Factors when Choosing a Credit Card

Credit cards are very useful payment tools. Different cards come with many different characteristics, and you want one that will provide the features and terms that you desire. There are many desirable features of credit cards, so make sure to do the research to find the ones that fit you best.

First make sure the credit card will be taken where you go. Most merchants that accept credit cards accept the two major ones: VISA and MASTERCARD. Some people can getter better deals on cards like Discover and American Express, however these may not be taken quite everywhere. You might want something for a specific store. For instance, many of the major department stores like Macy’s will give specific large savings to their credit card holders.

You want a card with the credit limit that you need. This will usually be determined by your credit score. The better credit you have, the higher credit limit they will give you. It will also be influenced by the other credit you have out at the time. Make sure the credit limit meets your needs. Sometimes they will raise (or lower) if you ask.

You may want to look for a rewards program. Many credit cards offer cash back. This is often 1% or 2%. Sometimes it can be even higher, especially on something specific such as gas. Sometimes they have rotating categories that earn cash back. How these are paid out ranges. With some cards, you get a credit or a check and with others it comes as a gift certificate.

You may also look for a different type of rewards program. It may give you miles on airlines or gifts, for instance. See what would be of the most value for you. Sometimes credit cards will give you a good deal right when you sign up.

If you will be keeping a balance, you will want to look at the interest rate. Obviously, the lower the better. Consider whether there is an introductory rate or a special deal. Think about your needs.

Remember that credit cards may start out with one set of terms as an introductory offer, but then progress to far worse terms, so be aware of this. Also many just change terms as time goes on, so constantly evaluate the credit card to see if it is still a good deal or if there is something better out there. Consider this and look at the above features to find the best credit card for you.