How to Choose the Right Credit Card

Displaying wallet with a variety of credit cards

Credit cards can be beneficial. They can rent you a car, serve as an emergency fund, or help you build stellar credit. They can also be a deadly weapon. They can pile up debt that will follow you around for years and be marked negatively on your credit score. Your relationship with your credit card is personal. Whether your card helps you or eventually hurts you is all up to you. Now that you understand the responsibility that you have no your hands, it’s time to choose a credit card. Choosing the right credit card can have a significant impact on whether the card is right for you or bad.

Choosing a credit card has never been easier. First, the Obama administration passed a law that governs how credit cards are sold. In the past, a credit card company could get you to sign on the dotted line after giving you a long and complicated contract. The average person wouldn’t be able to understand the agreement, and so many people ended up signing contracts that weren’t beneficial for them. Now, credit card companies have to display the upsides and the downsides of their offers in plain English; something your average person can understand.

Secondly, the internet helps you choose the card that is right for you. You can surf the web and look up the cards that you qualify for. You can read their everyday English offers and choose the card that is right for you. But which card is right for you? Well, the first thing you need to do is obtain your credit report. The federal government allows you access to your credit report three times a year. You can go and request those reports right from a government website, so there is no need to sign up for a free credit report from a private company.

Once you’ve obtained your credit report, you should look at your credit scores. You should have three credit reports from all three major credit score companies. Average these scores together, and you have an idea of your credit score is. Now, when you surf the web for a credit card, you know which ones you should qualify for. The better your credit history, the better credit card you should be eligible for. If your credit isn’t so good, don’t worry, you can qualify for a credit card and use it to build your credit history back up.

If you are the type of person that will maintain and manage a balance on your credit cards, then apply for a card that has a low-interest rate. You don’t want to be paying huge fees while you manage your money. If you are the type of person that will pay the credit card off in full every week or month, then look for a card with rewards. These rewards can be cash back or frequent flier miles. The point is that you want to be rewarded for your financial responsibility, and the right card can do that for you.

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