How to choose the right Credit Card?

Choosing the right credit card

It can help you to become financially fit. Credit card must fit to your lifestyle. So first and foremost, you need to Understand your requirements because, each Credit Card comes with its own set of unique benefits. There are various parameters in order to decide the best Credit Card for you. Some of the parameters, you have to take into consideration are.

Look at your spending habits
Many credit cards give you rewards points for some spending categories like Travel purchases, such as hotels or airline tickets, Gas, Groceries, Restaurants and Business spending. Consider the type of rewards must be relevant to you discounts, cashbacks, rewards, loyalty points or special privileges are being offered should be relevant to you and your requirements. So think about what could add the most value to your life. For example, you get a bunch of free airline miles but you travel rarely, so you should not choose this type of credit card.

Credit limit: it is very important to know the credit limit of your card. Calculate your monthly spending as well as income and choose accordingly.

Key terms and fees that make easy to pick a credit suitable for you
APR: This is the interest rate you’ll pay if you carry a balance. Many credit cards have a low promotional APR for both purchases and balance transfers.
Rewards: Credit card rewards often equate to between 1% and 2% of your spending. You may find more generous rewards for specific categories of purchases, such as 5% cash back on gas or groceries.

Sign-up bonus: Many credit cards offer a Sign-up bonus bonus or welcome bonus. Which means new customers earn extra rewards, such as cash back, points or miles, when they use their card after reach a minimum spending requirement within the first few months of opening your account.

Annual fee: There is sometimes an annual fee just to have a particular credit card. It may be worth paying if you’ll earn enough rewards and perks.

Other fees: foreign transaction fee In case of foreign transaction. late fees in case of a missed payment, balance transfer fees if you plan to transfer a balance, or fees for cash advances.

Other perks: Check the perks that your card provides like advance access to concert and event tickets, roadside assistance, rental car insurance or travel insurance. These are just some of the perks.

You may also get help by reading reviews or checking the consumer complaint database maintained by the Consumer Financial Protection Bureau (CFPB).

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