Having a credit card is a significant achievement and a massive adjustment in someone’s life. But this does not mean that every card is right to every individual. It all depends on your credit score and your expectations from the credit card. Choosing the best credit is faster as long as you know your priority. Here are factors that should be considered before opening a credit card.
Fee and the Rates
The first thing you should consider when choosing a credit card should be the fee. Every credit card issuers are mandated to disclose specific terms such as; fee and interest rates to their customers before applying. Your annual percentage rate is the amount of interest that you are required to pay every year. However, you should be aware that things always change. You could have a changing rate depending on your balance. For that reason, consider choosing the best credit cards to build credit with the lowest annual percentage rate so that you have the lowest interest. But first, you need to have knowledge about what you are getting because many banks will want to change their APR depending on the credit score for the person applying.
Apart from service charges, credit card issuers also make money off you from penalties charges for late payment of credit card bills. Hence make sure you consider the penalties as well. You may think that you will never break the rule, but you never know. Still, it’s ideal for putting it into consideration Compare penalty charged by different credit card issuers and choose the credit card with the lowest possible penalties.
Your credit score
For those with credit scores, it’s critical to consider when looking for credit cards. The better the credit score, the more options available. Consequently, this will lead to better credit cards with reduced interest rates and higher credit limits and hence better rewards. On the other hand, having a poor credit score will lower the types of credit cards you can choose. In short, you should keep in mind your credit score when getting a credit card since it can either assist you in getting the best option, limit you from mediocre one or help you grow your credit score
Credit card reward programs are suitable for everyone. It means you earn by only spending your credit card. If you are sure of paying the entire balance by the end of the month, it’s ideal that you look at the rewards that you are potentially going to earn. Therefore it is upon you to take time to carefully read reviews about the different rewards programs and select the one that you can comfortably pay off your balance in full each year. However, cards with better reward programs always have more excellent interest rates and extra fees.
The reason why there are so many credit cards to choose is that not every single card can suit everyone’s situation. It’s hence ideal to limit credit cards, let’s say one or two by choosing the best credit cards to build credit. This makes it easier to avoid penalties by keeping close track of your balance.