How to choose a right Credit Card that follows your needs?

The following steps can best explain how to choose a credit card that follows your needs:

Check your credit score

Before applying for a card, check your credit score for it indicates if you are actually eligible to apply for the card or not. A low credit score not just concerns massive interest rates, but it directly leads to rejection most of the times.

Choose the type of credit card you need

There are three major types of credit cards

  • Credit cards to help you build credit score: this is availed when you don’t have much history. Thus, it is most suitable for students or unemployed people. It helps build your score leading to availing better cards next time.
  • Credit cards with low-interest rates saving money: these are the ones where interest charges on the due amount aren't much. There are credit cards also available with 0% APR. This can be used as a balance transfer option to repay your debts without incurring charges.
  • Credit cards with exciting offers and rewards: Cardholders under this category enjoy immense reward points on spending through the card. Also, has numerous cashback offers and points.

Question & answer

Once you have made up your mind about a specific card, now ask yourself the right questions and give right answers. The major questions that should come up are:

  • Will it really help me build my credit score?

Think about the fact if the credit cards really help build your credit score.

  • How much does it cost?

While these cards have less of rewards, the annual and processing fee is minimum. If you opt for a secured card, then make sure that the security deposit is the lowest among all.

Now, the low-interest rate on credit cards for debt clearance follows the below-mentioned questions:

  • What is the 0% APR period?

If you plan to evacuate your debt for which you are availing the card, then make sure that it has 0% APR period. If the doubt regarding period isn’t clear, prefer a low APR rate of the card.

Are their numerous APR rates for different users?

Though 0% APR is available to clear your balance, sometimes the nominations, rules change.

Different uses and rates of APR

The APR is 0% on old debt clearance but possibly shall charge you high on interest rates for all purchases.

  • Is there a limitation to the type of balance and the amount one can transfer?

Some cards are solely for repayments of debts. At times, a certain amount might be transferred. Also, enquire about your balance transfer fee.

  • Are there any rewards on offer?

Though rewards and offers are not usually a priority, it is better to enquire them and earn cashback without hassles. But if you prefer choosing credit cards fetching you high discounts, consider answering the following questions:

  • Where should you spend the most?

Depending on your needs, you can answer this question rightly. Buy a credit card only if it offers good discounts on the same requirement you look for. For example, a travel junkie can opt for airline credit cards and earn airline miles.

  • What’s the reward policy

There are numerous spending capacity criteria on which you can earn some points and rewards. Opt for the cards that give good offers leading to low spending capacity.

  • What is the worth of the rewards

The rewards such as discounts, cash backs, etc. should be worth enough to warrant the credit card expenses.

Therefore, choose credit cards with enough patience. Do not rush and make a wrong decision. consider these steps, and you’ll have the right card in your hand.

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