How To Choose A Credit Card?

Many credit cards are available these days, one has to choose a credit card according to his or her need. Credit card varies in features and offer different packages like no annual fee credit card, reward or rebate packages, low APR credit cards, gold and platinum card and so many others are in list. It becomes difficult when it come to choose one best for you out of so many choices. Here are some tips to find out best credit card offer.

1.) Applicant’s Credit History

Credit history plays an important role in getting a suitable credit card offer. If you have good credit history, you may be asked to choose as you required. But if you are not good in credit or have no credit or your credit history is poor than be careful in selecting one.

• Good to Excellent Credit

A good or excellent credit history means you can get the Platinum or Titanium card. Having these cards mean you can avail more benefits like lower APR and higher credit limit. Those whose credit is regarded as good can avail Classic or Gold credit card.

• Poor Credit or No Credit

A poor and no credit status can also be offered for a credit card but these cards will be available on higher interest rate and with some extra charges if we compare them with other standard credit card that are available in market. Two types of card are available for such people.

• • Secured Cards

These credit cards are available on some security deposit. It ranges from $150 to $350. You can only have credit limit up to the amount you have deposited.

• • Unsecured Cards

These credit cards don’t require any security deposit. These are mostly awarded to the people with good or excellent credit.

• • Prepaid debit cards

Those who have bad or no credit can avail prepaid debit cards. They don’t need any security deposit instead you can utilize them by paying for them in advance. They can be utilized same as other credit cards. These prepaid do not help you in building your credit history.

2.) How Much You Want to Spend?

When deciding for a credit card, first analyze your way of use. It mean how much you want to use your card or what things you want to purchase. Also consider how you pay off the credit card, either you want to pay off at the end of the month or want to carry the balance.

You should consider 0% APR credit card or low interest credit card if you want to carry your balance. You can save a lot of money by choosing low interest rate card.

If you want to pay you credit card bill at end of each month and want to use it more frequently than reward credit cards are the best option for you. Although reward credit cards are available on high interest rate. You can avoid this higher interest rate by paying the credit card bill on time. This not only save your money but also provide you some extra bonuses on purchases.

3.) Special Package For Special Need

Many financial institutes designs specific cards or offer feature keeping in mind there customers. It mean if you go for shopping to a specific mall or brand your credit card issuer may award you special incentive for using their credit card. These cards are mostly offered to frequent travelers, businessmen and to the individual who shop more frequently.