Tips on How to Choose the Right Credit Card For You

Is there such a thing as a “right” credit card? Looking around at the numerous credit card offers sometimes adds to the confusion instead of helping one make a concrete decision. One of the simplest solutions to battle the information overload? Decide what you really need in a credit card; more specifically - decide why you need it. Don’t get too excited with the prospect of your first purchase using a shiny, spanking credit card, and instead focus on the responsibility of having one. It may seem too serious, but this may very well spell the difference between a great deal and a gigantic debt for you.

As a new credit card holder, it is easy to get tempted with the freebies and perks signing up for a certain credit card might include. Some of these tempting goodies include automatic and/or free club membership, free products or services at partner stores, initial discount offers on consumer goods – and the list goes on. But remember- everything comes with a price, and oftentimes it’s a hefty one. The freebies might be a way to cover up the high interest rates, or the exorbitant activation or participation fees. This does not mean that the perks are always the devil in disguise - depending on your lifestyle and needs, the free services and goods might just be what you need.

Going back to the matter of how to choose the right credit card - it’s all objective. Credit card X might be the best for your friend and her lifestyle, but may not be able to provide you with the services and benefits you need. Asking around can be your guide in choosing what credit card has the most benefits, but nothing beats choosing a card that is tailor fit for most, if not all, of your needs. To help you choose the best out of all the credit cards out there, here are some simple guidelines:

• Identify what the credit card will be used for/how it will be used - Will the card be used for huge purchases? Or just for utilities? These are just some of the questions that need to be considered so you can check which cards have the benefits you need, like rebates for gas purchases, special deals if you reach a minimum purchase amount, frequent flyer perks, and so on.

• Take the time to read the fine print - Are there any late payment/finance charges? If so, how much would they be? These can be answered by carefully reading the fine print. Avoid just browsing through the long and somewhat redundant terms and conditions, and make an effort to really understand them. The terms discussed on the disclosure section are one of the most important things you should consider when shopping for the right card - think things over and decide if you can definitely keep up with the credit card company’s policies.

• Determine how you will manage the payment - Do you plan on settling the full amount of the bill each month? Or do you plan to carry over a certain percentage? Be sure to take into consideration not just the interest rates but how long the grace period would be before your bill incurs late charges (for payments not made on time).

The fact of the matter is, nothing beats the convenience of having a credit card. In this day and age, there are certain places and situations when carrying cash would not be advisable, so the next best thing is to pay with plastic. Just make sure that you’re getting the best deal out of your credit card - think more than twice before deciding and choosing what type of “plastic” might take over your (real) financial life.