Credit cards today offer attractive features that cater to a range of customers’ needs. Fortunately, if you know what to look for, choosing one that’s best for you doesn’t need to be stressful. Read on for our list of the five ways that make comparing credit cards effortless.
Select a Card Type
Depending on your financial needs, you can select from a choice of the following three kinds of cards:
Secured cards: Ideal for building credit from scratch or for those with bad credit, these cards offer credit against a security deposit.
Regular cards: These cards have limited features and don’t require any collateral or deposits.
Premium cards: Premium cards offer high credit and add-on benefits such as emergency service and travel insurance.
Check Interest Rates and Credit Limits
Credit cards come with variable or fixed interest rates. APRs for variable interest rate cards tend to fluctuate with changes in the economy. Fixed interest rate cards have static APRs, which companies can modify by providing clients 15 days’ notice. Credit limits can vary depending on your credit score. Card companies are more likely to offer higher credit limits to creditworthy individuals.
Consider Grace Period
This period is the length of time the card company gives you to settle your dues before finance charges apply. These generally range between 21 and 25 days.
Understand Finance Charges
A finance charge is the dollar amount you pay for the outstanding dues on your card after the grace period. This charge depends on your card’s annual percentage rate (APR), and companies use a combination of systems to calculate your costs. Some calculate your outstanding dues over multiple billing cycles by including new spending into the total amount. When selecting a credit card, it is vital to check if it includes minimum finance charges.
Define Your Rewards
Credit cards come with a range of rewards and incentives for spends made on the card. Depending on your lifestyle and interests, appealing incentives linked to the credit card may include frequent flier miles, discounts on hotels and travel, and cashback on purchases.
Following the tips above, you could soon be on your way to owning a credit card that best suits your lifestyle and needs.