Synergy Credit Union - How do I choose a credit card?

Whether you like to travel, want a lower interest rate or want to earn points, there may be a credit card that fits your life and matches your interests.

Used responsibly, credit cards can be helpful in an emergency for bookings, payments and establishing a strong credit history. However, they should not be used as a form of lending. Rather, credit cards should be used for short-term or online purchases where the balance is paid off quickly. Here are some questions to help you determine the right type of credit card to meet your needs:

Are you planning to use your credit card for short-term emergencies? A card with no annual fee may help you cover any unexpected expenses, without the added cost of an annual fee.
Do you want to travel? Other credit cards offer rewards where you can earn points toward airfare, hotel stays or vacations (watch for potential blackout dates or restrictions). It may also offer complimentary travel insurance and other travel related benefits that can help save you money. Some may also offer a collision damage waiver, which covers insurance on a rental vehicle.
Will you be using your credit card for everyday purchases? A card with rewards may also offer cash back, merchandise or other benefits (watch for a top limit on rewards on some credit cards).
Do you plan to pay off your balance each month? If you plan to carry zero balance each month, the interest rate may be less important than the types of rewards or coverage on insurance or warranty you can earn.
Did you know there are other benefits on credit cards that are often forgotten or unused? This can include purchase protection (ie. if your purchase was stolen); and extended warranty (which may extend from a one-year factor warranty to two-year warranty - without additional fees).

Whether you are looking for a credit card with a lower interest rate, one with more rewards or one with no annual fee, you can find a credit card that fits your pocketbook and your lifestyle. Let us help find a card that’s right for you. We’re here to help.

Up Next: What is the best way to pay off past due and maxed out credit cards?

Concentrating on one card and neglecting the others, or paying just what you can afford can further adversely affect your credit rating.