There’s really no such thing as a perfect, one-size-fits-all credit card. In fact, there are several factors to consider when choosing the right one for your needs, including the rewards, benefits, interest rates, fees, perks, and add-ons like travel insurance and extended warranties. The best (and most value-for-money) credit card for you depends on how you plan to use it and your financial standing at the time of application. Follow these four steps to find the best credit card for you.
Know What’s Important to You
The first step in finding a good credit card is deciding what’s most important to you — rewards points, cash back, or travel perks? Then, consider whether your spending habits align with those benefits (or if they don’t). If you spend a lot on groceries but rarely go out to eat, for example, you might prefer a cash-back card over one offering dining perks — even if it offers fewer rewards points overall.
Don’t Rush Into Any Decision
Take time to compare cards before making a selection; this will ensure that you get exactly what meets your needs at a great price. Look at features like annual fees, interest rates, and balance transfer fees, so the card doesn’t end up costing more than it’s worth.
Assess Your Creditworthiness
Your credit score really does play a big role in determining which cards are available to apply for and how much they’ll cost you — so it pays to do some research before applying for any new accounts. Credit cards generally require at least fair credit (which typically ranges from 600 to 649), but some issuers will accept applications from those with less-than-stellar scores in certain cases — such as when they’re trying to build their credit history. These cards, however, usually don’t offer the best rewards and perks.
Apply for A Credit Card that Offers You the Best Value
By this point, it’s likely you’ve done at least some research and have shortlisted a few credit cards that seem appealing to you. But how do you choose among the credit card options you’ve picked? Simple — all you need to do is look at the key differences and the overall cost. Pick the card that provides you with the most value.
