Finding The Credit Card That’s Right for You

Annual Fee vs. No Annual Fee

There are a number of credit cards on the market that offer an annual fee and many that offer no annual fee. Usually, if you have bad credit, you’re going to have to opt for a credit card with an annual fee. The annual fee can range anywhere from about $20 to about $100, but you should try to stick to as low of an annual fee as possible.

Oftentimes rewards cards will also come associated with an annual fee. If you’re applying for a rewards card with an annual fee, make sure that the rewards you receive will outweigh the annual fee you have to pay for the card.

Introductory Rate vs. Fixed Low Rate

If you receive a credit card offer with a rate that seems too good to be true, it’s probably an introductory rate offer. With this type of offer the rate will go up after a certain period of time. Make sure that the rate that you’ll be paying after the introductory rate is over is comparable to other low rate credit cards. Otherwise, opt for a low-rate credit card that offers a fixed rate that will never change.

Rewards vs. No Rewards

Rewards cards can be great, but they can also be a big detriment to your pocketbook if you’re not careful. Rewards cards often carry a higher interest rate than non-rewards cards, so if you don’t pay off your balance each and every month, the interest you pay can outweigh the rewards that you receive.

Secured Cards vs. Unsecured Cards

If you have bad credit, you might want to opt for a secured credit card to rebuild your credit history. With a secured card, you open a savings account as a security deposit for the card. Interest rates may be higher and if you don’t pay your bills, you’ll forfeit your savings account, but it is a great way to rebuild a tarnished credit history.

By knowing the differences between the credit cards, you’ll be better able to determine which credit card is best for you.

To choose which credit card is best for you, view these credit card offers.