Credit Cards 101: How to Know Which Option is Right For You - New York Amsterdam News
Home » Archive » Credit Cards 101: How to Know Which Option is Right For You
With endless options, picking the right credit card can seem impossible. Finding differences between cards is often hard to spot, but the features and fees vary widely. New cardholders need to know what each option offers and be able to determine which works best for their specific financial situation.
Below, we’ve listed everything you need to know about picking the right credit card. From what various companies offer their customers, typical fees and rates to expect, and important considerations, you’ll know exactly what to look for when searching for a new credit card.
Cards are explicitly tailored to customer lifestyles and can provide valuable rewards depending on spending habits. Here are the most common card types and what they offer:
Rewards Cards – The most popular group, rewards cards will earn you cashback or points on some or all purchases made. Travel cards will build points for airline miles, hotel stays, and rental card credits. Cashback can lower your monthly payment by reimbursing you for everyday essentials such as groceries and gas. Check card offers for specifics on rewards.
Much like rewards programs, fees and interest rates vary widely from company to company. The average annual percentage rate for credit cards is close to 16% – this incentivizes making your full payments each month. A good credit score can keep your rate lower, but read the fine print closely, as many cards can charge 25% or more!
5 travel hacks the airlines don’t want you to know about