So, you’d like a credit card. You search one up, apply, and wait to receive it in the mail. That’s it, right? Certainly not; there are so many credit cards available because some are more suited to particular histories, needs, and lifestyles. If you want to be confident you’ve chosen the best card for you, stick to these four hints.
1. Get real about your spending habits. Be honest with yourself concerning your credit card behaviour. Is it likely that you’ll be keeping a balance on there? If so, you want a credit card with a pretty low-interest rate.
Do you have trouble keeping your spending under control? For so many people, simply knowing they can use their card is enough to keep spending. This isn’t always a problem if you really make all payments on time, but if you’re concerned about accumulating debt, admit that you cannot be trusted with a larger line of credit, and go for something smaller.
2. Learn all about your credit. If you want to know more about the best credit cards available this year, learn more here. But before you apply, it’s key that you know as much – if not more – about your credit history than they will. This may greatly impact your chances of getting approved and should inform which cards you apply for, to begin with.
If you have good to excellent credit, accept nothing less than the best – low APR and as many perks as they offer. If your score is struggling, intentionally check out cards designed to help rehabilitate credit.
3. Identify your purpose. Where, when, and how often do you see yourself using your new card? The reason for the card will help you choose. For instance, if you’re looking to transfer a balance, you want to ensure your new card allows you to do that without an interest hike.
If you need it for vacation, you might want travel security features and travel rewards. You might also want to make sure that card doesn’t tack on extra fees for spending abroad. If you want a regular-use card to keep for the long haul, don’t get too hung up on the introductory APR. Make sure the APR you get when that period is up is one you can live with.
4. Now pick the card that offers you the most. Check to see if the card that’s right for your purposes and credit history can offer you anything else. If there’s an annual fee, ensure that it doesn’t exceed the amount of any rewards you would get.
Generally speaking, a card with the least amount of fees, no penalty APRs, and rewards without strict expiration dates is most desirable.
No matter which card you end up with, it should support you in building or maintaining your credit. As long as you make those payments on time, you should only see positives on your report. Avoid cards where the APR is unstable, the rewards are nonexistent, and fees are applicable to too many transactions.
Tags: credit cards