Choose the Best Credit Card in 2022

Choose the Best Credit Card in 2022

updated on May 6, 2022 by John

choose the best credit cardDo you know how to choose the best credit card? At first glance it may seem that all cards are basically the same . This couldn’t be further from reality. When you start to look into the details you will find there are massive differences between the cards and the benefits that you can get as a cardholder.

Premium Suppliers will help to make your choice a little easier by going over the main considerations to keep in mind when choosing. If you know what to look for, you will find the card that is the best fit for your needs.

Key Points to Choose the Best Credit Card

There are several important considerations to think about when selecting your new credit card:

Choose Your Credit Card Category

Before selecting your next credit card, you need to first be clear on what it is that you expect from your card. Do you want to maximize your cash back with a cash back card? Do you want a no fee card? Or, do you want to build or restore your credit? Do you want to get tons of points that you can spend where ever you want?

You may even be looking for a specialized card such as a student credit card, US Dollar credit card, a prepaid card, a retail credit card or even a secured credit card.

If you are clear with your credit card goals then you have a much better chance to find the perfect card for you. That leads us to the next consideration, fees.

Compare credit card fees

Annual Fee – At first glance you may think that a credit card with no annual fee would always be your best choice. While no fee credit cards are great for some people they may not be best for you. This is not always beneficial if you use your card regularly and can easily earn back the annual fee.

If the benefits that you get far outweigh the cost of your card then the annual fee becomes less important. Assuming that your credit card has an annual fee of $100 and offers a cash back rate of 2%, you will need to spend $5,000 annually to cover your costs. If you spent more than this amount last year and plan to do so again this year then you should still consider cards that do have an annual fee. Also, there are generally a lot more additional benefits that you will receive from cards with annual fees which could make these cards an even better deal for you.

Other Fees – You may also be required to pay additional fees such as:

  • cash advance fees
  • foreign currency charges
  • over-the-limit fees
  • reprinting charges for statements or receipts from previous transactions
  • dishonoured payment fees
  • inactive account fees
  • insurance fees, also known as premiums for credit card balance insurance

Compare Interest Rates

A credit card’s interest rate is an important factor if you tend to carry a balance, which means that you owe money on your credit card. The higher the interest rate, the more you will pay on your outstanding balance. A low interest rate credit card will save you money over time. There are many credit cards available with low interest rates. Some low rate cards charge an annual fee, but these cards may still be the best option for you.

Compare Special Benefits

Most people tend to overlook the special benefits (perks) that come with all credit cards. These can add up to a lot of money saved if they are something that you actually need. For example; your card may offer travel insurance, car rental insurance, roadside assistance, extended warranties as well as many other features. A rewards credit card might be a great choice. If you check the details in advance this should be helpful when choosing a new card.

Understand Points Accumulation

All credit cards have different rules as to how and where you can earn points. It is important to choose a card that will offer you the highest amount of points on the the products that you buy most often. That means that if you don’t eat out very often than you don’t need to choose a card that has the highest points for dining. Instead look for a card where you will get the most overall points.

Consider the Welcome Bonus

Most credit cards will offer a generous incentive to sign up. If you can time your major purchases with a special welcome bonus you may be eligible for a potential bonus of hundreds of dollars. Choose wisely for maximum benefit.

Check Your Credit Report Before Applying

Check your credit report with Canada’s credit bureaus, TransUnion and Equifax. If your credit report contains an error, take action to correct it immediately. Errors in your credit report may be the reason you couldn’t get an unsecured credit card.

Your credit score is a significant factor in how to choose a credit card. This is because it affects which cards that you qualify for. Most credit cards are aimed at consumers in a specific credit score range. To improve your chances of getting approved for a card, your credit score will need to be in that range or a higher one.

Summary of How to Choose the Best Credit Card

We hope that you have found this information useful. By making the right credit card choice it will help you to meet your financial goals and hopefully enjoy some benefits along the way. Please feel free to browse through our credit card reviews to choose the best credit card that should go in your wallet.