A credit card is best for me
credit card When people find out I write about credit cards (and make v ideos about credit cards), they always ask, “What’s the best credit card?” And I always say (of course), “That depends.”
There is no “best” credit card that fits every single person. However, there is a way to help you figure out which credit card will be best for you. Which credit card is best for me?
Who is your name?
It is important to first discover the identity of your credit cardholder. Particularly, how do the answers to this question?
- How good is your credit report?
- Do you have an unpaid credit card balance?
- What is the amount you spend on a credit card?
- What rewards the best suit your preferences and lifestyle?
They’re almost like the decision tree. Starting from the top and ending at the bottom on this list, the way your answers to each will inform you which kind of card you should get or if you need to continue with the other questions credit card.
Let’s look at each one at a time and you’ll be able to see what I’m talking about.
What is your credit score?
Are you just beginning to get started on credit? Do you have a few years of credit background? Does that credit history look positive or negative?
Yep, more questions. Let’s figure them out.
If you’re a student first, if you don’t have a credit history and you are currently in the college system, I suggest you apply for a college student credit card from an established bank, such as or one of Bank of America student cards or Capital One’s student credit card. But this isn’t an invitation to create credit, so do not get carried away.
This is just the beginning step to build a credit score It’s a good idea to begin college as early as it’s possible to get that first credit line could be much more difficult after you’ve graduated from the school.
In case you’re in college and do not have a credit history or bad credit history I would strongly recommend using a secure credit card. Credit cards that are secured require an initial security deposit to obtain the card however, they’re a good method to establish credit without incurring additional fees. Consider a secured credit line from a major bank check out our top secured credit card list due to the fact that most of the time, the secured credit card will result in the card being insecure.
The credit card company can either take back the deposit and allow you to use the card for a while or upgrade you to a more expensive card — provided you’ve paid your charges in time. Whatever you choose, you’ll get your security deposit back when you’ve paid off your balance.
It is also possible to opt for an unsecured credit card, however, it’s more difficult regarding whether you’ll get approved and what you’ll have to pay in interest or fees. Check out our short video about unsecured credit cards.
That’s it… If you’re in a bad financial situation or are just beginning to learn about credit, you’re done. Get off the page and find the perfect credit account for your needs.
If you’ve got a solid credit score you can move on to the next step…
Do you have an unpaid amount on one of your credit cards?
If you’ve had a long-standing history of using cardholders, are often have the balance of your card and pay interest on it? Or do you pay it off in the full amount?
If you have balances particularly when you have large balances that are already in the bank, your best bet is to find the most low-interest credit card you are able to find. Do not use reward credit cards. Credit cards that offer rewards have interest rates that are generally 2-percent higher than credit cards with no rewards. Therefore, having a rewards credit card if you need to pay interest isn’t the best idea because you’ll be paying more interest than you will receive in rewards. Explore a bit as cards with great rates are difficult to locate. Check out the local bank’s cards against those issued by the big issuers.
If you have balances, then that’s fine for you. Find a low-interest card and put down the doing you.
But, if you pay your balances in full every month now is the time to consider rewards. Continue through the following question(s )…
What is your budget? Plus, what benefits appeal to you?
The type of reward credit card you select could depend on the amount you actually pay to your credit cards every month.
If you spend less than $1000 per month in the credit card you use The best choice is likely to be a credit card that offers a cashback card. Other reward cards might appeal to you because everyone loves to win free travel for instance — however, it is unlikely that you will spend enough to earn the amount that is required to receive cheap airline tickets or expensive products. Instead of accumulating points or miles for years hoping to get one redemption, consider cashback credit cards that let you earn cashback on every purchase and let you redeem tiny rebates. Nowadays, many cashback credit cards allow you to redeem for any amount however some have you earn $25, and a few offer higher limits.
Our top cashback credit cards include that the Citi Double Cash Card and PayPal Cashback MasterCard. Both of them allow you to get a 2% discount on all your card purchases. It’s very simple. If you’re looking to work more hard to maximize the number of rebates you earn, consider cards with greater cash-back percentages in specific categories of spending. For instance, the Wells Fargo Propel American Express Card is a fantastic example of a credit card that grants you the option of 3% cashback on fuel, meals and most travel, and much more. There are two Chase Freedom cards. Chase Freedom and Discover It cards offer specific categories for purchases that earn you 5% cashback. It is important to note that the categories of 5% change every quarter.
If you are spending more than $1000 per month with the credit card you use (and you make sure to pay your balances off fully), that’s when we suggest you think about travel rewards cards– in the event that they match your spending habits and offer you the rewards you desire. There’s no reason to think that you ought to consider a trip however, even those who spend a lot on their cards are often using the most reputable cashback credit cards due to the huge rebates and simple redemptions.
However, if traveling appeals to you there are usually two options to consider:
- If you are already traveling frequently and you find yourself traveling with the same airline and/or hotel chains frequently it is logical to obtain a credit card from the hotel or airline. This lets you piggyback on points or miles that you already earn and thereby spend more rewards and enjoy more perks with the “elite status” programs such as airport lounges and free checked bags and so on. Every major hotel chain and airline has at least an account that allows you to earn points and miles from your spending. Many offer more than one card depending on the goals you set for your rewards and the amount you’re willing to spend in annual costs. (Yes annual fees are charged. Many excellent travel reward cards come with these. If you’re spending lots of money on your credit cards and you are a frequent user, you will find that the annual cost is far more than it is compensated by the benefits and rewards you get. But, make sure you make the calculations using your own expenditure.)
- If you do not travel regularly frequently (but you would like to spend more time traveling for pleasure) and you are charging more than $1,000 per month on your credit cards, it’s sensible to think about general travel cards such as those offered by Chase Sapphire Preferred or Chase Sapphire Reserve or American Express Platinum or American Express Gold. These cards offer rewards points that are more flexible regards to using them for specific travel expenses or to transfer to frequent flyer programs when needed. Additionally, they offer benefits like access to lounges at airports as well as travel reimbursements and many more. The cards may have low annual fees, or costly annual fees of $400,000or more, so ensure you calculate what you believe that the benefits will be worth prior to making the leap.
You Can Mix and Match
If you’re looking to maximize reward points on your credit card It is recommended that you carry several credit cards, and use the most appropriate card for every purchase. If you are spending a lot using your credit cards, you’ll get a lot more in rewards and rebates following this method. But, if you do not spend a significant amount on your card each month, it could result in lots of thought, but with a tiny reward.