With hundreds of credit cards available, identifying which one is best for you can be challenging. There’s a plethora of information at your disposal, but it takes time to sift through mailings, websites and Google searches.
Although time-consuming, finding the right card is worth the effort. The right card can save you money and get you the rewards and perks that make the most sense for your finances and lifestyle. Websites like Mastercard’s Find a Card can help you find the ideal credit card for your needs.
Why it pays to pick the right credit card
The right credit card can help you maximize the rewards that matter to you, save money on interest rates or even help you pay off debt. A credit card that isn’t right for you might cost more than you want to spend in interest or fees, or might not give rewards that are useful to you.
Because there is no one-size-fits-all card for every situation, you might need multiple credit cards to accomplish your goals. The average American has 3.9 credit cards in their wallet. A similar number could make sense for you if, for example, you want a travel rewards card, a balance transfer card and a cash-back card.
Your current situation will determine the type of credit card that works best for you now. However, the credit card you apply for now doesn’t have to be the one you use forever. As your life situation changes, you might find that a different credit card will better serve your new needs.
For example, a cash back credit card to help pay for textbooks and meals might be the right choice if you’re a student. Later, you may want a travel rewards credit card offering no foreign transaction fees to fund your honeymoon. Or, during a home renovation, a card offering 0% APR on interest or balance transfers might be your best bet to pay for a new kitchen.
The best practice is to look at your current situation and assess where you might be within the next year or two. From there, you’ll be able to identify a credit card that works for you now and either find a card that will continue to meet your long-term goals or look for a new card when the time is right.
What to consider when getting a new credit card
The best credit card for you might not be the most relevant credit card for your sibling or friend. Most credit cards feature benefits and perks.
You’ll want to determine what is most important. Are you looking for a card with rewards, such as cash back or travel? Or do you need a particular benefit, such as no foreign transaction fees or 0% APR?
When you’re looking for a credit card, here are some of the biggest things to keep in mind.
Cash back earnings
A credit card offering cash back ultimately means cash in your pocket whenever you swipe your card. The cash back earned can be used to pay off your credit card bill, be put towards a purchase you’ve been saving for or even be deposited straight into your savings account.
Cash back credit cards typically earn between 1 and 2 percent cash back on everyday purchases. Some offer increased cash back on select categories, such as restaurants, gas stations and grocery stores. Some cards also offer higher rewards on rotating categories, allowing you to maximize your earnings throughout the year.
Your spending habits will help determine which card earns you the most amount of cash back. If the bulk of your credit card spend is on groceries, for example, look for a credit card offering increased cash back at grocery stores. Or, if you find that your spending is dispersed across the board, a credit card offering a flat 2 percent cash back on all purchases might work best.
Card category
With so many credit cards available, several cards could work for what you want. It may help narrow your options by looking at card categories with Mastercard’s Find A Card site. It includes options for specific users such as small business owners and students. You can also sort by categories like secured cards, cards with no annual fees and chip cards.
Credit issuer
Each credit card is tied to a specific card issuer, such as Capital One, Chase and Citi. The issuer pays the merchant and collects payment from the cardmember. While different card issuers provide similar behind-the-scenes work, there are many reasons to pick a credit card tied to one issuer over another. This includes anything from loyalty rewards to benefits and credit card fees.
Credit card networks, such as Mastercard, also have benefits. Some standard benefits of all Mastercard credit cards include zero fraud liability and ID theft protection. However, not all stores accept credit cards from a certain card network, so you’ll want to make sure you have a credit card that’s widely accepted.
A retail credit card works slightly differently. Most retail credit cards are part of a credit card network. These credit cards can be used anywhere the credit card network is accepted and might provide benefits both within the store and elsewhere. However, most retail cards only provide card benefits associated with the retailer.
Fees
Credit card annual fees can vary drastically, ranging from $0 to over $500. Typically, as the annual fee increases, so do the benefits. For some, the benefits you receive outweigh the annual fee.
For example, the IHG One Rewards Premier Credit Card has a $99 annual fee, but you’ll make that up — plus more — with just a single stay at an IHG property. With this card, you’ll receive a free night certificate on each account anniversary, which can be redeemed for a property typically worth about $200. On top of that, you’ll also receive your fourth night free when using points for a free night stay, as well as a statement credit up to $120 for Global Entry, TSA PreCheck® or NEXUS (once every 4 years).
However, you can still find cards that offer benefits without a fee. For example, the Capital One Savor Cash Rewards Credit Card, despite a $0 annual fee, offers no foreign transaction fees, a generous introductory 0 percent APR on interest and balance transfers and the opportunity to earn cash back every time you swipe your card.
Interest rates
Credit cards — especially ones that offer loyalty rewards or cash back — often have high interest rates. If you tend to carry a balance, you’ll likely want to avoid these credit cards and opt for a card with low APRs.
However, many credit cards offer promotional periods for new card members. Applying for one of these cards can give you a 0% APR on interest or balance transfers — depending on the card. This can allow you to pay off your credit card — fee-free — and get your debt back on track.
Requirements
Many factors come into play when it comes to being approved for a credit card. These factors include your credit score, payment history, credit utilization and more.
Additionally, when searching through Mastercard’s Find A Card site, each card will list the desired credit needed, ranging from no credit to excellent credit.
If you’re not approved for your credit card of choice, you can call the reconsideration line or find a different card you meet the requirements for.
Rewards
Credit card rewards are a big reason card users will use one card over another. Cash back and travel rewards are two big contenders in the space. The rewards earned can easily save you money on every purchase you make.
Those planning a big trip may be interested in the travel rewards earned. From being able to earn points or miles within a certain loyalty program, you might be able to take that trip of a lifetime, which you might not otherwise be able to afford. The welcome bonus earned on many credit cards can also give you a jump start.
Or, if you’re looking to save money, some credit cards allow you to exchange points for benefits like gift cards or other rewards. Gas station rewards are a popular one, allowing you to earn points within a particular gas station’s rewards program every time you fill up your tank.
Security
With scammers becoming much more sophisticated these days, credit card issuers have put many services in place to ensure your credit card is safe. Most credit cards offer zero fraud liability, so if there are unauthorized charges on your credit card, you won’t be held responsible. Card issuers can also detect fraud based on activity and geolocation.
Many credit cards also now offer CHIP technology, which allows you to use a microchip for your purchase and protects your credit card against card skimming.
With some cards, you can also set up customized push notifications to inform you whenever a purchase has been made on your credit card, giving you a heads-up if there’s a security issue.
Travel benefits
For those looking for a credit card to earn loyalty rewards, know that many of these cards also offer incredible benefits while traveling.
If you want to travel abroad, ensure you have a credit card with no foreign transaction fees. This will ensure you aren’t charged a fee — many times up to 3 percent — every time you swipe your card. These fees can add up immensely, so having the right credit card in your wallet can save you money.
A major perk of many credit cards is that they’ll make your travel experience much more enjoyable. From Global Entry statement credits to airport lounge access, you can skip the lines and enjoy a quiet space at the airport. Some credit cards even offer loyalty status for a specific airline or hotel simply for being a card member or after hitting a certain spending threshold.
How to make choosing a card easy with Mastercard’s Find a Card
While finding the best credit card might sound daunting, it doesn’t have to be.
Mastercard’s Find A Card site allows you to search for cards by card category, card benefits and card issuer. With a quick filter, you can decide between just a few credit cards that will fit your needs. You’ll also appreciate that credit card features are front and center, allowing you to learn more about the card’s welcome offer, fees and benefits.
This tool can help you consider all the factors above to find a card that best fits your current and future needs.
Bottom line
Finding the best credit card for your life situation is important, and fortunately, the Mastercard Find A Card tool is here to help. Between loyalty rewards, travel benefits and waived transaction fees, having a card — or two — will save your wallet a good chunk of money throughout the year.
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