Choosing a Suitable Credit Card

Credit cards are useful for many. Whether you are looking to establish credit to qualify for different types of lending, or you need one for everyday use, finding one to suit your needs is productive. Finding a suitable credit card is done by following a few steps and focusing on your specific credit needs.

Check Your Credit Score

The first step in finding a credit card is determining which type of card you may qualify for. Higher credit scores may qualify you for rewards cards and cards with lower interest rates, while poorer credit scores may mean you need to consider a secured card. If your credit score seems wrong, take the time to look at your credit report. There may be items on there you didn't know about or mistakes that should be disputed.[1]

Determine the Type of Card You Need

There are so many cards out there, each with different things to offer. Start by asking yourself about the purpose of obtaining a credit card.

If you are looking to establish credit, or rebuild your credit, a secured card, which will require a minimum deposit, might be the only option. If you are a student just starting to obtain credit, you may qualify for a low limit, unsecured card.

If you are looking to consolidate your current credit card debt or plan on making a large purchase, the ideal option might be a card that offers 0% APR for balance transfers or new purchases for a set amount of time. These cards often require higher credit scores but may save you a lot of interest expense if you qualify for one.[1]

Reward and cashback cards are a popular option, especially for those who frequently use their cards, travel often, or shop with their cards. These cards often have a higher APR than others, but you will receive miles, cashback, or bonus points on the amount of money you spend. This may be a good option if you pay your card off every month.[2]

Compare Your Favorites

Once you have narrowed your options down to a few cards, it is time to compare them to find a suitable one for you. Look at the APRs, annual fees (if any), and the rewards or benefits that may come with each. Once you have selected your favorite, apply online or send in the application form.[2]