How To Find The Best Credit Cards
How To Find The Best Credit Cards-There are literally thousands of credit cards on the U.S. market. That makes it virtually impossible to know which one is best for you.
How to Pick the Best Credit Card
Whether you have a card you’re looking to replace or you’ve never had a credit card before, there are three things to consider as you compare various credit card offers.
Your Credit Score
If you have good or excellent credit, you can generally get approved for just about any credit card out there. But if you have bad or fair credit, you may be limited in your options. Check your credit score to see where you stand and compare it to the FICO score ranges.
If you have bad credit or don’t have a credit history, you’ll likely need to apply for a secured credit card. Alternatively, you could get a student credit card if you’re a college student. If you have fair credit, focus on cards that are designed for that middle ground.
Your spending habits
Most credit cards offer some form of rewards. Essentially, you can get cash, miles or points back every time you swipe. As such, consider getting a credit card that will give you the most bang for your buck based on your regular spending.
If you don’t already have a budget, take a look at your biggest spending categories over the last few months. Then, look for credit cards that either offer bonus rewards on those categories.
For example, let’s say you spend a lot on groceries and gas. In this case, get a card that provides big rewards on those purchases. If, however, you don’t spend a lot in any one or two areas, consider a card that offers a high rewards rate on all your purchases.
Different credit cards have different features that can help you better achieve your goals. Consider, for instance, whether you prefer cashback or travel rewards. Also, think about whether you want a card with an introductory 0% APR promotion. Or if you’d prefer a large sign-up bonus.
As you shop around, look at the various features of each card you look. Then determine what you like and what you’re fine leaving on the table.