7 Factors to Consider When Comparing Credit Cards

Best Buy Credit cards In India

Compare the wide range of credit cards and choose the one that suits you best. There are 7 key factors to consider before you apply for one.

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1. Understand Your Financial Profile and Spending Habits

Before you start comparing credit cards, it’s best to understand your own financial profile. Your credit score and credit history play a big role in what type of credit card you can get. Most high-end credit cards are typically reserved for those with excellent credit, though there are plenty of cards available for those simply looking to establish their credit history, too.

2. Ask Yourself: Why Do I Want a Credit Card?

Whether you’re getting your first card or adding to a collection, ask yourself why you want a credit card.

If you’re an avid traveler, look into cards that offer hotel, airline, or general travel rewards.

If you’re a small business owner, a cash back business credit card can help you pay for company expenses.

3. Compare Credit Card Rewards

One of the biggest benefits to having a credit card is that many offer rewards for purchases you’re already making. Some cards offer a percentage of purchase spending as cash back, redeemable for statement credit, while others offer points or travel miles for every dollar you spend.

4. Compare Annual Fees

Another way to compare credit cards is by annual fee, which can range anywhere from none to upward of $450 for “elite” travel cards.1 Typically, cards with more lucrative rewards charge higher annual fees.2 But that doesn’t mean you can’t find a great rewards card with no annual fee.

5. Compare Interest Rates

Credit cards can have a variety of different interest rates, aka APRs. APRs for purchases, balance transfers, and cash advances, for example, are usually all different.

6. Compare Additional Fees and Penalties

Along with APRs and annual fees, some common credit fees include balance transfer fees, cash advance fees, foreign transaction fees, late fees, returned payment fees, and many more.

7. Compare Extra Benefits

Many credit cards offer additional benefits like rental car insurance, airport lounge access, roadside assistance, and extended product warranties, to name a few.