9 Questions To Help You Choose The Right Credit Card

I continue to contemplate getting a new credit card to use in place of my GM Visa card despite the impact it would have on my credit score.  I wanted make sure this is the last time I need to get a new card for a very long time so I ran through a series of questions in my mind. These helped me sort out what was important to me and I thought would benefit others in deciding which card is suitable for them.

1. What cards do you currently have?
   Open your wallet and take a look at which credit cards you currently have. What you want to make sure is that you have the greatest amount of usability possible. If all you have is Mastercard or American Express then you should be looking at Visa to fill in the gaps. If you don’t have any credit cards then get a visa since they are accepted everywhere usually.
   
2. Do you normally carry a balance?
   If you don’t normally carry over a balance from month to month then the interest rate the card has doesn’t matter. If you do carry a balance on a regular basis then you will need to find a credit card with a satisfactory rate. If you’ve never had a credit card before then get one with the lowest rate since you don’t understand you’re spending patterns. As well look into the stipulations in which a credit card can raise its interest rates.
   
3. How much do you normally put on your credit card each month?
   Having an understanding of your credit card spending patterns lets you determine which credit card benefits program will be best suited for you. If you don’t use it often then the benefits are secondary concern and you should focus on minimizing your cost by getting low interest rates and not service fee.
   
4. Does your local grocery store have an affiliate credit card?
   People tend to shop at the same grocery store and some of the major chains have affiliate credit cards. The rewards could be substantial and a good place to start looking for a new card.
   
5. Do you rent cars and how often in a 1 year span?
   If you rent cars on a regular basis then there are credit cards out there that pay some of the insurance as well as give discounts with particular rental companies.  Insurance can cost as much as $40 dollars a day.
   
6. Do you travel and how often?
   Take a look at how often you travel. There are credit cards that are travel focused. They offer discounts with airlines and hotels. They can pay for things like travel health insurance and cancellation insurance. As well they can also offer free upgrades and points towards additional flights.
   
7. Would you prefer a cash back option instead ?
   There are credit cards that will give a percentage (usually 1-3%) of the money you put on the card as a cash back reward at the end of the year. If you answered no to the 3 previous questions then this could be a valid rewards option for you. Just get back cash and spend it where ever you want.
8. Would you be interest in concierge type services?
   If you frequent concerts and enjoy the theater then there are cards that focus in this area. Some will give discounts and others will provide front of the line services when ordering tickets. There are also cards out there that have nice rewards programs and offer the concierge service as a secondary feature. If these things are important to you then you may want to look at getting a card with these features.
9. Would you be willing to pay a service if the cost was covered by the above savings ?
   This is a very important question and you will need to run the numbers to make sure. Based on your usage and the savings/rewards that the card offers it might be worth it to get a card that charges a yearly fee. Generally speaking though if you’ve answered no to a lot of the questions above or don’t expect to use this card often then it’s probably best to get a card with no fees.

Are there other things someone should consider when deciding on a credit card?

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