Fitting the Pieces Together: Choosing the Right Card

America is certainly the land of variety. We have so many different types of everything, and we have to choose among them every day. Typically people give time and thought to the big decisions. They ponder and weigh out questions like "What kind of car should I buy?" or "Where should I buy a house?" The little things tend to be decided more quickly. You only find the really obsessed or the truly committed standing dumbfounded in front of the near-infinite soup display at the grocery store. People tend to know what they want or know how to find a good deal with little decisions.

Credit Cards are Not Like Soup

When it comes to credit cards, it seems that there are many people who apply "soup-style" decision making to choosing a card! They get an offer in the mail, it promises them a great introductory rate, and they go for it. Or they get to their first year of college, a good-looking woman in a business suit hands them a free t-shirt, and they're hooked. This is unwise.

Credit Cards are Like Cars

Choosing a credit card should be more like choosing a car. You really need to consider all of the details before you spend the money. If all you want is a car that's red, you'll go home with the first red car you see. But if you think about your life, you'll find that you can get much more. You may decide that you really need something with good gas mileage. Maybe you work as a landscaper and need a truck to carry all of your tools. Or maybe you live on a dirt road, so you'll need a car that can handle muddy conditions and not get stuck. Credit cards are just like that: requiring of careful thought. For instance, if you're new to the world of credit, there are some features you will want in your first credit card. You may not be able to find a card with an especially low permanent rate, but you will be bombarded by offers of cards with exceptionally low introductory rates. These can be great, but you have to be aware that when rates go up, you could find yourself paying a lot of money in interest. If you are able to exercise control over your spending, even these high-rate credit cards can be useful for building your credit. If you use it sparingly, and do your best to pay it off every month, you won't have to deal with the interest rates. And the longer you can go paying off your bill each month, the better it looks on your credit report. Sometimes the rewards program of a card can make it worthwhile. Keep in mind that these programs are often complex, and require spending large amounts of money to accrue rewards, but if you can afford to spend the money and the rewards are useful to you, they can be good deals.

Compare Cards (and cars) Before Choosing

When choosing a card, the most important thing you can do is compare offers. Only when you know what is out there will you be able to choose what is best for you. Each card offer is different. Take your time and consider your options as carefully as you would a new car- and you won’t end up with the wrong type of “soup”.