Believe it or not, some people choose credit cards since they just really like the design. I have been guilty of that myself. Others may choose them because of the freebies they get when they apply for one. And those freebies can vary from t-shirts into the equivalent of coast-to-coast round-trip tickets. So picking a credit card for its freebie might not be as dumb as it seems.
However there are far more important criteria, and whether you like the plan or the freebie that comes with your credit card, you should definitely check out the small print and ask questions. There are a variety of questions you need to ask when you pick on prtship credit card you slide into your wallet. Here are the key ones, not necessarily in order of significance. They are all important, so do be sure that you understand the answers to all of them before making your choice.
A Do they charge a commission? And if so, how large is the fee. It is pretty Standard the greater the perks they greater the fee. It may be well worth it if you use it enough and get enough miles to not only cancel the fee but get back a multiple of the fee. Low interest credit cards also often charge a fee. Credit card companies are a company, after all, so they should make their money somewhere. It is your job to be certain they do not make it all off of you.
B What is the rate of interest? Now this is tricky. Often, credit card Companies will not even tell you how much it will be. It will depend on your credit score. If yours is exceptional, you will likely get a decent one. You also need to shop around, however. Now here are the dirty facts about rates of interest. Most credit card companies reserve the right to increase their prices at will. The flip side of this is that if you are a good customer with a great credit score and you call them to inquire, they are also at liberty to reduce those interest rates. In any event, do read the small print. And read it again.
Here is a little trick. It will cost you points on your credit report if you are near your maximum in your cards. So having lots of wiggle room is great. And in case your card only has a 500 limit that will not give you a lot of manoeuvring room for large purchases. The additional paperwork needed in keeping track of them all will drive you mad too. So in the event you have got the choice to only get two with a higher credit limit is the one that you might want to choose. It will make a difference.