Finding the best credit cards for your needs starts with learning about your credit score. With plenty of credit card options, it is wise to narrow down your choices to lenders within your credit range. Limiting the number of credit card choices prevents you from applying for cards that won’t budge on the minimum credit score. There are many unique features that make some cards stand out in a crowd of their peers. Knowing your credit score before you submit an application saves you time and frustration. Plus, submitting several credit card applications at the same time will allow several lenders to check your score, which ultimately limits your credit options.
Top Features of the Best Credit Cards
Fairest Interest Rate – It isn’t as easy as one might think to find a fair interest rate. Interest rates vary significantly and should not be the sole deciding factor for which credit card you ultimately choose. Beware of low-interest rates that come with hefty annual fees. Sometimes, you must pay attention to all features to see if they balance out well. People with better credit ratings are more likely to find low-interest rates with multiple credit offers.
Reward Types – Most credit cards offer various rewards to loyal customers. Rewards come in many forms, such as cashback or airline miles. Cashback is by far the most attractive reward for most people, as these rewards tend to provide the biggest bang for the buck. However, airline miles and reward point systems have their unique advantages.
Fees – More often than not, credit card applicants are surprised by unexpected credit card fees. The most common fee is the annual fee but some credit cards charge fees for out-of-network ATM transactions. Also, fees for late payments add up quickly. Also, check for APR and balance transfer fees.
Required Spending – There are credit cards that require users to spend a required amount after signing up for an account. Look for low or zero spending requirements when submitting applications. Spending requirements may have terms and conditions regarding where required purchases must be made. Take the time to know what you are getting yourself into before clicking the submit application button.
Pick a Goal – Decide what goals you’d like to accomplish with a credit card. If you’d like to build up your credit score, you might opt for a secured credit card with credit-building features. In fact, there are several credit cards specifically for individuals with little or no credit history.
Visa or MasterCard – Most venues accept major credit cards from MasterCard or Visa. However, there are some stores that exclusively accept Visa. Consider where you’d like to make purchases with your card before making a choice.
Don’t submit several credit applications and open accounts for every approval you receive. Opt for one credit account where you feel comfortable with the fees, rewards program, and interest rates. If you have questions about saving money or getting a credit card, you should click here to contact Financial Literacy.