How to Choose a Credit Card to Best Suit Your Needs
So you’ve decided you’re ready to choose a credit card or two. There are a huge variety of choices available, and it is easy to get overwhelmed. This article will act as a guide to help you choose the credit card that is best for your needs. We will also list a card from each category so you can check them for yourself.
1. Check Your Credit Score
Before you begin looking at different types of credit cards, check your credit score. This will give you a good idea of which cards are available to you. The higher your FICO credit score is, the more cards you have a chance of getting approved for. If you’re unsure of your credit score, AnnualCreditReport.com can give you your score for free once a year.
2. Choose a Credit Card That Best Fits Your Credit Style
Once you know your credit score, choose which credit card category is right for you. Do you want travel rewards or cash back rewards? Are you currently building your credit or paying off other cards? Do you want an annual fee or no annual fee? These are all questions you have to ask yourself.
Airline Credit Card
For the people who fly and log a lot of air miles, you should consider an airline credit card. You can use this card to book flights and pay for any of your travel fees. You can also pay for any additional travel expenses your run into. A good example of this airline credit card is the Chase Sapphire Preferred credit card. This credit card offers 50,000 bonus points if you spend $4,000 in the first three months. You get double points for travel and dining around the world. You can redeem your points for airfare, hotels, car rentals and cruises. For example, 50,000 points are equal to $625 USD toward any travel expenses. Another popular travel credit card is the Discover it® Miles Travel Credit Card.
Balance Transfer Card
If you’re already paying off other credit card debt, consider a balance transfer card. This card will help you put all of your credit card balances onto one card. This means you’ll only have one monthly payment. As a bonus, most balance transfer cards offer a 0 percent annual percentage rate for the first year. This means you can apply more money to your actual balance, and not interest. A good example of this card is the Chase Slate credit card. This card offers a $0 balance transfer fee for the first two months. It also has0 percent annual interest rate for the first 15 months.
Cash Back Credit Card
You may find yourself doing a lot of shopping, and if so, a cash back card may be the right choice. These credit cards will help you earn money each time you use your card. Many cash back cards offer 2 percent cash back on grocery purchases and ` percent cash back on everything else. Also, they usually offer a low or no annual percentage rate for the first year. The BankAmericard Cash Rewards card offers all of these things, plus 3 percent cash back on any gas purchase. You get a 10 percent bonus every time you redeem your cash back with this bank.
Low-Interest Credit Card
If you find yourself carrying over a balance on your cards from month to month, this card is a good option. The Chase Freedom Unlimited card offers no annual fee. There is also a 0 percent annual percentage rate for the first 15 months. You get 1.5 percent unlimited cash back and can earn bonuses for spending certain amounts in the first three months. Never do your reward points expire, and you can carry a balance without worrying about high-interest rates.
Rewards Credit Card
If you shop a lot with your card, consider a rewards credit card. These cards will give you points for every dollar you spend. You can add up these points and redeem them for travel expenses and airfare. The Capital One Venture One card is an excellent option. This card offers 1.25 miles for each dollar you spend. Every 100 miles is equal to $1 in rewards. There is no annual fee and no annual percentage rate for the first 12 months. You can also request statement credits as your reward.
Secured Credit Card
You may have no credit or want to build up your credit, so you should look into secured credit cards. You will have to have a deposit to open your account, and this will be your line of credit. If you make you first few payments on time, you may get a higher credit line. The Capital One Secured MasterCard is a credit card that can help you build your credit. You will have to put down a deposit ranging from $50 to $200 to open an account. Make your first five payments on time, and you can get access a higher credit level. There is no annual fee, and there is online access so you can keep track of your spending.
3. Research then Apply
Once you choose a credit card you think will suit your needs, do your research. Read the reviews from people who have used the card. Also, make sure you read all of the terms and fine print, so you’re not surprised later. Once you have done your homework and found the card that suits your needs, apply for it. If you’re not approved, look into why that is. You may need a card for a lower credit score.
4. Use Your New Card Responsibly
The whole point of getting a credit card is to maintain or improve your credit score. A credit card is a quick way to do this when you use it responsibly. Make sure you pay your bills on time each month. Pay off as much of your debt as possible, and pay it on time. Also, remember to keep your balance below at least 30 percent of your credit limit. If you have a debt payoff plan, stick to it before your 0 percent APR is up. If you’re trying to get rewards or cash back, it’s a good idea to use your card for everyday purchases. Just remember to track your spending, and don’t spend more than you can pay off.
Lastly, it takes time to choose a credit card to suit your needs. It is worth it to do your research and compare cards. The user reviews are also an excellent resource to use. The users won’t be afraid to tell you what’s wrong with the card, as well as what they like.
Advertiser Disclosure for the CreditFast website – CreditFast.com, provides information about the best credit card applications, as well as other financial products and services. Our goal is to provide you with fair, balanced reviews. Some credit offers that appear on our website are from companies from which CreditFast receives compensation, and some are not.