Choosing a credit card can be difficult
Choosing a credit card can be very difficult because there are just so many on the market! When choosing a credit card, you have to think about how you plan on using it, what you qualify for, and how it can benefit them to use it.
Credit cards can be a double edged sword. They can help you a lot, but they can definitely get you into trouble!
What kind of credit card do you qualify for?
When choosing a credit card the first thing you need to look at is the requirements for approval. If you have bad credit, you should not apply for a good credit card. Its very tempting to apply for a low interest credit card, but if you have a low credit score you will just get declined. To improve your chances of being approved for a credit card you should contact a legitimate credit repair company or if you are very organized you can attempt to repair your credit on your own.
If you have good credit, there are a lot more options available to you. Think about your lifestyle. Reward credit cards are very popular and there are all types. You can get reward cards that offer you cash back or you can get ones tied to travel or your favorite activity.
Don’t apply for every card on the market. Even if you have good credit this is a bad practice. Each time you apply for a credit card your credit will be pulled. This puts a “hard” inquiry on your credit report. Hard inquiries will bring down your credit score. This is especially true for bad credit clients. Your credit score is already low and each time you apply to a credit card company, you are lowering your score further.
Know the interest rate you are being charged
You should make sure you pay attention to the interest rates when selecting the perfect credit card for your needs. Pay close attention to how long that rate is if its a promotional rate. Clients with bad credit will naturally pay higher interest rates. Even though you have bad credit you should still look into finding the best rate that you can qualify for. Keep in mind secured credit cards tend to have lower interest rates than unsecured bad credit credit cards.
Be mindful of annual fees. Yearly fees for platinum or black cards can range from $100 to $1000 depending on the exclusivity of the card. The United Mileage plus card is one that my husband and I carry. It comes with an annual fee of $495 but it comes with access to their club lounge, a free bag, preferred boarding options, and most importantly, points towards future travel tickets. These points have come in handy a lot of times when its time for vacation! Since my husband uses it a lot for business, we have been able to use it to fly for free on several wonderful family vacations. If you don’t travel a lot or don’t travel with United, it doesn’t make sense to pay such a large fee.