Credit cards are not just an easy way to make payments today, but they can also be a great tool to turn your financial dreams into reality. But choosing the right Credit Card is not that easy, especially when there are so many options available in the market. Each card has its own specialty, and it is important to understand which card is best suited for your needs and lifestyle. If you live in the United States and want to choose the best Credit Card for yourself, then this article is a simple and sensible guide for you. We will tell you some easy steps that will help you choose the right card.
Step 1: Understand Your Credit Score
First of all, it is important to know what your credit score is. Your credit score is a big indicator of which Credit Card will be right for you. Credit card companies check your credit at the time of your application, as it is a revolving credit line. If your FICO credit score is 670 or higher, you’ll have a lot of great options. People with such scores usually qualify for cards that offer great rewards, 0% introductory APR, and travel benefits.
But if you’re new to the world of credit or have a low score, don’t panic. There are options for you like student credit cards or secured credit cards. For example, the Capital One Quicksilver Student Cash Rewards Credit Card is for people who are just starting to build credit. On the other hand, the OpenSky® Secured Visa® Credit Card is good for people with a weaker credit score. You can check your credit score for free by visiting Experian website. If your score is close to the range of good credit, try to improve it before applying.
Step 2: Decide What You Want from a Credit Card
Each Credit Card has its own unique features, and it is important that you decide what you want from your card. Are you looking for rewards? Or maybe you want travel benefits? Here are some key things to keep in mind:
- Welcome Bonus: Many rewards cards offer new customers a welcome bonus of $200 to $750 or more. But this requires you to spend a certain amount in the first few months. Make sure you don’t overspend to earn this bonus.
- Rewards: Credit cards offer rewards in the form of cash back, points, or miles. Cash back is easy and flexible, but points and miles can be more beneficial if you know how to use rewards correctly.
- 0% APR Offers: Some cards offer 0% interest for 12 to 20 months on purchases or balance transfers. This can be beneficial if you’re looking to pay off a big expense or transfer the balance of an old card.
- Travel Benefits: Travel credit cards offer benefits like airport lounge access, free checked bags, or hotel elite status that can make your trip more comfortable.
- Shopping and Travel Protections: Some cards also offer benefits like cell phone protection, purchase protection, and trip cancellation insurance.
Many cards have an annual fee, which can range from $100 to several hundred dollars. If the card benefits cover this fee, it may be a good investment for you. For example, cards like the Chase Freedom Unlimited® offer great rewards with no annual fee.
Step 3: Match the Card to Your Spending Habits
Your spending habits determine which Credit Card is best for you. If you want a rewards card, choose one that offers more rewards on your everyday purchases. For example, if you spend more at the grocery store, gas, or restaurants, cards that offer bonus rewards in these categories may be right for you. Cards like the American Express® Gold Card offer higher rewards on dining and supermarket purchases.
If you don’t want to track your spending, a flat-rate rewards card, such as the Citi Double Cash Card, which offers 2% cash back on every purchase, may be better for you. Also, if you can’t pay off the full balance every month, consider cards with lower interest rates. Rewards cards often have higher interest rates, and if you carry a balance, the interest can reduce the benefit of rewards.
Step 4: Apply for Your Chosen Credit Card
Once you have chosen the right Credit Card for you, start the application process. You will need to provide some basic information for the application, such as:
Your full name, Date of birth, Social Security number, Contact information, Address, Income and employment information
After submitting the application, you usually get a decision within a few seconds. In some cases, the process can also take 7-10 days. Some cards like American Express have an “Apply With Confidence” feature, which allows pre-approval with a soft credit check. This does not affect your credit score.
Conclusion
Choosing the right Credit Card can make achieving your financial goals easier. Whether you are looking for rewards, travel benefits, or need a low interest rate, the right card can make your life better. Understand your credit score, prioritize your needs, and choose a card based on your spending habits. Compare different cards and choose the card that best suits your lifestyle. The right Credit Card will not only bring you convenience but also strengthen your financial future.
