What Does Your Ideal Credit Card Look Like?

There are many challenges that may arise when applying for a credit card, including the fact that you need to compare a variety of offers in order to make a confident decision.

As you get started, it’s important to have a clear idea of what you’re looking for. Without this, you’ll soon find yourself lost in the hundreds upon hundreds of options that are out there.

So, this leads to an important question: what does your ideal credit card look like?

Once you have a profile in mind, it’s much easier to ignore the offers that don’t suit your needs and gravitate toward those that have everything (or almost everything) you’re looking for.

Here are five questions you can answer as you attempt to understand what your ideal credit card looks like:

1. What is your credit score and how does your credit report look?

An important question, as your score and history have a lot to do with the offers you qualify for.

For example, if you have an 800+ credit score and a long history of paying your bills on time, you’ll likely qualify for almost every offer.

Conversely, if you have a 550 credit score with a few delinquencies on your report, it’ll be more difficult to find a few good offers.

2. Are you seeking a particular type of credit card?

While some people are searching for something specific, others simply want to get their hands on a solid card they can trust when making purchases.

Some of the most common categories of credit cards include: cash back, travel, rewards, and balance transfer.

3. Are you okay with the idea of paying an annual fee?

This is a matter of personal preference. If you’re getting a lot in return for your fee, such as a variety of high level benefits, you may not have any issue paying this once a year.

However, if you’re asked to pay an annual fee and you don’t feel like it’s worth the money, you will want to reconsider.

Annual fees typically range from $50 to $500, so this is no small change.

4. What interest rate are you comfortable with?

Obviously, the lower the rate the more excited you’ll be about an offer.

While this only comes into play if you carry a balance from month to month, it’s still something to think about.

Compare a variety of offers to get a better idea of rates and where you fit in. Also, remember that your rate is based on several factors, including your credit score and history.

5. What are other consumers saying?

You need to make your own decision, but that doesn’t mean you shouldn’t take a close look at what other consumers are saying about the offers you’re interested in.

With the help of the internet, you can read one credit card review after the next. There is an endless number to consume.

If one consumer after another has good things to say, you can be confident that you’ll also have a positive experience. On the flipside, if you continue to come across negative feedback, you’ll want to think twice about what you’re doing.

Final Thoughts

By answering these questions, it won’t be long before you have a clear picture of what your ideal credit card looks like.

Do you carry at least one credit card? What process did you follow to make the right choice? Share your personal approach in the comment section below.