How Should I Choose a Credit Card?

It’s only natural to wonder: “How should I choose a credit card?” That’s because not all credit cards are created equal. In fact, when choosing a card, you’ll quickly discover that there are hundreds of options for you to choose from so it makes sense to plan ahead. But how can you determine which card is the best one for you?  Well … the most important consideration is how you plan on using the card. For example:

If you’re going to use your card for unexpected emergencies, then get a card with:

• No annual fees
• The lowest-possible interest rate

If you intend to pay the bill off every month, then focus of getting a card with:

• The longest possible grace period
• No annual fees
• A cash-back bonus

If you intend to pay the bill off every month, and are interested in getting additional rewards, then focus of getting a card with:

• The longest possible grace period
• Low annual fees
• A flexible incentive program offering multiple reward options and simple redemption rules

If you may not be able to pay off the bill every month, then look for a card with:

• The lowest-possible interest rate

Looking at each of those considerations will go a long way toward ensuring that you’ll find the right credit card for you.

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(Readers: This is article 2 of my 25 part quick reference series on credit card basics.)

Photo Credit: GotCredit