April 3, 2017
3 Tips for Picking The Best Credit Card For Your Financial Needs
Knowing what credit card to add to your financial house can be a tough decision. Each person had a different credit history, need for using credit, and plan for how to take advantage of certain benefits that come with having good credit. For this reason, it really is a big choice to make when picking a new credit card to open for yourself. So to help make this decision a little easier, here are three tips for picking the best credit card for your financial needs.
Understand How You Use Credit
Because every type of credit card is slightly different that its peers, the most important thing for getting the right card for you is figuring out which one fits your financial personality best. One of the biggest parts of your financial history that you should take into account here is knowing how you use credit. David Weliver, a contributor to MoneyUnder30.com, shares that things like your current credit score, your ideal payment plans, and the amount of money you plan to put on your credit card will all have a big impact on which card is right for your. Depending on how you answer each of these three questions, your financial needs will vary.
Look At The Rewards
Once you’ve nailed down your personal philosophy regarding how you plan to manage your credit, it’s time to look at how certain credit cards are going to be beneficial to you. Stacy Cowley, a contributor to The New York Times, writes that most majority credit cards have a certain type of reward associated with them that could make them more appealing for certain people with certain lifestyles. Most credit cards offer rewards like travel points, cash back, special offers, or other similar benefits. Knowing how the rewards work with the usage of a certain credit card could help you in picking the one that best aligns with your ideal reward and financial desires.
After you’ve figured out both of the above sections, you’ll likely have narrowed down your choice to just a handful of credit card options. At this point, it’s now time to look through each option with a fine-toothed comb to compare their subtle difference. When doing this, Claire Tsosie, a contributor to Nerd Wallet, recommends considering things like credit limit, interest rates and APRs, required spending, late fees, and other administrative details that could make one card have a lesser overall value than another. When this step is complete, you should have narrowed down your options well enough to have just one credit card left standing.
If you follow the tips mentioned above, you should be able to find the perfect credit card match for your and your financial future.