The majority of Americans use the same credit card for years. It is convenient and at the same time helps you build a credit score. When you switch cards, you might find it difficult to make payments online. The details of the old card may have been saved automatically and you have to put in a bit of effort to update your details.
It is always better to consider the pros and cons of a credit card before you start using it. Being associated with a genuine credit card provider will help you save some money and facilitate easy payments using your card.
Maintaining a good credit card score will help you get a loan with a lower rate of interest that will help to finance your studies, cay payments, etc. You should regularly you check your credit report. This will help you understand your credit transactions as well as the credit score you have. Sometimes things may seem fine until you get a notice that you have missed the payments or credit amount outstanding. Credit reports also help you identify theft.
How to choose a credit card that will help you maintain a credit score?
1. Identify the purpose of the credit card:
Before you start looking for a credit card that helps you to maintain a decent credit score, understand the purpose of the card. Some people will use cards for paying utility bills, school fees, or grocery shopping. In this case, a credit card user will be interested in attractive gifts and a lower rate of interest for his card. Thus, first of all, understand the purpose of the card then choose a credit card accordingly.
2. Maintain balance or no Balance:
Some credit card users would like to have some balance in the credit card account. In that case, credit card companies such as Financesbuzz charges a low rate of interest and extends the grace period in case of delayed payment should be preferred. If you plan to pay the credit in full, a card with no annual fee should be preferred. Check for the rewards they offer if you use the card for almost all purchases you plan on making as some companies charge a 15 percent rate of interest on credit card balance, it would be advisable not to maintain any balance.
3. A quick consideration of your spending habits:
Consider applying for a card that will give you maximum rewards for paying off your balance on time. Certain cards give you rewards for booking airline tickets online, paying gas, restaurant bills, etc. Of course, you can use the card to make business payments and claim the rewards too.
4. Choose a card to maintain a credit score:
Companies like Financesbuzz, provide bespoke cards, according to the requirement of the customer. An apt card based on the purpose of the credit card will help you maintain a decent credit card score. A card that offers facilities to consolidate all your debts and offer a longer grace period without any impact on credit score may be the right pick for you.
5. Does the card give a credit transfer option?
Some cards allow the transfer of credit balance from one card to another. Choose a card that allows transferring the balance from an older card after taking into consideration some factors. The rate of interest you are paying on the credit balance you maintain. Make sure the card has a consolidation option of an older balance. If possible, find a credit card provider that offers you an introductory period offer of zero percent on balance transfers. Chase Slate offers its users a flat zero percent introductory rate for the first 1.5 years.
In short, maintaining an excellent credit score will help you get a credit card with all the features you want. Before you analyze the features, have an idea how you anticipate to use the card. If you are a globetrotter and want to book tickets frequently, you can opt for travel cards. If you want to expand your business, or make convenient payment to your creditors, you may prefer a business card. Look out for other options such as debt consolidation, no annual fee when you don’t maintain a balance, and more before deciding on which card to get. Try to narrow down your options based on whether they will allow you to maintain a healthy credit card score.
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