After checking out your credit to find that it is good enough, you may be shopping around for a new credit card. However, after discovering that there are so many choices and different types of cards, you may be at a loss as to which one you should go after. If so, ask yourself the questions below to help you determine your needs so that you can narrow down which personal credit cards to seek out.
1. Do You Plan to Carry a Balance or Pay It Off Each Month?
One question that you should ask yourself is in regards to how you will treat the monthly bill balance. Do you intend on paying off all transactions you made in the previous month? Or, do you plan to use your card as a budgeting tool that allows you to make a set payment against the balance that will be carried?
If you plan on paying off the entire balance each month, you should not have to worry too much about the rate of interest that will build up every month. Instead, you can focus on other possible transition fees or even the benefits that the card has to offer.
However, if you plan to carry a balance, look for a low annual percentage rate (APR). You may also want to look for a card that offers a grace period to pay off any balances to help allay the cost of the interest.
2. What Type of Rewards Would Benefit You the Most?
The next question you should ask yourself when choosing a new credit card has to do with the types of rewards and benefits it has to offer. Which card aligns best with your buying habits? Do you travel the airways a lot and would benefit from miles? Or, do you primarily use your card for groceries, gas, and other daily essentials?
If you do not fly often or at all, a credit card that offers air miles would not do much for you. However, if you use your card for everyday items, you may benefit from a cash-back rewards program or one that gives you points usable toward free gas.
Once you have planned out how you intend to use the new card and what benefits you desire, you can start narrowing down your choices. If you are having problems navigating the decision-making process as well as the verbiage of each company's terms and conditions, seek assistance from a representative of a finance company that deals with personal credit cards.