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How to Choose the Best Credit Card Offer

While some credit card offers are better than others, there truly isn't a best credit card. However, there are substantial difference between credit card offers, particularly when it comes to rewards, interest rates, and 0% APR deals. Thus, while it would be categorically incorrect to assert that a single “best credit card” exists, it is possible to find the best credit card for your needs.

Finding the right credit card requires a little self-examination. Therefore, to know thyself is the first step in the process. Here are some important questions to ask yourself that will help you focus your selection process on the cards that will benefit you the most:

1. Do I currently have credit card debt? If the answer is yes, seeking out a credit card that offers a 0% interest rate on balance transfers AND a low long term APR will help you reduce your current interest costs and allow you to pay down your debt faster.
2. Will I be making new purchases that I won't repay immediately? If the answer is yes, you may want to seek out a credit card that offers a 0% APR on purchases. This can eliminate interest expenses for up to 12 months, giving you time to pay down your debt without compounding interest expenses.
3. Do I pay my bill in full every month? If the answer is yes, you might want to look at rewards credit cards. Some rewards cards have higher interest rates than their low interest counterparts. However, if you don't intend to pay interest, a card that offers rewards may provide you with the best value.
4. Do I spend a lot of money with my credit card every year? If you're a “rewards junkie” that charges everything you buy (and you pay your bill in full every month!), you may benefit from a high end rewards card that charges an annual fee. However, keep in mind that an annual fee of $85 will require you to spend $8500 or more to earn the equivalent amount in rewards. Nevertheless, if you place all your daily expenses on a credit card, an annual fee may be a pittance compared to the rewards you earn.
5. Lastly, ask yourself this: Will I pay my credit card on time AND stay under my credit limit? Your answer should be YES. Failing to make timely payments or going over your credit limit can cause your interest rate to increase dramatically. Thus, to be extremely cautious, be sure to set up online payments and keep an eye on your creditcard balances via your credit card company's website.

Once you've determined what kind of credit card user you are, finding the best credit card for your needs becomes possible. Just keep this idea in mind: the key to getting the best deal is to think honestly about your credit card habits and avoid offersthat conflict with your credit needs.