Choosing the right credit card is important if you want to get the most out of it when using it to make purchases. Not taking the time to do research on the card can eventually land you in financial troubles. The following are 3 things that you should consider prior to filling in the credit card application form and submitting it.

1. Check the APR Interest and Fees

The first thing to check is how much interest rate or APR the credit card charges. You are to keep in mind that the APR can be a fixed rate where the rate stays the same throughout the whole year. On the other hand, a variable rate means the credit card company has the right to make changes to the interest rate as long as they inform you about it. You get charged with the APR when you choose not to pay your bill in full and carry over your balance to next month. Besides the APR interest, credit cards also come with various types of fees for example application fee, annual fee, penalty rate, late payment fee and balance transfer fee. You can get accurate details about the APR and other fees by reading the fine print in the terms and conditions.

2. Credit Limit
If you can afford the APR, the second thing you should look at is the credit limit of the card. Those who have good credit scores will have no problem in getting qualified for cards with normal limits. The average credit limit for people with average to good credit score is $2,000 – $5,000. you can qualify for a card with a high credit limit of up to $10,000 if you have excellent credit score above 780. Secured card usually have low credit limit within the range of $200 – $250. Secured card is designed for people with poor credit score or are in post bankruptcy status. You must submit a collateral that is same as the credit limit before your application will get approved. Secured card is great for people who want to start anew in their finance by paying credit cards bills on time in order to build up their credit scores.

3. Rewards Program
Thirdly, you should check the details of the rewards program offered by the credit card.
The card you want to apply should offer rewards that are useful for you and possible for you to claim them. For example, if you are planning to use the card for grocery, you can find a card that offer cash back for grocery shopping. You can compare the rewards and requirements between different cards by visiting review sites and using the credit card comparison tool. Most rewards programs have expiry dates so don’t forget to check when the promotion will end.

Stay tuned to for the best advice in finding the top rated credit cards for 2016!