The market is flooded with a variety of credit cards from different banks. Choosing the right card from so many options can seem like a mountain to climb. To make things easier, you need to set a top priority as to why you want a online credit card. It can be that you are looking to improve your credit score, or want to earn cash back, rewards or a credit card with low-interest is something you are looking for. Setting your priority is the very first step that you need to take to pick the right card for yourself.
Use of Credit Card
Start by deciding the purpose of your credit card. Are you looking for a credit card to use for online shopping? Do you want to earn travel miles and make your travel cheaper? Are you looking for a card to be used for general spending? Each issuer has pre-categorized cards targeted for different purposes. So, on the categorization basis, you can filter out your options to relevant cards.
Credit Card Balance
If you plan to carry the balance of credit card to next month instead of paying it off then opting for a lower interest rate is a sensible option rather than looking for maximum rewards. The annual rate of interest on credit cards ranges between 35%-50%. Such a high-interest rate will only end up making your purchases costlier that is why opt for that card which has the lowest rate of interest.
Spending Habits
If you plan to pay off the credit card balance each month, then opt for maximum rewards. There are various card pertaining to specific kinds of purchases, for example:
• Travel and Hotel
• Online Shopping
• Movie tickets
• Groceries
• Dining
Reward Type
Opt for a credit card which gives you enough time to use the reward points, a card that forces you to redeem reward points at times you do not want. Also, you need to make sure you spend through credit cards up to a certain limit.
Research
The next step after specifying what exactly you are looking for is to start looking for that kind of credit card.
• A card that has reasonable cashback offers
• Card with airlmiles and dining discounts
• card with discounts and offers on online shopping
• a secured credit card to help you rebuild your credit score.
Compare
There are various card in each category, so, some of the things that you should be looking for are:
• Joining Fee
• Annual fee
• Low-interest rate
• Minimum payments
• Rewards points
• Airmiles, discounts, and freebies
Annual Fee
Paying an annual fee adds an extra expense on the card. You need to assess whether the benefits you would get from the card are worth enough to carry the burden of an annual fee or not.
Requirement
A credit score is a crucial factor in the eligibility of a credit card. You should check the eligibility of the credit card before applying and see whether you are meeting the criteria or not. These days, there are a variety of credit cards targeting all kinds of consumers.