When you take the time to interact with a number of credit card holders, you will learn that they all have a reason for using their credit cards. Some would like reassurance that they have access to finance, even during periods where they cannot access cash. Others use their credit cards to reduce debt more quickly, by having one card to pay off all the higher-rate debt that they are responsible for.
There are a few people who are unable to come up with a proper financial plan, and therefore have a credit card for one simple reason – spending. Before you rush to a bank or credit union to sign up for what appears to be a good credit card, have a look at your financial goals so that you can make an informed decision. Only then, will you be able to find the best credit card to help you reach your goals.
Here are some goals that you may consider, and the best credit card to meet these goals.
Overcoming a Debt
You may have made the unfortunate decision to live beyond your means, leading you to face a mountain of debt. In this instance, you could opt to use a credit card for a balance transfer. This card works by consolidating all your debt, and ensuring that you can easily pay just one card.
You need to be careful though – some balance transfer credit cards can have higher-than-average interest rates after an initial, low “teaser” rate, and they may also charges fees of up to 3% to complete the balance transfer transaction.
Having a Little Extra Help
If you are representative of the general population, then you probably have difficulty living within your paycheck from month to month. There will be a point in the middle of the month where the money well has run dry, and you still need access to funds in order to make it until the next paycheck.
In this case, your credit card could be your financial back up plan. Here, you should opt for a Classic Card, although if you have an excellent income or great credit, you can get a Gold Card or Platinum Card.
The problem with living beyond your means, as you would be in this instance, is that you get used to it. Rather than your limit being your paycheck, it becomes your credit card limit. The higher your credit card limit becomes, the more challenging it is to pay off. In a worst-case situation, you can drive yourself into bankruptcy if you’re unable to make the required credit card payments.
There are credit cards which encourage you to keep within a certain limit so that you can experience some cash back privileges. These are the type of cards that will curb your spending, in effect, actually forcing you to save.
There are credit cards available that will assist you to complete your college education. These are cards that help you to save, and give you benefits for being a student. These cards will offer a large range of student centered benefits including discounts or cash back opportunities at the most popular lifestyle stores and eateries.
These are the kind of credit cards that will reward you with cash backs on all purchases that you make which are student related. One example of credit cards using this program is the UPromise MasterCard that is explained in detail on www.upromise.com.
It is noteworthy that no matter what you financial goal may be, you can find a credit card that will not only meet this goal, but will also elevate the state of your finances. All you need to do is be clear about what you intend to achieve by owning a credit card, and it will be possible to select the best credit card for your needs.