. It just takes a little time and research to be sure you've got the best cards for your specific uses.
