Today’s market is flooded with credit cards and that makes the process of choosing the right one uneasy job. You can’t really rely on the comparison of all cards as the truth is that no card is better than the other in all categories. The best approach is to ask the right questions and you’ll find the best card that will fit your needs.
We would like to help you make that decision easier by giving you a few tips on where to start when you are selecting a credit card.
1. Define Your Payment Needs
We all avoid doing our finances and always postpone it for better times. But to be able to pick the best credit card you need to sit down and define your payment needs and habits. That is the first and most important thing to really understand how you spend your money.
You should definitely be aware of your credit score and history.
2. Identify the Credit Card You Need
Make sure you don’t be tricked by the advertisements and promotions that you’ll see everywhere. The cards are much more than the bonus offered and the pretty plastic. You should definitely make your own detailed research and be proactive when you are approaching the market.
Remember to always read the small print conditions and completely understand how the reward program works. There are three general types of credit cards. Cards that help you improve your credit when it’s limited or damaged. Cards that save you money on interest. Cards that earn rewards.
3. Ask the Right Questions
When you have done your research and created a shortlist of cards that you consider, it is time to ask the right questions to pick the winner. If you need a card to build your credit make sure to choose one that reports your credit card payments to the three major credit bureaus. Most secured cards don’t do this. The account opening requirements and annual fees are also very important questions to ask. The next available card options based on a period you’ve used a certain card is again a useful information to have.
Look for a card that gives you enough time to pay off your debt interest-free and also check what the balance transfer fees are. Find a card that provides the highest rewards for the categories you spend the most on.
4. Apply for the Card with Most Value Offered
The final choice would be the hardest, ones you’ve narrowed down 2 or 3 cards that seem completely equal. You can do the last check for small details to select the winner. There should still be differences to consider. Check the if the credit card limit automatically increases and if the interest is paid on your deposit.
Find out which card lets you create your own debt payoff plan and there are no late payment fees or penalty APR. For travel, rewards and cash-back cards important thing to check is the spending limit and the expiration date on rewards.