Choosing a Credit Card Issuer

Consumers today have a very wide range of choices when it comes time to select a credit card. Credit card issuers range from well-known companies with a long history such as Visa, MasterCard and Discover, to others companies more centralized on a particular style of card such as cards issued to those with poor or no credit. While most card issuers offer cards with similar features and options, there are differences between the cards that extend beyond where the cards are accepted and how rewards are distributed. You may find that your favourite retail establishments accept some of the major issuers, such as Visa and MasterCard, but don’t accept others such as American Express or Discover.

Choosing between major issuers such as:

And specific offers from banks such as Chase and Bank of America can be daunting, especially if you don’t know what you’re looking for and why.

To select an issuer for your new card, you must consider many factors including:

The company’s reputation. In harder economies, you want to know the company you’ve chosen will continue to act ethically and be there for you as much as when things are looking great financially.

Where the cards are accepted. If you shop at only a handful of locations each month, you’ll want to be sure the card you select is accepted at those specific locations. Opening an account you can’t use when you want to means you’ll likely have to open a different card to rectify the mistake later.

The card’s reward structure. Some issuers offer customers tremendous rewards for paying their balance in full every month and using the card wisely. Other programs offer customers a portion of their total sales back in cash at the end of the month. Some rewards are determined by the type of card you open while others are based on the issuing bank.

The purpose of the card. If you’re opening a credit card for business purposes, for example, some companies offer more business related services than others. Investigate which companies primarily serve business and which serve individuals to determine which issuer is best suited to your needs.