Applying for a Credit Card

How to Choose the Right Credit Card

Every day more and more people are looking for the perfect credit card.  Many consumers are not aware of all of the different options available to them.  There are literally hundreds of different credit card offers available.  You have to be willing to spend some time and sift through the numerous offers and compare several of the credit cards to be sure you choose the best credit card for you and your particular needs.

When trying to choose the right credit card, you need to ensure you are factoring in other information in addition to the rewards you will earn.  Many credit cards charge extremely high interest rates in order to compensate for the rewards they offer.  When comparing the cards, you need to take into consideration the interest rate and fees charged as well as the rewards earned.

Finding a Well Balanced Mix:

The best credit card will offer a well balanced mix of interest rates, fees and rewards that make sense for each individual cardholder.  When a consumer finds the right credit card for their needs they will be able to utilize the rewards program to their full advantage, earning airline miles, cash back, gift cards or any number of alternative rewards.

In order to choose the best credit card, one also needs to be aware of any requirements for redeeming the rewards.  Some of the rewards may require minimum spending limits.  A rewards card will be of no use to the consumer if they will not normally be spending enough to enjoy the maximum rewards.  Always read the terms and conditions before you apply for credit.

Zero Percent Interest Credit Cards:

Many customers are lured by an offer of zero percent interest for twelve months or more, or other special offers that make the cards appealing to the masses.  When sitting down to do a credit card comparison, there are things the potential cardholder needs to consider.

If you will be transferring a balance from another higher interest credit card, how much will the savings be and what will the interest rate be on the card once the introductory period has expired?

Consumers realize that zero percent interest on purchases and/or balance transfers, as well as low balance transfer fees are excellent deals.  However, the zero interest introductory offer will eventually come to an end.  Before applying for an account, consumers should always be aware of what their interest rate will be once the promotional period ends.

Also, if you are applying for the zero interest credit card to make a large purchase and are looking forward to the savings in paying no interest on your purchase, will you be able to pay it off by the time the zero interest introductory period ends? And, will you be able to put the card aside and not use it for any reason until you have paid off that large purchase?