The content is accurate at the time of publication and is subject to change.

Credit cards are among the most sought after pieces of plastic around the world. Considering the fact that they have a lot of benefits, this does not come as a surprise. However, on the flip side, there are a few critical factors, which determine if the credit card is going to work in your favor or not. You should review these factors in details before choosing the card you think will be your friend for life.

Factor #1: Introductory offer

The segment of credit cards is so competitive today, that banks and other financial institutions are stretching themselves thin to ensure they offer irresistible deals to prospective customers. There is no dearth to good promotional offers to avail credit cards today. So, do some research on the Internet and compare the various deals being offered prior to moving further. It is also important to see the duration of the offer signing up for it. Some offers, though very tempting, might be for just a few months, which is not worth opting for.

Factor #2: Fees and interest rate

It goes without saying that these two factors generate a lot of revenue and profits for credit card lenders. It is not surprising that most of the credit cards have high interest rates and fees associated with them. But comparing various credit cards and focusing on the fees and the interest rate being offered can help you make a wise decision. Find out about the various fees associated with the credit card. While some like the annual fees and late fees are common, there are other charges like inactivity fee that are pretty high. Beware of these fees before you sign up for the credit cards.

Factor #3: Grace period

The grace period is the duration of time the back gives to repay your dues in full without levying any interest rate on it. This is applicable for only as long as you don't carry over the balance to the following month. Opting for a credit card that offers a slightly longer grace period will ensure you have better chances of paying off your balances without incurring any interest on it.

Factor #4: Rewards being offered

If you are looking for rewards credit cards, ensure you choose credit cards that offer rewards you are sure to use. Don't offer for airlines credit cards if you are not a frequent flier. Also, ensure the fees and interest rates are not exorbitantly high, simply because you are rewarded for using the credit cards.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.