One size fits all does not apply in the world of finance. Every person has his own individual needs and requirements. The first step to finding the right credit card for you is to figure out where you are most likely to spend.
There are different categories of cards that are designed to suit the person’s requirements and what they require their credit card for. The first step is to ask you the following questions:
- Are you applying for a credit card to improve your credit limit and score?
- Are you applying for a credit card to earn rewards on your purchases?
- Are you applying for a credit card to save on the interest?
Credit cards to improve your credit limit and score
If you are a student and are applying for a credit card for the first time, then you can apply for a secured credit card. They are easier to apply for and banks issue them easily. But you must make sure that the card reports your credit history to the credit bureaus. Some credit cards offer interest in the amount you keep secured with them when opting for the secured credit card. In this way, you can make a small amount of money while spending.
However, if you are eligible for an unsecured credit card, you should get the same. Many banks would be ready to offer credit cards to those who are new to credit. Initially, you would get a basic credit card with lower credit limit but if you make responsible usage, the banks may increase your credit limit or offer an upgrade to a better credit card.
Credit cards to earn rewards
Credit cards are designed to suit everyone’s requirement, regardless of whether it is food, travel, or shopping. Most credit card issuers partner with the outlets and e-commerce websites and let you earn more rewards when you shop with their credit card.
If you are a frequent flyer, banks issue travel cards which can earn you extra miles every time you travel while covering baggage and travel insurance. You can also earn cash back rewards on every transaction.
Cards to save money on interest
Low-interest cards and balance transfer cards are the best when you are looking forward to saving some money on interest. Though the interest on credit cards usually varies from 30% to 42% annually, in some cases, you may get preferential rates if you meet certain terms and conditions. If you have an irregular income, balance transfer cards can be used to pay debts without any extra charges. Kindly remember that after the teaser rate on balance transfer expires, the cards charge regularly. It is better to inquire about hidden fees and cost that might be applicable after the offers are over.
When it comes to finances, there are no wrong questions. The banks or the credit card issuing company must answer your queries and clear your doubts regarding the charges and the costs.