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Certain warning signsexist if youre looking for a new credit card but arent sure which one to choose.
What are the seven red flags to watch out forwhen choosing a new credit cardto apply for?
Shockingly High Interest Rates
The first red flag you should look out for should be theinterest rate.
Credit card issuersoften use enticing introductory offers to attract new customers, warned Kim.
You want to be skeptical of rewards that expire quickly or have multiple conditions.
These rotating categories that change often can also add confusion.
To make matters worse, the limited redemption options can ruin the value of the rewards system.
Finally, you want to watch out for rewards that simply expire after a certain period of time.
Simple and flexible rewards programsgenerally provide better value, she added.
Spending $150 on an annual fee for a credit card with irrelevant perks isnt worth the hassle.
High Credit Limit
The opposite problem is gaining access to a high credit limit youre unprepared for.
The goal is to find a credit card with a comfortable credit limit so that you canmanage your financesproperly.
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