Credit card companies are a dime a dozen. Odds are you have already had several offers through the mail, through your email, or by word of mouth. So how does one pick a credit card when there is so much to choose from? Depending on what you need, there are basic rules to follow in doing so.
When you get mail, you have likely already seen unheard of offers by credit card companies. Some may state that there is no interest when you sign up, or even offer you cash back. This is what we call an introductory rate, and it is something that should never influence whether or not you get a credit card. Saving money in the first few months only goes so far when you have less agreeable terms later.
Rewards are another way credit card companies snare new clients. Even though you might be earning small rewards, you would be gaining more money in the long run by finding a credit card with a cheaper rate. Things such as “air miles” and “points” that you get to redeem for rewards later on are only “feel good” items that don’t equate into a better deal.
Consumers of the past had to settle with an annual fee just to use their credit card. These days this fee doesn’t exist- but that doesn’t mean that you won’t see it every now and then. You should double check with each company you talk to and make sure that they haven’t reverted to old tactics. If they have- you should invest your time elsewhere for a better deal.
Look into a credit union for more options, since they not only have low rates, but great customer support. Credit card companies are notorious for being cash fiends that rarely are in the business of helping their clients. Credit unions are much more centralized, and can thus offer better assistance for anything that you might need. Military personnel have an option in the Navy Federal, which is well worth looking into if applicable.
Overall you are going to want to get a credit card that has a low APR. The APR is what dictates the amount of interest that you will be spending in the long haul. The lowest APR possible is what should really catch your eye, not promotions or introductory rates that expire within only a few months of usage.
Final Thoughts
Credit cards may be misused, so it is important that you learn how to properly handle your credit card before using it. Some credit companies and unions offer free brochures and handouts that will bring you up to speed in no time at all.
Learn more about best credit cards and credit card offers.