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3 Steps to Find the Right Credit Card for You

There are hundreds, if not thousands of credit cards available to consumers, so it can be hard to determine which are the best credit cards for you. Offering deals like O% APR, cashback and reward points, the array of credit card offerings available can be staggering.

While it’s become easier than ever to apply for a credit card thanks to accessibility of online applications and credit card reviews, how do you find the right credit card for your needs? Following these three steps will help get you there.

What Do You Need?

When it comes to credit cards, the type of credit card that you need will depend entirely on a number of things, such as your credit history, your existing credit card use and what you will use the card for.

If this is your first credit card, then to quote an often-used phrase, the world really is your oyster, as there will be lots of cards and credit card companies that will want to have you as their customer. Avoid cards that discuss balance transfers, as this will not apply to you as you don’t have an existing balance to transfer.

Once you know what you’re looking for, and you’ve made a list of all the things you need from a credit card, such as 0% on purchases, whether you can use it abroad and a good credit limit, you need to start your research.

What Can You Get?

Because there are so many credit card companies out there, each offering unbelievably good deals to new customers, it’s important to know just what you are entitled to as a consumer.

Again, what you want from your credit card is down to personal choice, but look out for cards that offer a low APR (Annual Percentage Rate, which is an annual interest rate on purchases) and those that offer deals such as cash back on purchases, or even rewards, such as airline miles. However, always read the small print, especially on credit cards that offer these rewards, as they may only be valid if the customer pays off their balance in full every month.

Head to a Card Comparison Website

One of the best places to get impartial information on the latest credit card deals is via a card comparison website. While they may seem like a new fad, these sites have been around since before the recession in 2008, and offer all users the chance to compare and contrast specific credit card deals before making a decision.

There is no pressure for you to make a decision there and then, in fact, you can compare different deals at different times before making a decision, and because these sites are third party and not owned by any one credit card company or bank, they will be unbiased and up to date with all the latest information on the cards to suit you.

These days, almost everyone has a credit card. And while it may seem daunting to apply for a credit card, it can actually be a very simple process provided that you follow the three steps outlined above. Remember, paying off your balance in full every month not only guarantees you a good credit score, but also could lead to financial rewards in the future.

Image by pixabay, used under Creative Comms licence.

Tony Makar writes for a number of online magazines and specializes in personal finance. He dabbles in model-making in his spare time and works from his home in Berkshire.

One Comment

  1. Spending time thinking about the different types of cards is crucial. How many cards do you think is reasonable for one person to have?

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