Finding the Perfect Match - Which Credit Card Is Meant For You?
With all of the choices of credit cards out there, choosing the one that is right for you can be quite a daunting task indeed. There are cards that allow you to support your favorite charity every time you make a purchase, and others that offer high spending limits. By considering each of the factors below before making a decision, you should be able to choose the perfect card for you.
Spending limits: Consider whether you want a card with a high or low limit. If you frequently use credit to make purchases, earn a good salary, and are responsible when it comes to financial planning and paying your bills, you may want to get a card with a higher limit. If, on the other hand, you know you might be tempted to use your credit card when you really shouldn’t, you don’t have the means to pay off a large balance every month, or you’ve had trouble with your finances in the past, a lower limit may be preferable.
Credit history: It’s a good idea to know your credit score or at least whether your credit is good or bad before you begin applying for cards. Many cards require that applicants have very good or excellent credit. However, there are also those designed for individuals with average or below average credit. If you are trying to rebuild your credit rating or you have a very limited credit history, these types of cards may be better choices.
Personal or business: Do you plan to use your card for personal expenses or for business costs? This should be an important consideration when you are choosing your card. Most cards that people would classify as ‘regular’ credit cards are suitable for personal use. However, there are many great card options for business owners as well. They typically offer perks like expense reports, financial summaries, and discounts on business supplies.
Card issuer: Some people do not care who actually issues the credit card, as long as it offers good rates and benefits. However, many choose to obtain a credit card through their bank. Typical reasons for this include greater convenience when paying bills and accessing account information, and a personal loyalty to the company. Consider whether you would rather obtain your card through your bank or another company when you are making your decision.
Rewards: Is it important to you whether your card has a rewards program? If so, the choices are virtually endless. Some cards allow cardholders to earn cash rebates; others give them a partial refund on finance charges. Many allow the cardholder to earn points that can be used towards travel or cash. Some are very specific in that points can only be redeemed at a single location, while others offer a diverse choice of rewards. Take the time to find a rewards program you can be excited about.
Charity: If supporting charitable causes is important to you, it may be possible to donate to your favorite cause every time you use your card. With these types of cards, each purchase results in a small donation being made to the charity supported by the card issuer. Some charity cards also include a rewards program.
Credit card balance: Whether or not you intend to or reasonably expect to carry a balance should be considered. If not, you may want to look into a charge card, which will require you to pay off your balance in full each month. If you know you will not pay off your balance each month, look for cards that offer the lowest interest rates possible.
Perks: With so many credit card companies out there, many have begun offering perks to cardholders in an effort to stay competitive. These perks are separate from any rewards program offered, and may include online account access, car rental insurance, priority access to clubs, discounts at certain stores and restaurants, and many others. You will probably find that no single card will offer all the perks you want. Choose two or three that are important to you, however, and you should be able to locate a card that will meet your needs.
Spending/payment habits: Take some time to assess your spending habits and payment practices. Will your card be mainly used to make purchases? For balance transfers? Cash advances? Do you anticipate that you will be able to make your payments on time each month? Answering these questions will help you pick a card that will be the best choice for you financially. All credit cards charge fees, but you can save money by choosing one that will result in the fewest fees possible. For example, if you know you will mainly use the card for cash advances, your number one priority should be finding a low cash advance interest rate. If you anticipate late payments, look for low late payment fees.
Ideally, you want to find a card that offers a fair rate, does not charge excessive fees, and offers cardholders a little something extra, whether it’s a rewards program, cardholder perks, or the opportunity to support a charitable cause. Taking each of the above factors into account is time-consuming, but it will allow you to choose a credit card that is the perfect match for you.
About the Author:
Paul Basco Provides Expert opinions and reviews to help you Compare and Apply for a Credit Card Offers online. At GettintingaCreditCard.com, we offer credit cards for bad credit, low apr credit cards, instant approval credit cards and much more.
