It’s easy to find yourself bombarded with credit card offers several times a week between opening your email and mailbox at home. It may be tempting to sign up for all of them, but let’s face it, that is probably a mistake.
Before getting a credit card, you should weight out of the factors and narrow it down to a few. Credit cards can be a great tool if you use them wisely. The problems only arise when you fail to be financially responsible with them.
Before you sign up for a credit card, take a look at some of these tips while on your search.
Determine Why You Need It
There are different credit cards based on what your needs for credit are. For example, if you will use your credit card mostly for online purchases, you’ll probably want to go with a card with the most online rewards, like an Amazon Chase.
If you have bad credit and getting a card to build your score then you should buy one which is recommended for people in your situation, and ensure that it’s paid off in full each month.
Whatever the reasons are for you needing a credit card, make sure that you know it’s not free money. You will have to pay it back so only apply for credit if you’re ready to pay it off in the next year at the latest.
Read The Interest Rate
A lot of cards have incredibly high-interest rates hidden behind a zero percent introductory rate. The point is to lure you into signing up for a card, and after the introductory period, you’re trapped in an extremely high rate.
The best way to look for a card which has a low interest rate is to have a good credit score. The higher your score, the more favorable that you are to lenders.
Another thing to keep an eye out for which a lot of people miss when reading the terms and conditions is the annual fee which you’ll be charged. Always make sure to read the small print so that you avoid getting hit with an unexpected fee out of nowhere.
An excellent place to start for a card which doesn’t have an annual fee is with your own bank or credit union. They’ll be able to show you which cards would work best for you.
Consider the Rewards Offered
A lot of cards offer rewards for each purchase that you make. They can range from gas points to air miles. Depending on what kind of lifestyle you have and what your needs are you may opt for one type of rewards card over the other.