Finding a good credit card can be a difficult process. While every company advertises that it is the best, few will actually tell you the truth about how the cards work. If you want to know the answers, you will have to ask the right questions. Below are four questions that you must ask before you commit to any credit card.
Ask About Fees
According to The Huffington Post one of the key questions to ask about any credit card is to find out about fees. If you have poor credit, there’s a good chance the cards at which you are looking will have an annual fee. Generally, you’ll want to look for something with a relatively low deposit and a low fee. If you have better credit, try to find a card that doesn’t have an annual fee.
What’s the Interest Rate
Perhaps nothing is as important as the interest rate on a credit card. If you don’t plan on paying off your balance every month, this is going to be your highest cost related to most credit cards. While you can generally enjoy a 0% APR for at least a short period, you’ll likely be paying some kind of interest over the long term. Do your best to find a card that will give you a low interest rate if you plan on rolling a balance over month to month. Failure to do so can compound your debt as the years go by.
What are the Rewards?
Another major issue, according to Forbes, is finding the right rewards for your lifestyle. For some, this means finding the best cash-back deal or the least complicated frequent-flyer miles. For others, this might mean finding a card that’s going to provide them with discounts at certain stores or locations. Find out not just what the benefits are to using your card, but also how easy it will be for you to use those rewards in the future.
What’s the Future Look Like?
Finally, you’ll want to spend some time looking at how your card is going to treat you in the future. If you lock in at a promotional rate, you’ll want to ask about what happens when that rate ends. If your card has a relatively low credit limit, you’ll want to ask about what you’ll be able to do to raise that limit. You should have access to a good credit card for years to come, so figure out how it will adapt to your future as soon as possible.
A good credit card is incredibly valuable to you. Fortunately, you don’t have to make your decision today. Stop, do some research, and ask the questions above. When you are ready, you should be able to pick a card that works for you and will benefit you for years to come.