5 Simple Steps for Choosing the Right Credit Card

Step #4: Think about the fees you’re willing to pay

This step is an extension of Step #3. If flying is a part of your life, for instance, then decide if you’re willing to pay an annual fee for a generous rewards program. If so, how high of a fee are you willing to pay? Do you want priority boarding and access to airport lounges?

If you practically live in airports, then cards that offer benefits that enhance your travel experience might appeal to you. Just remember you’ll pay higher annual fees for more privileges. And if you travel overseas, you need to think about getting a card that doesn’t charge foreign transaction fees.

If travel isn’t your priority and you’re just looking for a low-interest credit card, then you might not be willing to pay an annual fee at all. And you might not care that there’s a 3 percent foreign transaction fee.

See where I’m going with this? Just have an idea of what fees you’re willing—and not willing—to pay. When you start comparing cards, you’ll be able to weed out a lot of cards from the start because they don’t meet the criteria you’ve set for fees.

Step #5: Go forth and compare cards

At this point, you have a pretty clear idea of what type of card you need. The next step to the perfect card (perfect for you, that is) is to compare cards within your chosen category.

Don’t just pick a particular cash back card because they sent you a letter plastered with You’ve earned this card! on the envelope. In the past, I’ve fallen for the flattery, too. But now you want the best card you can qualify for that fits in with your financial habits and lifestyle.

So what’s next? Use the custom credit card search feature on Credit.com to put together a list of candidates. Let’s say you want an airline miles card that doesn’t have an annual fee. You can check off these features and even input your credit level. You’ll see a list of cards that meet all of these qualifications.

To review the cards on your list, read the fine print so you can compare APRs, grace periods, annual fees, foreign transaction fees, and so forth. Now you’re on your way to picking a card that’s your perfect match.