Low or Competitive Interest Rate

One of the most important (if not the single most important) features of the any credit card is its Annual Percentage Rate or APR. The APR will be used to calculate your interest charges on purchases that you make. Obviously, a lower interest rate is ideal because you will pay less for the money that is extended to you to make purchases. Look for a competitive APR on the card that you choose – but be careful to read over the terms and conditions of the card before accepting it. More often than not, a very low APR will revert to a higher rate after what is known as the introductory period; make sure that the APR you will be paying in the future is a number that you can deal with. Most cards, even those that initially charge you zero interest, will eventually end up charging an APR of less than 12% – but again, reading your terms and conditions is important because you don’t want to end up with getting charged 19.99% interest! (As a side note, also find out what happens if you send in a late payment; most companies will penalize you by tacking on a higher APR to your account). In short, when choosing the best card, think long term – not short term benefits.

Ability to Take Cash Advances

In emergencies, you might want to have a line of credit available via your credit card that will allow you the freedom to take a quick cash advance. Cash advances in general are a bad idea because they typically begin to accrue interest from the moment you withdraw the money from your account, and they also sometimes cost more in terms of interest than your set APR. In addition, you will be charged a fee for the cash advance that is usually a percentage of the total amount that was advanced. Still yet, many cardholders appreciate this option. If you are a consumer that has no cash reserve or other way to obtain emergency cash, then choose an option that will allow you to take a cash advance.

Payment Protection

Life is full of twists and turns – but if you select a credit card that has payment protection or disability insurance – then you don’t need to worry about how you’ll make your payments if you become ill or disabled. Look for this valuable protection when making a selection.

Rewards and Incentives

And last of all, if you are going to use a credit card, why not get rewarded for your efforts? Rewards, perks and rebate programs that are offered by these companies can vary from cash back to airline miles to discounts on purchases made with select vendors. Look for rewards that are meaningful to you when selecting the best card for your lifestyle.

Zero Percent Interest is Not Forever

Keep in mind that credit card companies and banks only make money when you have to pay interest, so don’t ever be under the assumption that a zero percent credit card is going to last forever. But still yet, you want to take advantage of the zero percent APR for as long as possible, so review the terms and conditions of the credit card offer to see that you get a substantial amount of time at zero percent before you start paying interest. Also pay attention to the APR that you will be charged when the introductory period has ended, and if you will be charged interest on any balances that you choose to transfer to the new card. Note: there is one exception to the rule that zero percent interest is not forever. Many card companies will offer you a 0% APR indefinitely on purchases that are paid for within a certain period of time at the end of each billing cycle.

Annual Fees Are For Country Clubs

With so much competition out there, it is hard to believe that some credit card companies are still charging annual fees. But they are – and you don’t want to go with a credit card, even a 0% interest credit card, that is issued by a company that will charge you an annual fee. Annual fees can be several hundred dollars – which can definitely make the savings that you will see from not paying interest look like chump change. Simply put, there’s no need to go with a card that charges you just to carry it.

Perks

Getting rewarded for spending money is important when you are an avid credit card user, and going with a 0% percent credit card that rewards your patronage is a good idea. If you travel, look for a card that features a zero percent interest rate and also gives you airline miles that can be eventually redeemed for a free flight. If you use your credit card to pay monthly bills and then pay the balance off each month, look for a 0% percent credit card that offers cash back. There are always perks that are being offered by credit card companies to keep their cardholders happy and loyal.