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How To Decide Which Credit Card Is Best For Your Situation

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Finding the right credit card is part skill and ingenuity, part luck. While there is no “magic card” that can fit all consumer needs, knowing what you need out of a line of credit and knowing how it will affect your overall financial situation will allow you to choose the card–and the financial institution behind it–that will work best for you and for your situation.

Knowing what your options are and having a clear picture of your own financial situations will allow you to determine what you are looking for in a line of credit. Here are some things to consider when choosing the right credit card for you.

Check Your Credit Score

Your credit score will determine what types of credit offers you are eligible for. The higher your score, the more offers you will be eligible for, and the more potential perks and benefits you will get from the establishment of a lending relationship with a credit card.

 

Generally speaking, credit scores in the 700-800 range will allow for the most flexibility, while scores of 600-700 will give you modest returns on card offers. If you find that your credit score is below 600, you might want to focus on finding a line of credit that is designed to increase your credit score as you establish a trusting relationship with them.

 

Experian, Trans Union, and Equifax are the three major credit reporting institutions that you can contact to find out your credit score; you are eligible for one free credit screening per year, so take advantage of what this knowledge has for you.

Identify What Type Of Card You Need

In general, there are three types of credit card offerings in existence today. The most basic credit lines are designed to improve limited or damaged credit. These cards tend to be the ones with the highest interest rates, as in establishing a relationship with them, you’ll need to prove your creditworthiness by paying on time and in full. Understanding interest rates is key to getting the most out of your credit relationship with a banking institution.

Interest saving cards are designed for people who have established credit, and they are looking to minimize interest charges on bigger purchases. These low-interest cards are a very attractive option for building and protecting credit scores as well.

Perks cards are created with established credit holders in mind. These cards offer perks such as vacation points, free purchases, and other incentives for regular users of credit lines. As long as holders pay responsibly, they can enjoy all of the added perks and benefits that come from credit line ownership.

Ask The Right Questions

Asking key questions when looking at lines of credit and knowing your own needs will help you narrow down your choices so you can “zero” in on the right card for you. Here are some examples of questions to ask when looking at credit offers:

 

  1. Will this credit line help me to rebuild or protect my credit score?
  2. How much does this card cost to open? To maintain? What are the interest regulations and fees?
  3. Can I graduate to a better offer later on?
  4. How long does the 0% APR offer last? What comes after that initial period?
  5. Does this card offer perks and rewards?
  6. What are the terms and conditions of payment? Am I willing to abide by these terms and conditions?

Knowing your credit line information thoroughly will allow you to determine if this is the right credit relationship for your unique financial situation. Don’t be afraid to ask questions, to read your information thoroughly, and know your own financial situation and needs to determine if the LOC you are considering is right for you. Here’s to your financial health and prosperity!

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4 Comments

  • Reply Shanna |

    hi, I totally get the appeal of the Dual Enrollment, but to do it at the expense of her high school years and experiences may not be in her best interests. If she wants to fully experience high school and not do the dual enrollment, you may want to consider supporting her in that. She may wind up resenting that she didn’t get a “normal” high school experience. Junior College is very inexpensive and she can still go that route. And she is clearly a VERY bright girl and will likely get many, many scholarship offers (merit and need based) to attend college. The kids I know who loved Dual Enrollment were kids who did not care for or care about high school social life, etc. She may not be a good fit for that if she is unhappy about doing it. Best of luck with everything, I hope it all settles in soon. You are a good mama!

    • Reply Alice |

      Shana,

      You replied to the credit card post, not the dual enrollment. Not sure that Hope will ever see this comment.

  • Reply Annoyed |

    this is a getting out of debt blog, the fact they promoting credit cards and going into more debt makes me even more annoyed and turned off from this blog more than ever

    • Reply Annoyed annoyed |

      Couldn’t agree more.

      If the article had been tailored to talk about debt reduction or how to use credit cards to attack debt then maybe, but this article as written has nothing to do with the whole point of the blog.

So, what do you think ?