I think we can all agree that it can be incredibly tricky to choose a credit card. Whether you’re at the end of your powers and have come here for help or if you’re at the beginning of your journey and have come here for guidance, you know/should know the endeavor of choosing the right credit card.
The number of the types of credit cards has sky-rocketed in the last years and more options are being added each and every year. It’s a good thing, really, because now, every group of persons can have their credit card for their own activity.
However, the big mistake people make is that they just go with whatever comes in their mail, just because it’s time-consuming to search for the perfect credit card for you. Believe me, it’s worth it. Just going with what’s in the mail box can be incredibly dangerous and you may not even maximize its benefits.
The credit cards you’re usually receiving are general credit cards that fit the vast majority of people, have low interest rates and a few benefits, however, there are many more that are better than that!
Rather than telling you for what credit card to go for, we’ll tell you the exact critics you have to make so you can finally set your mind upon a credit card and start using it as it should be used, with its full advantages.
1. Interest Rates. It goes without saying that these are the biggest trouble-makers because they make you lose even more money. Be careful of the trick many organizations make: they set the initial interest rate down to 0% ONLY for 6 months (which is usually written in fine print), then it jumps dramatically to even 18%, which is outrageous. So, pay attention to the interest fees and go for small ones for the long-term.
2. Perks. Hundreds, and I mean hundreds of credit cards offer a variety of perks. These perks can include traveling discounts, free merchandise, free groceries or huge discounts on all sorts of different products which are usually quite valuable. Most of the perks a credit card offers equate to roughly 2%-4% of the value you paid for each item. It’s pretty clear that if you have a perk that offers less than 2%-3%, it doesn’t worth taking it as that will be little to no benefits for you.
3. YOUR Hobbies. Yes, that is true. Your hobbies are a crucial element in choosing your credit card type. Why? Well, it’s easy, really, if you are a frequent shopper, it’s only logic to go for a credit type that covers this side and gives you shopping benefits. Let’s go on with this example and say that you love shopping. By purchasing a credit type for shopping, you will be able to rebate up to 5% of each purchase you make (depending upon the company you’re using) and, as you gather points for each purchase made, you will get huge discounts for all sorts of products and you may even get free items.
This example works for everything. Whether you’re a traveler, an adrenaline enthusiast, you love writing, reading etc., choosing the right credit type for your hobby is amazingly important.
These are the 3 things that you must always check before going in on such a journey. Don’t forget to keep your credit card score high and if you don’t know what that is, don’t worry as we are here for you and you can go ahead and read our other articles that do a thorough explanation on that!