This guest post comes from Michael, editor of CompareCards.com is an excellent credit card comparison website helping consumers pick credit cards that make sense for them.
Over the last few years, credit cards have changed quite a bit. Unfortunately, those changes have not favored the consumer as much as they were supposed to and now more than ever it’s important to evaluate which credit card is right for you.
The best way to compare credit cards is to look at all of the positives and negatives side by side and make your decision with as much information as you can. Picking a great credit card can be broken down in just three simple steps:
1. Evaluate your spending habits – Figure out what you spend your hard earned money on and how often you spend it. Also try to imagine whether or not you’ll be able to pay off your entire credit card balance each month or will be rolling over a balance. It doesn’t have to be a precise plan but it’s important to know what kind of credit card spender you are.
2. Avoid credit card offers that come to you – The best and only way to apply for a credit card is online through your own volition. Offers you receive in the mail and in person from table top salesman are not going to be better than what’s available online. Stay away from the temptation, do your research and apply online.
3. Compare your favorite credit cards – Once you’ve determined if you need a good rewards credit card or a low interest credit card, pick out a couple that look good and break them down piece by piece. Does one card have an annual fee? Which card provides the lowest interest rate for your credit level? If you miss a payment, do any of the cards you’ve chosen forgive you? All important questions to ask before deciding to apply.
And even though it sounds scary, the best way to save the most money is to own more than one credit card.
Applying for a cash back credit cards and low or 0 interest will allow you to earn maximum rewards on purchases you know you’ll immediately pay off as well as minimizing the interest you pay on purchases you need a little more time to handle.
Far too often, consumers complain about the back-handed, sneaky tactics that credit card issuers implement in order to make their profits. Don’t give your credit card issuer any ammunition to charge you high interest and fees and always ensure you use your credit card properly and responsibly.