With so many credit card offers available, it can be difficult to find the correct one. Credit scores and payment history affect eligibility, but even similar products can come with significant differences. Use the following information to find the cards that work with your circumstances.
If a signup bonus sounds appealing, read the fine print. While this perk seems lucrative, the cash bonus might depend on how much you spend. This amount could depend on billing cycles, but some cards even reward users with end-of-year bonuses. That’s why this type of card works well if you use credit frequently.
Young adults, people with bad credit or those without payment histories often turn to secured cards for spending options. These accounts usually have low initial credit limits, and you need to make a deposit first. While many of these products build good credit upon satisfactory payment histories, they can have more hurdles when it comes to earning higher spending limits. Look for products that offer progress tracking and monitoring of FICO scores. If you go the secured-card route, see if the company will let users switch to unsecured status upon establishment of good credit.
If you want to transfer balances, evaluate cards that don’t charge fees for these transactions. The best ones also offer long periods of fee-free balance transfers. Additionally, assess the annual percentage rate of each card, and check for low intro rates. Balance transfer cards, when used correctly, can help get rid of debt faster.
If you love to explore new places, cards that offer travel rewards obviously make sense. Look for those that let you earn more than just flyer’s miles. Many give perks like travel insurance, car rentals, hotel nights, and free upgrades on flights and hotels. Don’t settle for reward rates that fall below 1.5 percent. While some cards also offer sign-up bonuses, a higher reward percentage trumps those.
Some consumers might not even want to consider cards with annual fees, especially when the amount seems high. However, cards with annual fees often come with bigger perks. If you’re looking for extras, try this type of credit. Some of the companies will even waive these dues for the first year. That way, you can test the waters of these particular accounts.
Since new inquiries stay on credit reports for up to two years and lower scores for at least several months, it’s important to choose the card that fits your situation. That’s why these tips can help you make the right selections so that you can maximize each card’s potential.