A Guide to Choosing the Right Credit Card

When it comes to choosing a credit card, there are numerous factors to consider. Is it better to choose a card with great rewards, or a low interest rate? How do annual fees factor into the equation? What about balance transfers? To answer all these questions and more, we’ve compiled a quick guide on choosing the right credit card!

Interest Rate

When searching for the right credit card, it’s firstly important to understand a card’s APR. Ideally, all statement balances will be paid off in full and on time—but if a balance isn’t paid off, you’ll be paying interest on that balance. APRs typically run around 15-30%, but your rate may different depending on your credit score. Some cards also offer a 0% intro APR rate for the first year, which can be useful for paying off a lingering debt without accruing more interest in the meantime.

Fees

Choosing a credit card with no annual fee means more money in your pocket; but on the other hand, prestigious cards with a lot of extra perks may charge more in annual fees—sometimes as much as $500 per year. Then again, plenty of points-heavy cards don’t charge annual fees, including cards from Harvard FCU. Besides annual fees, it’s a good idea to check on a prospective card’s cash advance fees, fees on foreign transactions, late payment fees and card replacement fees.

Rewards

One major benefit of spending with a credit card, as opposed to with a debit card or cash, is the opportunity to earn rewards. For example, the Harvard FCU Platinum Rewards card offers 3% cash back on gas, 2% cash back on groceries, and 1% cash back on everything else—all with no annual fee. Meanwhile, the Harvard Alumni Card gives users a 25% points bonus for travel purchase redemptions and double points for gifts to Harvard University. And, there are multiple Harvard FCU cards offering 10,000 bonus points to cardholders who spend $500 in the first 90 days of card membership.

Balance Transfers

If you’re struggling to pay off high-interest credit card debt, it could be time to consider a balance transfer. Doing a balance transfer means you move your debt onto a new credit card. The debt doesn’t disappear—but you may be able to secure a better interest rate. Some credit cards (including cards from Harvard FCU) offer 0% APR for the first twelve month, so cardholders can avoid more interest being charged on the balance while they’re paying it off.

Usability

Nowadays, with so much payment technology available, it’s a smart idea to choose a card that matches how you prefer to pay. A card with contactless and EMV Chip Technology helps cardholders pay quickly

and conveniently at multiple types of merchant terminals. And, EMV chip technology adds layers of security against fraud as these cards are virtually impossible to duplicate. In terms of usability, also consider whether a card is compatible with Apple Pay, Google Pay, and other digital wallets.