As my previous blog entries have mentioned, there is a large problem with students getting into credit card debt.  There is no denying that credit cards play an important role in our society, but please understand that it is not necessarily a bad one.  I was always told it is important to have a credit card for emergencies and to compliment modest spending habits.  I don’t think it is a bad idea to give young kids credit cards with VERY low credit limits, aimed to teach credit responsibility at a young age.  It is better to be $100 in debt as a high school student than $8,000 in debt as a college kid.

With so many options to pick from, what was the deciding factor in picking your card? How did you find the credit cards that you currently have?

Just like most twenty-somethings, I do most of my research and shopping on the Internet.  By going to Google and typing in “Credit Cards” it quickly becomes apparent that the decision to pick a certain brand is far from obvious.  The organic search results mainly turn up credit card guides, and the paid ads are all the major credit card players.  At first glance of the results I was completely overwhelmed.  Some of the guides helped me decipher the different benefits, but each guide had different cards.  I still found myself overwhelmed at the number of options.

After pondering where I would go from here I realized that my eyes tended to shift towards the credit card companies I was familiar with.  Didn’t I just see a Discover Card tent at a football game?  Don’t my parents have Chase credit cards?  Capital One has some funny commercials, is that the best option?

This explains the emphasis on credit card grass roots marketing.  There are some differences in APR rates, minimum payments, credit limits, and so on… but “Mr. Average Consumer” will go towards the name they hear/see/are told to trust.

To be the smartest of consumers you need to look past the marketing campaigns and start to put together an excel spreadsheet with the following categories side by side.

-Name of Card

-Intro APR

-Intro APR Period

-Regular APR

-Annual Fee

-Balance Transfers

-Reward Type

By putting the important factors side by side you will start to really see what card works best for you.  Find the card that has the best rates and rewards.  You may realize that the cards with the best marketing have some of the most uncompetitive rates and rewards.  Aren’t you glad you decided to shop around?