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.

While choosing a rewards card there are certain things that should be taken into consideration so you make the most use of the available benefits. First and foremost, do some research regarding what exactly is being offered by the various reward card companies. If you are a frequent traveler, you should most likely choose one that works worldwide.

The next detail that you must look into is the kind of rewards that that particular credit card company uses, and what form you will receive the rewards in. Again, if you’re a frequent flyer you should choose a card that will reward you with frequent flyer miles. This will enable you to get free miles every time you use the card.

Another very important thing to learn about rewards cards is the conversion between the amounts you spend and the miles or points you earn. This means that you need to find out from the card company how much you would need to spend in order to earn miles or points. This factor will help you decide which company’s card to opt for. Some companies offer very low points while others reward more freely. Also, while signing up with a credit card company, learn all the details as to when, how and where the earned rewards can be redeemed. Reward points are usually redeemed for gifts, vouchers, flight tickets, book subscriptions, gifting options and sometimes cash back.

Once all the considerations have been taken into account, the rewards cards can really be beneficial. One little thing to remember, however, is to pay the bills regularly and not to take the balances on these cards out of your budget in the excitement to spend and earn rewards.