Truth is, no credit card checks all categories. But that doesn’t really matter; all one needs to do when comparing credit cards is find one that suits their needs best. As you shop around, you will find hundreds of credit cards; however, the goal is to choose one that fits your specific needs. How do you do this? It is pretty simple; here is a checklist of everything you should do to pick the right credit card.
- Shop around
Don’t sign up for the first credit card you are introduced to. The thing about credit cards is your options are plenty. Browse through any credit card and loan site in Canada to check the offers, annual fees, rates, and interest rates they provide. Bonus categories for reward cards and credit tools are also essential to look at if you are thinking about building your credit.
- Eligibility check
Before delving into the big decisions, make this important one. There are different cards to choose from; however, you may not qualify for all of them. To determine what cards you are eligible for, you can use tools to run your credit score. It is what determines the cards you qualify for. Signing up for some credit cards requires a score of at least 700; this should narrow down your selection choices.
- Ask the right questions
If you are on the path of picking a credit card, be ready to have plenty of questions. Questions are the road to uncovering whether a credit card is suitable for your needs. There is plenty to ask; what is the minimum payment? How much is the annual percentage rate of borrowing on the card? Are there other chargeable fees applicable to the card? As a new client, are you qualified for a cashback? The answer you get will help you narrow down your credit card choices.
- Determine your needs
What card do you want? The type of credit card you want is determined by how you plan on using it. Is this an emergency credit card or one you pay for everything? Are you aiming to improve your credit? Do you intend to save money through interest? Answering these questions will help narrow down your search for a credit card.
5 Things to Consider When Working Out the Best Credit Card
- Annual percentage rate
Commonly known as APR, this is the rate of borrowing on the card. It applies to holders who do not pay the balance off at the end of the month but instead choose to carry it to the next. The fee varies depending on the credit card, with some cards charging cheaper fees than others. However, the lowest APR is not always the best because you still have to compare other fees and incentives too.
- Annual fee
At the end of each year, a card may charge a fee for using it. An annual fee is included in the spending you repay and the interest. How much annual charge does the credit card require? Is it something you can quickly pay? Before settling for a card, ensure you can keep up the annual charges.
- Minimum monthly repayment
Typically, every month you will be required to make payment to the spending. Those who choose to carry the amount to the next month can do so; however, they will be required to make a minimum monthly payment of 3% of the spending. In some cases, when the 3% falls lower than five euros, the latter will be the minimum repayment.
- Introductory interest
When comparing credit cards, look at how the introductory interest increases periodically. Introductory APR is a low promotional interest that new customers must pay when they get a credit card with a company. These rates are applied on purchases, balances transfer until the introductory period is over, ranging from 0% to just a few percentage points. If you want to get out of debt, the 0% introductory APR would be a better option for you, bringing us back to your needs as a credit cardholder.
- Card rewards
When it comes to rewards, some cards dole out generous rewards and quickly more than others depending on how much you spend and where. Look at rewards offered by different cards and determine which are most valuable to you.
Bottom Line
The process of selecting a credit card best suited for your needs is made easy with the guide above, from the steps to take to considerations to make. Picking one card from the many different types can be overwhelming, but hopefully, with this guide, it can be faster and much easier.
.jpg)
