Which Credit Card Should You Own?
Published on May 19th, 2015 | by Joan Makai
It is a difficult situation: if you get a credit card, you might be tempted to spend more money which you do not have. If you don’t get a credit card, it would be hard for you to build your credit rating which you will need when you need to get a mortgage or sign up for a car loan.
So what should you do?
Well, getting one today is quite important so the best thing to do is choose what kind of credit card. Here are some tips which could help you figure out which kind is the best.
What Do You Need It For?
The first step is to do a little introspection. What do you need a credit card for, besides building your credibility with the financial sector? Is it for paying bills and every expenditure you have for the month? Or will you use this in case of emergency only? Will you use this to consolidate debt? Do you like the benefits offered by credit card companies? By answering these questions you will be able to understand your needs more and get the right type of credit card later.
Check Your Credit Report
Once you have figured out why you actually need that plastic, grab a copy of your credit report. This will let you see how credit-worthy you are and what options you have
The Different Kinds Offered (And There are So Many)
The simplest, most basic card there is which is readily available in all banks and financial agencies is the standard card. Standard cards are unsecured so you don’t need to deposit any amount in the bank.
There are reward credit cards which allow you to accumulate points for every purchase you make. Those points can be used for hotel accommodation, airfare, gas consumption and even retail. Some offer cash back programs. However, these cards are offered to those with really good credit rating only.
Then there’s the bad credit repair credit card which are offered to people who plan to fix their rating. These are ‘pre-paid’ in nature meaning that you will have to deposit an amount in the bank to be able to sign up for one.
Banks do offer credit cards for certain kinds of individuals like business owners, young professionals and even students. These are designed to meet each of those person’s needs.
The Bottom Line
Check out interest rates and see how much you might get depending on your score. Look at the fees and penalties. Choose the right credit limit. It always helps to do a little research before you go to the bank and sign up for a credit card and when you do get a card, make sure you are disciplined enough to own it. Avoid unnecessary expenditures and always pay on time. Don’t go overboard on your shopping especially if you know you can’t pay for those the next month.