How to pick the best credit card for you: 5 easy steps

Before you make a significant change in your life, you want to know it’s the correct move. You wouldn’t purchase a house without an inspection or buy a car without knowing its history. Research can change the course of your decision, especially when it comes to how to pick the best credit card.

Every credit card company you see will put out ads about how their services are the best. Whether you notice them through an ad or by looking at their website, it might be tempting to follow their easy signup buttons and get your new credit card in the mail. But how do you really know if you ar opting for the best credit card for you?

Credit cards are a long-term commitment you sign up for, no matter how you use it. Make sure you pick the best credit card for you by using these five easy steps. With a little time and research, you’ll find the best credit card for your needs and never regret adding it to your wallet.

Determine its usage

The first thing you should think about when evaluating the best credit card for you is what you’ll use your credit card for. Will you use it to purchase school items for your children or buy that new laptop you need? The use of your credit card can help you figure out how much credit you need, which narrows down your options. A card with a max credit limit of £1,500 is fine for small purchases, but you might need a limit of £5,000 or more if you use it for large purchases.

Look at introductory APRs

Something that might catch your eye when shopping for the best credit card for you is a varying amount of different APR percentages offered by credit card companies. Introductory APRs, also known as Introductory Annual Percentage Rates, are low-interest rates companies offer for a limited amount of time to new customers. A zero percent interest rate for a year will save you more money than a reduced interest rate for six months.

Either way, make sure your introductory APR lasts for six months, which is required by law, according to the Credit CARD Act of 2009.

Check the fees

Once you know what the APR is for your favorite potential credit card, it’s time to check the fees. The company could charge you for transfers, along with other things. You might pay an annual fee for retaining an open account or late fees if you don’t pay your monthly bill on time. 

Compare possible rewards

A big bonus to using a credit card is redeeming your rewards with every purchase. Depending on the company you choose, you should compare possible reward programs so you get rewards you’ll use. Some cards may provide cashback, travel miles or even provide a cash offer for signing up.

Research the company

You want to trust your credit card lender, which is why you have to research any company you’re interested in. To ensure it’s the best credit card for you, see how their customers review them and if they’ve had any recent data breaches. If you find positive reviews and a clean history, they’re a safer bet for your money.

Take your time

If you can, take your time choosing your future credit card. Once you’ve taken these steps to learn everything you can, you can trust you’ve signed up for the right credit card.

Are you looking to sign up for a new credit card? What factors do you consider to determine the best credit card for you? Do share in a comment below.

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