Finding the “right” credit card can be challenging especially for first-timers. That’s why it pays to do a lot of research, analysis, and even some good old self-reflection.
So whether you’re applying for your first card or adding one more to your arsenal, here are some ways to find out if you’re using the right credit card:
Know the purpose of your card
First things first, decide what you’ll use your credit card for. If you want your card for general spending, choose the one with the lowest interest rate and the most generous rewards. However, if your purpose is business or even debt consolation, it’s best to research other card options to fit your requirements. Find the creditor that markets to your needs and you’ll be fine.
Check your spending habits
If you have no plans of carrying a balance, optimizing rewards you can earn by using your credit card is the smart move. So one of your priorities ought to be finding a card that matches your spending habits. Several cards provide bonus rewards for certain purchases such as gas, groceries, travel purchases (hotel, airfare, etc.), restaurants, and/or business spending.
The key is finding the card that fits your lifestyle. So take a step back and assess what you usually spend on to help you make a decision.
Know the type of rewards best for you
If you’re using a rewards card, it’s important to make certain that the rewards you acquire are useful to you. There’s no point in accumulating free airline miles if you don’t have plans to travel via plane.
Here’s what you do: think about the things that add the most value to your life. For example, if you drive frequently, it’s best to get a credit card that has rewards for free gasoline so you can save on gas money. Same with groceries and airline miles. Always choose the card with rewards provide you the most benefits.
Find out if you’ll carry a balance
Planning on carrying a balance? Then low interest rates should triumph over a great rewards program or sign-up bonuses. Typically, credit card interests top at 15% annually while you earn only 1%-2% on rewards for purchases. This why you’re better off prioritizing interest rates over rewards.
If you can find a credit card that offers a promotional 0% APR (annual percentage rate) like the DOS Mastercard, take advantage of their promo rates because if you can pay before the rate expires, you won’t need to deal with interest rates. Not only that, you’ll also enjoy the benefit of automatic 2-month installment payment scheme. In other words — you’ll unleash the power of 2 gives which makes it easier to manage your spending and finances.
Research the bank
Making sure that the bank offering the credit card is reputable should be one of the first things you do when looking for a credit card. Applying for a credit card from a bank that seems sketchy is never the way to go — regardless of the types of rewards. It pays to take the time to look up the bank and the type of credit card to read reviews from actual users.
It’s time to bring out all your credit cards and assess whether they’re letting you live your best life, or start ticking off these steps when choosing your first/your newest credit card today!