There are hundreds of credit cards on the market today. Some of these are tied to regional banks, but the most popular come from some of the biggest banks in the United States. With so many options, it’s important to know which card will provide the most benefit before applying.

Check Your Credit

Before researching credit cards, it’s a good idea to get a credit report. A credit report will provide a record of any open accounts and usually includes a credit score. Banks will run a credit check before extending credit to consumers. Those with a low score will be limited in the types of cards they’ll be able to access.

Decide What The Card Will Be Used For

Will the card be used for everyday spending? Is it intended to transfer an outstanding balance on another card for an interest-free introductory period? Does a card pay out a hefty signup bonus? The reason a person needs a card should influence the final choice they make. If a person is looking for a card that provides cash back on everyday spending, a card without an annual fee that pays out at least 1.5% per dollar spent would likely be best. When getting a card for a cache of travel points, it’s a good idea to identify a card that has vendors that operate in the intended vacation destination.

Consider The Annual Fee

Many cards come with an annual fee. The high-end cards can come with a fee of $500 or more each year. It’s important to assess whether the card provides enough benefit to justify paying the fee. It might be a good idea to get a card and hold it for a year if the bank waives the fee for the first year. Those looking for cash-back cards can opt for a card that charges no annual fee. There are plenty available.

Getting a credit card is a big financial step to take. It provides credit, but it also requires a great deal of discipline to avoid going into debt. Credit cards come with high interest rates, but those who pay off their cards each month will avoid these charges. For those who have the discipline to avoid spending more than they can pay off, credit cards can provide some impressive rewards.