With a number of reward programs, cash back options and interest rates that these credit cards come with, choosing the right one for you can be challenging. Therefore, the following tips will help you choose the right one for you.
Before you choose any credit card, it is important that you first consider your credit. In other words it is important that you get to know your credit score before you apply for any credit card. This is very important as credit card issuers are likely to use your credit score as determining factor when deciding whether to offer you a card or not. Once you know your credit score it will be easy for you to choose a card that you qualify for with a lot of ease.
The other important factor that you need to consider when choosing a credit card is the credit limit of the card. The credit limit of the card is the amount of money that the card allows you to borrow. This factor is very important as it is likely to influence your purchasing power. The best credit card for a first timer a card that has low credit limit. It is therefore important to know that different credit cards will have different credit limits and some cards are likely to increase your credit limit after a few consecutive on-time payments that you make.
The other important factor that you need to consider when choosing a credit card is the interest rate that the credit card has. When you are planning to apply for a credit card, you need to know that these credit cards have different interest rates. There are some credit cards that have interest rates that appear as Annual Perfect Rates while others have Variable rates. Therefore, this means that when you choose a credit card that has a fixed interest rate, you are required to make monthly payments without fail. It is therefore important to be sure that you will be able to make the monthly payments before choosing a fixed one and if not it is advisable that you choose a credit card that has a variable rate.
Lastly, when choosing a good credit card, it is important that you consider the fees and penalties that come with the card. In other words it is important that you check any charges that have to apply on any transaction that you do using your credit card. The penalty charges that you will be required to pay when you delay to pay your bills is also important. When you put this into consideration, it will help you choose a credit card that has reasonable fees and one that offers you no transaction fees for a period of 12 Months.