A Guide to Choosing the Right Credit Card
With so many credit cards available, deciding which one to apply for can be difficult and sometimes frustrating. There are certain steps you can take that will answer the question, “Which credit card is best for me?”
In four steps, here’s how to choose a credit card:
- Select the type of credit card you desire.
- Determine the most important features.
- Examine your credit card alternatives.
- Apply for the credit card of your choice.
1. Select the type of card you desire
Selecting a credit card is much faster and easier once you’ve decided which type of card you’ll shop for. A frequent traveler who wants to collect airline miles will obviously require a different type of card than a first-time credit builder.
That is why the first step in determining how to choose a credit card is to identify your primary reason for obtaining a card. You’ll most likely choose a credit card for one of the following reasons.
- Improve your credit score
- Earn rewards on purchases
- Pay off purchases over time without interest
- Save money on credit card debt
2. Determine the most important features
The next step is a continuation of step 1. Select the credit card features that are most important to you.
Credit cards for improving credit
If you want to use a credit card for bad credit, you should prioritize getting a secured card, or a student card to improve your credit score.
Rewards credit cards
Perhaps you’re wondering how to choose a credit card that offers cash back or travel rewards, make to check the following before making a decision:
- Rate of Reward
- How to Use Travel Reward Points
- Ensure there are no foreign transaction fees.
0% intro APR credit cards
When deciding how to choose a credit card with a 0% intro APR, consider how long the 0% intro APR will last. The trial period should be long enough to cover the costs of the purchases you’ll make.
Balance transfer credit cards
The length of the balance transfer offer is the most important factor to consider. You should ideally get a balance transfer card with a 0% intro APR that will last until you can pay off your debt.
3. Examine your credit card alternatives
There is no single credit card that is superior to all others in all categories. So when you come across several options with similar benefits, You can look into their sign up bonuses and ease of use to decide.
4. Apply for the credit card of your choice
When you finally decide on a card, keep in mind that you can include all income you have reasonable access to, not just your personal income, on the application. For students, this can include money from grants and scholarships, as well as parental allowances.
You then have to go to the credit card’s page, apply with the necessary personal information filled correctly and wait for a response. If your application is denied, you can contact the credit card company’s reconsideration line to see if the decision will be reversed and you can easily apply for a different credit card.
By understanding your options and asking the right questions, you can find the best card for your spending habits and credit situation.