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Blog > 2014 > July > Choosing the Right Credit Card
July 02, 2014

Choosing the Right Credit Card

by Sean Sullivan

How many direct mail pieces do you get in the mail each week promoting a credit card… two, three, more? With all the credit card marketing out there today, it’s hard to make an educated decision on which card is best. Asking yourself these three things may help you decide which type of card is right for you.

How do I plan to use my credit card?
If you plan to only use your card only in emergencies and think that it might take you some time to pay off any balances accumulated, consider a card that has lower interest rates and no annual fees.

If you like to use your card for everyday purchases and plan to pay off the balance each month, you may not need to be as concerned about rate. Instead you may want to find a card that offers rewards for purchases.

Do I Need to Consolidate Debt? (i.e. transfer a balance)
Reducing debt is good for your long-term financial health. If you have balances on multiple store credit cards that have high interest rates, the best thing you can do is find a credit card that offers a lower rate and a low balance transfer fee, and work to eliminate your debt. Some cards even offer a low or 0% introductory rate on balance transfers for a set amount of time that could help you boost your efforts to pay off the debt more quickly.

Do I Care About Rewards?
A lot of credit cards offer rewards. Typically, you earn points for purchases and then you are able redeem those points for “rewards”. Be sure the card you’re considering offers the type of rewards you’d like to receive. Cash back, travel (flights, hotels, etc.), gift cards, and merchandise are popular reward choices. Look for cards that offer an easy way (like online catalogs) to view reward choices and redeem points.

Researching credit card options?
Financial Center is offering a new VISA® Rewards Credit Card that offers low interest rates, low balance transfer fees, a low introductory rate on balance transfers, and fantastic reward choices!

Learn more now

Category: Money Smart, Tags: Credit Cards
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