How to Know which Credit Card to Choose for your Wallet

Many of us receive unsolicited credit card offers through the mail.  So how do you know which one would be a good deal for you? Not every credit card is created equal and with all the fine print, comparing those credit cards can be nerve-wracking.

It is important to note that when choosing a credit card for your wallet, you should look at several factors such as the interest rate and whether there is any membership or annual fees. If there are fees, does the cost justify what services you receive in return? In addition, some credit card companies offer a special introductory rate.  Find out how long the rate lasts and if it applies to balance transfers or new purchases only. 

Examine your spending habits and budget.  Will you plan to carry over a balance or pay it in full every month? This answer could impact which credit card offer you select.  In addition, some credit card companies offer a cash back program while others allow you to rack up airline miles or hotel points.  Going further, there are a few credit card companies that have partnered with a charity where for every purchase you make with your card, a small percentage of it goes to the charity.

In addition to all the issues listed above, you should also consider the features that many credit cards have these days like fraud and identity theft protection.  If your credit card ever gets stolen, you don’t want to be held liable for all the bogus purchases. By the same token, does the credit card company offer temporary card numbers for online purchases? This is a type of protective feature for buying online when there is a risk of hackers getting your personal information.  What about bill payment services and accessing your account online? Are those important features for you, the credit card holder?

The bottom line is that your credit card needs to work for you, not against you.  So be sure to determine what features are going to be important factors in your decision.  And when in doubt, call up the credit card company with questions.  Don’t sign on the dotted line until you are sure you know what you want.