To allow you to make the most of your finances, it’s important that you learn how to pick financial institutions that are going to work best with your lifestyle and spending habits. This is especially the case when it comes to pick the right credit card for you, as various credit cards have all sorts of different benefits, perks, and rewards. So to help ensure that you get a credit card that will support you financially, here are three tips for picking the right credit card for you.
Think About Which Type Of Card You Want
There are a few different reasons why you should get a credit card, aside from the fact that you might want or need one to make purchases. According to Claire Tsosie, a contributor to NerdWallet.com, the three most common things that people hope to get out of their credit card use are improving their bad credit, saving money through good interest rates, and getting rewards. Based on what objective you’re hoping to achieve, the credit card that will work best for you will depend. So before you just pick one at random, do some research about what each card offers and what will fit best with your financial needs right now.
Weigh APRs Versus Rewards
When you’re comparing credit cards before signing up with one, some of the stats you’re going to have to weigh are the APR, or annual percentage rate, and the rewards offered. While you might initially be interested in a specific credit card because of the great rewards that you can accumulate by using it, David Weliver, a contributor to MoneyUnder30.com, advises that if you don’t think you’ll likely be paying off the entire balance of your credit card each month, make sure you at least weigh the APR of that credit card with the rewards you could get. If you’re getting slammed by interest rates each month, those rewards might stop feeling worth it to you after just a short time.
Consider Rules About Balance Transfers
Another attribute of credit cards that you might want to consider before choosing on is how they handle balance transfers. Using a credit card to help you pay off an older debt that you have somewhere else can be useful, but only if the card you choose has a friendly policy about balance transfers. According to David Domzalski, a contributor to Forbes.com, if you think you might use your credit card for balance transfers, make sure you try to get a card that lets you do this for free rather than charging you a percentage of the balance you’re transferring.
If you’re thinking about getting a new credit card soon, consider using the tips mentioned above to help you pick the right one for you.