When it comes to choosing a credit card, it is easy to feel overwhelmed. There are so many options available, after all – how are we supposed to sort through all of them? It is precisely this challenge that we would like to help you sort through today, so do be sure to stick around.
As you probably already know, there are a pretty wide variety of different rewards programs, sign-up bonuses, and more when it comes to making a selection. Comparing them can be a bit of a challenge when the information isn’t all available to us at once, which is why resources like this one can be so valuable.
With all of that said, let us dive into some of the ways that we can compare the various cards available. For the most part, we will be discussing the differences between the charges when signing up as well as the bonuses that you can enjoy.
Fees
Let us face it – one of the first things that most of us want to know when we are considering a new loan, no matter the type, is what the fees are going to be. Notably, some credit cards will actually have an up-front charge. Sometimes it is referred to as a “deposit.”
Interestingly, deposits often serve as part of (or the entire) amount that you can borrow. This is not always the case, but it is something to keep in mind if it is a big turn-off for you in terms of wanting to apply for a given card. Now, there are other types of charges as well though.
Namely, there are annual fees for some of them. At first glance, this can definitely seem frustrating. Why should we have to pay for some of them when there are a ton of options that do not have an annual charge? Often, you can find the answer in the rewards section.
For now, though, we will stick to explaining what these might look like. Some examples can be found here, https://academic.oup.com/jcr/article-abstract/32/1/130/1796318, but for the most part, you will find them ranging in the one-hundred dollar to three-hundred dollar range. Depending on the lender, you may get purchase credits because of the up-front annual charge.
Rewards Programs, Bonuses, and More
Now that we have covered the “boring” bits of picking a new credit card, we can get on to the exciting part. Rewards are pretty exciting, right? The first that we will mention are sign-on bonuses.
These are usually called “welcome offers,” so look out for that terminology if it is something that you are after. They can take all sorts of forms, be it a specific cash-back bonus in your first year, an increase in the points that you earn in that period, or something else entirely. Ideally, though, your new card will end up having one of some sorts.
This leads us to our question of Chase Sapphire Preferred vs. Amex Gold and which a person might want to choose. Each has a different welcome bonus as well as rewards in general. This lets us circle back for a moment – you remember the annual fees, and how they often justify themselves thanks to the reward programs included? This is where that comes into play.
Often, when there are fees associated with a credit card on an annual basis, they offer better rewards than alternatives that do not have that charge. They may also have more beneficial terms for the borrower such as a lower interest rate or a larger grace window for making repayments.
Primarily, though, the draw will be the benefits programs offered. That might look like cash-back rewards on common purchases, as just one instance of it. Restaurant purchases are frequently one of the targets there since a lot of folks enjoy going out to eat. There are a ton of them though, so feel free to explore your options until you find one that fits your lifestyle.
Points systems are another possibility, as we hinted already. Typically speaking, cardholders earn a certain number of points on each purchase or specific types of purchases, and they can then spend those points in a reward shop. Whether this is appealing or not largely depends on what can be redeemed. Do not be afraid to inquire about that before you apply for a card.
Given how many perks you can get when you get a credit card, it is okay to take your time and shop around for one that really speaks to you. Although it can feel a bit stressful at first, being able to really compare the rates and rewards between two (or more) that are your top contenders can really help you to figure out if it will work for you.
After all, at the end of the day, which is what we should be prioritizing. Think about the types of benefits that you will get the most use out of.
