When you are in the market for a credit card, you don’t want just any credit card. You want to find the best credit card available. The good news is that there are a lot of great credit cards available, but one thing you should know is that there is no one size fits all credit card. In this article, we are going to talk more about choosing the best credit card for your needs.
Type of Credit Cards
You should know that all credit cards are not created equal so while you might think that a credit card is a credit card, that is only partially true. There are many different types of credit cards you can apply for and hold. Here are some of the most popular ones.
- Balance Transfer
- Low Interest
- Rewards Points
- Cash Back
- Hotel & Travel Points
- Airline Miles
- Gas Points
- Retail Rewards
While this list might look overwhelming, it is important you understand which one would be the best option for your lifestyle and how you plan on using the card.
Let’s look at the balance transfer card. If you have a balance you are carrying on one credit card that is high interest, and you want to move it over to a lower interest credit card, this might be a good option for you. If you don’t have a balance you need to transfer, it might not make sense to get a card that allows you to transfer balances.
Low-interest credit cards are attractive and low APR credit cards are always something we seek out, but you need to look at all of the terms and not only the interest that is charged. Some low-interest cards charge high fees for certain transactions or annual use. Knowing these terms before you will keep you from having to move from one card to another.
If you are a rewards or cash back lover then rewards points, and cash back cards could be right up your alley. These work best for people that want to use the credit cards and pay the balance off before the grace period is up which allows you to avoid paying interest charges.
Those of you that travel a lot may find the hotel rewards or airline miles cards to be helpful. When you travel a great deal, you can get a lot of points and save hundreds of dollars on your travels.
Comparing Credit Cards
Before you choose any credit card, you need to make sure you compare all of the different options that are available to you. Depending on how your credit score is, you may have hundreds of offers that you qualify for, so how do you know which one is the best one for you? The only way to decide which one is the best one for you is by comparing the best offers that you find side by side.
Make a list of the essential criteria of a credit card so you know exactly what you must have and then make a wish list so you have what you know you would like to have if possible. Having these two lists will make it much easier for you to decide which credit card is going to win out through the comparison.
Some sites will help you compare credit cards, and there are reviews that current and previous customers have posted online. Using all of your resources to determine which credit card is the card for you makes you a smart consumer.
Your Credit Card Affects Your Credit
Having lines of credit that you have proven to be able to manage responsibly helps your credit. The longer you hold these lines of credit without overages and without failing to pay payments on time, the better your credit will look to other lenders that you might want to get lines of credit through whether you want to purchase a car, buy a house, get a personal loan or if you need some other type of financing. The better your credit is, the more likely you are to get a good deal. This means that getting a credit card is the gateway to all of the other benefits mentioned here.
Any line of credit that you get should be taken seriously. The best way to make sure that you do not go over on your card or abuse the benefits of having the card is to treat it like a debit card. It is easy to feel like there is no limit to your card and you can keep spending, but that is not going to turn out well in the long run. If you ruin your credit, it can be very difficult to get a card issuer to give you an opportunity again. If you don’t have good credit, you may be required to get a prepaid or a secured credit card so make sure to keep on top of your bills.
As you are choosing your credit card, you should think of this as a long-term relationship that you want to nurture and maintain. Doing your homework on the type of card that you want is important, and now that you understand a little more about how to find the best credit card offers on the market, you can make an informed decision and get started with all of the benefits of being a cardholder.