How to find the best credit card? It’s not easy to find and pick the right credit card that suits your needs. This is due in part to the sheer number of cards currently available. Just looking at the sheer amount of rewards credit cards available is enough to blow your mind. Many consumers choose a card that their friends recommend or one that they stumble across while surfing the internet.
You will need to do more research to find the right card for you. Different cards work best for different consumers. Your credit score may also affect the number of cards you are eligible for. Don’t rely on friends and direct mail advertisements to help you to choose the best credit card. Take the time to discover what you truly need.
These four steps can help you get choosing a credit card for your lifestyle and financial goals.
How to choose a credit card
How do choose your first credit card And the right credit card for me ?. Some questions and their answers are in this article. It helps to right pick the best credit card for your lifestyle and personal goal.
1. Check your credit score
The majority of top rewards credit cards require that you have excellent or good credit. However, there are cards available for those with only fair credit and cards for those who have little or no credit history.
It is important to understand your credit score before you apply for a card. You can find out your credit score to determine which card type you should apply for.
Based on your FICO score, these general rules will apply:
- Poor (579 or less) or fair (580-6699): It is possible to apply for a credit line for poor credit, or even a secured card.
- Good (670 – 739): While you have a chance to qualify for the best credit cards available today, premium cards may not be available.
- Excellent (740-799) or very good (800 and above): You should be eligible for nearly any credit card.
It might be a good idea to invest some time in improving your credit before applying for the best credit card. The best and easiest ways to improve your credit are to pay your bills on time, or early, and to reduce your credit utilization.
Remember, too, that every time you apply for a new credit card you will be subject to a hard pull on your credit report. This will temporarily lower your credit score and stay on your credit reports for two years. You may not be approved for credit cards in the near future if you have several hard pulls within a short period.
You should limit your card application to cards with decent approval chances based on credit history.
It is possible to check whether you are prequalified for a card from a particular issuer by visiting its website. You can also use CardMatch to search for cards offered by multiple issuers that match your credit profile. Prequalification is not a guarantee that your application will be approved, but it can give you some insight into your chances of approval.
2. Pick the type of card that fits you best
Once you are able to see where you stand in credit terms, you can start to decide which card is right for you. There are many options for cards available, and each has its pros and cons, depending on your goals and financial standing.
To help you make an informed decision about which cards you want to apply for, take a look at card reviews from the category that interests you to see how they compare to your credit score, rewards, or financing goals.
The best card for you will generally fall within one of these categories. Consider your credit history and future plans to determine which card makes the most sense.
Need to build credit? Get a credit-building credit card
Credit-building cards are designed for people with poor credit or limited credit histories. They can help you repair or build your credit, provided you use them responsibly. This includes paying your bills on time and keeping your credit utilization low. They are also suitable for people with less than ideal credit histories, so they are relatively easy to get approved for. what is the best credit card for me?
There are three basic types of credit-building cards: secured credit cards, student cards, and unsecured credit-building cards.
Secured cards function in the same way as traditional credit cards but require that you make a security deposit before you can become a cardholder. The amount of your credit limit is usually equal to the security deposit and it is refundable when you close the account or upgrade to an unsecured card.
As the name suggests, unsecured credit-building cards do not require a deposit. These cards are for consumers with bad credit. Lenders are less likely to approve these cards because there is no deposit. Unsecure credit-building cards are more expensive and have lower credit limits.
Students can choose to have their student cards secured or unsecured. They are usually only available to current students. These cards are typically cheaper than other credit-building cards and often come with student-centric perks.
Whatever route you picking the right credit card, a card that builds credit should be used as a stepping stone towards a higher credit card.
Need to pay off debt? Get a balance transfer credit card
If you have to pay off your debt, balance transfer cards are the best option. Transfer debt from one or more credit card accounts to a balance transfer account with a lower APR. This will allow you to reduce your balance while also saving on interest.
The cards offer a low-than-average or zero percent introductory APR for balance transfers, often lasting more than one year. You can contribute more to your principal balance, and less towards interest charges during this period. Transfer debt from one or more credit card accounts to a balance transfer account with a lower APR. You’ll be able to reduce your balance and save interest.
You can save money if your credit card’s interest rate is high. However, you will need to have good credit or excellent credit to qualify for a low or zero percent introductory APR. The primary benefit of these cards is their intro APR. They don’t usually offer any perks or rewards. so you picking the right credit card and his interest rate is low.
Balance Transfer Calculator to find out how much you can save over making monthly payments on your current card. If you can’t find better quality for a balance transfer offer, consider a different credit card debt consolidation method or a dedicated low-interest rate in credit cards.
Need to carry a balance? Get a low-interest credit card
If you have a low-interest credit card, it is an excellent choice if you are looking to pay down your debts or reduce interest costs. There are two main types of these cards: a card that offers a lower APR than average credit card APR, or a card that gives you a 0 percent introductory rate on your new purchases.
If you are looking to save interest and pay off major expenses, such as home repairs, moves, or renovations, a card with a promotional APR will be the best choice. The promotional APRs for new purchases last typically 12-18 months. After that, any balance will be subject to the regular APR.
If you intend to keep a balance for several years, it is advisable that you focus less on the initial rate and more on the ongoing interest rate. Low-interest cards may offer rates as low as 10 percent. This is a far lower rate than you will find on a credit card.
These cards have different credit requirements, but you will usually need to have at least good credit in order to get a good ongoing APR.
Ready to earn points, miles, or cash back? Get a rewards credit card
Rewards credit cards are usually reserved for cardholders with excellent credit. They are best suited for cardholders who have good credit and are looking to earn cashback and points through sign-up bonuses or purchases. You may have to wait until you are in a better financial position to receive rewards if you are still working on credit or need to pay off debt. The best credit cards offer the best reward points and much more rewards.
Cashback cards offer bonuses for spending a certain amount within a time frame. They typically pay a percentage of your spending as a statement credit or direct deposit. Other rewards cards earn miles or points that can be used to redeem for cash back, travel, merchandise, and other benefits.
There are many types of these cards. Some offer a flat reward rate for all your spending while others offer bonus rewards in specific categories like grocery or dining.
Consider your spending habits to determine which program is best for you. Also, consider how hard you are willing to work for maximum rewards. Do you have the time and willingness to enroll in bonus categories each quarter? How about using multiple cards to make different purchases? Would you prefer to earn the same rate for everything you purchase?
3. Decide which perks you want
Once you have a good idea of your credit score and the type of card that would best suit your needs, you can start thinking about what benefits you are most interested in. It can be difficult to find the right card for you, but it is possible to identify which benefits are most important.
These are some common perks for cardholders to consider:
- You can get primary auto rental coverage to replace your own insurance when renting a car
- You can get purchase protection to reimburse you for items that are stolen or damaged.
- Extended warranties can increase coverage for items covered under a manufacturer’s guarantee
- Protection for delayed or lost baggage
- Travel accident insurance
- Trip cancellation/interruption insurance
- Free FICO score on your monthly statement
- Cellphone insurance
These are some of the most well-known benefits that credit cards offer. But there are many more. These perks are important to keep in mind as you go through the next steps.
4. Consider the total package
This is where you need to be informed about your financial situation as well as the card you are interested in. These are the things you should know about
- Your credit score and the type of credit card you are most likely to qualify for
- Based on your goals, the type of card that you should apply is determined
- You want the best cardholder perks
- How comfortable are you with fees, including annual charges?
You’ll then find credit cards that offer the rewards and benefits you desire. You should be confident that you will get more value for your annual fee.
What to do next
After you have considered all these factors, you can now focus on the cards that best suit your credit score, goals, and budget. You can then apply for them when you find one.
Apply for your top choice
As multiple hard inquiries can lead to a decrease in credit scores, it is best to only submit one application at a given time. Look closely at the reason why your application was rejected. Your credit score, income, or debt-to-income ratio may be a factor.
Start using your credit card to its full advantage
This means that you use your card only to make the purchases you have planned and pay your monthly balance in full. This is particularly important if you are using your credit card to build credit.
Transfer your balances
Consolidate your debt by taking out a balance transfer credit card. Transfer your balances as soon as possible to get the maximum benefit from your card’s intro interest rate. You can pay off large amounts of your debt, or even all of it if you create a budget and stick to it.
The bottom line
It can be difficult to find the right credit card for you due to the variety of options available. It is important to do your research and put in the effort to find the right fit. It will be easier for you to narrow down your search to find the right credit card once you have decided what benefits and features are most important to you. I hope this article will help you in finding/choosing the right credit card for you.