Finding the best credit card for you can undoubtedly be a tricky process. With so many different options available on the market, it can be daunting to try and figure out which card is going to be perfect for your individual needs and requirements. It’s important to keep in mind that no single credit card is better than others; it all depends on your personal circumstances and the main things that you want from your credit card.
By asking the right questions and doing a little bit of research, it’s easier than you think to find the ideal card to fit your spending habits and credit situation.
We’ve listed some top tips to help you find the credit card that’s best for you.
Tip #1. Check Your Credit Report:
Before you go ahead and start looking for credit cards, it’s a good idea to check your credit report so that you know exactly where you stand with lenders. If you have taken out a lot of credit in the past and have some missed payments on your record, for example, then you might find it difficult to get some credit cards.
On the other hand, if you have a glowing credit report and a high credit rating, you’ll have access to many more options, including cards with perks and bonuses. Some lenders and credit card comparison sites offer eligibility checker tools, which enable you to see which cards you’re in with the biggest chance of being accepted for.
Tip #2. Determine Your Individual Needs:
When it comes to picking out a credit card, it’s vital that you are fully aware of your own individual needs and requirements from your financial product. For example, if you’re hoping to boost your credit rating, then a credit building credit card could be the best option for you. On the other hand, if you want to save as much money as you can on interest, then look for a card that offers a long initial interest-free period. Or, if you want to earn rewards such as air-miles, there are cards available for that.
Tip #3. Work Out Your Budget:
One of the most important credit card tips to take note of before you apply for your new card is to work out a budget and make sure that you’ll be able to comfortably make your credit card repayments. Although you might not be aware of the exact credit limit before you apply, many lenders will be able to give you a rough idea of the amount that you can expect to borrow, along with an estimated minimum repayment amount each month.
In addition, you should also take the Annual Percentage Rate (APR) into account; if this is high then you can expect to pay more interest on your card. Determine what you’ll be using your credit card for – e.g. regular spending or emergencies only, as this will help you to decide whether it’s going to be something that you can afford.
With so many credit card options out there, picking the perfect match for your needs takes some time and consideration.