With varying interest rates, requirements and rewards — not to mention a range of features designed to lure you in — it seems there are endless options when it comes to finding the right credit card. But it’s not only about finding the card with the most added value. Generally speaking, the best credit card for you is the one that best fits your specific budget, spending habits and lifestyle.
Here are a few things to consider when choosing the right credit card for you.
Credit Score
Before you’re approved, the issuer will do a deep dive into your financial background, evaluating loan balances, payment history and your credit score. Because different cards have different credit score standards, it helps to know your own credit score if you don’t already. (Note: there are many free services available online to help find this information easily. )
If you have a low credit score, look for a card that can help you build your credit back up. While many of these options require a security deposit, they can come with low interest, low limits, no annual fees and easy payback options, allowing you to build your credit up with on-time payments.
If you have a high credit score, you’ll have more options available to you — including cards that offer more rewards, travel perks, cash back, no international transaction fees and much more.
Annual Fee
Some credit cards charge holders an annual fee to have the card — often ranging from $50-$500. However, in general, the higher the fee, the better the rewards. To determine if this card is right for you, decide if you can — or want — to pay an annual fee. Then, calculate if the monetary value of the rewards surpasses the annual cost to carry the card. If so, it might be worth the extra expense for what you get in return.
Welcome Perks
Credit card companies want customers, and they’ll go to great lengths to get you to choose them — including offering a wide range of perks for just becoming a customer. Rewards include travel miles, companion airline tickets, cash back, cash back matches, extra points, hotel stays and more. Most welcome rewards come with stipulations to ensure you are there to stay — like spending a minimum amount of money in a certain time frame — but can otherwise sweeten the process of signing on the dotted line.
Rewards
Now, here’s the fun part. Many credit cards pair spending with a range of rewards that can boost your budget, improve travel opportunities, provide access to VIP opportunities and more. So, find a card that not only adds a little extra, but that has rewards that make the most sense for your life. Travelers will love a card with airline miles, free upgrades, airport lounge access or companion passes. Shoppers who want a little extra cash will love extra points for purchases and cash back. Some cards even offer early access on concert or game tickets, and there are also opportunities for free museum admission, credits toward take-out or delivery and more.
Overall, when searching for the right credit card, you’re looking for the best value. Once you understand what kind of card you qualify for, take time to figure out the pros and cons of your potential card. With the right approach, you make your credit card work for you and get more out of your money.
DISCLAIMER – This content is for educational and informational purposes only, and is not intended as financial, investment, or legal advice.
