How to Shop for a Credit Card
Studies have shown that only 34% of Americans shop around for a credit card before they try to buy one. This lack of preparedness can be costly. To combat this statistic, here’s how to shop for the best credit card for you.
Step 1. Decide how you plan to use the credit card
Are you looking for a credit card to buy gas, groceries, or textbooks? Well, there are credit cards that provide discounts for these types of purchases and more.There are also credit cards that provide cash back incentives for purchasing specific goods or services. Perks and benefits can be found with owning certain credit cards, so it's beneficial to understand what you want to use your card for.
Step 2. Compare credit cards
Once you've picked out a few cards that would benefit you, compare the fees and offers. When comparing your options, it's important to look at the incentives, the APR*, fees associated with penalties, and any other additional fees. After this step, you should be able to pick out a credit card that best suits your needs.
Step 3. Ask your current credit card issuer to match or beat the offer
If you already have a credit card but you believe you're paying too much in interest and fees, ask your current credit card provider if you they can match the terms and rate of the new credit card you've discovered.
After all these steps are completed, you're ready to use your credit card and build your credit!
*APR, or annual percentage charge, is the interest rate you'll be charged if you carry a balance from month to month.