Things to Consider When Ready for a New Credit Card
Things to Consider When Ready for a New Credit Card
Having the right credit card can make a big difference in how you pay for things and how much interest you’ll be paying. You might be thinking how to apply for a credit card? There are so many options available now, with different features and benefits, that it’s good to take some time to analyze what makes sense for your financial situation. Here are some things to consider when buying a new card:
Is the card for gas rewards, travel rewards, cash back, or points?
When choosing a new credit card, you’ll want to think about what type of rewards you’re looking for. For example, if you drive a lot and put a lot of miles on your car each month, then a gas rewards card might be best for you. If travel is more important to you than the savings on gas, then a travel rewards credit card would be the better choice.
Does it have a low-interest rate?
You should always look at the interest rate on a credit card before applying. The annual percentage rate (APR) is the rate charged to you on new purchases and balance transfers.
Low APR is important if you carry a balance on your card because it means you can pay off your debt more quickly without getting hit with high-interest charges. However, keep in mind that low APR does not mean zero interest rate—just a lower one than some other cards offer.
Do you have a preferred airline or hotel chain?
If you have a preferred airline or hotel chain, it’s worth considering the credit card that offers rewards for their purchases. For example, many cards offer bonuses for Air Canada purchases but nothing else. If you don’t fly with them or stay at their hotels, this may not be for you.
Some cards even give rewards points at restaurants and other retailers such as Amazon and Costco. Some can be used to pay off your gas bill at home or on vacation!
Finally, some cards give travel rewards that can be redeemed through their website or app using miles earned by using the card over time—and not just when making purchases with it!
Do you want a card that only charges an annual fee when there is a balance?
You might have a particular credit card in mind that you want to apply for. However, you should consider the following before applying:
- What kind of rewards program is it offering? Is there an annual fee and what are the benefits of paying this fee?
- Does it only charge an annual fee when there is a balance on your account or will you be charged if you also use their services?
What kind of APR would you like to pay on purchases?
The annual percentage rate (APR) is the interest rate you pay on your credit card balance if you don’t pay it off in full each month. It’s also the rate that is applied to any new purchases you make with your card.
As per professionals like Sofi, “This APR applies only on remaining balances after the statement due date.” The APR is expressed as a percentage and generally includes other fees such as late payment, over-limit and other penalties.
Now that you’ve read through the various features and benefits of different credit cards, it’s time to start comparing them. Take your time! You probably don’t want to miss important details or compare apples with oranges. If you’re not confirmed about a feature, ask an expert for help.
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