A card applicant is required to consider a wide range of factors; however, it’s advisable to choose the best type for overall credit cards based on the low fees and interest rates. In this article, the best cards are selected in categories based on how they address specific applicant’s needs. The best credit card available in the market may not be the right one for an applicant. Individuals with poor credit scores may only be eligible to get credit cards with higher interest rates and fewer rewards. Choosing the type of credit card is based on the individual’s credit situation, preference, and lifestyle. Here are some tips to navigate the selection process.
Which Credit Card is best?
Getting the best credit card requires research and self-consideration. You need to know your creditworthiness, spending habits, and how you are going to use the card.
• For the first time, credit card applicants, getting a secured credit card can be advisable. A secured credit card requires a security deposit, and the card activities are reported to all three credit bureaus, this helps the cardholder to build credit over time. Most secured cards provide an option to upgrade to a non-secured card after a one-time payment.
• For cardholders with card balance, they should consider moving the debt to a balance transfer card with a lower interest rate and others with no interest rate for the time. This card offers a relief of an extended period of 0% APR on transfers that allows the cardholder to pay balance more quickly.
• Cardholders who pay their credit card balance each month, they should consider getting the reward card that offers cash-back rewards. These credit cards allow you to use your everyday spending to earn rewards with no annual fees.
• For individuals who travel frequently, a general travel card or a card issued partnered with hotels and airlines can be most suitable. These allow the cardholder to leverage spending on travel to earn rewards that can be utilized to get further travel.
• Business owners can choose business credit cards designed to cater to their needs. These cards usually have rewards when the individual spends it for business purposes such as shipping or specific business-related items like office supplies.
• Most college students are first-time credit card holders, they don’t have an excellent credit history, however, and they can be reliable customers for card issuers. Student credit cards can be designed to provide online resources to guide new cardholders to be responsible for their spending.
Credit Scores
With a higher credit score, you have the best opportunity to choose different types of credit cards, best cards with better interest rates, reward programs, and credit lines. To better understand your card choices, card issuers have a set category score as Excellent, Very Good, Good, Poor. It’s advisable to apply to cards that fit the credit recommended by issuers.
An individual can check their current credit score easily at no cost. These score types have their algorithms and score ranges used by different issuers. There are other factors that card issuers consider when evaluating credit scores, such as income, deposit accounts, credit, and employment status.