6 Rules for Getting a Credit Card

posted by iHeartMedia’s Sally Adams -

How do you choose between all those credit card applications you get in the mail? Matt Shulz with CreditCards.com  says you must weigh the benefits of a store card's discount with the general use card's lower interest rate.

“Whether you’re talking about a card from Starbucks or Uber or a general purpose credit card --- it’s all about knowing what you want to get from the card and how you’re going to use it. If you want to use a store card and enjoy that 15% store discount --- do so only if you plan to pay off the card every month. The interest rates are higher than a general purpose card.”

This seems like a no brainer - but  we keep making the same mistakes. Schulz says, “Just don't make your decision too quickly-you might regret it later.”

6 Rules for Getting a Credit Card

1. What is the rewards rate?You should ask, “For every dollar I spend, what percent do I earn back in points?’”

2. Is there an annual fee?

3. Do you plan to carry a balance? Rewards cards tend to come with higher interest rates than non-rewards cards.

4. Will the card tempt you to overspend?

5. How can the rewards be redeemed?

6. Does the card come with other perks? Some co-branded cards offer exclusive cardholder events, early sales access or other experiences that boost the card’s value.

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