It can be tough to know where to start when choosing a credit card because there are so many options. You must figure out what you require your credit card for, the perks that are important to you, and the features that would make it easiest for you.
Here are some simple steps to take to choose a credit card for the first time or if you have been considering getting a new one.
What do you need your credit card for?
You need to know what you want your credit card for before you even start researching. Do you want a credit card that offers rewards like cash back or points? Is it important that there is no annual fee? Do you want a card with a low-interest rate? Does the transaction fee matter to you? Knowing these things shall help narrow down your choices and make it easier to find the perfect one.
What are the perks that are most important to you?
If you want your cashback rewards, then choose a card that offers cashback, like the SoFi credit card. If you prefer to transfer points to other programs, then look for a card that will offer the same.
Is your credit good enough for acceptance?
You need to ask yourself if your credit score is good enough to be accepted for a credit card. If you have a robust credit score, you will probably already know what kind of card you want and which cards are easiest for you to get approved.
Apply for a secured card
If you don’t have a reliable credit score, your best bet might be a secured card. With that, you make a deposit to secure the line of credit for the card.
The downside to these cards is that they typically have higher interest rates. However, if your goal is to build or repair your credit at this point, these are good cards to use.
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Additionally, some of them offer benefits like cashback incentives or travel perks. But if you are looking for rewards cards with lower interest rates and no annual fees, go with an unsecured card instead.
Be aware of APR rates
There are many credit card offers available to you. But APR rates are one factor that might dictate your choice.
The APR is the interest rate you will be charged for borrowing money on a credit card. This can be a crucial consideration when getting a credit card because it will determine how much money you have to pay each month.
Which credit card will give you the best perks?
Nowadays, credit cards come with many different perks to entice you to sign up. One perk that often gets people to sign up is the rewards program.
If you are looking for a credit card to give you cashback or miles on your purchases, then it’s worth it to look into the different rewards programs, according to experts at SoFi.