credit cards

6 Factors To Consider When Choosing Credit Cards


The average person has about four credit cards. A majority of people get their first credit card between 18 and 24 years old.

Credit cards can be a great financial tool to help you with day-to-day expenses, big purchases, or improving your credit score.

It is important to know your credit card options when you are looking to open a new card. But with so many different types of credit cards flooding the marketplace, how do you choose the best card for you?

Here are the six major things you need to consider when choosing a credit card.

What Is Your Main Goal in Using Credit Cards?

When you are applying for credit cards, figure out what your main priority is for using the card. Will it be for a business start-up, a beginner credit card for a teenager, or one meant to earn you rewards?

Consulting with an expert can help you figure out your financial goals and to determine which credit card could best help meet those goals.

What Is Your Credit Score?

Your credit score will greatly affect what kinds of credit cards you are eligible to get. A higher credit score will open up the number of cards you will be offered, while a low credit score will most likely limit your options.

What Is the Interest Rate?

It is critical that you know the interest rate of the card you are applying for. This is known as the Annual Percentage Rate, or APR.

Some credit card companies will have a high APR if you are a first-time credit card user. Others offer a student rate with a lower APR.

What Type of Rewards and Incentives Are You Looking for?

The reward and incentive programs are a major reason people enjoy using credit cards for their finances. Learn how to take advantage of the reward system by choosing a card that will benefit your lifestyle.

If you travel a lot, getting a credit card that offers points may be the best option for you. If you do not travel, applying for a credit card with cash back incentives could be a better card for you.

What Is the Credit Limit?

If you are looking to operate a business, you will most likely want to find a credit card that has a higher credit limit. Sometimes asking for a higher credit limit is all it takes to receive it.

What Are the Fees?

Many cards have an annual membership fee you must pay in order to get all the benefits of the card.

You should be on the lookout for the kinds of fees and penalties you may face for late fees, cash advances, and exceeding your credit limit.

Contact Us Today for Help Choosing Credit Cards

Choosing the right credit card for you and your lifestyle can be daunting. Do not fear making the wrong choice.

Connect with us to learn how you can make credit cards work best for you and your finances.