Which Credit Card Is Best For You?

There are tons of different credit cards available today, many offering some type of reward or benefit with them.  What's the best one to have, though? That really depends on your personal spending habits.

Each credit card sponsor company will have descriptions for each card that should include:

• Annual Fee
• Annual Percentage Rate (annual rate charged for borrowing money)
• Rewards
• Foreign Transaction Fees
• Fraud Coverage
• Other important details: account alerts, autopay features, Apps for your account

To determine which type of card is best for you, figure out what you spend most of your money on. Some cards offer more rewards for dining out or traveling, while others just give a percentage of purchases back in cash. It's a good idea to keep notes of the benefits of each card you look at to compare and decide which will be the best for you. Some companies even have calculators for how much you can earn in rewards by estimating your monthly spending on your credit card.

If you pay your card off fully every month:

• Cash Back Cards
• General Rewards Points
• Travel or hotel Points
• Gas Points
• These cards offer a variety of rewards, if you really can’t choose between two, see if one gives a better sign on bonus

If you have credit card debt or usually carry a balance:

• Balance Transfer Cards
• Low Interest Credit Cards
• Check out the credit card pay off calculator here on the site as well:
  • https://www.oxfordplanning.com/resources/calculators?view=calculator&id=10

If you travel a lot:

• Airline specific cards
• Generic airline miles cards
• See our previous Seasoned Savers blog post on reward miles
  • https://www.oxfordplanning.com/blogs/blog/entry/credit-card-reward-miles-not-always-what-they-appear-to-be

Retail Cards:

• Usually easier to get if you are just starting out and don't have much credit history
• Having multiple store cards could hurt your credit though

Things to look out for:

• Cards that have an annual fee- some waive the fee at first and then you have to start paying one after the initial year is up
• High APR- even if you pay off your card on time every month, you could always forget at some point

It can be a little overwhelming with the amount of credit cards available today. Take your time, make comparisons, and slowly determine which is best for your personal needs.