Factors You Should Consider When Comparing Credit Cards

Can’t make up your mind as to which credit card you should go for and are stuck with so many choices. One way to clear your mind is by comparing credit cards and narrowing them down to one credit card that compliments your spending habits and your profile. You can now apply for best credit cards not only through offline channels but also through online mode.

Here are 8 factors that you can consider when comparing credit cards:

#1. Analyze your income and spending habit: The first and foremost thing to do is analyze your income level, financial strength, and your spending habit. When these factors are clear you can move forward to the next stage. Income and spending habits play a vital role in selecting the right credit card.

#2. Make a list of questions: Now the main question that arises is why you need a credit card? List down your points and if they are sufficient enough you can move to the next questions like; Will taking a credit card help in building your financial strength or not? And so on. Make a list of pros and cons, if you find that taking a credit card will be beneficial to then move forward to comparing credit cards on various bases like fees, charges, rewards, etc.

#3. Joining and renewal fees: List down credit cards and write down the joining and renewal fees. Select those credit cards that complement your income level, one that does not cost you much, and is pocket-friendly if you are applying for the first time. If your pocket allows you can also select the premium credit cards. This way you can choose the top 10 credit cards.

#4. Interest rates: Now write down the interest rates that each credit card has. Select 6 credit cards that provide the least interest rates out of previously selected credit cards. Try and choose the least interest rates as they will help you in building strong financial health.

#5. Other fees and charges: Open the most important terms and conditions of the credit cards selected after comparing interest rates. Read it carefully and list down the other fees and charges of these credit cards and choose at least 4-5 credit cards that have the least charges so that you do not feel burdened at the time of paying those fees and charges. The fewer the fees the fewer chances of ending up in a debt trap.

#6. Interest-free period & Grace Period: Now from the most important terms and conditions check the interest-free period and grace period of selected credit cards and choose those which has the highest interest-free period. At this stage, you will be left with 2-3 credit cards that suit your profile the best. It helps you in paying the credit card dues timely without any hurry and time to arrange the funds.

#7. Welcome offers: Now compare those 2-3 credit cards on the basis of welcome offers and check which one has the greater offers. Keep those credit cards on the list to compare them on the basis of the reward rate. These are the perks you get after paying the joining fee. They are like icing on the cake.

#8. Reward rate: After the welcome offers, now check the reward rate. Compare those 2-3 credit cards and see which one has the higher rate of rewards and go for the one credit card that has checked all the requirements. Reward rate really helps you in maximizing your benefits.

Bottom Line

On the basis of the above factors, you can easily compare credit cards online. You do not have to take pen-paper always for comparing credit cards, if you are comfortable in comparing them online go for it. Otherwise, you can always write them down.

The above factors are good enough for you to arrive at a conclusion and to apply for the best credit card that suits your profile and helps you maximize the benefits. Always use your credit card wisely and clear the dues on time so that you keep on enjoying the endless benefits of it.

You May Also Read: A Complete Guide to Credit Card Advantages and Disadvantages