6 Of The Top Things To Consider When Picking A Credit Card, According To Experts

When it comes to credit cards, the numerous options can be dizzying. Do you say "eeny, meeny, miny, moe" and hope for the best? No. Be strategic and pick the right card for your financial situation, needs, and goals. 

"Choosing the right credit card is like picking a business partner: It should work with you, not against you," says financial adviser Justin Godur, founder of Capital Max, a provider of advisory and financial services.

Simply put, your top consideration should be your spending habits and financial goals. "Look for a card that aligns with how you spend money and the benefits you want to gain. For example, if you frequently travel, a card offering travel rewards or lower foreign transaction fees would be ideal. If you plan to carry a balance, seek a card with a lower interest rate," says Keven Payano, a financial representative with Northwestern Mutual.

Analyze your monthly expenses to determine where you spend the most.

"Comb through those bank and credit card statements from the past six to 12 months to see which categories you're dishing out the most cash in," says Steven Kibbel, a financial adviser at Prop Firm App, a website dedicated to proprietary trading and investment strategies.

Check your credit report and score before applying. Some cards require higher credit scores, and applying for a card that you may not qualify for can negatively affect your score, says Payano.

If you have a good credit score, you'll have your pick of several great credit card deals. "If you have poor credit, you'll be limited to cards with lower credit score requirements," says Richard Barrington, financial analyst for Credit Sesame.

Read the fine print. Be clear about whether there is an annual fee and how much it is. What is the interest rate? If you plan to regularly carry a balance on your credit card, the interest rate becomes a prime consideration.

"Try to find the lowest APR you can because carrying a balance means you will regularly be charged interest as a percentage of that balance," says Barrington.

A lower APR means you'll pay less in interest if you don't pay off your balance in full each month, which can make a significant difference over time.

Many credit cards offer attractive rewards programs, such as cashback, points for travel, or bonus rewards in specific spending categories like groceries or gas. When evaluating these programs, consider your typical spending patterns and choose a card that rewards the categories where you spend the most.

While often overlooked, the quality of a card issuer's customer service and support can be a crucial factor, particularly if you encounter issues with your card or have questions about your account.

"One of the biggest mistakes I see clients make when it comes to credit cards is getting a little overzealous with applications, going on an applying spree, firing off requests for multiple new cards in a short span," says Kibbel.

He says this is a no-no because each of those applications typically results in a hard inquiry on your credit report and can add up, dinging your credit score if you have too many in a short time frame.