Don’t Have A Credit Card. Which One Should I Choose?
Most likely you already know that there are numerous credit cards available. You may say you don’t have a credit card, which one should I choose? The one you choose should fit your lifestyle and your typical spending costs. You’ll need to shop around and explore all of your options to find the best credit card company and the optimal deal for your needs.
To begin with, have a legitimate reason as to why you even need to get a credit card.
Cash Flow
One reason to have a credit card may be to help with cash flow. When you use a credit card to purchase an item, you don’t have to withdraw money from your bank account. The funds in your bank account can be earning interest while you can still purchase what you need. Whenever the credit card bill arrives, you make one payment to the credit card company for the amount of charges accumulated for that month.
Access to quick cash from ATM machines is another reason some people want to have a credit card. This is handy for when you are traveling, on vacation, or away from home for extended periods of times. You will want to find a credit card with the lowest possible rate for cash transactions if you want a credit card for instant cash.
Rates and Fees
When researching all of your credit card options there are many details to check out related to their rates and fees. This information is usually included in the fine print of your agreement.
- Interest – Take note of the interest rates including special introductory rates, balance transfer fees, late payment fees, and other details.
- APR – (Annual Percentage Rate) which varies from one company to the next. Take your time and compare companies to find the lowest APR available.
- Benefits - If you have good credit, there are credit card companies out there that will make you good offers. You may be entitled to some benefits as a new card holder.
- Rewards - A credit card company may also offer you various rewards associated with your credit card. These may include reward points, frequent flyer miles, or cash back on your purchases. You may be able to apply the cash back towards your monthly payments. Not all credit cards offer rewards, so read the details carefully.
- Payments – You can pay the minimum amount required or any amount over that, including paying the balance in full every month. The minimum amount required per month will vary with each card, but most will be about 3% of your account balance. You may find some higher and some lower percentages. They will also differ on the period of time that is interest free.
There are many factors involved in choosing a credit card. If you don’t have a credit card be sure to make the right decision for which one will be a fit for you. Once you have done your research and reached your conculsion, make sure you understand all of the details in the credit card agreement. While credit cards are handy to have they can lead to problems if not handled correctly. However, if used responsibly, credit cards can help you obtain more credit, and also improve your credit score.