In today’s world, it’s virtually impossible to get by without at least one credit card. Not only are credit cards good for building credit, but they also come with a variety of perks and rewards.
That said, there are so many credit cards available, it can feel like an impossible choice. How do you know which one is right for you?
If you’re feeling lost in a sea of credit cards, don’t worry, we’re here to help. Outlined below is a guide to choosing the right credit card for your needs. Read on to learn more!
Your Credit Score
Your credit score is going to be a major factor in choosing a credit card. Each credit card company has standards that you must reach before they will allow you to sign up for a card.
Many of the cards with the best benefits require good to excellent credit, but there’s nothing wrong with getting a starter credit card to help you build your credit until you can get a better one.
The Type of Card You Need
Before you can look at perks and benefits, you need to decide which type of credit card will best suit your needs. For example, carrying a large amount of credit card debt is never a good idea.
But the truth is that the average American is in over $90,000 of debt. If you absolutely have to carry a balance because of an upcoming purchase, you’ll need a card with a low interest rate.
Alternatively, if your goal is to build your credit, the best credit card for you will be one designed for people will bad credit or no credit. Take a look at this KOHO review to see if this credit-building card is right for you.
The Perks That You Want
The best part about getting a credit card is that using it responsibly often comes with perks. You can earn cashback, points, airline miles, and other bonuses, depending on the card you choose.
Some cards come with a sign-up bonus, while others contribute a small amount to your miles, points, etc., each time you make a purchase. What are your spending habits like? Does the majority of your money go toward a certain category of purchase?
Be sure to look into additional cardholder perks as well, such as auto rental coverage, purchase protection, trip insurance, and coverage for lost baggage. These are just some of the most common benefits, and there are many more options out there to choose from.
Choose the Right Credit Card for You With This Guide
Many people close their eyes and point when it comes to choosing a credit card. But if you want to get the most out of your credit card, you need to pick one that works best for you and your specific circumstances and needs.
Using this guide, you’ll be able to not only start building credit but take advantage of the benefits that come along with using it.
In need of more tips and tricks for tackling personal finance like a pro? Take a look at our blog!