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Do’s and Don’ts to Help You Choose the Right Credit Card

October 22, 2019 With so many different rewards credit cards out there, it can be tough to make a decision and choose a credit card. After a while, you might start to feel like they’re all more or less the same. But actually, even subtle differences between credit cards can impact your finances, so it pays to get it right. Here are a few things to consider before swiping right on a credit card:

DO: Take the time to understand your credit history.

Depending on your credit score and history, you may qualify for lower APRs and higher credit limits. Woot! If you have questions about credit cards, or want to talk about ways to improve your credit score, with a Summit financial expert. They can help you understand the basics and give you tips for managing your credit card.  

DO: Factor in the APR.

The APR (annual percentage rate) is the percentage you’ll pay in interest on purchases you don’t pay off right away. According to the , the national average APR for credit cards is about 15%. This average can help you determine if the APR being offered is high or low. Are you planning to make a large purchase on credit? Try to find a card with a , so you can minimize the amount of interest you’ll ultimately pay if you can’t pay off the purchase right away.

DO: Consider your own spending habits and lifestyle.

Choose a credit card with rewards tailored to you. If you have a hunger to see the world, consider a , so you can get points for things like airline and restaurant purchases. On the other hand, if cash back is your game, a is a no-brainer. Just keep in mind that some cash rewards cards have higher interest rates, so try to pay off purchases in full whenever possible to avoid paying more in the long run.

DON’T: Choose any old credit card just because it’s convenient.

It’s tempting to take the first offer you get or follow the recommendation of a friend, but you are an individual with your own unique financial history and lifestyle. Do your homework, and weigh all the options listed above. can save you money and give you access to amazing perks, like a card that gives you cash rewards AND .

DON’T: Get caught up on flashy credit card offers.

If an offer seems too good to be true, it might be. When comparing credit cards, consider the fees and APR. For example, it’s common for cash rewards cards to have higher interest rates. If you’re carrying credit card debt, a card with higher interest can cost you in the long run – much more than the cash back perks you would earn. Sometimes is the way to go.

DON’T: Leave good perks on the table!

Using a credit card is a good alternative to cash or debit – especially if you pay it off every month – because you’ll earn rewards while also building your credit score. Beyond reward points you earn automatically, you may also be able to tap into special offers. For example, Summit offers a that rewards you with extra points if you maintain a 3.0 GPA. Snagging extra points for something you’re already doing anyway? Gold star! As with so many things in life, there’s no one right or wrong answer. But if you take the time to understand your financial situation and the options available, you’ll feel much more confident in choosing a credit card. Ready to start shopping for a credit card? Compare options and find the . You might also be interested in Here are some tips on how to prioritize your debts and bills, negotiate with creditors and get your late payments back on solid ground. Strengthen your credit and learn about the new changes happening to your score. Here’s everything you need to know. Sometimes having a little extra cash is the only thing between you and your dreams. Check out these financial tips to be smart about borrowing money and avoid common mistakes. With so many credit card options out there, it can be difficult to choose one that's right for your finances. Here are the do's & don'ts of credit cards to help you decide! Did you resolve to make this the year you took charge of your finances?  It’s crazy to think that the year is almost halfway over, but, hey, it is! Which means it’s the perfect time to take stock of how you’re doing on managing your finances. Credit cards can be a great way to stretch your money until payday and a handy way to buy online. (And who doesn’t love to watch their credit card rewards pile up?!?) Ready to get out of credit card debt — or avoid it in the first place? We’re here to help. There’s no better place to borrow than Summit – in the entire U.S.! Here’s the proof. Did you know Summit gives you more value than any other credit union in the U.S. when it’s time to borrow money? Is “your baby” about to leave home? Whether that has you mooning over their old first day of school photos or plotting how to repurpose their bedroom (or, maybe, both) there’s one topic you need to tackle now: smart spending. Did you resolve to do a better job with your finances in 2018? Good for you! We know you can do it! To help, we’ve come up with a catchy name — your Money Smart Year (don’t you feel inspired already?) Featured Products Certificates Checking Accounts Home Equity Loans Home Loans Business Banking Certificates Checking Accounts Home Equity Loans Home Loans Business Banking Financial Education Upcoming Events Programs Tools & Calculators On-demand Webinars Podcasts Upcoming Events Programs Tools & Calculators On-demand Webinars Podcasts About Equity in Money™ About Summit Careers News Community Giving Equity in Money™ About Summit Careers News Community Giving Help & Support Contact Us Member Support Center Schedule an Appointment Find a Branch Contact Us Member Support Center Schedule an Appointment Find a Branch Please read the following before proceeding to: The website you are about to visit is solely the responsibility of the merchant or other party providing the site. The content of this third-party site, including materials and information, is solely the responsibility of the provider of the site. The Credit Union is not responsible for any such third-party content. Any transactions that you enter into with a vendor, merchant or other party that you access through this third-party site are solely between you and that vendor, merchant or other party. The Credit Union does not endorse the content contained in this third-party site, nor the organization publishing the site, and hereby disclaims any responsibility for such content. The Credit Union Privacy Policy does not apply to this third-party site, and for further information you should consult the privacy disclosures of the third-party site. NCUA Insurance Estimator Privacy, Security & Accessibility Rates, Fees, Terms & Disclosures Routing Number *  The Wisconsin's #1 Mortgage Lender designation is based on the number of loans in 2022, gathered from the Home Mortgage Disclosure Act data compiled annually by the Consumer Financial Protection Bureau. The results of the data were obtained through the LEI: 254900NTAC4H10MGSU23 **  SBA Lender of the Year Award for Credit Unions as awarded by the Small Business Administration of Wisconsin in 2023. Copyright 2024 © Summit Credit Union. All rights reserved. If you are using a screen reader and are having problems using this website, please call 608-243-5000 for assistance. Insured by NCUA