How to Choose the Best Credit Card | Best Guide For Credit Card Picking
Getting the best credit card is not as easy as most people imagine. However, no single credit has it all. But finding the best credit card for you seems like an art or rather a science.
Though, if you ask the right questions before you apply for a credit card, you may probably get to find the best credit card that’ll suit you and your spending habits and earnings. In this post, I’ll be giving you the best guides on how to choose the best credit card that’ll suit you and meet your spending status.
Tips on how to Pick the Best Credit Card
Know the type of Credit Card you want
Before you finally settle for the credit card you assume to be the best for you, you must know and identify the types of credit card. However, there’re generally, three types of Credit Cards
- First is the credit card that’ll help improve your credit when it’s limited inaccessible
- Credit cards that can save you some money mostly on interest rates and annual percentage rate (APR) Charge.
- Cards that can earn you good rewards and benefits
So, if any credit card you’re considering picking can’t meet your specific needs and offer you some rewards won’t be the best credit card for you. For instance, if you know you don’t travel a lot, there’s no need for applying or picking the best travel credit card.
Know your Credit Score
After deciding the type of credit card you want, go ahead to check your credit score. Now, you’ve to know that the better your credit score, the greater your chances of getting your credit card application approved.
Below are the ways to check your Credit scores:
- Use the NerdWallet free access to credit scores
- Free FICO Scores
- Using the 3 major credit Score bureaus in the US (Equifax, Experian, and TransUnion that sell credit score
If you don’t like what your credit reports are, ensure to know what the problem is. Then, figure it out to know how to improve your credit score. Of course, you know that the Federal law enshrines you’re entitled to one free copy of your credit report from any of the major bureaus once a year. You can get your annual free report at AnnualCreditReport.com.
Saving or Building Credit Card
You can build your credit card with the Student credit cards. It’s easy to qualify. This secured credit card needs a security deposit of $200 or more. Your deposit is given back to you as soon as your account gets an upgrade or when it’s closed for some good reasons.
Selecting from a Low-interest, O% APR or Balance Transfer Credit Card
In choosing a credit card, you’ve to consider a card with 0% introductory APR and low-interest rate. This type of card will be the best credit card for you in terms of emergency.
Also, if you plan using your Card for an emergency, or you don’t have a regular income, a balance transfer offer will be the best credit card for you. Its help you pay off your high-interest debt which doesn’t have any interest rate.
Choose a Reward credit card
If you want to earn rewards at the end of the month or as you make a purchase with your credit card, then, you’ve to choose a rewards credit card. Before you can enjoy these benefits, you’ll make sure that you’ll pay off your balance in full at the end of every month.
This kind of card isn’t easy to come by. When you see them, they always have higher APRs with higher Sign-up bonuses with large points, Cashback, and miles on each $1 you spend.
Limit your pickings by asking the right questions to the Card providers
You may likely want questions like these ones below to be answered before you can go ahead to pick of any card:
- How much will cost to open an account, together with the annual fee charge
- If the card can help you build your credit
- Will you move up higher to a better card later?
- What length if the 0% APR rate and the low-interest rate
- The card’s balance transfer Policy: what’s it like?
- If the cards offer rewards?
- About the Cashback from the card
- Is the credit card complicated? If, then how complicated is it
- How soon can one earn a reward and also the worth of the reward and how you can spend the rewards
Go for the Credit card with Highest Overall Value.
Ensure that you pick the very credit card that’ll give you the best overall value for your spending. Use the tips below to know how:
- How often the credit limit increases automatically
- The interest rate on a paid deposit
- Are there late fees or APR penalty
- Does the card Expire?
With this list above, if well followed, you’ll end up picking the best credit card that’ll suit you. But then, after your card application is approved, go ahead to use the card. Ensure to pay your bill in full every month.
If your target is to get rewards, use your credit card every day for your purchases and make sure you pay your bill in full every month. This will enable get all your rewards and benefits of using the card.