Let’s face it – everyone wants you to carry their credit card in your wallet. It can be challenging to decipher the perks and rewards to know which card will work best for you. If they offer a 0% APR intro rate, when does it go up and what will the new rate be? How do you earn and redeem your rewards? Are you paying any fees?
To make sure you have the right card in your wallet, you want to steer clear of a few red flags.
- Extra fees
There are plenty of cards available with no annual fee. If there is an annual fee, see if the fee offsets the rewards, perks or other incentives offered. Still, the yearly cost of holding onto a card shouldn’t be outrageous.
But be aware of other fees on the card such as application fees, activation and processing fees, and monthly maintenance or membership charges. Avoid cards with these fees. Before deciding on a card, be sure to read the terms and conditions so you’re aware of any fees you may face.
- Exorbitant interest rates
If you don’t carry a balance month to month, then the interest rate is irrelevant; you’ll never owe any interest. But financial hardship and other factors can make it necessary to carry a balance, which can be convenient but expensive.
As of February 2022, the average annual percentage rate for cards that accrued interest was 16.17%, according to CreditCards.com. Your rate will depend on your credit score, which indicates to the card issuer the amount of risk they are taking by extending you credit.
Generally speaking, the lower your credit score, the higher your rate will be. Credit cards that offer low or promotional interest rates typically require good credit (FICO scores of at least 690). Again, pay attention to the fine print to make sure you understand how your APR will be calculated.
- Low credit limits
Everyone has to start somewhere so if it’s your first credit card, your limit may be lower. The limit you qualify for will depend on your creditworthiness, but a low credit limit can be challenging because it impacts your credit utilization ratio, which is a significant factor in your credit score calculation. Credit utilization is the amount you owe as a percentage of your available credit. So, if you have a $1,000 credit limit and a $500 balance on the card, your credit utilization is 50%. Most lenders recommend you keep your credit utilization below 30% but the lower that percentage, the better for your credit scores.
Find the Right Card
It can be difficult and time-consuming to try and compare apples to apples. We believe it’s best to start your search with a trusted financial partner who knows you and your situation. At Members Trust, we keep it both simple and affordable. Take advantage of the security and reliability that comes with a Members Trust Federal Credit Card!
Below average APR regardless of which card you choose:
- 24% to 14.24% APR* Standard Credit Card
- 24% to 16.24% APR* Premium Rewards Credit Card
No annual fee
No hidden charges
Generous credit limit
25-day grace period on purchases (excluding cash advances)
Convenient cash advances through ATMs worldwide
Low minimum payment
FREE Card App to manage and monitor your card 24/7:
Emergency cardholder replacement and services
Balance transfer opportunities
Travel accident and baggage insurance
ID theft restoration services
Plus, our Premium Rewards Credit Card rewards you for the things you’re already buying by earning 1 point per $1 in purchases. You can redeem points for travel and cash back to your card or account at CURewards.com.
Talk to us about your unique situation and how we can help. We’ll help you compare offers to make sure you have the best card in your wallet.
*APR = Annual Percentage Rate. Your rate is based on your credit at the time of approval. Risk-Based Pricing Notice: The Annual Percentage Rate (APR) quoted “as low as” depending on the applicant’s individual credit history. Rates quoted are based on approved credit. Your APR may be higher based on your credit information obtained from consumer credit reporting agencies Members Trust FCU uses. Rates and terms are subject to change.