Features to Look For in a Credit Card?
The holidays are near, and if you’re like most, you’ll start your holiday shopping soon enough (if you haven’t already)! And once you do, you’ll find everyone these days will be trying to sign you up for a credit card. While the thought of not having to pay for something right away might be tempting, it’s important to consider your lifestyle before making a commitment. And in the moment, when there are credit card offers all around you, that’s tough. Before you get a new credit card, learn how to choose a credit card that suits your needs:
Your spending habits – your spending habits can help determine the best credit card for your lifestyle. Ask yourself the following questions:
- Are you going to carry a balance or looking got a balance transfer?
- Will this be your everyday card?
- Are you looking only for a credit card to have on hand in case of emergencies?
Card benefits – cash back, points for swag and/or airline miles, can certainly sweeten the deal when it comes to choosing your new card. But don’t get too wrapped up in the perks. These incentives are not a reason to overlook a high Annual Percentage Rate (APR) or to overspend.
To ensure you’re choosing your reward card wisely, ask yourself this:
- Does your card have rewards that expire?
- Are there different point values based on the different items you purchase?
- How easy is it to redeem points?
Credit score – your credit score can affect not only the limit on your credit card, but also your rate. Also, having a variety of loan types, like a credit card, auto loan, mortgage, reflects positively. Having ten credit cards, is quite the opposite.
Credit Limit - your credit limit is the amount of money you can borrow or put on your credit card. When looking for a credit card, be careful not to think a smaller limit is a good reason to get multiple credit cards. As you develop a good history of paying back the credit card and building a relationship with the credit card company, your credit limit may increase.
The moral of the story? Don’t settle for the first credit card you are offered! Take your time and look around. Speaking of looking around – have you looked at your credit union’s credit cards? U.S. Eagle offers several credit card options that fit your needs and your lifestyle.