Picking The Best Credit Card 101

 

No one is an expert in picking the best credit card. However, it does not mean it is an impossible task. Just keep in mind that there is no one credit card that is better than all others, each card is perfect for someone.  As long as you understand what your options are and you ask all the right questions, you can find the card that is a fit for you.

Here are some helpful tips to help you when applying for credit card. Remember: This is not rocket science. Some tips may apply to you while others do not.

#1. Be Honest About Your Financial Habits and Needs

Remember the phrase “honesty is the best policy?” Well, it also applies here. It holds true that most, if not all, people hate the idea of doing their finances. You will even find it a bit stressful to budget – let alone reconcile – your wants with what your actual needs are. Unfortunately, though, it is part of your everyday life.

Your goal here is to sit down and understand how you want to spend your money. Only then will you be able to identify the credit card that you need. For instance, do you often find yourself flying for work? If so, then pick a card that comes with airline perks. The key is to determine a card that will benefit you more than hinder you.

#2. Always Check Your Credit

By checking your credit score, you will be able to find out the different credit card offers that you can qualify for. While some of these may still not accept your application, most of them are likely to be eligible for you if you are in the correct credit range. As long as you have a better score than the card requires, there is no doubt you will have a greater chance of getting approved.

If the credit score you see is not what you expected, you need to find out what is the root cause of your low credit score. This is where your credit reports become helpful. From there, you can begin creating ways to improve the score. This could be anything from changing your spending habits to disputing errors you find on the report. In case you did not know, federal law entitles you to at least one free copy every 12 months. Use this to your advantage. It is yours, anyway.

#3. Don’t Focus On Every Advertised Offer You See

Just because you see a beautiful envelope or cool advertisements, it does not mean you have to move forward with the offer. Applying for multiple credit cards and being declined will only cause more harm than good. If you do not believe that you will be approved or have been declined for multiple similar offers then it is best to wait a couple of months or to try for a credit card that accepts your credit score.

Apart from taking a proactive approach, you also need to do your homework. Let’s say your main bank is offering you a credit card. At first, you think it is pretty neat and satisfactory. Instead of getting sucked into it, research about the offer and see to it that you understand what the bank is offering before moving forward with your decision.

#4. Use The Right Tools At Your Disposal

When applying for credit card, you need to use every tool available. It is not enough to simply go over with the material provided. In other words, you need to consider doing some independent research and verification. In the past, you are forced to visit multiple banks just so you could have a look at the different credit card offers.

With the advancement of Internet technology, however, the overall game has changed for the better. You can now go over a plethora of websites like this one, so you can easily start researching cards. Picking the best credit card means using the right tools, be it online or not. So before you jump into a decision, make sure you have exhausted all options, materials, and/or tools. Only then should you make an educated decision!

#5. Try To Save Money On Warranties

When applying for credit card, have you already considered warranties? If not, then you are missing a lot. That is because warranties can help you save a lot of money, especially frustration if you are able to choose the right one. For instance, you are buying an appliance or electronic gadget. You should be aware that an extended warranty will be offered, let alone a protection plan of sorts.

As lovely as this offer may sound once you check out at the register, they are usually not worth the cost. Nowadays, a good number of major credit card issuers are fond of automatically extending a manufacturer’s warranty. Some go on a year while others tend to be longer. These warranties are applied to the products you buy using a credit card. The best thing to do is save money when it comes to warranties or protection plans. Do not buy them. Just keep your receipts instead.

#6. Some Cards Come With Trip Cancellation Insurance

This one here is perfect if you love to travel or take cruises. Let’s say you got sick and you cannot make the trip. This scenario will result in a big bill, except without the vacation. That is why you need to be careful when picking the best credit card, as this can help you limit the damage. Basically, some cards mainly focus on travel rewards and they are the type that offers trip cancellation insurance.

They are beneficial because they can cover part of your trip cost if you get sick or unable to travel. But, as mentioned above, make sure that this offer exists and that the credit card company confirms it. You want to make sure everything is crystal clear before moving forward.

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