How to find the best card for YOU!
There’s no single answer to the question, “What’s the best credit card?” A lot depends on what you use your credit card for. Do you carry a balance most of the time, or do you always pay off your balance each and every month? Do you rely on your credit card quite a bit, or is it rare for you to pull your card out to make a purchase?
There are a ton of different credit cards out there. Some of them pay you cash back for purchases, while others offer low interest rates, while still others have really nifty designs and logos that make some people feel downright special because they have these cards in their wallets.
The best credit card is the one that works best for you.
You need to figure out what your primary purpose is for having credit cards. Don’t automatically assume that the credit card with the lowest interest rate is the very best card for you. With so many cards offering attractive perks and other features, there is a lot more to the best card than the interest rate.
Pick which of these scenarios is most similar to yours to decide what you should be looking for in a credit card:
I carry a substantial balance on your credit card.
Look for a credit card that offers a really low interest rate and an available balance that is large enough to where your balance won’t make you maxed out. A good plan of attack is finding a card with an introductory rate of 0% and then aggressively paying down the balance before the rate expires.
I pay off my credit card balance every single month.
Your main concern shouldn’t really be interest rates since paying off your balance makes it to where you don’t pay any interest at all. Instead, look for a credit card that has no fees: no annual fees, no transaction fees, or anything else like that. You won’t be able to avoid some fees, such as for ATM usage or cash advances, but if you pay off your balance every month you shouldn’t have to worry about additional fees.
I use your credit card for almost all purchases, yet still manage to pay the balance off most months.
If you are in this position then a credit card with an attractive rewards program might be a good option for you. Since you rarely carry a balance, yet still use your card frequently, why not earn some cash back, travel rewards, or some other reward for using the card?
I rarely use your credit card at all, and just have it as an emergency back-up plan.
Interest rates shouldn’t concern you too much, but you do want to make sure that you don’t have a card that has inactivity fees or anything else that might cause the company to charge you money for not using the card.
I have a hard time making payments on time and you often buy more than you can realistically afford.
The best credit card for you is no credit card at all, at least until you can get control of your finances.
How do you find out what fees and interest rates are attached to a credit card? Look at the Terms and Conditions of the card or speak with a customer service representative. Remember, however, that just because a service rep tells you one thing, it doesn’t mean it’s carved in stone.
Trust what you read in writing over anything a service rep tells you.
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