There’s certainly no shortage of choices for businesses and consumers searching for a new bank or credit card. Fortunately, you don’t have to settle for a “one size fits all” solution—there are distinct differences in the products and services offered by the wide variety of banks and credit cards in today’s marketplace.
Many customers may simply choose the first bank or credit card that stands out to them, but there are a lot of factors to consider, from services to fees to accessibility—and more. Below, 12 Forbes Finance Council members share factors every consumer should consider when choosing a bank or credit card that will best fit their needs.
Members of Forbes Finance Council discuss important factors consumers should consider when choosing a bank or credit card.
Photos courtesy of the individual members.1. The Values Supported By The Bank
Products and services often look similar from bank to bank, but a bank’s mission can be a key differentiator. Consumers who are interested in aligning their financial choices with their values can seek banks that invest in such things as community development and clean energy, while avoiding banks that make investments they believe hurt communities, such as payday loans or fossil fuels. - Randell Leach, Beneficial State Bank
2. The Various Fees Charged
Many banks have annual fees, monthly fees and membership fees; make sure you understand the fee structure up front. It’s also important to consider loyalty perks. Depending on your lifestyle and where you most often use your card, how you spend your points or cash rewards can make a significant difference. - Julie Fergerson, MRC / Merchant Risk Council
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3. The Level Of Services You Need
Before committing to one over the other, consumers must determine if they need a product, such as a credit card, or the overall banking services provided by a bank. It’s common for consumers to view banks and credit card companies as interchangeable, but credit card companies don’t have the resources or customer service infrastructure that banks offer. Assess your needs and pick the best option. - Mara Garcia, Phonexa Holdings, LLC
4. The Tools And Services Offered
The right bank for you understands the importance of serving its segment’s unique needs beyond withdrawing and depositing cash. When picking a bank, consider the tools you use on a day-to-day basis, whether for business or personal banking. Pick a partner that prioritizes those areas—whether it’s a mobile-first experience, good customer service or easily accessible loan products. - Eyal Lifshitz, Bluevine
5. Your Financial Objectives
Consumers must consider their objectives to determine the best fit. For bank offerings, whether one’s goal is savings, bill payments, investments or loans, those objectives should dictate the best match. Likewise, the goals for credit card use should determine the best fit. Whether seeking convenience, cash advances, record-keeping or perks, the objective should drive the best choice outcomes. - Greg Bassuk, AXS Investments
6. What You Need The Credit Card To Help You Do
Determine the type of credit card you need. There are cards that help you build your credit or improve your credit when it is poor, cards that save you money on interest (low-interest or 0% interest cards or balance transfer cards), and cards that earn rewards. These are great if you pay off your balance in full every month and never incur interest, as they may offer higher reward rates, larger sign-up bonuses, points, miles or cash back. - Aviva Pinto, Wealthspire Advisors
7. Security And Convenience
Banking is about security and convenience. If you handle a lot of cash, pick a bank that provides ready access to branches and ATMs. If you mostly use mobile banking, ensure that two-factor authentication and other measures are in place. When it comes to credit cards, watch the APR if you’re going to revolve. If you’re not going to revolve, pick the card that maximizes the rewards based on your spending categories. - Sameer Gulati, ZenBusiness
8. The Customer Service Options
Banking is a fairly standardized industry, particularly when it comes to small-business banking. There’s not really much one bank can offer you that another cannot. Look for differentiating factors—for example, service—when choosing a banking partner. Choosing a bank that provides you with a direct relationship manager who can help you with everything can make a tremendous difference. - Sean Frank, Cloud Equity Group
9. Your Credit Score
The first thing is to know your credit score. You can check if an existing card offers free FICO score checks, check with the major credit card bureaus or use sites such as NerdWallet or Credit Karma. Never pay to check your credit—these options are free. Depending on your credit score, next consider what’s most important to you when choosing a bank or credit card. Do you want to earn rewards, build credit or something else? - Jared Weitz, United Capital Source Inc.
10. The Power Of Your Investment
The average person should consider the collective power they have as a customer of a bank. Banking is the original and most powerful form of crowdfunding. Analyze a bank as you would an investment in anything in your life (home, education, business, a financial instrument and so on). Don’t be afraid to ask questions, and be sure that the bank’s values align with your own. - Jaclyn Foroughi, Brazen Impact
11. The Range Of Benefits
Understand the bank’s core values and whether they meet your needs, such as high-quality service, security, protection, location and competitive low fees. Banks have to have it all to be competitive. One thing they can do to stand out is to have exceptional customer service. Building an interpersonal relationship between the bank and the customer ensures sustainability. - Letitia Berbaum, The Zandbergen Group
12. All Terms And Conditions
A bank’s job is still to make money. Take into consideration whether they put making money before customer satisfaction and loyalty. A business owner should aim to have a longstanding, solid relationship with the bank they choose, as this can be an excellent resource for many reasons. Additionally, when selecting a bank or card, it never hurts to check the terms and conditions, as they can be very telling. - Julio Gonzalez, Engineered Tax Services Inc.
