There are a lot of credit card options in the market trying to attract customers after the economic downturn. Each credit card has its own selling point, which could be low interest rates, balance transfer deals, reward programs, security and a lot of other things. However, here are the parameters which are most important in choosing the right credit card.
This parameter may or may not be important depending on whether you are one of those who has an outstanding balance every month. If you pay off all your dues every month, you don't have to care for the annual percentage rate and can instead trade off for another feature like good rewards or cash back. Hence depending on your spending habits and your finances, you need to consider the APR. it is good to go for a credit card which has a low interest rate as you are safe from fast accumulating interests for outstanding balances.
The rewards being offered on credit cards are very important to choose the right credit card. The rewards should be helping you make a saving and not making you spend more. That is how you choose the right reward programs. Also different people benefit from different types of reward programs. Some benefit from cash back offers for example, while others benefit from airline miles or discounts about shopping malls.
Most of the credit cards offer zero liability insurance using which you can deny paying up for expense charges which are fraud. In other words, if you find expenses on your report, which aren't yours, then you can deny making the payment. Secondly some credit cards provide 24/7 fraud monitoring. This way, credit card customers would be alerted as soon as there are some suspect expenses on the credit card. The card will also be frozen for the time being till it is resolved and the customer confirms the expenses. Such security features are very useful on a credit card.
Special incentives like balance transfer could also be a good reason for choosing a credit card depending upon special scenarios. If you have a high outstanding balance and the balance transfer deal involves 0 APR for 12 months it is worth going for it.
A card that doesn't levy a lot of different types of fees, like annual fee for example, are a better option than others.