How to Find the Right Credit Card
There are so many credit cards out there to choose from that
deciding which one suits you best can feel really daunting. What
makes one offer better than the hundreds of others you've seen?
Take this little quiz to find out what you meed to look for in a
card.
First, Are You a Student?
If you are, then you'll be best off with a student card - you'll
probably have trouble getting accepted for anything else. It
would be best to contact the bank where you have your student
account before you do anything else.
Do You Have a Balance to Transfer?
If you do, then you need to be looking for a card with a low APR
(Annual Percentage Rate) on balance transfers - preferably one
that stays low for more than a few months, unless you intend to
switch often.
Are You Planning to Make New Purchases?
If so, then pay more attention to the APR for purchases, which
is usually entirely different to the one for balance transfers.
You should also look at what kind of grace period different
cards offer, so you don't end up paying interest on your
purchases straight away. Many cards have an interset free period
of 55 days.
Do You Pay Off Your Balance In Full Every Month?
If you have a lot of money or you only keep a credit card for
emergencies, then you might just pay it all off each time you
get the statement. If you do, then you're in a position where
you obviously don't need to worry about the interest rate much
at all, since you won't be paying any interest (make sure
there's a grace period, though).
Many people don't realise, but the credit card company still
makes money from you even if you pay no interest - the money
shops pay to be able to accept credit cards. The credit card
companies want to give you some kind of reward for letting them
make this money without causing them any trouble, and you
basically have a choice of three things:
Get cashback. For always paying everything off, they're quite
willing to throw a few dollars your way. If you spend much with
the card, this can add up to a tidy sum.
Take vouchers. You might, for example, be able to earn points as
you spend that get you money off flights, or other rewards.
Give it away. If there's a charity or other cause you support,
the chances are that you can donate money to them using an
affinity card. This is a credit card that gives a very small
percentage of each transaction to your chosen cause, and over
time it adds up to a pretty decent donation for them.
Take Your Time...
Don't let anyone pressure you into making a decision before
you're ready. Any offer that says it's for a limited time only
is one you should ignore, as there's no reason to do it other
than as a sales tactic. Think hard about your spending habits
and what you want the card for, consider all the options you can
find and then, once you're sure, go for it.