Technological advancement in the modern days has been felt across all fields. In finance, for instance, it has made great developments especially when it gets down to cash carrying and cash transfer. Nowadays, people rarely carry liquid cash with them. They make use of plastic money, which is safer, less bulky and more convenient than liquid cash. Seeing that this initiative has been warmly welcomed and that many are utilizing credit cards, lots of websites offering free financial tools have mushroomed. As a result, it has become a hard task on building trust on the service providers available.
Searching for the best credit card involves an art and scientific process. All credit cards are good but ranks come personally depending on individual tastes and preferences. Mostly, the best credit card is the one that perfectly suits your spending habits and credit position.
You could follow some four standard steps while in search of the credit card that perfectly suits you.
1. Check Your Credit
For starters, you are tasked with the responsibility to seek the available credit cards that you qualify for by checking your credit capability. Greater credit score means you have better chances of gaining approval for credit cards with bigger and better perks. To delve into the use of these cards, you have to determine your score first. Some credit card issuers offer free access to credit score, and many of them also give cardholders free FICO scores or else buy the credit scores from credit bureaus.
More often than not, the numbers don’t usually add up to people’s expectations. Worry not for it happens. To remedy it, you are advised to check your credit reports to ascertain the existence of the problem. With this knowledge as leverage, you can source out ways to improve on the score, which may range from changing your spending habits to disputing errors on your credit report. Luckily, you are entitled to a free copy of your credit report from the three major bureaus every twelve months according to the federal law.
2. Which Type Of Credit Card Do You Need?
Credit cards are in three major classifications; those that assist you in improving your credit, cards that pocket you money on interest, and cards that earn you rewards. Cards whose features meet your specific needs are obviously the best for you.
Some credit cards like the student credit cards and the secured credit cards are easier to qualify for clients new to credit. For the secured cards, a security deposit of $200 or more is required, but it is refundable upon account upgrade.
If your focus in credit cards is interest oriented, then low-interest APR or balance transfer card are the right choices for you. These cards carry an introductory 0% APR and continuing low interest. They perfectly suit emergency cases or irregular incomes situations, and they carry a balance from time to time. Also, in the instance of a balance transfer offer, they could assist you in repaying a high-interest debt without charging interest. However, these offers are only eligible to those with a good credit score.
If your aim is reward-driven, including uses relating to rewards, travel, or cash back, then reward cards suit you best. A reward credit card would work excellently for you if you offset your balances off in full every month without an interest expense. They have higher APRs but also offer larger initial bonuses and award you points, miles or cash back on every dollar spent.
There are always those who lack the knowledge to determine which credit card is best for them. If you are in the lot, you should not feel left out since assistance is right at your beck and call. To begin with, a few crucial things about you and whatever it is you are looking for in a credit card is sought. The process goes down in a questionnaire, which helps decipher what you require and provide a personalized recommendation for you.
3. Ask The Right Questions
Most credit card issuers have upgraded their systems and have come up with credit card comparison tools that enable you to find the type of credit card you are in search of and provide you with results regarding your credit score and monthly spending.
In the case of the student and secured cards, many people wonder if the cards will help them build their credit and whether it is possible to shift to a better card later while others worry about the cost of opening an account. Well, student cards help improve credit rating, but many secured cards don’t. Moreover, anticipated rewards for these cards are low hence are not charged an annual fee. With good credit build up, you can upgrade to a card with more competitive terms.
For the low interest, 0% APR or balance transfer cards, most people seek to know the length of the 0% APR period, the ongoing interest, the card’s balance transfer policy, and whether the card of offers any rewards. You should seek a card that provides you with enough time to repay your debts interest-free. If your balances will extend over several years, then a card with a low ongoing APR best suits you. For balance transfer, it is wise to check out the card’s transfer fees. Also, seek to know the debts you are eligible to transfer and the limit to how much you can move. A card with generous ongoing rewards would work out right for you.
Reward credit cards most sought questions is on how to spend, how complicated the card could be, and how fast rewards will be earned. For maximum rewards, you should go for a card that provides the highest awards for the option you spend on the most. Also, to avoid these bureaucratic bottlenecks, go for the card with flat-rate, cash-back rewards.
4. Apply For The Highest Overall Value Card
It is tricky to choose between two or three cards that you like than it is choosing from many. However, if you find yourself in this dilemma, then it is time to look for the differences between your ultimate two critically.
For student and secured cards, go for that which allows for credit limit increase. Some others pay interest on your deposit hence making your choice much easier. With the low-interest, 0% APR or balance transfer cars, go for that which has a debt payoff planner and those without late fees or penalty APR. For the reward, travel or cash-back cards, always go for that which has a lower required spending with no expiry date on rewards.
To acquire the most value for your money, make sure to use your card the right way. The choice for your credit card is supposed to set you up on the path of financial prosperity in the most affordable and efficient way possible regardless of whether you are building your credit, borrowing money to earn rewards or for any other purpose.