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Which credit card is right for you?

Which credit card is right for you?

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Advance Personal Finance

Advance Personal Finance

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Since their inception, credit cards have been convenient to users around the world. People have been able to make purchases with ease thanks to the technology behind credit cards. Today, many financial institutions are offering credit cards to customers that fit their lifestyle and finances. To ensure that the credit card stays valid, the user needs to make on time payments. When it comes to selecting the right credit card, it is quite a dilemma.

So, how do you know which credit card is right for you?

  1. Find out your credit score

Your credit score plays a huge part when it comes to selecting the right credit card. Do you have any loans presently unpaid? Have you been making on time payments? Do you have any previous credit cards that you failed to pay? Your credit score can be retrieved from a reputable financial institution. This will help to show if you are eligible for a credit card in the first place.

  1. Select the card you need

Majority of financial institutions will offer you three general cards. One card will help to improve your credit when its limited, another will help you save money and another will earn you rewards. Unsecured cards are mostly given to students who are new to credit. There are secured credit cards which require a certain amount of deposit. The deposit is returned when you upgrade the account or close it in good standing.

If you want a credit card that will be used for emergencies only, you can select one with an introductory zero (0%) APR and ongoing interest. Note, this card may be hard to get if you have an average or poor credit.

The rewards credit card is suitable for an individual who pays off the balance in full every month. The card usually has a higher APR and offers a larger sign up bonus and points.

  1. Narrow your choices

Now that you have learned about your credit score and the types of cards available, it’s time to narrow your choices. You can do this by asking relevant questions. For example, will the chosen card help to build my credit, how much does it cost to open and maintain an account? Do I have the choice of graduating to a better card? What is the ongoing interest APR? What is the card’s balance transfer policy? How will a customer earn rewards and bonuses? These and other questions will help you to select the right card.

  1. Select a credit card with the highest overall value

By now, you should already have a clear winner. If not, you can begin from step one to three and it should provide you with more choices. Remember, you can always consult a financial expert to advice you with money management matters. This will help to secure your financial future.

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