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When it comes to credit cards, the numerous options can be dizzying. Do you say eeny, meeny, miny, moe and hope for the best? No. Be strategic and pick the right card for your financial situation, needs, and goals. 

“Choosing the right credit card is like picking a business partner: it should work with you, not against you,” says financial advisor Justin Godur, founder of Capital Max, a provider of advisory and financial services.

If you’re wondering how to credit card shop, no worries, the experts have you covered. They weigh in on the chief factors to consider when choosing a credit card.

Simply put, your top consideration should be your spending habits and financial goals. 

“Look for a card that aligns with how you spend money and the benefits you want to gain. For example, if you frequently travel, a card offering travel rewards or lower foreign transaction fees would be ideal. If you plan to carry a balance, seek a card with a lower interest rate,” says Keven Payano, a financial advisor with Northwestern Mutual.

Analyze your monthly expenses to determine where you spend the most.

“Comb through those bank and credit card statements from the past 6-12 months to see which categories you’re dishing out the most cash in,” says Steven Kibbel, a financial advisor at Prop Firm App, a website dedicated to proprietary trading and investment strategies.

This will help you identify which type of rewards will benefit you the most. Also, think about how big a credit limit you need.

Check your credit report and score before applying. Some cards require higher credit scores, and applying for a card that you may not qualify for can negatively affect your score, says Payano.  

If you have a good credit score, you’ll have your pick of several great credit card deals. “If you have poor credit, you’ll be limited to cards with lower credit score requirements,” says Richard Barrington, financial analyst for Credit Sesame.

Get prequalified. Many issuers allow you to check for prequalification without impacting your credit score, helping you gauge your chances of approval, says Payano.

Read the fine print. Be clear about whether there is an annual fee and how much it is. What is the interest rate? If you plan to regularly carry a balance on your credit card, the interest rate becomes a prime consideration.

“Try to find the lowest APR you can, because carrying a balance means you will regularly be charged interest as a percentage of that balance,” says Barrington.

Be aware of any other fees, such as late fees or paper statement fees. These may not affect you, but if you expect to use the card in a way that would cause these fees to be assessed, know what they are getting the card, points out Barrington.

Many credit cards offer attractive rewards programs, such as cashback, points for travel, or bonus rewards in specific spending categories like groceries or gas. When evaluating these programs, consider your typical spending patterns and choose a card that rewards the categories where you spend the most.

Understand the redemption process and any restrictions or expiration dates associated with the rewards. “A generous rewards program can quickly lose its value if the rewards are difficult to redeem or expire before you can use them,” says Andrew Gosselin, a CPA and chief financial strategist at The Calculator Site. 

While often overlooked, the quality of a card issuer’s customer service and support can be a crucial factor, particularly if you encounter issues with your card or have questions about your account.

“Research the card issuer’s reputation for customer service and look for companies that prioritize responsiveness and transparency,” says Gosselin.

“One of the biggest mistakes I see clients make when it comes to credit cards is getting a little overzealous with applications, going on an applying spree, firing off requests for multiple new cards in a short span,” says Kibbel.

He says this is a no-no because each of those applications typically results in a hard inquiry on your credit report, and can add up, dinging your credit score if you have too many in a short timeframe. 

“Only apply for the cards you’re most likely to get approved for based on your income, credit profile, and so on. Slow and steady wins this race,” says Kibbel.

The takeaway

Mike Laske, a wealth management advisor with Greenleaf Trust, sums it up, “While using credit cards requires discipline, choosing the credit card that best fits your financial situation can offer financial flexibility, increased purchasing power, and enhanced creditworthiness.”