Choosing a Credit Card

The difficulty in choosing just one credit card is that no credit card will suit all possible needs. Each one has its own advantages and disadvantages and it’s up to you to weigh the pros and cons based on what your needs are.

Choosing a Credit Card

Cashback and Reward Credit Cards

As the name suggests, reward cards offer different rewards. In most cases, these are either points you can use in specified stores and airlines or cashback based on your use of the card. The best way to use reward credit cards is to pay the balance by the end of every month. Not doing so will cause you to accrue interest on your cards and the benefits will not be worth it.

Purchase Cards

These are the best credits cards for those who have planned a significant, expensive purchase and would like to pay the debt off on a schedule, with no interest. These cards have no interest implied for a certain time period, after which it begins to accumulate. As long as you are confident that the debt will be repaid before the interest period starts, the purchase credit card is a great idea!

Balance Transfer Cards

Balance transfer cards allow the cardholder to transfer the balance from his or her current credit card without any fees for the transfer. When deciding on the type of balance transfer card, it is advisable to ask about transfer limits.

Low Rate Cards

Often, credit card users switch credit cards repetitively to take advantage of the 0% interest during the introductory period. Low rate cards offer the lowest possible APR and it is set for the whole period that the user will be using the card, eliminating the need for constant change.

Credit Builder Cards

For individuals with poor or no credit history, the credit builder card is the ideal option to help improve credit scores and create a positive rating. These cards are usually chosen by those looking to recover their credit reputation as they require monthly payments and once these are made, your credit score improves.

International Credit Cards

If you are someone who travels a lot, you have to find the best solution that will work globally. Review the cash advance fees and taxes, as well as additional charges before you sign up.

Always review initial and annual fees when signing up for a credit card, along with the detail on interest rates and potential fluctuations. Always compare different options to make sure you got the best one available. On some occasions, an auto title loan might serve you better than a new credit card. Some credit card types will require a high credit score and not everyone will be eligible.

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