Every person in life has different situations to deal with financially. Similarly, each credit card has benefits for different people. The key is to analyze your situation and discover which of the many options is best for your specific situation and will help you accomplish your needs.
The following are four important considerations while searching for your ideal credit card that can make an impact on determining which card is optimal for you.
Simply put, credit card companies want to know that you can be trusted to repay any money they provide you. The single most important method they use to determine how reliable you are is your credit score.
This score is a number compiled by different variables that relate to how well you have managed to pay your bills, whether you were able to do so in a timely manner, and whether you had a difficult situation such as a bankruptcy that could make you a risk.
The higher your credit score, the better the chance that you will be able to get a high-quality card with great rewards and a good APR% (Annual Percentage Rate) of interest for repayment. A number from approximately 600-700 is considered good, and above that is exemplary.
Here’s how you can check your score:
Note: Receiving multiple rejections from credit card companies can sometimes damage your credit score, so be cautious.
There are three primary types of cards that you can choose when deciding what you need in a card. Here is an explanation of what they are and questions to ask to determine if these are right for you.
If you have a low credit score, your best bet is to build it up so you can work your way toward bigger and better cards. There are several methods available for you in this regard, most of which do not require a credit score since the purpose is to improve yours.
These are cards with 0% APR or low monthly interest requirements, or possibly cards designed to do a balance transfer to help manage debt.
Can a balance transfer to an existing credit card affect credit score? Not unless you do it frequently by opening new cards.
If you are having trouble determining whether this process can improve your situation, you could consider the MSE credit card balance transfer site. Money-Saving Expert provides a lot of great tips and calculators to help you decide.
Rewards cards are top-tier cards that provide you with points, miles, or percentages of your money back to save you money the more that you use them. There are a multitude of benefits to having these cards, but you need to have a high credit score and have demonstrated trustworthiness.
Now that you have chosen the best card for your situation, use it to improve that situation.
If it’s for credit building, reach a point where your score is high enough for you to move up to a higher level card with a better balance and maybe even rewards.
If it’s low-interest you want, use it to pay off the debts you’re struggling with and buy yourself the time you need without %APR to eliminate your debts, so you can move on to a rewards card.
Finally, if you have a rewards card, find ways to maximize its value to save the most money or acquire the most benefits by streamlining your cards to activities that you do the most.