Comparing credit cards may not be a very easy step, especially with so many different types to choose from. Below is a guide on how you can compare credit cards more effectively:

Choose the type of credit card that meets your needs. Credit cards are categorized according to the purpose they serve. For example, you can find a variety of cards with rewards in the market. Some reward cards offer gas rebates and cash back while others offer Frequent Flier Miles programs.

There are also cards that are especially offered for people with bad credit history. Bad credit credit cards or secured credit cards require the submission of cash deposit as a guarantee for the cardholder’s debts. Furthermore, some credit cards are made for entrepreneurs or small business owners. Thus, it is important to consider your needs and lifestyle before choosing the right credit card.

Compare the APR. The APR or interest rate is the cost that you will incur each time you carry over a balance in your account. Choosing a card with a low APR is the best way to cut your costs and reduce the risk of debt build up.

Compare all the credit card fees. Aside from the interest rate, you need to be aware of other fees associated with your chosen card. Examples of these costs are annual fee, late penalty charge, over-the-limit costs, etc. Make sure that you know the specific fees you will pay before signing up for the card.

Weigh the special features offered by the card. Different credit cards have different features and provisions. See to it that you will be provided with the most important services such as the zero liability protection, online account access, and reliable customer service.

Understand the terms and conditions. The Federal Law mandates all credit card issuers to disclose all fees and terms. Spend time reading and understanding the fine print. After comparing the interest rates, fees, features and rewards, carefully analyze the Terms and Conditions before submitting your application.