Credit cards offer flashy perks, but which one is best for you?

As credit cards compete with rewards and bonuses, choosing the wrong one can cost you. Here’s how to choose the right fit.

Read the full article on KETV 7

Flashy rewards. Big sign-up bonuses. Points, miles, cash back.With so many cards on the market, it’s easy to choose one that looks exciting and only later realize it does not match how you actually spend.We asked people how they use their credit cards and what they know about them.“I have five credit cards,” Goldie from Doylestown, Pennsylvania, told us.“Three,” said Paul from Babylon, New York.Some people said they do not use credit cards at all. “It’s just not convenient anymore,” said Lynn from Cambridge, United Kingdom.When asked what they prioritize, the answers were all over the map, from travel to groceries, gifts, building credit or earning points.But when we asked about interest rates, fewer people were confident.“They’re about between 15% and 20%,” one man guessed.“I think it’s probably 19% or 20% — something crazy,” another said.That gap matters.Many credit cards now charge interest rates above 20%. Carrying a balance can quietly erase the value of rewards and cost far more than most people expect.Before you apply, start with one question: What do I actually need this card to do?Most people fall into one of three categories.1) You want to build or improve creditIf you are new to credit or rebuilding your score, your goal is not rewards — it’s history.Look for:Credit-builder or student cardsNo annual feeReports to all three credit bureausYour job is simple: Use the card for small purchases. Pay it off in full on time every month.This type of card is not about perks. It’s about proving reliability.2) You want to save money on interestIf you are carrying debt or planning a large purchase, rewards should not be your focus — interest should.A zero percent introductory annual percentage rate (APR) or balance transfer card can give you time to pay down debt without interest.But read the fine print:Balance transfer fees are usually 3% to 5%. Transfer $1,000? That could cost $30 to $50.When the intro period ends, the regular rate applies.These cards work best if you have a payoff plan and can eliminate the balance before the promotional period ends. Without a plan, the problem just gets delayed.3) You want to earn rewardsIf you pay your balance in full every month, rewards can make sense.Focus on where you already spend the most: groceries, gas, dining or travel.Then, run the math, because if you do not pay off the card every month, your rewards are not worth much. For example:You spend $500 per month.You earn 2% cash back = $10You carry a $500 balance at 22% APR = roughly $9 in interest in a monthOne month of interest can nearly wipe out a month of rewards.If you carry a balance regularly, a high-rewards card may cost you more than it earns.Also consider:Annual fees (Will you earn more than the fee?)Foreign transaction feesLate payment penaltiesRewards only work if you do not pay interest.A quick decision checklistBefore applying, ask yourself:Will I carry a balance?How much will I realistically earn in rewards each year?What will this card cost me in fees and interest?Do the benefits match how I already spend, or will they tempt me to spend more?A credit card is not free money. It’s a financial tool.The best card is not the one with the biggest bonus — it’s the one that matches your financial goal and your habits.

Flashy rewards. Big sign-up bonuses. Points, miles, cash back.

With so many cards on the market, it’s easy to choose one that looks exciting and only later realize it does not match how you actually spend.

We asked people how they use their credit cards and what they know about them.

“I have five credit cards,” Goldie from Doylestown, Pennsylvania, told us.
“Three,” said Paul from Babylon, New York.

Some people said they do not use credit cards at all.

“It’s just not convenient anymore,” said Lynn from Cambridge, United Kingdom.

When asked what they prioritize, the answers were all over the map, from travel to groceries, gifts, building credit or earning points.

But when we asked about interest rates, fewer people were confident.

“They’re about between 15% and 20%,” one man guessed.

“I think it’s probably 19% or 20% — something crazy,” another said.

That gap matters.

Many credit cards now charge interest rates above 20%. Carrying a balance can quietly erase the value of rewards and cost far more than most people expect.

Before you apply, start with one question: What do I actually need this card to do?

Most people fall into one of three categories.

1) You want to build or improve credit

If you are new to credit or rebuilding your score, your goal is not rewards — it’s history.

Look for:

Credit-builder or student cards
No annual fee
Reports to all three credit bureaus

Your job is simple: Use the card for small purchases. Pay it off in full on time every month.

This type of card is not about perks. It’s about proving reliability.

2) You want to save money on interest

If you are carrying debt or planning a large purchase, rewards should not be your focus — interest should.

A zero percent introductory annual percentage rate (APR) or balance transfer card can give you time to pay down debt without interest.

But read the fine print:

Balance transfer fees are usually 3% to 5%.
Transfer $1,000? That could cost $30 to $50.
When the intro period ends, the regular rate applies.

These cards work best if you have a payoff plan and can eliminate the balance before the promotional period ends. Without a plan, the problem just gets delayed.