How to Compare & Evaluate Credit Cards
With so many credit card companies vying for your business, you have a golden opportunity to compare those cards and choose the one that will pay you the biggest dividends. If you pay your bill every month, you can find credit cards that pay you -- with travel rewards, airline miles, gift cards and free meals at restaurants. The key to comparing the various offers is to know exactly what kind of credit card user you are.
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Instructions
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Review the last year's worth of credit card statements to determine how often you paid your bill in full at month's end. If you consistently paid your bill in full, you can search for credit cards that provide rewards and extra perks. If you carry a balance, you are better off evaluating credit cards on interest rate alone.
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Compare the interest rates on credit cards if you carry a balance. Look for a card with a low fixed rate. Variable rate cards can surprise you with a big jump in your rates, and that could put a big dent in your wallet.
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Check your mail for credit card offers featuring bonuses like cash back, statement credits and points toward free gift cards and merchandise. These offers are not hard to spot in the mail. In fact, they try to entice you with the offer written in bold print right on the front of the envelope. Put those offers aside for further investigation.
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Review the terms of each bonus offer carefully and make sure you can meet the requirements. Some cards offer the bonus after your first purchase, while others require you to charge a certain dollar amount within a set time frame. Be sure to write the terms of these offers down when you apply for the card -- that way you can follow up on the status of your promised bonus.
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Log on to the website of the airlines you fly most frequently. Look for any bonuses they are offering for their co-branded credit cards. Many airlines offer bonuses that will get you halfway -- or further -- to a free ticket.
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Check the fine print of each card for annual fees and other expenses. You will need to decide for yourself if the value of the perks justifies the existence of an annual fee.
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