The 3 credit card features we care about
Even as you figure out which "tiers" of credit cards you'll likely quality for, it still may not be immediately clear which specific card is your best choice. It's all about comparing the main things that matter.
Q: There are SO MANY cards at each level — now what?
Don’t be overwhelmed. Focus on features you should care about:
Annual fee:
For your first card, get one that doesn’t charge an annual fee. (Then, keep it open forever — it won’t cost you anything, and it’ll make your credit history look older, which is good for your credit score.) For future cards, only say ‘yes’ to an annual fee if the rewards you’ll earn make up for it. EX: American Express Platinum card has an annual fee of $550 for the honor of membership, but it offers TONS of perks! Speaking of which...
For your first card, get one that doesn’t charge an annual fee. (Then, keep it open forever — it won’t cost you anything, and it’ll make your credit history look older, which is good for your credit score.) For future cards, only say ‘yes’ to an annual fee if the rewards you’ll earn make up for it. EX: American Express Platinum card has an annual fee of $550 for the honor of membership, but it offers TONS of perks! Speaking of which...
Rewards:
What perks do you get, including sign-up bonuses (EX: you get $50 as soon as you’re approved!), or cash-back (EX: 1% cash back means $1 back on every $100 purchase), or points or miles for every dollar spent, or access to something you care about (EX: airport lounges). Choose a card with rewards that match your lifestyle — if you don’t travel often, a cash-back vs miles card is the way to go. More next week on perks!
What perks do you get, including sign-up bonuses (EX: you get $50 as soon as you’re approved!), or cash-back (EX: 1% cash back means $1 back on every $100 purchase), or points or miles for every dollar spent, or access to something you care about (EX: airport lounges). Choose a card with rewards that match your lifestyle — if you don’t travel often, a cash-back vs miles card is the way to go. More next week on perks!
APR:
Annual percentage rate — aka, the amount of interest you’ll pay - if - you don’t pay your entire bill by the due date. But if you fully pay off your card every month (which we 100% endorse!!) the APR shouldn’t matter because your aim is to never pay interest.
Annual percentage rate — aka, the amount of interest you’ll pay - if - you don’t pay your entire bill by the due date. But if you fully pay off your card every month (which we 100% endorse!!) the APR shouldn’t matter because your aim is to never pay interest.
Credit card companies throw a lot of info at potential customers but most boil down to the main features above. Remember to stick to the important stuff that matter to you and as always, don’t be afraid to ask questions!