What should you focus on when looking for a credit card?

With hundreds of options available on the market, it can be difficult to select the best card.

A great way to start the process is to evaluate how you will use the card. Credit card issuers have developed products that are tailored to specific users. For example, JPMorgan Chase has cards focused on these uses:

  • Small companies
  • Travels
  • Balance transfer
  • 0% APR
  • Trips abroad

If you plan to pay only part of your balance each month, you should be aware of your credit card APR. In this situation, it is best to opt for a card with a low purchase APR. On the other hand, if you plan to pay the entire statement balance regularly, look for a card with no annual fees.

There are other factors that you can take into account to choose the card that is best for you. Study, for example, the reward point system and the money-back rules. Finally, try to get a card with a large credit limit. 

Tips to lower your APR

Here are some simple tips to minimize interest costs:

  1. Pay your credit card statement in full each billing cycle. If you do this, you will not have to pay any interest.
  2. Choose a card with 0% APR. The longer the promotional period, the better.
  3. Check the APR that you will be charged after the promotional period.
  4. Try to improve your credit score. You will be eligible for a lower APR if your FICO score is in the range of 700 or higher.

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