To select a credit card can be a tough choice and quite overwhelming. Having the super deal in your hand avoids the usual and common mistake of spending and mixing your borrowing on the same credit card. However, the credit card possessing the higher interest rates has the best rewards. While on the other hand, those who offer low-interest rates do not seem to hold any rewards.
All credit cards are not the same, as each of the credit cards comes with different options and benefits. But, you can get the perfect credit card according to your choice by considering your best selection and asking the queries arising in your mind.
Before buying a suitable credit card for you, follow the four marvelous steps which are given as:
Check your credit
First of all, find out the eligibility of the credit score, and then compare it with the card offers. The higher you score, the more chances you get to have a better credit card with more perks. Three fabulous ways to check your score are:
- NerdWallet offers access (free) to credit scores
- Credit bureaus (Equifax, Experian, and the TransUnion) sell credit scores
- Some card issuers provide free FICO numbers to card holders
Identify the type of credit card you require
The 3 types of the beneficial credit card that you need are:
- Cards which improve credit, either damaged or limited
- Cards which save money on interest.
- Cards which fetch rewards.
The most advantageous card is the one which contains the features according to your needs. For instance, if someone does not love to travel much, then surely the travel card is of no longer use.
Build or rebuild the credit: Student or secured credit card
These credit cards are considered to be the best for college students. It is very easy to be eligible for this type of credit card. The secured credit card requires an initial deposit of worth $200 or even more than this. Either your account is closed or upgraded, the initial deposited amount is returned to you.
Save on interest: Low-Interest, 0% APR or balance transfer card
The card having the 0% APR with low-interest rate can be no doubt a better option in the case of emergency, or in the case of any irregular income.
Rewards, Travel or cash back
Are you looking to earn fascinating rewards? A reward credit card is the best option when you pay off the whole outstanding every month. In this way, you do not need to pay any interest. These amazing cards carry higher APRs offering you sign-up bonuses and cash back on the amount that you spend.
Let’s find out the right type of credit card for you
Before selecting the right type of credit card, you must review the following important points.
Find out your credit score from below?
- Yes – I have an excellent credit (690+)
- Yes – I have average credit (630-68)
- Yes – I have a poor credit (350-629)
- No – Help me find out
Limit your choices by asking the right questions
Go through the following important questions in order to have the right type of credit card:
For the student and secured cards:
- Will this credit card help you in building a credit? Select the credit card which reports your card payments to the 3 bureaus.
- What are the annual fee and total cost for opening the account? The rewards which are attached to these cards are not high enough to bear the annual fee.
- Can I switch to a better card later on? Always select a credit card which builds your credit with the most competitive terms. It helps in boosting the age of your account.
Low-interest, 0% APR or balance transfer cards:
- How long is the 0% APR period, and what is the ongoing interest APR? Always select the credit card which provides you enough time period to return back the debt (interest-free). If you have made a mind to carry the balance for several years then choose a card with a low APR.
- Does the credit card offer rewards? If you’re fond of a 0% APR, then you will find a credit card which effectively delivers ongoing rewards.
Apply for the credit card offering you the fabulously highest value
Limiting your choices is the easiest phase, but making a selection between the three to four similar cards can be a bit difficult.
Always look deeply for the differences. Here are some of the major factors which might set a card apart:
For the student and secured cards:
- Credit limit increases automatically. Most of the credit cards increase your credit limit after the consecutive payments (on time)
- Interest paid on deposit. Many of the secured cards have a security deposit in interest-earning CD. In this way, you can earn a small amount of money on it.
For the low-interest, 0% APR or the balance transfer cards:
- Debt payoff planner. Create your own debt payoff plan as some of the credit card issuers allow you to do so.This is surely a valuable tool if you’re inundated with debt.
- Now, No late fees or penalty APR. Certain credit cards surrender these charges. If you are not able to make the on-time payment, this could be not a big deal.
After having the final credit card in your hand, keep it in your mind that you have stated all the income that you have access to (not merely the personal income). For many of the students, this may be scholarships, the pocket money from parents or money from grants. While for others, it may be partner or spouse’s income.
What is next after having the best credit card in your hand?
No doubt, It is a crucial decision to select the best credit card for yourself, but this is not the end of the story. One needs to use the credit card and credit card offer in the most appropriate way in order to get the maximum money. If you are planning to use the credit card for meeting your expense, then try to pay the bill fully in the next month in order to avoid any penalties, and do not use much of your credit.
It is a sagacious process to choose the best credit card which helps you in achieving your impressive goals in the most efficient and amazingly affordable way. Try to use the credit card within the stated limits so that you may avoid interest and earn maximum rewards. The rudimentary and sole purpose of the credit card is to provide you a helping hand during financial constraints.