Everyone may come up with credit card. Credit card is a modern tool. It helps you to manage your personal finance, if you master it and use it well. Or it may be a dangerous weapon that force you jumping into debt pool. It all depends on you.
If you are responsible, a credit card can be both convenient and efficient for you. Credit card can help you saving money, not saving too much money, but maybe 1% or so. And it also gives you a bonus: by using it, it helps you for a paperless personal finance management.
So, how to choose a credit card?
It is all based on your living styles:
- If you are are someone who revolves a balance credit card debt, focus on cards that offer low interest rates (especially on balance transfers) — and put a stop to new charges.
- If you pay your balance in full every month, find a credit card with no annual fees and a solid cash rewards program.
- Some credit card users have special needs. If you spend a lot on gas, consider a gas credit card that gives added rewards on auto expenses. If you travel a lot, look for a card with rewards for flights and lodging.
And it’s also important that you understand the different aspects of the credit card application.
- An annual percentage rate of 11% or less on purchases.
- Low rates on other loans, such as cash advances or balance transfers. (If you’re doing a balance transfer, find a card that offers 0% APR, at least for a year.)
- Reasonable penalty terms. Find the penalty rate (or default rate), and follow the asterisk to see what triggers it.
- Finance charges that are not computed using two-cycle billing. (Two-cycle billing sucks.)
- No annual fee.
Don’t choose a card just because it offers a sign-up bonus or because it gives you a discount at your favorite store. Read the terms and conditions. Understand the card’s limitations. Remember: your goal is to pick a tool, like a vacuum cleaner. You’re not looking for a one-time bonus, but a long-term relationship you can live with.
And here is a category which may help searching and deciding which credit card fits you:
- Best Low Interest Rate Cards
- Best Cash Back Cards
- Best Travel Miles Cards
- Best Reward Points Cards
- Best “Impaired/No Credit” Credit Cards
- Most Innovative Credit Card and Programs
You need to search or compare all credit cards available in your country to decide to apply which credit cards. You should spend some times on it. It is worthy in long term.
Remember: Please read any offer thoroughly before applying. And please, do not sign up for a credit card if you’re not certain you can handle the responsibility.
If you choose to use credit cards, make a commitment to use them responsibly.