How to choose a credit card? Learn what to evaluate

Doy you know how to choose a credit card? The world of credit cards is vast, and choosing the right one can be challenging, especially with so many options on the market, each with its own benefits and fees. 

The truth is that, for each specific audience, there is an ideal type of credit card that can help with finances, whether it’s for purchases, travel, or any other type of use you may have in mind. 

Therefore, in this article, we will explore the different types of credit cards available, from classic ones with cashback to those specialized for travel and business. 

Follow along and find out how to choose a credit card.

Know the different types of cards

The first step in knowing how to choose a credit card is to check the type of card that is ideal for your profile. 

And, for that, it is necessary that you know the different cards and what they were developed for. 

Below, we will show the main types of credit cards for you to understand the differences between them and thus be able to choose the one that is ideal for you:

Cashback Card

Cashback Credit Cards are suitable for consumers looking for cash rewards on their purchases. 

They work by refunding a percentage of the amount spent, varying depending on the type of card, purchase category, and promotions. 

In general, the more you spend, the more cashback you will have in your account. 

The benefits of this type of card include tangible rewards and flexibility in using cashback, while the disadvantages may involve annual fees, low percentages in some categories, and monthly or yearly limits for cashback. 

So, if you want a card that offers cashback, you should consider all these points before applying.

Business Card

Business Credit Cards are ideal for entrepreneurs and freelancers who want to optimize their professional expenses. 

In other words, they are designed for businesses of all sizes that need a card for better operation. These cards offer benefits such as specific rewards programs for businesses, insurance against unforeseen events, and access to VIP lounges at airports. 

The advantages also include control and organization of company expenses, rewards usable for travel, purchases, or reinvestment in the business, as well as higher limits. 

On the other hand, they may have higher annual fees, strict minimum income requirements, and the possibility of high revolving interest rates.

Travel Card

Travel Credit Cards are recommended for frequent travelers who want to accumulate airline miles or points to exchange for travel benefits. 

They work by accumulating miles or points for every dollar spent, allowing for exchanges for airline tickets, accommodations, upgrades, and other benefits. 

There are several advantages to having this type of card, including mileage accumulation, access to VIP lounges at airports, and travel insurance. 

However, it is necessary to pay attention, as many travel cards have a specific time frame for using the points, in addition to fees that should be checked before hiring your credit card.

Reward Card

Reward Credit Cards are suitable for consumers who want to exchange points for various types of rewards. 

They generally have partnerships with various companies and stores, bringing more advantages to the consumer. 

As you use the card, you accumulate points for every dollar spent, allowing exchanges for products, services, travel, and other benefits. 

There is a variety of rewards, the possibility of exchanging points for experiences, and loyalty programs with different levels of benefits. 

On the other hand, they may have annual fees, variation in the value of rewards depending on the program, and difficulty in determining the real value of rewards.

Steps on how to choose a credit card

Now that you know the types of credit cards, there are some steps you should follow to know how to choose a credit card. 

So, we will show you some steps that will help you in this task and will ensure that you make the right choice.

Identify which type of card interests you

Before opting for an offer, it is essential to conduct an analysis. Reflect on your consumption habits, available income, and lifestyle. 

Are you looking for cashback rewards? Accumulating airline miles for international travel? Or simply a card with no annual fee for day-to-day payments? 

Defining your goals is the first step in choosing the credit card. From there, you choose the card that will really meet your needs.

If you travel frequently, a card with a loyalty program and benefits for travelers may be the ideal choice. 

For those seeking convenience and savings, a card with no annual fee and cashback on purchases may be the best option.

Know your credit score

Your credit score is a numerical indicator that assesses your financial health.

It is essential for card approval since the best cards consult the client’s financial life for approval. 

A high score increases your approval chances and ensures access to better rates and conditions. Maintain a good payment history and avoid default to strengthen your score.

Check annual fees and interest rates

When comparing different cards, special attention should be given to the fees charged. The annual fee can vary considerably. 

Evaluate whether the benefits of the card outweigh the cost of the annual fee. 

Other important fees to consider include revolving interest rates (charged in case of late payment of the invoice), cash advance fee, international transaction fee, and fee for sending a duplicate invoice.

See if there are welcome bonuses

Several cards offer welcome bonuses as a way to attract new customers. These bonuses can be in the form of points, airline miles, or cashback. 

Analyze the conditions to receive the bonus and if it is really worth it. In some cases, it is necessary to reach a certain spending amount within a specific period to access the bonus.

This way, you will know how to choose a credit card and be sure that it will be a financial instrument that will bring advantages to you. 

Did you like the tips? On our website, you can find evaluations of various credit cards that may suit you. Check them out by browsing the pages.