Source: Dumb Little Man
With so many banks and credit cards now available, it can be quite confusing how to choose the best credit card for you. But did you know? Credit cards are as different and unique as the people who use them. There are credit cards that match people who fly frequently, shop at certain stores, and so on.
You can narrow down the perfect credit card for you with these simple steps:Step One: Know Your Credit Score
Nothing can put a damper on your credit card search like getting denied. Credit cards have minimum credit requirements you need to meet before your application gets approved. Depending on where your credit falls in the spectrum, this can limit your choices. Your FICO credit score is made up of several factors. It ranges from 300 to 850. A good credit level is 650 and above. You can get your free FICO score once a year from Annual Credit Report.com and monitor it through Credit Karma. When you know your credit score, it’ll give you a good idea of the types of credit cards you can apply for.
See Also: 4 Ways to Start Building Great Credit
Step Two: Choose the Correct Card Type
There are several different types of credit cards available. You want to pick one that suits your lifestyle, so you get the most use out of it. Most credit cards fall into one of three broad categories:
- Cards designed to help you fix or improve your credit score.
- Cards that are designed to save you money on interest.
- Cards that are designed to reward you for using it.
Cards to Help Improve or Fix Your Credit
If you have poor credit or if you’ve never had a credit card before, you’ll start with this category.
Secured cards are a popular choice to help rebuild your credit, and you can usually upgrade to a non-secured credit line after a year. You do pay a refundable deposit to open the card. Student cards are great for college students who are just starting to build their credit.Cards to Save Money on Interest
If you plan on carrying a balance from month to month, you may want a card that saves you on interest. Try to find a card with a 0% APR introductory offer paired with a lower monthly interest rate. If you have a lot of debt, a balance transfer card can give you a small reprieve from interest while you pay down your balance.
…
The post Four Tips On How To Choose The Best Credit Card For You appeared first on FeedBox.