Are you looking for ways to choose the right credit for you? If yes, you are in the right place because, in today’s article, we are going to tell you exactly how you can choose a perfect credit card. Don’t worry, we will give you simple and easy tips. Read on!
Review your Credit Report
Checking your credit score or credit report is the ultimate tip we can give you while choosing the right credit card for you. You can check your credit score online for different credit cards.
Typically, the range of the credit score varies by the credit scoring model. However, in general, according to FICO Scores, if your credit score is between 300 and 579, it is considered very poor. A credit score between 580 and 669 is fair and good between 670 and 739.
Likewise, your credit score is very good if it lies between 740 and 799. It is excellent between 800 and 850. After you know where you exist, you can use the data r info to narrow down your credit search.
We suggest you consider credit cards, which are less than or equal to your credit or balance. For instance, if you have a good credit score, you need to for a “fair” or “good” credit requirements.
Also, sometimes, your credit score is within a good range. However, the credit card company does not approve you for a credit card. It is because they also look for other elements such as your monthly income and housing payments.
Choose a Suitable Card
You must decide which card type suits your needs in the best possible way. In general, experts have classified credit cards in 3 main types – which are 0% APR, reward-based, and credit building cards.
1. 0% APR
Are you looking to finance new purchases? Do you want to get out of your debt? If yes, a credit card with 0% APR is the best card. It offers 0% interest on balance transfers and purchases.
Reward-based or Cash-back is another type of credit card suitable for people with no debt and good credit. These cards help people offset their purchase costs and pay for upcoming travel – i.e. when you redeem points.
Also, Reward-based cards come in different offerings including points or miles, cashback, etc. Points are common in dining out, groceries, gas, and travel spending categories. You can also redeem points for hotels, airfare, gift cards, and statement credits.
3. Building credit
Building credit cards are designed specifically for people with low credit scores or bad credit score history. For instance, if you have a score of less than 669, you must go for a building credit card. It must be your top priority over 0% APR cards and reward-based cards.
Using the “building credit card,” you can improve your credit scores, which is the key to unlock and take benefit from low-interest rates. These cards also allow you to increase odds for other types of credit cards, loans, and mortgages.