How to Choose the Right Credit Card For You

So your thinking about getting a credit card but your not exactly sure what to look for right? Well there are a lot of different things to consider when applying for a credit card. Some things to think about are the interest rate, annual fees and features the credit card may offer. Here are a few tips that will help you choose the best credit card for you.

Tip #1 Determine how you plan on using the card.

This is one of the most important things to determine when looking for a credit card. Will you be paying your credit card bill off in full each month or are you going to carry a balance? If you will be paying your credit card bill off each month you won't have to worry about interest rates so you may want to look for a card that offers some sort of rewards program. If you will be carrying a balance each month you will want to find a card that offers low interest rates. Be sure to find the lowest rate possible since this will save you the most money on finance charges each month.

Tip #2 Read the fine print.

Read the credit card disclosure to see what terms and conditions apply to the credit card. Are there any minimum finance charges? How long is the grace period? What is the APR? How much are the late fees? These are all important things to look for when reading the credit card terms. By looking at the credit card terms you can compare different credit cards to see which one will benefit you the most. Be sure to also know what the introductory rate is and what the rate will be after that introductory period is over. Some cards will offer a 0% intro APR and then the rate will shoot up to over 20% once that introductory period is over. Also keep in mind some cards have an annual fee and some don't so be sure to take that into consideration.

Tip #3 Determine what credit card features will benefit you the most?

Are you a frequent flyer? Do you want to save money at the gas pump? Or do you want to receive cash back on your purchases? There are all sorts of different rewards that credit card companies offer. If you are a frequent flyer you may want to get a credit card that gives you free airline miles. If you purchase a lot of gas each month you may want to get a gas rebate card that can save you 3%-10% at the gas pump. Or if you just want to receive money back on all your purchases you might want to look at a cash back credit card which may give you up to 5% cash back on your purchases. In the end you want to get a card that will work for you. You need to ask yourself what type of card will benefit you the most?

By John McClendon