Looking for a new credit card can both be an exciting and bewildering experience. With all credit card companies offering the best deals in the market, it may be difficult to decide which one really has the best offer. To make choosing easier for you, why not select the credit card that best fits your lifestyle?
In this article, we’ll be focusing on choosing credit cards according to different lifestyles.
Secured or Unsecured?
How is your credit status? Do you have an excellent credit score? If so, then you should have no problem choosing from among the best unsecured credit cards in the market.
However, if you have some problem with your credit score, a secured credit card would be a great option. Although secure credit cards do require a security deposit and impose some restrictions, these cards will help you rebuild your credit score in time.
Fixed rate or Variable rate?
Should you go for a fixed rate interest credit card or a variable rate credit card? Generally, credit cards with variable rate starts with low interest but that can change at any time depending on the Index Rate in the market.
It is always safer to find a credit card with a low, fixed-rate of interest so that you’ll know exactly how much you have to pay each month without worrying about rate changes.
Travel Rewards or Cash Back?
When it comes to choosing your credit card privileges, consider your lifestyle carefully. Some people love the promise of traveling for free with the help of a travel rewards credit card, but before you do sign up for one, consider the terms.
*How many points would you need to earn before you can qualify for the free travel? * Is there a limited time period for collecting points? * Will your points expire after a year or two? * Do you have the option to choose your destination? * How much is the annual fee for the Frequent Flyer credit card? Are you sure you can gather reward points in time?
These are just some of the question you’ll want to ask in advance before getting a Travel Rewards
Credit Card. If you’re not really a frequent traveler, it may not be a practical choice for you. Perhaps a cash back reward credit card would be more beneficial for you since it allows you to earn “cash points” in exchange for the purchases you spent on your credit card.
The APR versus other rates and charges?
A credit card may impress you with a very low APR (Annual Percentage Rate) but don’t forget that aside from the interest rate, there are other charges that comes with your credit card.
For instance, how much is the annual fee that you need to pay each year to activate your membership? How much is the penalty for late fees and exceeding credit limit? Always compare the APR with the rest of the fees on your card and make sure that you are aware of the exact costs.