What’s the best credit card for me?

So, you have decided you need a card. However, you must remember that not all cards are created equally. Your friend’s card doesn’t mean that it is also the best for you. Before going to this bank and get its card, you must consider the several factors that you should take into consideration when deciding which card you want to get.

Some of those factors include:

o Interest rate. When you are the type of person that pays off your balance monthly, you would probably disregard the interest rate. Unfortunately, most people are having problems keeping with their card balance. Most people do carry a balance in their cards. If you sometimes late paying and carrying a balance, then it would be the best decision to have a card with a low interest rate. Having a card with a low interest rate save you a lot of money. You might disregard the difference between a 10 percent and 20 percent interest rate, but the difference could be significant if you have balances for a long period of time. Major card companies like Visa, MasterCard, Discover, and AMEX, have low interest versions of their card.

o Reward programs. Visa, MasterCard, Discover, or American Express and other major card companies have reward programs. Reward programs give you special privileges or services for being a card holder. Some of these programs include frequent flyer programs, where you are given one frequent flyer mile for each dollar spent. If you are quite a traveler, then a card with this program might be for you. Some offer cash-back options. Most common are discount offerings at retail stores or online chains.

o Annual fees. The annual fee is an important consideration, especially those who have a hard time paying off their balances monthly. If you think that the annual fee you have to pay to keep your card is way too high compared with the privileges you get from your card, it would be probably better to stop using the card.

o Member benefits. cards promise various benefits. Some have travel protection as part of the benefits, while others offer roadside assistance. You have to consider your lifestyle in checking out a card’s benefits.

Remember: On choosing cards, choose wisely. If you need to, discuss your specific financial needs with your financial advisor.

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