Everyone wishes to manage his or her finances easily and using credit card to spend on your purchases makes it simple. If you know your top priorities, choosing best credit card will become easy for you. By using credit card, you not only get access of spending money but can also build credit, pay less interest, get cash back rewards, earn bonuses and travel rewards.
You may want to know about best credit cards 2020 before selecting one. But first, you should carefully look at your priorities, needs and purposes to match with the offers of credit cards. You must understand the factors you should consider while choosing a credit card.
- Check your credit scores which is an important factor to make you eligible for a credit card. The credit card issuer uses your score to decide your credit limit. Once you know your credit score, you can apply for credit cards more appropriate for you and likely to get approved. In this way you will be avoiding hard credit enquiry which is unnecessary, and your chances of rejection are minimized. Hard credit inquiries are not good for your score.
Secured card is suitable for you if you are planning to start building or rebuilding your credit score. This type of card can help you build your credit if you use it sensibly. The card issuers report your payments to major consumer credit bureaus.
So, it is important to make regular payments on time to avoid any issues for future.
- If you plan on balance transfer card, zero annual percentage rates should be your priority. Many cards offer 0% APR as their introductory offers, which may be for 15 months from account opening. You can avail this 0% offer on purchases and on balance transfer which can reduce the amount of loan in the absence of no interest. This helps in paying off debt quickly.
Concentrate on APRs offers, durations and expiry dates to get more out of it and to avoid any penalty APR on late payments.
You should consider the current rate you are already paying and the rate you will pay after the introductory APRs ends. You must also check if there is any fee on transferring your balance to another new card which is called balance transfer fee.
- If you own a good credit and do not need to work on it or do not need a transfer balance card then your preference should be to enjoy different cash rewards and perks offering cards.
Rewards cards usually require good and excellent credit score. Many credit cards offer various types of rewards such as cash backs, travel rewards, student cash back and bonus. You may get cash back on dine-out, entertainment, gas and purchasing groceries. For constant travelers, there are points and miles on every travel purchase which include airfare and hotels.
For students, good grade rewards are offered by some card companies, on maintaining high grades for five years continuously.
You must carefully consider your needs and compare all offers of credit cards, to figure out which card suit your financial situation.