3 Key Things to Consider When Choosing a Credit Card

Several red, blue and gold credit cardsObtaining a credit card may appear to be a simple process. After all, you just respond to the first invitation you get in the mail by answering a few question on the form and then you get your card. Isn’t that the way it works? Well, it shouldn’t. Before signing up for just any credit card, you should take time to consider a few key things prior to moving forward with your application.

How Do You Intend to Use the Card

You’ll first want to ask yourself, “How do I intend to use the card?” Will you be using it for everyday purchases, or as a means to organize and assess your monthly expenses? Do you intend to use the card only for emergency situations? Do you know if you’ll need to carry a balance from month-to-month or do you intend to religiously pay the entire statement balance when the bill arrives? These items can make all the difference in the world when it comes to the way your new card affects your finances.

Payments and Perks

While it’s true that credit card issuers and merchants generate revenue through the use of credit cards, they will be the first to advise you that the most prudent way to use a card is to pay off the entire account balance each month. That way, you’ll avoid any finance charges and your overall expenditures won’t drastically exceed your purchases. In addition to these savings, you can maximize your benefits by qualifying for other types of perks that may be offered by various credit card companies. These bonuses can come in the form of cash back on certain types of purchases such as when you’re using your card for specific necessities like groceries and gas. These cash back benefits will generally be posted to your account each month. Some credit cards will come with significantly more perks than another credit card from the same issuer. So choose your card wisely.

Tracking Your Credit Score

When selecting a card to apply for, you will also notice many other features and benefits. One popular option is the ability to receive your free credit score by logging into your account on the card issuer’s website. This can be exceptionally useful for those who are interested in building up or repairing their credit rating. It will help you stay on top of your credit profile so you can make adjustments to your spending habits if needed. Demonstrating that one is capable of controlling their spending and adhering to a specified payment schedule goes a long way when it comes to creating positive creditworthiness.

Posted on August 30, 2017 by in Credit Cards

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