Credit Card Basics - Find the Credit Card That's Right for You

A credit card is more than just a way to pay; understanding each component of your credit card can turn it into a way to earn. Every spender is different, which means that everyone will need to look for different advantages that credit cards have to offer. Read on to learn more about how to compare different credit cards, figure out which one is best for you, and start getting some credit for your credit!

Let’s break down the basic components you want to consider when applying for a credit card:

(Annual Percentage Rate) APR

APR indicates the yearly percent value you’ll pay in interest based on your credit score. The term “0% Intro APR,” means that for the introductory period specified by the card offerings you won’t be charged interest on your card balance. This offer can vary based on whether you’re incurring new charges, or transferring a balance from one card to another. Some credit cards also charge an annual fee, which is another thing to consider when comparing APR because cards with lower interest rates sometimes charge higher fees and vice versa.

Cash back

“Cash back” is exactly what its title says – money back in your account. Some cards offer cash back options that reward you for paying with your credit card by giving you cash value points that you can redeem for money or prizes. Some cards offer higher point values for daily items such as groceries and gas and some offer prizes such as frequent flier miles or luxury items like handbags and watches. Research what options are available and consider which credit card will provide you with the benefits that are most useful to your lifestyle.

Rotating categories

This term refers to spending categories for which you can receive cash back points that change based on what promotions are happening. Many credit cards offer monthly promotions that give high cash back rewards for specific purchase categories that vary by month such as groceries, gas, or home goods.

There are many excellent online resources that can help you to compare and contrast different credit card options. If you’re considering opening a credit card with us at Citizens Bank, check out our options to see which one is right for you.

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