Choosing The Right Credit Card To Meet Your Specific Needs
If you have decided it's time to get a new credit card, then it's important to think about what type of card will best fit your needs. Not all cards are ideal for every situation, so knowing what you want up front is an added bonus.
For instance, if you need to rebuild your credit after filing bankruptcy, then the credit card you want will be very different than one offering cash-back rewards or airline miles.
Some popular credit card options are listed below to help you choose the right one for your unique situation:
Secured Credit Cards
When your credit rating is very low, you can improve it by showing you can use credit responsibly through the use of a secured credit card. These special cards require you pay a deposit and then use them regularly while making all of your payments as promised.
Credit Cards With Balance Transfer Options
If you already have a credit card but it has a high interest rate and you are struggling to pay it off in a reasonable amount of time, then you should consider getting a credit card with both a lower interest rate and an option to transfer your existing balance to it.
As long as you have been making regular payments on the other card, it should be easy to find one with a lower interest rate where you can move your debt. Not all credit cards offer this option, so make sure you read the fine print.
If you happen to belong to a credit union, ask one of the member service representatives if they offer any credit union credit cards that allow balance transfers or give out other perks. Often these cards offer great rates and many optional benefits not offered by the larger banks.
Rewards Credit Cards
Finally, when you hear about people getting free airline miles, cash back, or other perks from a credit card, then they have what is commonly referred to as a "rewards" credit card.
Rewards cards are great if you do a lot of traveling or want to get cash back on your small business's necessary purchases, but they do require you have an excellent credit rating.
Finally, rewards credit cards often charge a bit higher interest rate to help them pay for all those perks, so make sure you end up with a net profit if you choose to go this route.
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