Performing credit card comparisons can help you decide which cards are worth considering and which offers are better off ignoring. A credit card is a handy tool but it can also cause you financial problems if you don’t choose the right card and, of course, use it responsibly.
There are many factors you must consider when doing credit card comparisons. Make sure that you fully understand exactly what you are getting into by reading the fine print and learning about the terms and conditions of different credit cards before making a decision.
Begin by looking at the summary box on a credit card’s marketing materials (online or offline) to quickly review all of the card’s main features. Evaluating the summary boxes of various credit cards will allow you to run credit card comparisons fairly easily because summary boxes typically come in the same format.
Points to Evaluate
Some rates, fees, and terms you’ll want to consider when choosing a credit card include the following:
Many credit card companies offer rewards and other incentives for using their card, so it is worth comparing those incentives to determine which credit card would be the most beneficial to you.
Look for a card that offers rewards you’ll actually use and make sure that the rewards can be easily earned and redeemed.
Take note of a reward program’s restrictions, such as limits on the number of points you can earn or when the rewards expire.
Evaluate Your Spending Habits
Determining how you intend to use your new credit card is important because it can help you decide on the right type of credit card for your needs.
If you plan to pay the balance in full each month, then a credit card’s interest rate isn't really important. In this case, a credit card with a long grace period and no annual fees would be your best bet.
If you are going to carry a balance, then look for a credit card that has the lowest possible interest rate. If you plan to use your credit card for almost all of your monthly purchases, then find a card with a high credit limit and a solid rewards program.
Card Debt Guide HOME
Credit Card Advice
Credit Card Comparisons