When you are planning to get a credit card, there are many decisions that you to take yourself and most importantly it requires thorough research from your side. There are many financial institutions out there offering hundreds of credit cards. It becomes very difficult to select one credit card and you end up with no choice made. Each credit card offers different features and benefits. Some of them offer great reward points and some offer great travel benefits. Therefore, it becomes very crucial to compare credit cards so that you can come to a conclusion.
Today, we are going to talk about the factors you must keep in mind when comparing credit cards. There are several factors that influence your decision when choosing the right credit card, like fees, charges, reward rate, accessibility, and much more. Therefore, here are the factors you should consider when comparing credit cards:
- What is my purpose?
Every credit card specializes in one or two features. Though there are many credit cards that offer benefits in each category, those are either too expensive cards or they offer just limited benefits. Therefore, you should know the reason you want a credit card. It can to improve your credit score, save more on travel or fuel, or you want a card with a low APR as you will spend a lot. Know your reason and requirements and then search for those credit cards that fulfil your needs.
- Annual Fee
Another factor that you must consider is the annual fee for the credit card. Every credit card comes annual fee and it is seen that those credit card that has a higher fee, offers lots of benefits and privileges. But that does not mean that the cards with no fee at all, offer zero benefits. It just depends upon the benefit you are looking for.
- Interest Charges
Most of the credit card charges interest rates of around 3.5% per month. However, some cards offer very low interest rates as well. It is beneficial to select those credit cards that have a lower APR if you are going to spend a lot.
Check here: List of Low Interest Rate Credit Cards
- Other Charges:
When you are selecting the credit card, do check other charges like late payment fee, cash advance fee, foreign currency markup and many others. If you think that you would be withdrawing cash from ATMs with your credit card then go for a card with lower cash advance fee, on the other hand, if you do international transactions a lot, then going with a card that has a lower foreign currency markup would be a great option for you.
- Reward Rate:
If you have a goal of earning reward points and cashback with a credit card, then obviously going with a card with a great reward point is a better option. Look for credit cards that offer you benefits with reward points and cashback or even air miles if you are going to use the card for shopping, travel, or for fuel a lot.
Additional Reading: 7 Pros And Cons Of Using A Credit Card
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