Things to Consider When Shopping for a Credit Card
Are you shopping around for a credit card? Here are few things you should consider before making a final decision.
What are your spending habits?
Choose a card that works best with your spending habits. If you use the card for day-to-day purchases, shop for a card with a generous limit and a good rewards program. If you carry a balance, focus on getting a good rate.
How high is the interest rate?
Your interest rate, also known as APR or annual percentage rate, will largely depend on your credit rating. The lower the APR, the better, especially if you carry a balance.
Balance transfer fee.
If you are looking to transfer your credit balance to another card, find one that does not charge a transfer fee, such as TFCU’s Visa Platinum card.
Late payment charges.
Look for a card offering the lowest penalty fees. Late payment or over-the-limit fees, if incurred, can stack up quickly, and make it more difficult to pay off the balance.
Cash advance fees.
These charges typically range from 2%-4% with some credit cards. If you find yourself making cash advances often, find a card with the lowest possible fee. TFCU’s Visa Platinum card has zero cash advance fees.
Find rewards that match your spending habits.
Look for a rewards program that offers you rewards you’ll actually use. However, don’t let rewards tempt you into carrying a high balance. Interest charges can easily offset rewards.