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How to choose the best credit card

With so many different credit cards available, it can be difficult to choose the best one for you. Different credit card brands offer their own unique perks, and it’s worth shopping around to find the best option given your personal finances. Here’s how to choose the best credit card for your needs.

Interest rates

The first thing to look at when choosing a credit card is the interest rate. This is particularly important if you plan on carrying a balance on your card. Even if you plan on paying your card off in full every month, there still may be times when you have a financial emergency and can’t make the full payment. Some cards even will offer you a zero percent interest rate for the first year as a promotion when you sign up.

Rewards points

Many credit cards will also give you rewards for your purchases. An ideal credit card will have rewards points that you can use for the purchases you make the most. For example, some cards will give you points you can put towards gas and groceries, while others are good towards travel purchases like airfare and hotel rooms. Some credit cards will give you points on all purchases, while others will only give you points for specific purchases. You will need to pick the best rewards option for you based on how you typically spend your money.

Minimum payments

When signing up for a credit card, it’s important to find out what the minimum payment is. You need to make sure it’s something you can comfortably fit into your budget every single month, regardless of the circumstances. If you miss a minimum payment, you could experience problems with your credit score, which could limit your ability to make major purchases or rentals in the future.

Annual fees

Some credit cards charge annual fees, and it’s important to make sure the perks of the credit card offset the costs of the annual fees before signing up. For example, you might earn enough in cash back or rewards to make a higher annual fee worth it.