What are things to consider when getting a credit card?
Don't get one. If you think you need one, you don't. You can buy stuff online with a debit card. Yeah you can still get fees and overdraft charges from a debit card, but its not slavery like Chase and WaMu are selling. If you want to know why the Dave Ramsey is the guy to ask.
14 Answers
Since I never carry a balance, I don't worry about interest rates. I always look for no fees and some sort of cash-back program. Even at 1% cash back, after a while that adds up to a good chunk of change if you use your credit cards for most purchases.
If you are a big fan of a particular store or website and shop there regularly, check to see if they have some sort of credit card that will give you benefits.
I think the first thing you should consider before signing up for a credit card is: Why are you signing up for a credit card?
Are you getting the card to build credit up, or just to have available spending power in case of emergencies? (Lean towards cards with no fees for maintaining your account)
Are you getting the card just for the ease of use while shopping, or because you'd like to take advantage of the rewards/benefit plans that some cards will offer? (Lean towards cards that offer the best rewards or benefits, especially at places you shop most)
Or are you getting a card just to get a card, and since everyone else seems to have one and use one then why shouldn't you? (Consider just getting/using a Debit Card if possible.. just as easy to use, and much easier to handle responsibly as you can only spend what you have)
Having a plan about how you intend to use the card before you get it is a good idea, because it put you one step closer to using it responsibly once you have it.
With a plan in mind, considering the things that were mentioned above (interest rates, fees, rewards, benefits etc) should allow you to make the appropriate decision.
I actually work for a credit card company, so this has been something I've been reviewing for a while. With all the new regulations that our industry has to comply with, the consumer cost of credit is increasing.
Take your interest rate into consideration. Intorductory rates are great if you're buying a big ticket item in the near term, but your goal should be to pay it off in full every month once the insane interest rate kicks in.
Rewards programs are what I look at the most, because I pay for all my typical expenses (food, gas, rent, utilities) with my card initially, then pay it off in full monthly. With my cashback card it's like they are paying me to live my life. From what I've seen, AmEx and Chase have the best rewards programs. You can find rewards focused cards on a lot of things too: gas, airline travel, disney, hotels, etc...
Just a word of caution... be careful. Credit cards require discipline because of you will surely be tempted to buy any of the things that you find on Uncrate daily with your new spending power.
Billing Cycle. To combat those that they pay off their cards in full every month, many credit card companies have gone to a 20-day billing cycle, meaning unless you pay your card bill online at least twice a month, you WILL incur interest charges.
Never think of your credit card as cash. It's very easy to spend more than usual and not be able to pay it off in full. Also, if you've never applied for a credit card before keep in mind that being denied can have an affect on your credit record.
Also, keep an eye on your credit limit. They tend toraise your credit limit without telling you sometimes. Having a high limit in comparison to your salary will be seen as a liability.
Here is more info on "credit limits"http://www.creditorweb.com/definition/credit-limit.html
Interest rates, rewards, places you shop, do you really need a credit card, will you pay it off every month. Take a look at Product Name, it allows you to provide answers to questions and will give you credit cards that will help best serve you.