According to a national telephone survey of U.S. credit cardholders, it was found that 25 million Americans have had the same credit card for over 10 years. That means that anytime you sign up for a new credit card, you should most likely assume that you will have that card for quite a long time.
This also means that you will most likely be working with your credit card provider for a long time as well, which makes picking a credit card a very important decision. So how do you decide how to pick a credit card? There are a few key factors to look for, and questions to ask yourself.
What will you use the card for?
When first looking for a new credit card, you should decide what purpose you are obtaining this card for. Is it for general spending? Finding a lower interest rate or new rewards? Maybe you are looking to consolidate debt from other cards, or you want a card dedicated to business spending. Whatever your reason might be, you will need to research which card will benefit you the most based on your needs.
Will you be carrying a balance?
If you know you are someone who usually does not pay off your card fully each month and plans to carry a balance, then you should definitely look for a low-interest card. The average interest rate for new credit cards in 2019 was 19.02%, but it is possible to find a card that offers a promotional 0% APR. This promotional offer may often last for 10-15 months and can help you to avoid interest if you need some time to pay off your balance.