If you are thinking about getting a credit card you may be worried about which one to choose. There are plenty of options in the market and there are different types of credit card that you can get from different companies. You should be careful to select the correct one because it will be a financial instrument that should help and not be a concern. In this article we are going to give you some recommendations to choose the correct credit card for you.
Advices to get the right credit card
The first thing that you should have in mind to choose the correct credit card for you is the use that you are going to give it. For example, if you want a credit for general spending like regular purchases then you should look for one with a low interest rate.
If you are going to use the credit card in some specific stores then look for a credit card with rewards in those stores. If you want a credit card to start building a credit history and a good credit score you should look for a secured credit card. If you want a credit card and use it when traveling outside of the US you should look for a credit card with no foreign transaction fee and with rewards for the miles that you travel.
The second thing that you should consider is how you are going to manage the balance which is the debt. If you are planning to carry a balance for a long period of time then you should have the lowest interest rate possible because that balance will generate interests. If you want to pay the balance later then have a look for credit cards with an introductory 0% APR because that will allow you to use the credit card without paying interests. However, it is recommended to stay with a low debt/credit limit ratio because that will increase your credit score.
The third thing that is recommended is to have an open vision because there are different cards that have more advertising than others. So, you should make your own research online and make a list with the characteristic of every credit card that you are considering. That will let you know which one is the right for you depending on what you are looking for. Having the information is a very important thing to make the right choice.
The fourth thing to consider is to check your credit history and credit score and look for credit cards that are in your possibilities. There are plenty of options in the credit card market and you should apply for the ones that you are able to have. If you have a low credit score then you should apply for credit cards with low requirements like a secured one. But, if you have a good or excellent credit score then you have more options in the market.
The fifth thing to consider is the credit limit of the credit cards because that will determine how much you can spend with it. Keep in mind that once you have a credit card you can increase the credit limit after a certain period using it. The credit limit is important because if you want a credit card to make purchases you should be able to pay with the card. But, if the credit limit is low then you will not be able to make the purchases that you want. A high credit limit also allows you to have a low debt/credit limit ratio which is great for your credit score.
The sixth thing that is recommended is consider the fees and penalties for the use of the card. That is important because it will determine the cost of using your credit card. Consider the fees for foreign transactions if you are planning to use your card outside of the US and the balance transfer if you want to take advantage from 0% APR periods. But you should also consider the penalties because some credit cards will charge a fee for a late payment and increase the APR too. So, if you think that you may pass the day of payment you should have that in mind.
The seventh thing that is recommended is look for protection against fraud like zero liability protection and mobile apps to track the activity in the card. Fraud is a concern for card holders and that is why card issuers offer different solutions to protect their customers against that activity. You should also make sure that the credit card has a reliable platform behind it that protects your information because you can be victim of identity theft
The eighth thing that is recommended is to choose the right credit card provider for you. If you have a bank account in a certain bank you should look for a credit card with that bank if they offer that product. Make sure to select the best credit card of their options for you depending on your needs. This will allow you to apply for better credit cards because you have a record as a customer with the bank and they usually look for long term relations
In summary, you should consider different things before choosing a credit card because it will be a financial instrument. That instrument should help you to reach for financial goals and should not be an issue or problem for you. Make sure to have plenty of information about every card that you want before making the application but you can apply for different ones and stay with the one you like the most.