Whether you’re just starting a teaching career or have seen enough to write an instruction manual for the newbies, there are a few things to keep in mind when shopping for a credit card.
Consider the Credit Card’s Cost Over Time
The two greatest factors that determine how much money a credit card costs over time are the annual fee (if any) and the APR (annual percentage rate), which tells you how much interest you’ll pay on any balance you carry. In both cases the lower the number the better, and there are many no annual fee credit cards available for teachers.
Credit Cards Can Help Pay Down Debt—But Use With Caution
If you already carry some debt and are looking for a way to pay less interest as you pay off that debt, a card with a 0% intro APR may look particularly attractive. Make sure you pay attention to how long that introductory APR lasts, though, as well as any balance transfer fees and the interest rate you’ll pay after the intro period is over.
If you’re thinking of using a credit card to pay down debt, be realistic when determining what you can pay each month. For example, if you make a balance transfer but haven’t paid it off before the intro APR period expires, you’ll owe interest on any outstanding balance.
Don’t Bite Off a Bigger Welcome Bonus Than You Can Handle
Much like balance transfer offers, credit card welcome bonuses can be very attractive—but not entirely without cost. To earn that juicy bonus you typically must meet a minimum spending requirement within a specific time period—usually the first three to six billing cycles after your account is opened.
If you were going to spend that money anyway, that’s no problem—go ahead and spend it to rake in that welcome bonus. But if you can’t pay your balance off right away, the interest you pay on those purchases will eat into the value of your bonus.