There are countless types of credit cards available today, and many of them are tailor-made to suit specific spending habits and lifestyles. When choosing a credit card, it is important not to choose the first card offered to you, but rather to compare the different features offered by different credit card companies.
Given the sheer number of card services out there, it could be hard to choose the best credit card to match your spending habits. If you take different aspects of your lifestyle into account, then the choice becomes much easier to make.
Below are some scenarios that should help you decide how to choose the best credit card for your lifestyle.
1. You are trying to build a credit history
If you don’t have a credit history for whatever reason, then you probably know that getting a credit card without a credit history is virtually impossible. Without a credit history, many banks will not even consider giving you a card, but without a card, you cannot build a credit history.
The best credit card to deal with this catch-22 situation is to apply for a secured credit card. These cards work just like regular cards though they need a deposit of between $200 and $500 to assure the creditor that you will repay your debt.
2. You never use your credit card
If you rarely use your credit card because you prefer to use cash, one of the best type of credit cards to get would be a plain vanilla credit card.
Plain vanilla credit cards are the most basic form of unsecured credit card you can own. Though there are no reward points or additional benefits, they are the best option to have to tide you over between paychecks. Their focus on simplicity means that many of them do not have annual fees so if used correctly can be the cheapest cards to own.
Plain vanilla credit cards are also an excellent choice to use as a student credit card, due to its functionality to tide one over, without necessarily racking up debt.
3. You use your credit card for everything
If you are one of those people that uses your credit card everywhere, it only makes sense if your card rewards you every time you use it. Finding a credit card that has a good rewards program is important, as all those extra points you earn could mean the ability to make better purchases in the future.
Reward cards vary and depend on the types of rewards offered.
There are cards that reward you with points for gas or grocery purchases only while others reward you with discounts on travel expenditures like air miles, accommodation, and tours. Rewards can also take the form of rebates, giving you some cash back the more that you spend. When you use your credit card for family purchases, you should look for one that gives back as much as possible.
4. You are a frequent traveler
If you find yourself traveling across borders often, maybe you need to find yourself a credit card that has at least two features. First and most importantly, you need to check the card issuer’s policy on lost and stolen cards. If the company takes too long to deliver a replacement card, then you could find yourself stranded with no money.
Secondly, you need to find a card with a favorable conversion rate and low or no foreign transaction fees. Low transaction fees will ensure that you do not pay too much to have the card convert purchases to US dollars, or for the transaction to be processed.
Regardless of the type of card you choose to get, remember to check out the card’s terms and conditions to make sure that they fit your requirements. By doing this, you save yourself from the future stresses that have caused so many people to give credit cards a bad name.