Finance

How to Find the Best Credit Card for You

Don’t make the mistake of thinking that all credit cards are created equal. There are a variety of credit cards on the market these days and they’re not all the same, in fact, some credit cards are very different to others. That means you need to take care when looking for a new credit card, as you want to make sure that the card you choose is the right one for you and your circumstances.

Think About Your Circumstances

Your circumstances, financial, family and lifestyle, are not the same as everyone else. We’re all individuals and live our lives differently, so a credit card that may be perfect for one person may be completely unsuitable for another.

To give you an example, do you use your credit card like your parents do? Do you have the same financial situation? The answer to both questions is likely to be ‘no’, so it suffices to say that you need to make your own decisions about the credit card you choose, which isn’t to say you shouldn’t ask your parents for advice! Once you’ve thought about whether you really need a credit card (you may not need one at all) and decided that you do need one, think about the following:

  • Your income
  • Your expenses
  • How much you save
  • Whether you have dependents
  • Your car and its present condition

These are important factors that you need to consider before applying for a credit card, as you need to work out how much debt you can afford to incur on the card, how you’ll meet your repayment obligations, your day-to-day expenses and the likelihood of a financial emergency occurring. Like your car breaking down and needing repairs! That means you need to find yourself the best credit card to pay insurance, buy the groceries, pay for the internet and phone and all those other things!

Know the Different Credit Card Types

As there are different credit card types, you need to understand the differences so that you can choose the right one for you and your personal circumstances. Two of the most popular credit card types are:

  • Credit cards with interest-free periods – These cards are great if you regularly repay what you’ve purchased with your card every month. The interest-free period is usually 30 – 60 days, so you can avoid paying any interest at all if you repay what you’ve spent in full. However, they usually have higher interest rates and annual fees than other cards.
  • Credit cards with no interest-free periods – These cards offer lower interest rates and annual fees than cards with interest-free periods, so if you won’t be repaying what you’ve spent in full every month, these cards are a better choice for you.

Do your research before deciding on a card as it really is very important that you choose the right credit card for your personal circumstances and spending habits. Whether you opt for a card with interest-free periods or a regular credit card, you have a lot of options, so make the most of them!

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