Your needs are not the same with other consumer's needs. Because each person has different needs and preferences, credit card providers have designed their cards in such a way that they would be able to provide the individual requirements of their customers.
A person can receive three to five offers from several banks of card issuers and without doing his homework, he would likely fall for the wrong credit card.
Before you go ahead and check which bank or company you'll apply a card with, you need to determine which cards fits your needs the best by considering the following factors:
- your credit rating
- your needs, lifestyle and interests
- your age
- the number of existing active cards that you have
- source of income
- payment terms
Banks have different features, perks and programs that is why it is very important that you research for as many cards as you can and compare these said factors. The interest rate is the major aspect that determines whether you want/need the card or not. Some banks offer high interest rates but with very promising rewards while there are some providers which offer the lowest rates in the market but be warned with the hidden charges. Of course this is not always the case but a very common scenario.
Banks design a rewards system so consumers can get attracted using their cards more often. When choosing for the rewards program that you wanted to enroll with, make sure that it fits your interest. If you love gadgets then choose the programs that let's you earn points in exchange for gadgets. If you travel a lot then the frequent flier feature is best for you.
When it comes to rewards cards though, you shouldn`t be surprised to know that the rates are higher than the normal rates. Also, do the math. If you think that the rates you are paying overweigh the interest then it is not a good card. The right card is one that will give you a lot of benefit at a low cost.
There are online interest card rate calculators that you can use to see whether the rates are reasonable for the rewards.
Don't get too excited when banks send you their brochures. Research first and when you feel that it is the card that you really wanted and needed then it is the only time you go for it.