There will come a time in every person’s life that they will to pick the right credit card. For those people that are looking to build their credit with a first time card they should be very careful in picking. Some beginner credit cards can have huge interest rates associated which can come back to haunt you when you forget to pay your bill on time. People in different parts of their lives might desire different attributes in a credit card while a person living paycheck to paycheck might want low interest rates a financially healthy person could want travel rewards. Credit cards have really evolved over the years as there is more competition than ever to earn your business. The following are tips to help you pick the right credit cards for your current needs and picking a credit card in the future.
Checking Your Credit Score
People who have no idea whether their credit score is great or poor could have immense problems borrowing money in the future. This can impede you from getting a mortgage as a lender wants to be assured that the loan will be paid back in a timely manner. Checking your credit score is the first step in being able to slightly repair it before applying for any credit cards. This will now give you a better idea of what type of credit cards you can apply for as some have minimum credit scores to qualify. The better your credit the better the credit card that you can apply for in terms of interest rates. Lower credit scores are seen as a larger risk so interest rates are higher so the credit card company can recoup their money as fast as possible.
Make A List Of Questions To Ask A Customer Representative
The one thing that you can do that plenty of people do not take advantage of is getting a customer representative on the phone or meeting with them in person. If your bank offers a credit card then you can sit down with them easily the next time you need to make a withdrawal or deposit. Questions can include everything from fees to the rewards that are offered by a card as not all the benefits are often shown on literature sent to your home. This person might be able to wave your first annual fee or offer some other benefit if you agree to signing up for the card on the spot.
Getting money back for purchases that you are going to make anyway can be seen as a huge bonus for many credit card users. Other people put more stress on credit cards that can allow them to redeem their points for free flights or hotel rooms. Rewards differ greatly between credit cards so getting the full scope of the rewards program is imperative. Understanding your spending habits will come in handy with this so compiling yearly expenditures can easily show you which card to choose. Enough eating out could lead to a flight to another country being earned, simply by eating like you usually would anyway.
Annual fees usually are associated with rewards programs that are mentioned above Depending on how much money will be spent on the credit card these can be well worth it. People who run their own small businesses and use their credit card for the business can earn immense amounts of rewards. There are other cards that might have monthly fees so you do not have to pay the fee all at once. Weigh the benefits of the card versus the cost with your top cards if you are willing to pay an annual fee. Certain people will not pay for a credit card that they could use for free as they simply put money on the card and pay off debts monthly.
Interest rates are the first aspect to look into with a credit card if you do not plan to pay off your balance completely each month. Paying off the minimum can lead to thousands of dollars in interest fees even if you do not use your credit card constantly. For those people that have low credit scores you need to build your credit to qualify for a card with these attributes. Doing things like putting gas for your car on a card then paying it off monthly can be a great way to build your credit.
Credit limits are usually going to be low for a person without a long credit history or who have a lower score in terms of their credit. For people that want to book trips on their credit cards so they can reap the rewards a few thousand dollars should suffice for booking a tickets to quite a few locations around the globe. People who travel globally will also want a credit card company that is utilized around the world. There are cards that slowly increase a credit limit after a set amount of payments that are done on time. This shows the credit card company is starting to trust a customer more with this increase as they pay reliably.
Multiple Credit Cards
As mentioned above some people might need multiple credit cards as it makes it easier to decipher business versus personal expenses. A business credit card might have a larger credit limit that might come in handy for larger purchases for a company. Having multiple credit cards can be advantageous for some but overwhelming for others. Simply because a credit limit is high does not mean that you should spend to the limit monthly. If you have problems managing one credit card and its payments just do not get another card as it could get you into trouble.
No one credit card is right for a group of people as everyone has different desires and requirements in terms of what they receive from a credit card company. Do your research to figure out which credit card will work better for you!