Top Things You Should Look For When Choosing a Credit Card

May 31st, 2010

Credit cards are used much more often these days than cash. They are safer than cash and they often have benefits from using them that you could never receive if you only used cash. There are certain things you should look for when trying to find that perfect credit card.

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Choosing a credit card requires more than simply picking up an advertisement and applying. There are incentives, benefits and features that differ from card to card. When you know what to look out for you will realise the range of choices that are available to you.

Interest Rates and Much More

Most people think that card interest rates are the most important aspect to choosing a credit card, however there are many other features to look for when trying to make that right choice. Card interest rates are important but so are fees. There are many hidden and not-so-hidden fees associated with credit cards. These fees include annual fees, set up fees, inactivity fees and package fees. All of these fees cover the administering of the cards, charges for setting up the card, penalties for not using the card, etc.

Grace periods are another feature that you should carefully consider when looking for the right card. When you go credit card shopping and make a purchase there is a period that the credit card company can give you that is interest free. If you choose to pay off your balance within this interest free period then you will not pay any interest fees on your card. Each card offers a differing amount of interest free days.

Rewards programs are also an attractive feature to credit cards. Any time you go credit card shopping, you are increasing your chances of receiving rewards. With each purchase, you are awarded points. Once you reach a certain amount, you can redeem your points for a number of rewards that are offered in your card’s particular program. Some offer flight benefits while others offer merchandise. It is up to you which program suits you best.

Additional perks to cards include concierge service, complimentary insurance and more. Higher income based credit cards offer concierge service as one of their benefits for customers who want to have someone tend to tasks such as dinner reservations or finding theatre tickets. Many credit cards also offer free insurance for travel and purchase. You can feel comfortable travelling knowing that you have insurance to cover any unforeseen events and also when you make a purchase. The credit card company will cover you against theft, defect or breakage.

If you find the right card and use your credit card wisely, you can actually make it work for you instead of the other way around.