Ask Key Questions
• Are you looking to save on everyday expenses?
• Do you want to earn travel rewards or build your credit score?
• Are you planning a large purchase and need a card with a 0% introductory APR?
Step 4: Compare Key Features of Credit Cards
1. Rewards and Benefits
• Seek out cards with rewards matched to your spending profile: For instance, higher cashback at groceries or on dining.
• Check for extra benefits such as purchase protection or extended warranties.
2. Annual Fees
• Compare the rewards and benefits to the annual fee.
• If the card has great benefits, the annual fee may be justified.
3. Interest Rates (APR)
• Compare the APR, especially if you have a balance.
• Introductory 0% APR promotions can save money on big purchases or balance transfers.
4. Sign-Up Bonuses
• Many cards have attractive bonuses for hitting spending thresholds in the first few months.
• Make sure the bonus lines up with your usual spending habits.
5. Foreign Transaction Fees
• For serious travelers, look for a card that doesn't charge foreign transaction fees.