Having the right credit card not only enables you to not have to carry cash, but it also will give you access to some charging power, too. Many credit cards also provide excellent benefits, too, such as cash back or some kind of rewards program. Choosing between the many different offers can be difficult – unless you know what to look for. Here are 5 tips to help you choose the best credit card for your needs.
1. Select Your Primary Credit Card Benefit
After you find out what your largest expenditures are for each month, you will know what kind of benefits to look for. You will be able to reap the most benefits from your new credit card if you get one that will give you the largest amount of return for the things you buy the most.
An example of this would be if you were an individual who has to travel for your business. You may have a lot of monthly expenses for gas and car maintenance, and for hotels and restaurants. In some cases, you may occasionally have to travel by air, but this is not that frequently. In this case, it would make much more sense to get a driver’s credit card or a gas credit card, rather than an air miles credit card.
2. Check Your Credit Report
Before you apply for any kind of new credit, it makes sense to look over your credit report. The credit bureaus say that it is not unusual for errors to appear on credit reports and these can affect your interest rates and may even prevent you from getting any new credit.
You will want to correct any errors that you find there. If you already have bad credit, you may need to take some time and work to raise your credit score before applying for more. As far as applying for credit in more than one place goes, it will not damage your credit report if it is done close together – within a couple of weeks.
3. Consider Additional Credit Card Benefits
The best credit card is one that will give you what you need. This means that it is possible to get additional benefits, such as balance transfers when you get the new credit card. A balance transfer credit card can help you immensely when combined with up to a year of 0% APR interest. This can enable great savings on interest and allow you to pay down credit card debt, too. Many credit cards will charge a percentage of the amount transferred for the service, but some will do it for free.
4. Watch for Credit Card Fees
Many credit cards have a number of fees – ones that are often found only in the small print on credit card offers. Be sure to compare credit card fees before you fill out the credit card application. You should also be aware that many companies would now put you into a high interest category and negate your Introductory Offer if you are late on even one payment.
5. Search for Possible Credit Cards
As you search for a new credit card, you want to find one with the best credit card rates. It does not matter if purchases have a 0% interest rate now, because sooner or later the real interest rate will take effect – unless you get another new one at that time.
Tags: Credit Cards