Finding the right credit card for oneself is a fine amalgamation of art and science! There will never be one single card perfect for you when compared to all the other credit cards in the market but there will definitely one credit card that’s the most suitable for your use among all the others. Ask yourself the right questions to find out which type of credit card suits your spending habit and credit situation. Which are the questions to ask? Here you go!
What is the type of card you require?
Try asking yourself why you’ve applied for a credit card. Accordingly, select the type of credit card that you need. Broadly speaking, there are 3 different categories of credit cards –
- Cards that improve your credit score
- Cards that have low interest rates
- Cards that earn rewards on every spend
The best card for you will be the one that matches your requirement the closest. For example, if you want to use your credit card to only buy expensive things to avoid dishing out a huge amount at a go, you can go for cards with low interest rates. Alternately, if you’re looking for a credit card just to improve your credit score, then you know which one to go for!
What are the rewards best suited for you?
There are various types of rewards that you earn when you use a credit card –
If you’re frequent credit card user, you don’t need to be pennywise anymore – earn while you spend! Use your credit card and earn cash on it as well. The more frequently you use it, the more cash you’ll earn.
When you’re not sure how you’d like to use your rewards, it’s best to opt for a credit card that gift you points with every use. You can redeem the points later for cash, shopping vouchers, movie tickets, event passes, etc.
If you need to use a credit card and you have to fly often, what better can be your credit card rewards but airline miles. Redeem the accumulated airline miles for tickets, extra luggage allowance, business class travel, privilege seats, etc.
If refilling fuel burns a big hole in your pocket every month, use your credit card to earn fuel. Redeem your credit points for fuel.
Hotel points are particularly useful if you’re a frequent traveler.
What’s your credit score?
When you apply for a credit card, insist your credit card issuer to disclose your credit score. The higher your score, the better perks you’ll be eligible for, on your card. Accordingly, choose a type of credit card that best suits your credit score. If you score low, check what’s causing your score to drop and start figuring ways to improve it. Settle any credit disputes that you may have or correct your spending habits to bring up your credit score and enjoy better benefits on your next credit card.
Which card offers you the highest cumulative value?
Though we have said earlier that there will always be that one card better than the others in the market, you must conduct a thorough research on all the available options before narrowing down on that one ideal card. Choosing from two or three similar cards is not an easy task! Look for the following when you want to choose the credit card with the highest cumulative value –
- Credit limit it offers you
- Cash limit
- Annual usage fee
- Interest rate
While the credit and cash limit offered to you must be the highest among the others, annual usage fee and interest rate on credit card usage must be the lowest. So, choose wisely.
However, your job doesn’t end at choosing the right credit card for yourself. Interestingly, it’s just the beginning. Apply for a credit card that suits you the best and use it the right way to reap maximum benefits from it.