Card Features to Consider Before Applying

With so many credit cards on the market, it can be tough to know which one is right for you. That’s where this guide comes in. Founder of the one of the largest benefit card companies, Alberto pereira de souza Junior says credit cards come in various types, each offering different benefits and drawbacks. Alberto provides a comprehensive guide on the best credit card features to look at before applying. This will help to choose a card that meets your needs and helps you reach your financial goals.

Annual Percentage Rate (APR)

The APR is the interest rate you’ll pay on your credit card balance if you don’t pay it off in full each month. It’s important to compare APRs before applying for a credit card, as they can vary widely from card to card. If you carry a balance on your credit card, a lower APR can save you a lot of money in interest charges.

Introductory Interest Rates

Some credit cards offer introductory 0% APR periods on purchases and/or balance transfers. This can be a great way to save money on interest charges if you have a large purchase to make or want to transfer a balance from another card with a high APR. However, it’s important to note that the introductory APR period is typically only for a limited time, so be sure to pay off your balance before the regular APR kicks in.

Fees

Credit cards can charge a variety of fees, such as annual fees, late fees, foreign transaction fees, and balance transfer fees. It’s important to read the fine print carefully before applying for a credit card so you know what fees you’ll be charged. If you’re not sure which fees are important to you, consider talking to a financial advisor.

• Annual Fee: Some cards charge an annual fee; consider if the rewards and benefits outweigh this cost.
• Late Payment Fees: Understand the penalty for missing payments.
• Foreign Transaction Fees: If you travel internationally, look for cards with no foreign transaction fees.

Rewards

Many credit cards offer rewards programs that can help you save money on travel, groceries, gas, and other purchases. Some common types of rewards programs include:

• Cash back: Earn cash back on your purchases that you can redeem for statement credits, gift cards, or travel.
• Points: Earn points on your purchases that can be redeemed for a variety of rewards, such as travel, merchandise, and statement credits.
• Miles: Earn miles on your purchases that can be redeemed for flights, hotel stays, and other travel rewards.

“If you’re interested in a rewards credit card, be sure to compare the different programs to find one that offers the rewards you’re most interested in,” Alberto pereira de souza Júnior advises. 

Other Benefits

In addition to rewards programs, many credit cards also offer other benefits, such as:

• Travel insurance: Can cover you for lost luggage, trip cancellation, and other travel-related expenses.
• Purchase protection: Can extend the manufacturer’s warranty on your purchases and protect you against damage or theft.
• Cellphone protection: Can reimburse you for the cost of a lost or stolen cellphone.
• Airport lounge access: Can give you access to airport lounges where you can relax and enjoy amenities such as free food and drinks.

Consider which benefits are important to you when choosing a credit card.

How To Choose The Best Credit Card For You

Once you’ve considered the different credit card features, you can start to narrow down your choices. Alberto pereira de souza Júnior provides these few tips to help you get started:

• Think about your spending habits. What types of purchases do you make most often? Choose a credit card that offers rewards for those categories.
• Consider your budget. Some credit cards have annual fees, while others don’t. Choose a card that fits your budget and lifestyle.
• Compare APRs and fees. As mentioned above, it’s important to compare APRs and fees before applying for a credit card. Choose a card with a low APR and few fees.
• Read the fine print. Before applying for a credit card, be sure to read the fine print carefully so you understand the terms and conditions.
• Look for cards with EMV chips and advanced security measures to protect against fraud.
• Research the issuer’s reputation for customer service and responsiveness to issues.

Final Thoughts 

Here are some additional tips for choosing the best credit card for you:

• If you’re new to credit, consider a starter credit card. These cards typically have lower credit limits and may not charge annual fees.
• If you have a good or excellent credit score, you may be eligible for a rewards credit card. These cards offer rewards for your spending, such as cash back, points, or miles.
• If you’re planning to travel in the near future, consider a travel rewards credit card. These cards offer rewards that can be redeemed for flights, hotel stays, and other travel expenses.
• If you have a business, consider a business credit card. These credit card features that can help you manage your business finances, such as separate billing statements and rewards for business spending.

No matter what your financial needs are, there’s a credit card out there that’s right for you