The Money Coach
  • About
    • Meet Lynnette
    • Media Kit
  • Get Help
    • Money Coach University™
    • Books
    • Financial Coaching
    • Speaking
    • The Money Coach Recommends™
  • Contact
  • Building Wealth
  • Investing
  • Credit Scores
  • Student Loans
  • Paying for College
  • Saving Money
  • Real Estate
  • Credit Card Debt
No Result
View All Result
The Money Coach
  • About
    • Meet Lynnette
    • Media Kit
  • Get Help
    • Money Coach University™
    • Books
    • Financial Coaching
    • Speaking
    • The Money Coach Recommends™
  • Contact
No Result
View All Result
The Money Coach
No Result
View All Result

5 Tips to Pick the Best Credit Cards For Your Wallet

Lynnette Khalfani-Cox, The Money Coach by Lynnette Khalfani-Cox, The Money Coach
in Credit Cards
Reading Time: 4 mins read
best_credit_card_deals
10
SHARES
159
VIEWS
Share on FacebookShare on Twitter

If you’re in the market for one or more credit cards, don’t just consider the annual fees, the interest rates, or the perks you’ll get from having certain credit cards.

It’s also smart to consider your lifestyle, spending habits and how you actually use credit cards. 

No matter what your credit rating, or what phase you are in life, here are some tips for choosing the best credit cards for your wallet.

Selecting the Best Credit Cards for Students

If you (or your child) are looking to establish credit, a good student credit card is a nice way to get started.

Student credit cards typically have lower credit limits. Nevertheless, they offer perhaps the most straightforward way to score your first real form of credit. After all, you’ll probably get approved for a credit card long before you can get approved for other, bigger forms of credit, like a car loan or a mortgage.

Tip #1: Know the Law

Just be aware that due to the Credit Card Reform Act, it’s a bit more difficult for students to obtain credit cards than it was in years past.

If you’re 21 or under, a parent must co-sign your credit card application; otherwise, you have to show enough income to be able to repay any credit card debt you incur.

Getting the Best Credit Cards for Bad Credit or Fair Credit

Late payments, collection accounts and certain serious credit issues like bankruptcy or foreclosure will all cause banks to second-guess your credit card application.

But even if you’ve had financial setbacks, that doesn’t mean you can’t get credit.  In most cases, you can use a couple of approaches and still get a decent credit card.

Tip #2: Take a non-conventional approach

If you have bad credit, start by seeking a secured credit card, which requires you to put up a deposit – say $500 – and that deposit amount becomes your credit limit.

Just be sure to only go with a bank that reports your secured credit card payment history to the credit bureaus. This way, you can also build your credit rating and improve your credit score.

If your credit score is low, another option is to simply apply for regular, unsecured credit cards designed specifically for those with fair credit or so-so credit.

Picking the Best Credit Cards for Good Credit or Excellent Credit

When your credit is good to excellent, and your credit score is 700 or higher, you should enjoy lower credit card interest rates and have an easier time getting approved. You can also afford to be a lot pickier about which cards you want.

Tip #3: Be very selective

The best part of having great credit is having options.

So before you settle on any credit cards, do your homework, understand the rates and terms of each card, as well as any special cardholder benefits offered with each potential card.

Choosing the Best Rewards Credit Card

As mentioned before, your lifestyle should also account for a lot in your decision-making. If you’re a very disciplined person, and you pay off your balances in full each month, then a rewards credit card could be your best bet.

Likewise, if you are a heavy spender, and you hit the road a lot, a credit card with lots of travel benefits will be most attractive for your on-the-go lifestyle. When you shop, travel cards can help you earn airline miles and hotel stays, among other thing.

Likewise, rewards cards can be a great addition to your wallet.

Tip #4: Focus on what matters most

It’s very easy to get enticed by a slew of potential benefits credit card issuers may offer. But here’s where you have to keep your head and not get distracted by fluff.

Focus on what benefits matter most to you, based on the likelihood that you’ll actually accrue those benefits and use them.

For example, if a reward credit card mainly offers hotel stays or free airline miles, but you actually tend to stay at home, then you’ll probably be better off with a cash-back card, or a card that rewards your spending on gas, groceries and other items.

Finding the Best Balance Transfer Credit Cards

Finally, if you typically carry a balance on your credit cards, take that into account when you’re hunting for the best credit card deals.

After all, there’s no point in getting a rewards card when you really need a low-interest credit card, or a money-saving balance transfer card to pay off existing debt.

Tip#5: Think strategically, but not too far into the future

Depending on your current interest rates, the right credit card can help you save up to $1,000 or so a year. So balance transfer deals are all about getting the lowest possible rate.

But don’t forget to watch out for those pesky balance transfer fees as well; they can be as high as 3% to 5% of the amount you transfer.

And finally, remember that you don’t have to get locked into a credit card deal forever. In fact, if there’s one thing you can count on, it’s that in a year or so from now, credit card issuers will be out with a fresh round of balance transfer offers.

Tags: balance transfer offers
Previous Post

The Child and Dependent Care Credit Explained

Next Post

Identity Theft Explained

Related Articles

pay credit card balance in full
Covid-19

3 Items to Buy With a Credit Card During COVID-19

by Lynnette Khalfani-Cox, The Money Coach
coronavirus credit card debt
Covid-19

Coronavirus and Credit Card Debt: What Lenders Want You to Know and Do During COVID-19

by Lynnette Khalfani-Cox, The Money Coach
Rewards credit cards holiday spending strategy
Credit Cards

5 Strategies for Using Rewards Credit Cards When Holiday Shopping

by Guest Blogger
credit-card-benefits
Credit Cards

How to Negotiate a Lower Interest Rate on Your Credit Card

by Lynnette Khalfani-Cox, The Money Coach
maxed-out credit card
Credit Cards

The Most Maxed-Out Places in America

by Guest Blogger
credit-card-benefits
Credit Cards

4 Apps that Tap Into Your Credit Cards Hidden Benefits

by Lynnette Khalfani-Cox, The Money Coach
pay credit card balance in full
Credit Cards

Should I Pay My Credit Card Balance In Full Each Month?

by Lynnette Khalfani-Cox, The Money Coach
approved for a credit card
Credit Cards

How To Get Approved For A Credit Card

by Guest Blogger
credit cards
Credit Cards

The Best Credit Cards to Reach Your Financial Goals

by Guest Blogger
Next Post
identity_theft_explained

Identity Theft Explained

About

Lynnette Khalfani-Cox, The Money Coach®, is a personal finance expert, speaker, and author of 15 money-management books, including the New York Times bestseller Zero Debt: The Ultimate Guide to Financial Freedom.

Lynnette has been seen on more than 1,000 TV segments nationwide, including television appearances on Oprah, Dr. Phil, The Dr. Oz Show, The Steve Harvey Show, Good Morning America, The TODAY Show and many more.

Quick Links

  • Money Coach University
  • Lynnette's Personal Site
  • The Money Coach Corporate Site
  • Video Portfolio
  • Privacy Policy

All information on this blog is for educational purposes only. Lynnette Khalfani-Cox, The Money Coach, is not a certified financial planner, registered investment adviser, or attorney. If you need specialty financial, investment or legal advice, please consult the appropriate professional. Advertising Disclosure: This site may accept advertising, affiliate payments or other forms of compensation from companies mentioned in articles. This compensation may impact how and where products and companies appear on this site. AskTheMoneyCoach™ and Lynnette Khalfani-Cox, The Money Coach® are trademarks of TheMoneyCoach.net, LLC.

©2009-2022 TheMoneyCoach.net, LLC. All Rights Reserved.

No Result
View All Result
  • Meet Lynnette
  • Money Coach University™
  • Books
  • Financial Coaching
  • Speaking
  • The Money Coach Recommends™
  • Media Kit
  • Contact

©2009-2021 TheMoneyCoach.net, LLC. All Rights Reserved.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist