The credit card market is expanding, with countless options available in every country.

There are cards to suit all preferences: those who want to save with low or even zero fees, those looking to earn miles, and those who dream of saving thousands of dollars with cashback rewards.

However, choosing a credit card shouldn’t be based solely on appearance or initial appeal. In fact, you should consider several factors before making a decision.

To help you, we’ve put together a comprehensive guide to choosing a credit card. Take a look!

Know Yourself

First, even before starting your credit card research, you need to understand more about your own financial situation. To do so, answer the following questions:

What is your monthly income? What are your monthly expenses? Do you already have an account with a bank? What is your credit score? What are your short, medium, and long-term plans? What is your source of income?

What is your priority? In what types of purchases do you spend the most? How much credit limit are you willing to take on?How much can you afford in monthly fees?

By answering these questions, you can outline your profile and feel more confident about finding the right credit card for your needs.

But understand that priorities can change over time, and feel at ease with that.

Define the Type of Card You Want

There are different types of credit cards on the market; here’s a brief overview of each:

• Student credit cards: designed for students with no credit history and lower income requirements.
• Rewards credit cards: Cards focused on rewards like points, cashback, and miles. There’s also the cashback credit card variant, specifically for cashback rewards.
• Travel credit cards: cards aimed at travelers, offering miles, discounts, and special programs for flights.
• Secured credit card: A credit card requiring a security deposit, useful for building credit and improving your credit score.
• Business credit cards: cards with greater benefits for businesses, generally handling higher transactions.
• Balance transfer credit cards: An option to transfer debts from other credit cards to reduce interest rates.

Understand that each type matches well with a particular credit profile and with what you need at the moment.

What to Consider When Choosing a Card

In addition to the type of credit card, here are other points you should take into account when making your choice:

• Credit card company: when you receive a card, you’ll be interacting with the card’s brand to some extent. Therefore, it’s important to choose one with good support and reliable operation in your region.
• Credit limit: most cards offer a flexible limit that adapts to your needs, but it’s essential to check the minimum and maximum values before applying for the card.
• Credit score: you’ll need to apply for a card that aligns with your credit score, as you won’t likely be approved for one that requires a higher score.
• Fees: beyond the annual fee, the card may have several additional fees, including those for purchases and cash withdrawals at ATMs.
• Rewards and points: not every card includes a points system. Generally, simpler cards don’t offer these kinds of benefits, so be sure to check this before applying. Review the list of benefits from the card and its partners before applying.
• Insurance and other benefits: besides cashback, the card may come with other perks, such as access to VIP lounges, general travel insurance, and even phone insurance.
• Interest rates: check the interest rates, especially those for purchases and balance transfers.
• Apps and services: The card should offer easy management, especially for tracking expenses, locking and unlocking the card, signing up for services, and using rewards.

Review the list of benefits from the card and its partners before applying. Interest rates: check the interest rates, especially those for purchases and balance transfers.

Always read all the terms and conditions of the credit card before applying, so you can use your card comfortably and without surprises.

Search on the main websites to find the best card for your needs, spending habits, and lifestyle