Tips For Choosing The Right Credit Card
- By Kul Deep |
- June 9, 2023
Having a credit card has become a common thing these days. People use the credit card at their convenience and no doubt it is an instant loan that comes in hard times that you use as a credit card. Banks also offer many attractive offers while issuing credit cards, but you should know which type of credit card can best suit your needs. For this, you have to pay attention to the bank charges, interest amount on the credit card, facilities by the bank on the credit card and many other things.
1. First Know About Your Credit Score And Report
To get a sound credit card you must first know your credit score. You can know your credit score on Equifax, TransUnion, or Experian. With the help of a good credit score, you can get the credit card that suits your needs. Apart from the credit score, there are many other things that go into getting a sound credit card, such as your credit history, monthly income and the various types of payments you make.
You need more than a credit score to get a good credit card. Yes, a credit score is one of the many requirements for getting a credit card, so credit card issuers have to keep all these requirements in mind. The better your credit score, the more perks your credit card might have. Your credit card issuer will also look at your credit and determine the interest rate and limit. Undoubtedly, a good credit score and many other things help you get a more favourable credit card.
2. Choose Credit Card According To Your Need
A credit card is an essential tool that helps you financially at different times, but it is also important to know that there are many types of credit cards and you have to think about which one you need. Are you a businessman or an employee or a student? You should get different types of credit cards in different situations. When you choose the right credit card, it becomes easier for you and you know where you need it.
Generally, credit cards can be divided into three types: Rewards credit cards, 0% intro APR credit cards, and Building credit. Rewards credit cards help you to get rewards by redeeming points, and getting cash back on different spending like travel, gas, groceries, hotels etc. Spending at different places earns different rewards. 0% intro APR credit cards benefit you if you want to reduce your debt because you can make purchases or spend in other ways with it at a 0% interest rate.
However, there is a limit for how long you can use this credit card at a 0% interest rate and you will get this information at the time of taking it. Building credit also can have an advantage for those who are new to the credit card. People also with fair or low credit scores can have the benefits of having this type of card.
3. Annual Fee And Other Charges
When you know what kind of credit card you need, then after that you need to get information about the various expenses incurred on it. Different types of credit cards also have different fees and these fees also affect the cost of using them. Additional charges such as annual fees, late fees, balance transfer fees and international transactions fees etc. Annual fee charges are those charged over a year’s use of a credit card. If you don’t use your credit card much or spend it only on special occasions, then paying the annual fees of the credit card is not a wise thing to do, but you should find a card that does not charge an annual fee.
You also find the card which does have a low balance transfer fee as this fee is mostly charged by the banks. You should either get a credit card that doesn’t charge late fees or has very low fees. If you incur a late fee, then you should set up a payment reminder to avoid such charges. If you are shopping outside your country, it is natural that you will pay an international fee on your card, which is often enough, so you should choose a credit card with a zero fee charge or a very low fee charge.
4. Credit Card Limit
The credit card limit is another step you need to watch which can be helpful to you while choosing a credit card. The initial credit limit may depend upon your credit history or credit score or some other factors. Anyway, you get to know the limit of your credit card only after applying for it. If the limit of your card is less, it can be increased, but it depends on how you use your first limit and if you pay your bills on time, the card issuer will automatically increase your limit.
The Bottom Line
Choosing the right credit card is very important, but it is even more important to choose the right card and use it in the right way. Paying your bills on time and doing other important things will help you get the most out of your credit card. When you do this, your credit card can be beneficial in every way.
