If you are planning to get a credit card for the first time, you have unlimited options. Almost any bank offers you credit cards and irresistible offers along with those cards. Did you know that 1.06 billion credit cards are in use in America?

But how will you know which company’s card suits your needs? While choosing a bank card, there are a few things to keep in mind. You should opt for the one that gives you maximum rewards, little or no annual fee, and low-interest rates.

1. Interest rate

Many credit card companies try to lure people into buying cards by offering them zero percent interest rates. While it seems like a big gain, it can also pose a risk.

When the customer fails to repay the credit card amount, the company charges extremely high levels of interest, sometimes as high as 25%! So try to choose a company that provides you with minimal interest rates, but not as low as zero.

2. Annual fees

One big advantage of the increase in credit card companies is the subscription to a credit card without any annual fees or charges. Go for a card that does not charge you an annual fee. This way, even if you don’t use your credit card frequently, you won’t be asked to pay a hefty amount every year.

If you are a trusted customer of a bank for a long time and you maintain a certain balance in your bank account, you shall get this benefit of zero annual fees.

3. Reward programs

Another popular scheme by credit card companies is the rise of offers and rewards given by them. Carefully read and ask the company regarding the rewards provided to you for paying off debts timely.

Sometimes the company gives you additional rewards or loyalty points for spending over a minimum amount for shopping.

Cashbacks are considered to be the best, as far as deals are concerned because you get back a tiny percentage of the money you spent. But other discounts and offers are also worth checking out.

4. Penalties

Just as it is important to check through the rewards, it is equally important to take note of the penalties laid down by the company. Ask the company about the fees you’re supposed to pay if you fail to repay your credit card loans on time.

A few companies provide a certain amount of time before charging high interests as penalties, but some start charging right away. So be clear with the company regarding this.

5. Number of cards

Try to limit the number of cards you use. This will help you to keep track of each card’s expenses and you’ll be able to avoid late fines and penalties. More than one or two cards will lead to the added pressure of paying off monthly debts.

Ask yourself if you really need more than one card or not. If the answer is no, stick to just one card so that you can pay off the monthly amount easily. In case you do require more than one, limit it to two cards at the most.

6. Eligibility

Most banks give credit cards to whoever applies for one, provided they have the necessary documents with them. However, not all places will give everyone a credit card even with the proper documents and papers. Some card variants have credit score or high-income requirements.

Therefore, it is best to search through various options first and then choose the bank where you meet all the necessary criteria.

If you keep applying for cards in places where you’re ineligible, you’ll end up getting rejected. You may also face a dip in your credit score due to hard inquiries.

7. Alignment of card benefits with your needs

The last important point is to check if the credit card offers and promo codes align with the kind of shopping you do.

For example, if you love shopping for clothes or accessories, you can choose a company that gives offers or discounts related to your realm of spending.

Over to you…

Here are seven things you must keep in mind while choosing a bank’s card. Applying nowadays is a relatively simple process; all you have to do is choose the bank that seems right for you, walk in with the required documents, and ask your doubts freely to the person concerned. Keep these in mind and voila! You’ll get yourself a brand new credit card!