Whether you’re applying for your first credit card or you’re looking to add a new credit card to your profile, shopping around is the best way to find the card that’s right for you. Do a research for credit cards and you’ll stumble upon many different options. It’s true that many people apply for random credit card accounts and they don’t fully understand the features. But the more you know about the credit card, the more you can use the card to your advantage.
Here are four tips to help you compare credit card offers and find the right card.
Compare the cost.
There isn’t a flat fee for credit cards, and if you want to keep your costs to a minimum, you need to shop around. Annual fees, late fees, interest rates and other fees are typical with credit cards. When comparing credit card offers, pay attention to the fine print. This is the information on the bottom and the back of applications that explain all the fees and terms of the agreement. Ideally, you want a credit card that charges the least amount of fees and interest. If possible, select a credit card that offers a 0% introductory rate.
Credit requirement.
The minimum credit score requirement varies by credit card issuer. But if you examine the credit card application closely, it provides clues as to whether you’ll be accepted. Some credit cards are for people with an excellent credit history, whereas other credit cards are for people who need to rebuild their credit history. Never assume that all credit cards are the same. Applying for the wrong type will result in a rejection, plus an unnecessary credit inquiry.
Credit card rewards.
Want to benefit the most from your credit cards? If so, apply for a credit card that features a rewards program. With a rewards program, you can earn cash back or points for every dollar you spend. No two reward programs are alike, thus it’s imperative that you compare different options and choose the one that best fits your needs. For example, some credit cards only offer rewards if you shop at specific retailers. Plus, some limit the number of points you can earn.
Other perks.
In addition to a rewards program, some credit cards offer additional perks. This includes travel insurance if you book an airline or vacation with the card, or automatic rental car insurance if you use your credit card to book a rental. Other perks may include Concierge services, free roadside assistance or free credit report monitoring.
