How To Choose The Right Credit Card

Credit Card

Believe it or not, you shouldn’t just fill out any old credit card application that comes in the mail. These days, with a little research, you can find a credit card that’s right for you and your finances, and will save you as much money as possible. And when we say right for you we mean:

  • A credit card that will help you in saving money and doesn’t punish you for your ingrained spending habits.
  • A credit card that shares, and rewards you for your passions.

If you use it frequently like a bank card

If you pay off your balance every month, no matter what it is, then you should get a credit card with some sort of money rewards program. These types of credit cards are for people who tend to use their credit cards as substitutes for spending money in cash. They use it to pay for everything, even their morning Starbuck’s kick. Rewards programs can be cash, gas, travel miles, rewards points, even donations to your favorite charity.

Pay off your balance every month, but you don’t use it much

You probably want a credit card that offers rewards and awards, but doesn’t require you to be spending money on an annual fee. It wouldn’t be worth it in terms of your finances.

You rarely pay off your balance, yet you pay on time

Good luck with this one; what you’re looking for is a low interest credit card, one that has a finance APR rate of around 8 to 13 percent.  Again, good luck, because these types of credit cards are only offered by a few banks, and you have to have an impeccable record of paying bills on time and an overall proven record of financial responsibility. These types of credit cards are pretty hard to get, given the economic climate.

For business people

Credit cards for business, American Express, etc. are good for the entrepreneur as they offer programs and incentives uniquely geared to business people. They also offer a way to keep business finances separate from personal finances.

However, you might also be better off just keeping a “regular” credit card for the same purpose. According to the recent Credit Card Act, the reforms extended to consumer credit cards, no surprise rate hikes, limits on late fees, etc, does not extend to business credit cards, so use at your own risk.

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