How To Choose The Right Credit Card For Your Needs

| April 15, 2013 | 0 Comments

Credit Card

The introduction of the credit card is perhaps one of the biggest breakthroughs in personal spending. Because of it, we no longer have to carry that much cash around with us when going shopping or travelling abroad. Payment cards have also made online shopping so much easier, as most, if not all, online stores and service providers now accept them. There is no denying that, compared to cash, they are the most useful, secure and safe things to have in your wallet.

However, not all credit cards are born equal. It is safe to say that each one of them is designed to serve the needs of a particular cardholder. The question is, how do you choose which of the hundreds of types available out there are just right for your needs?

One thing you can do is choose based on your usage. If you use your credit sparingly such as during emergencies, it pays to get a credit card that doesn’t charge an annual fee. This can be quite easy, as most of the major cards do not have annual fees. This is actually the type of choice that most consumers go for. However, if you’re the type who uses a credit card for just about everything from a cup of coffee to groceries, then it is advisable for you to choose one that has an annual fee but offers generous rewards at the same time. Heavy usage of these rewards-heavy cards often brings with it lots of benefits, which are often of the luxurious kind. For heavily-discounted or even free stays at a luxury hotel or private meet-and-greets with famous people, paying a few hundred dollars more for an exclusive card that you charge tens of thousands of dollars to every year is virtually painless.

Your credit report should also figure prominently in your decision making. With the help of a credit report that you can get for free online, you will be able to see how lenders perceive your own credit-worthiness. It will also be able to help you find out which credit cards you can actually have.

Believe it or not, the mail that you perceive as “junk” can actually help you choose the option that’s right for you. Many credit card companies still send promotional offers via snail mail. If you’re in the habit of shredding junk mail before you even open them, then at least give them a peek before doing so. For all you know, that envelope in your hands could actually lead you to the perfect credit card.

If you want a comparison of credit card benefits and expenses before you decide, there are sites on the Internet that can help you do just that. These sites actually have the capability of going through hundreds of credit cards in just a few minutes, and giving you a clear picture of which option offers what. You can also choose to visit the websites of the financial companies themselves, particularly when you already have a few issuers in mind.

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Category: Credit Cards

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