An excellent credit score puts you in position to obtain a credit card with top of the line features. But, remember this: no two credit cards are identical.
It’s important to use your excellent credit score to secure a card that meets all your wants and needs.
Here are some of the many features to focus on as you compare offers:
1. Rewards Rate
There’s nothing better than the ability to earn rewards for every dollar you spend. Rewards rates vary from offer to offer, so it’s critical to understand exactly what’s available to you.
For example, many rewards credit cards give you one point per dollar spent on every purchase. However, you can earn more points for purchases in specific categories, such as 2x(or more) points on dining and travel.
Tip: review your budget to better understand how much you spend in each category. This will allow you to choose the rewards card that gives you the “most bang for your buck.”
2. Introductory Bonus
The only thing better than earning points for the money you spend is earning points for signing up for a new credit card.
Credit card issuers use introductory bonuses to attract consumers with excellent credit. And since they’re always trying to one-up each other, you’re the big winner in the end.
For instance, a credit card issuer may offer a predetermined number of bonus points if you spend a specific amount of money on purchases within a specific time frame. This could be as simple as 50,000 points if you spend $2,500 within the first three months of opening an account.
3. Annual Fee
An annual fee is not as exciting as the two features above, as it’s money coming out of your pocket. However, if you want access to the best credit cards, you often have to pay for it – even if you have excellent credit.
Annual fees typically range from $95 to $500. Whether or not you consider cards with an annual fee depends on what you’re getting in return. As long as the benefits outweigh the annual fee, it’s something to strongly consider.
Read the Terms and Conditions
It’s okay to focus on the many positive features of a credit card, but don’t lose sight of the terms and conditions that govern your account. Answer questions such as:
- What are the fees associated with the account?
- What is the interest rate?
- Is the rate fixed or variable?
- Do rewards points expire?
If you don’t find something you’re looking for in the terms and conditions, contact the issuer to ask additional questions.
An excellent credit score puts you in position to apply for and obtain one of the best credit cards available.
As long as you know what you want and what you’re getting, you’re able to make a confident decision that benefits you and your finances for many years to come.