Shopping for a Credit Card? Here’s what to look for.

Learn how to select the credit card that is right for you & your financial goals based on annual fees, interest rate & rewards.

From low rates, rewards, cash back to bonus points – there are many different credit card options to choose from. Before you submit your application for a new credit card, there are three key areas to consider.

Annual Rate

Depending on the card type, some credit cards charge an annual fee for being a cardholder. This may not seem like a big deal if you are earning rewards for using your card; however, it's important to ensure that the rewards you are earning far surpass the the cost of the annual fee. For example - if you have a credit card that earns airmiles, but you never fly, that credit card would not be worth the annual fee. 

On average, credit card annual fees range from $99 - $150. 

But what if you do not want to pay an Annual Fee? Don't worry - there are options. Typically credit cards with a $0 annual fee will offer smaller reward earnings if any at all. But the good news - more then likely these cards will have an extremely low rate making them a great option to pay down credit card debt. 

Interest Rate

If you pay your credit card bill in full each month, the interest rate on your credit card is not as big of a concern. If you carry a balance month-to-month, even a small amount, you are accruing interest on your total adding more to your balance owed. 

According to Forbes Advisor’s, the average credit card interest rate is 24.24% APR and the minimum credit card payment is typically 1 – 3% of the card balance. To further show the impact of these numbers, here is how your $500 purchase can turn into $585. 

Credit Card Chart-1

If you find yourself carrying a balance on your credit card, the best option would be to open a card that is designed specifically with a low-rate - like City & County Credit Union's Platinum Credit Card options with rates as low as 8.99% APR. 

Rewards & Cash Back Earning

We all like to be rewarded, even when it is for purchasing everyday things like gas and groceries. Based on your spending, look for an incentive program that fits your lifestyle such as cash back or airline miles. Regardless of which rewards program you select, just make sure they are easy to redeem and use. 

It's also important to note that just about every big box store has a store credit card. Don't get stuck at the cash register opening a credit card for a one-time discount or points for a store you barely shop at.

Although saving 20% on your purchase can sound enticing, it can cause bigger problems like an unexpected Annual Fee or a drop in your credit score for opening a new line of credit. Opening a credit card is a big decision and shouldn't be done with just one discount in mind.  

Think Pink

Whether you are thinking of opening a credit card to earn rewards, build your credit score or earn rewards - it is a big decision. With our team, we can help you narrow down the options to find the right fit for you.