The keys to choosing the right credit card

February 20, 2023

With all the different credit cards available to consumers, it can feel impossible to know which one is best for you. Many factors must be considered when choosing a credit card, and the prospect of finding the right one may seem overwhelming. However, if you sort through all the noise and advertisements,you can learn which features to look for, helping you figure out which credit card best suits your needs.

Interest Rate

If you pay off your balance every month, the interest rate on the credit card does not matter. However, if you tend to carry a balance, a lower interest rate, or APR, will save you money.The best way to save money, however, is to always pay off your entire balance each month.

Credit Limit

A credit limit is the amount of money you can borrow on your credit card. Depending on your credit history, itcan range from a few hundred dollars to tens of thousands of dollars. You don't want to be close to maxing out your credit card, because this can hurt your credit score. Determine how much you plan to spend on your card, and make sure it’s well within the credit limit.


Rewards serve as a nice benefit to using your credit card. Make sure to look for rewards programs you will use,such as cash or travel. Additionally, be cautious of ever paying for a rewards program. Plenty of credit cards offer a rewards program for no additional charge, so try to avoid one that costs money.

Fees and Penalties

Overall, you want your credit card to have as few fees as possible. Every credit card will have some penalties,such as a fee for making a late payment or for going over your credit limit.Many credit cards even have annual membership fees. When looking for a credit card, make sure to find one with reasonable and fair fees and penalties.

Is a Credit Card Right for You?

If you are getting a credit card only to pay for things you do not have the money for, you should consider applying. A credit card may allow you to delay your payment, but you never get off the hook completely. The longer you wait to pay off your balance, the more interest,and fees you get charged. In other words, using a credit card responsibly will end up costing you money in the long run. Additionally, it can negatively affect your credit score.

Despite the risks of a credit card, it also has many benefits. It can help you build up your credit score and various rewards,while also serving as a convenient way to make payments. Credit cards can be a great tool, they just must be used correctly. Additionally, by researching different cards and their various perks, you can find the best one for you.Once you have it, stick to your budget, and pay off your full balance each month. After following these steps, you will be on your way to earning rewards and improving your credit score.