7 Factors to Consider When Comparing Credit Cards

credit card points podcast

Compare the wide range of credit cards and choose the one that suits you best. There are 7 key factors to consider before you apply for one.

Click on this link to get full information about 7 factors to consider when comparing credit cards: https://karannegi2.blogspot.com/2022/05/factors-to-compare-credit-cards.html

1. Understand Your Financial Profile and Spending Habits

Before you start comparing credit cards, it’s best to understand your own financial profile. Your credit score and credit history play a big role in what type of credit card you can get. Most high-end credit cards are typically reserved for those with excellent credit, though there are plenty of cards available for those simply looking to establish their credit history, too.

It also helps to know your spending habits. Remember that a credit card isn’t a source of free money – you have to pay back every purchase, and any unpaid monthly balance will likely start to collect interest.

2. Ask Yourself: Why Do I Want a Credit Card?

Whether you’re getting your first card or adding to a collection, ask yourself why you want a credit card. Your answer will be the basis for determining which credit cards to compare and, ultimately, which one to choose. Here are a few reasons you might want a credit card and some matching card types:

If you’re an avid traveler, look into cards that offer hotel, airline, or general travel rewards.

If you’re a small business owner, a cashback business credit card can help you pay for company expenses.

If you’re just starting to build credit, consider a card with no annual fees and a low APR.

If you want to make a balance transfer, compare credit cards that offer no-fee balance transfers or 0% balance transfers.

3. Compare Credit Card Rewards

One of the biggest benefits of having a credit card is that many offer rewards for purchases you’re already making. Some cards offer a percentage of purchase spending as cashback, redeemable for statement credit, while others offer points or travel miles for every dollar you spend.

4. Compare Annual Fees

Another way to compare credit cards is by an annual fee, which can range anywhere from none to upward of $450 for “elite” travel cards.1 Typically, cards with more lucrative rewards charge higher annual fees.2 But that doesn’t mean you can’t find a great rewards card with no annual fee.

5. Compare Interest Rates

Credit cards can have a variety of different interest rates, aka APRs. APRs for purchases, balance transfers, and cash advances, for example, are usually all different.

6. Compare Additional Fees and Penalties

Along with APRs and annual fees, some common credit fees include balance transfer fees, cash advance fees, foreign transaction fees, late fees, returned payment fees, and many more.

7. Compare Extra Benefits

Many credit cards offer additional benefits like rental car insurance, airport lounge access, roadside assistance, and extended product warranties, to name a few.