The credit card you choose for yourself to be best might not be the best for me. You should select a credit card in such a way that will serve your purpose and will be beneficial to you.
You must choose a most rewarding credit card based on your spending habits and your credit score. Here are some ways which may come in your help in choosing the best new credit card for yourself.
Tips on Choosing a Credit Cards
- Firstly, you need to know what credit does it offers to you. The card is considered to be the best only when it provides you the good credit. If you have any credit problem in your past, then the credit card may not be available to you any longer. But at times it may happen that even if you made your payments on-time religiously but still you don’t have your credit long enough.
If you don’t have at least 5-years of credit history, then you may have to lower your expectations regarding rewards and also prepare yourself to pay an annual fee.
- Secondly, what you need is, to be honest, enough to yourself that you pay your credit to your bank in each and every month religiously.
If you carry out balance even at times, you need to be careful at the A.P.R. and the rewards that the card carries. No matter how much reward the card offers you, you must always search for the card which provides you with a low rate of interest even if the card does not offer you any reward at all.
- You also need to keep in mind while you choose a credit card that does you spend a lot of money in a particular area. The things that you need to keep in mind are:
- Ways to earn the rewards.
- Ways to redeem the rewards
- Is there any limit to earn the rewards?
- Do the rewards expire?
- Is there any annual fee?
- If yes, do you spend enough to make the fee substantial?
- Then you need to be prudent enough whether you use the credit card for your business purpose. If so, then it’s better if you make a steady card for your business purpose. It not only helps you to organise financially but also creates a separation between your business and personal expenses which can come into favour in time of tax audit or any legal action against you.
- Finally, the two most important things you need to remember while choosing a credit card are:
- You need to understand what impact your credit score has on your chance of approval. You may go for a card with good credit or just wait for it to go better.
- Choose a card with either good rewards or low A.P.R, not both. Either you can find a credit card with the low APR and forget about rewards if you think you will be unable to pay back the balance.
I hope you found our short blog post on some of the tips on selecting a Credit Card useful. Do let us know what you think about this on the comments section given below!