What To Look For In A Credit Card

Four Things to Look for in a Credit Card

1. Rate. The first thing to consider when choosing the perfect credit card is the rate. It’s important to shop around and look for rates that are low and fixed — fixed being the priority. You don’t want a card that promises a wonderfully low introduction rate that skyrockets in six months. Credit unions tend to offer lower competitive rates than most big banks, so start there first.

2. Fees. If you’re consolidating debt and moving higher-rate balances to a lower rate card, be sure you’re not being hit with a balance transfer fee. Also, avoid cards that charge an annual fee just for simply having it. Be vigilant — don’t be afraid to ask if there are any other sneaky fees associated with the card.

3. Credit limit. Make sure you have a limit that will accommodate your needs, particularly if you plan on transferring balances to your card. Some credit card companies have recently started decreasing the credit limits for users and have added new fees. Do your research. Talk to your family and friends about their banks and credit unions. See who they like and don’t like.

4. Perks. If you’re going to use a credit card, you might as well find one with benefits such as annual cash back rebates or rewards points that can be redeemed on merchandise and travel discounts.

Current Credit Card Owners

If you already have a credit card, conduct a review on it. In today’s economy, consumers should not be complacent when it comes to their credit cards. It never hurts to ask questions. Ask yourself: are you getting the best rate? Are you being charged unnecessary fees? Is your credit limit suitable to your needs? Can you get a fixed rate? If it turns out you can get a better deal with another credit card company, ask your current bank or credit union if they are willing to lower your rate. If they won’t do it, move on to a bank that will.