Choosing the Best Credit Card For You
There can be no credit card that is solely better than all the rest in its features. Some may be better in their rewards, others could offer better rates on cashbacks, and some may be more suitable for people with good credit. By understanding the needs you want from a credit card, however, you will find the best pick for you. You need to ask the right questions as you view your options. At FinanceDoneRight, we understand that you might not be sure of what you need to ask. That said, we gathered three easy steps for Choosing the Best Credit Card For You. Here are the steps below.
What is your credit score?
Checking how much credit you have will put you in line to understanding your options better. In case you have good credit, there might be offers the bank is giving on your card. The better your credit score, the more likely you are to be approved for cards that offer better services. In case you have never checked your credit score before, do not worry. You can do so through major credit bureaus such as Experian, TransUnion, and Equifax. These firms sell credit scores. Additionally, a majority of credit card issuers give their prospective clients FICO scores at no charge.
Once you have viewed your credit score, you are in a better position to cut down your options. Shortlist the cards with better offers in line with your credit. In case you have a dispute about your score, you can always check your credit report to see the problem. You can get a free credit report from AnnualCreditReport. The site is federally authorized so do not worry about its credibility. Do you want to improve your score? You can do so by changing your spending habits. If the problem is in the records, however, you can always dispute an error by reporting it to your issuer.
What primary benefit do I want from my credit card?
Credit cards mainly give three different services:
- You can use them to improve your credit if it has been damaged or limited
- You can use a credit card to save up on interest
- Some credit cards offer rewards for making your purchases using them
In case you want to improve your credit score, then choose a student or secured credit card. Look for a credit card that charges 0 percent APR and has consistently low-interest rates. Notably, low-interest cards are hard to acquire if you have bad credit. As such, aim to improve your credit first. Are you looking to get bonuses or other perks from your card? A reward, cash back or travel card could be the best pick for you. Rewards credit cards may have higher APRs but will give you points for every dollar you spend.
What card on my shortlist is the best credit card overall?
Compare the fine detail of the cards. The best credit card will have relatively good offers spread out across both rewards, small interest charges and improving your credit. However, you might need to first focus on achieving a higher credit score across before you can concentrate on added benefits. That said, look for a card that allows you to upgrade to a better credit card over time.
Choosing the Best Credit Card For You isn’t always easy. If you answer all the questions in this guide, carefully cutting out choices, you will remain with the best credit card for you. Good luck!
