Five Tips for Choosing the Best Credit Card
How to Choose the Best Credit Card for You
With so many credit card offers out there, how do you choose the one that’s right for you? It can be quite overwhelming, so make sure that you follow our five tips to make sure you get the best credit card for you.
Review Your Spending Habits
First things first. Before applying for any credit card you want to review your spending habits. While a credit card that offers you rewards for every dollar you spend may be great, it won’t be if you pay a much higher interest rate because you don’t pay off your balance each and every month.
If you tend to carry a balance on your credit card, a rewards card may not be the best credit card for you. On the other hand, if you pay off your balance in full each month, a rewards card may be a great option.
Be Aware of Introductory Rates
Introductory rates can be a great way to pay down a large balance if you do a balance transfer, but it’s important to remember that these rates don’t last forever and you need to pay attention to the interest rate you’ll be paying after the introductory rate is over. If it’s a really high interest rate, it’s probably not the best credit card for you. However, if the interest rate after the introductory rate is comparable to or lower than other cards, you might want to take advantage of the offer.
Pay Attention to the Grace Period
The majority of credit card companies will fine you if they receive your credit card payment just one day late. Because of that, it’s important to pay attention to the grace period a card offers before applying for the card. You want a grace period of at least 20 days. Anything less may be setting you up for late fees and penalties.
Ignore Statements That You’re Pre-Approved
Just because you receive an advertisement saying you’re pre-approved doesn’t mean that you are and it doesn’t mean that it’s the best credit card for you. You may think that a pre-approval letter means that you’ll have less hassle when sending in the signed application, but the truth of the matter is that the process is pretty much the same either way.
Read the Fine Print
Even if two credit cards look the same on the surface, if you read the fine print of the terms and conditions they may differ greatly. Make sure you read the fine print of any credit card application before applying so you know which is the best credit card for you.