How to Compare Credit Cards and Look for Features That Will Fit Your Life
- 1). Review your credit card spending for the past year -- if you have your statements available. If you run a balance on your credit cards you should select the one with the lowest interest rate and not worry about airline miles and other perks. The value of those extras pales in comparison to high interest charges.
- 2). Determine which categories you spent the most money on. Many rewards cards offer higher levels of cash back and reward points in certain spending categories, like gas and groceries. Choose a card that provides the highest level of rewards for the items you buy most.
- 3). Log on to the reward network of each card you are considering and review the items they have available. Choose the card whose rewards are most useful to you. For instance, you might choose a card that offers gift cards to your favorite restaurant, or tickets to your favorite events.
- 4). Review the reward levels for each card and compare how long it will take you to earn a reward. Check the number of points you need to accumulate before you can get a gift card or cash back check.
- 5). Read the fine print carefully, including information about any annual fees. Some rewards cards impose annual fees, although they often award reward points on that fee, too. Decide whether or not the reward program is worth paying the annual fee.
- 6). Watch for credit card offers with up-front bonuses. A number of airline affiliated credit cards offer bonus miles just for signing up. In some cases those bonus miles can put you halfway to a free ticket with your first purchase. Rewards cards often offer bonus incentives as well, including enough bonus points for a $50 or even $100 gift card.
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