Your credit card can be a great financial tool. Credit cards provide you with convenience, and can even be a source of free money and rewards. When you are smart about your credit card use, there are a number benefits that you can enjoy.
However, there are many different credit cards available so you’ll need to know how to choose the right credit card for you. If you want the best possible results for your pocketbook, you need to be choosy. Don’t just pick the first credit card you see. Make sure that you compare your credit card options, and then apply for the card that best fits your individual financial needs.
Comparing Credit Cards
The first thing to do is look for a web site that can help you compare credit cards. A good credit card comparison web site will help you pinpoint exactly what you are looking for in a card, and lay out the options in an easy to read format. A good web site will help you narrow down your options by helping you define the purpose of your card (business, personal, student), as well as figure out what you want to use the card for. Some of the reasons that you might get a credit card include:
- Low interest
- Balance transfer
- Rebuild your credit history
There are plenty of great tools out there that can help you quickly view your choices. You will see the different terms, including interest rate, introductory rate, annual fee, and rewards program, laid out for you. When you can quickly compare your options, you will be far more likely to make the right choice for your finances.
What’s Most Important to You?
If you don’t carry a balance, it really doesn’t matter if you have a low interest credit card. On the other hand, a good rewards program might be a must. Think about what’s most important to you in a credit card. So you travel a lot? Maybe you need the airline miles. Do you use your credit card for every day items? It might make sense to get a cash back credit card. Have you made mistakes in the past with your finances? A guaranteed or secured card can help you rebuild your credit score. Do you have high interest balances? A balance transfer card with a low intro rate, or a regular low rate credit card, might be able to help you pay off your debt faster.
Take a few minutes to consider your situation. Think about what type of card is most likely to help you reach your most important financial goals right now. Then, visit a credit card comparison site to help you view your options. Choose the card that is right for you. Then, make sure that you follow savvy credit card practices. Pay off your balance each month (or put as much toward it as you can, if you already have debt) so that you don’t end up racking up interest charges. You will be much more effective in your credit card use if you plan it out.
There is no reason to get the first card that you see. You have options. Use the online tools available to you to compare credit cards and get what works best for you.
Miranda is a freelance writer and professional blogger. Her blog is Planting Money Seeds.