What Kind of Credit Card Should You Get?

Nowadays, you can choose from hundreds of credit cards, and deciding which one can be daunting. There are business cards, consumer cards, student cards, rewards cards ... and there are further breakdowns based on your credit score.

By Larry Westfall

Back in the 'old days', if you wanted a credit card, your only choices were VISA, MasterCard, or American Express. For most people, American Express was only for the very rich or for businesses.

All of that has changed. You can now choose from hundreds of credit cards and deciding which one can be daunting. There are business cards, consumer cards, student cards, rewards cards and more. And within all of those groups, there are further breakdowns based on your credit score.

The first thing you need to do when you are thinking about getting a credit card is - what do you want it for? What do you plan to do with it?
You need to do a self-assessment and figure out exactly what you want the card for.

Then, you need to take a hard look at yourself and give yourself an honest appraisal. You need to know your credit score to determine if you will apply for a 'credit needs improvement' or an 'excellent credit' card. Be honest, or you will just be wasting your time.

You will also need to see if there is an introductory APR (hopefully 0%) and for how long this applies. Next, you will need to check what the APR is after the intro period is over.

Are there any other fees? You will need to determine if there is an annual fee. Don't just select a card because there is no fee. There may be a very good reason. You may be getting a better interest rate or you may qualify for better rewards. Do your homework.

You will also want to check out the rewards cards. I have an airline rewards card and love getting 500 to 1,000 additional miles every month. I also have it set up so that my credit card is paid automatically. You don't want to fall behind in your payments.

So, what happens if you have never had a card or if you have poor credit? Well, you can get a student card or a secured card. These will be for small amounts, or you will have to make a deposit, and that will be your credit limit. These cards are great for those who need to establish and re-establish credit.

You now have hundreds of cards with various options for your credit card decision. You will have to do your homework and see which card is right for you. Decide what you want, what your spending habits are, and exactly what you are looking for before you apply for a credit card.

There are lots of credit card deals and you have to know what the best offer for you is. Determine what your needs are and then make the best decision for your next credit card.

Make sure that you pay your bills on time, budget your money, and improve your credit score. Choosing a credit card today can be a challenge. However, if you do your homework, you will make the right choice.

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