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How to Decide On Which Credit Card is Right For You

You might have never considered signing up for a credit card. If you’re concerned about debt, it’s understandable to be precautious. However, there are certainly ways that you can use credit cards in a responsible manner. You want to make sure that you do as much research as possible on the different types of cards. These tips will help you decide on which credit card is right for you.

1. Look at credit limits

Your credit limit is how much money is being allotted to you by the card issuer. What your credit limit is will depend on things like your credit score and income. Before signing up for a credit card, speak with a representative and ask what the credit limit range is. When you sign up, take your credit limit to heart. Don’t see it as an invitation to spend as much as you possibly can. You should use as little of your credit limit as possible and pay it off in full every month.

2. Look at interest

Interest rates are what get lots of people into trouble when using credit cards. While the debt from the various items they bought with the credit card can be large enough, it grows even more when interest is calculated. Some cards will have no interest for the first year or so. However, others will have high-interest rates that kick in right away.
Read the fine print of any credit agreement before signing. Interest won’t be an issue if you don’t plan on carrying a balance. However, it can easily snowball into a huge problem that has you paying far more than you intended.

3. Look at rewards

How good would it feel to get something back for using a credit card? With rewards credit cards, you can make that a reality. Take a look at cashback or travel rewards credit cards and see if any tickle your fancy. You could be on your way to a great vacation or saving up for a much-needed item thanks to your rewards card.

4. Ease of use

You want to make sure that your credit card is one that you’ll be able to use just about anywhere. Some cards, such as American Express or Discover, are not accepted by certain merchants due to their high fees. It can be good to have at least one more universally-accepted credit card at your disposal. When using multiple cards, make sure that they are both paid off on time and kept in a safe place in your wallet.

5. Addressing your needs

Certain credit cards are better for certain consumers. If you’re approached about a travel rewards card but haven’t gone out of the state in five years, you might want to decline. However, if you frequently shop at a certain store, you should very well consider signing up for their store card. You want to sign up for cards because it would benefit you to do so. Don’t let yourself be pressured by pushy salespeople or bank tellers. As a responsible consumer, it’s your right to be able to make the proper decisions all about your financial future. If that means opting for a less elaborate credit card, so be it.

The purpose of a credit card is to give you a way out when you don’t have all the necessary funds at your disposal. Since you need to pay it back, this gives you a great deal of responsibility. By finding the right credit card for yourself and by using it appropriately, you can put yourself on track to having a great credit history.