How do I determine what credit card offer is best for me?
What to consider when looking for the best credit card for you.
When researching credit card offers, there's a lot more to consider than a low interest credit card offer or 0% APR credit card offers. In fact, you might find it hard to choose from the thousands of rewards credit cards, airline credit cards, cash back credit cards, platinum cards and no annual fee credit cards.
The best credit card offer for you depends on how you plan to use your credit card.
Low or 0% interest rates are very important to consumers right now, given the tight economic times. More consumers may find themselves carrying a credit card balance, rather than paying off their bill in full each month. A low or 0% APR credit card can help minimize finance charges.
"Though the best habit is to pay your credit card balance in full each month, the reality is many credit card users carry a balance from month to month, according to About.com personal finance writer LaToya Irby1. "Paying your credit card balance down over a period of time is often more convenient than paying it in one lump sum. As long as you keep your balance at a reasonable limit and make your monthly payments on time, carrying a credit card balance won't hurt you."
If you plan to pay your credit card balance in full each month, a low interest rate may not be as appealing, since you will be paying off your balance each month. You may be more interested in a rewards or cash back credit card with no annual fee and a longer grace period.
Some things to consider when looking for the best credit card offer:
- If you will transfer a balance
Many credit cards offer 0% APR for six to 12 months; some offer a slightly higher rate for a longer period of time. If you are transferring a large balance, you may find the best option for you is to have a longer introductory period. - Rewards where you spend most
Most rewards cards offer extra rewards for spending in certain categories. Find a rewards card that gives you cash back, bonus points or travel miles at the places where you spend the most. For the vast majority of consumers, reports MSN Money2, cash back credit cards are going to be the way to go. - Services that save time and money
A credit card should offer more than a low APR and top rewards—it should also offer exceptional services that can help you make your money go further. Skilled customer service reps can tell you exactly how much you'll save with a specific balance transfer offer, help with a merchant dispute, and alert you of potential unauthorized charges. Customer support and online resources such as interactive financial calculators can help you save both time and money. Changing a due date to one that works better for you, making a same-day payment free of charge, and being notified of special promotions and reward offers add even more value to your credit card.
Plus, don't overlook other valuable perks such as travel assistance, automatic travel insurance and car rental insurance. No matter what type of credit card you're interested in, check out the fine print to see the terms of a low or 0% credit card offer. The credit card agreement will tell you the grace period (how long you have to pay off your balance before you pay a finance charge), and what rates, restrictions and fees are involved. The more you know, the more value you're able to gain from a great credit card offer.
Discover Card believes that consumers should be armed with the information they need to help them make informed credit decisions.
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Some credit card companies and consumer sites offer financial calculators, which can help you better manage your debt. With the Discover Card Paydown Planner, cardmembers can calculate how much they should need to pay each month to pay off their debts by a certain date. The Purchase Planner tool lets cardmembers see how a purchase should affect their minimum payment and the time it should take to pay off the entire balance. Click on the links to see a demo of the Paydown Planner, Purchase Planner or Spend Analyzer.
