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Credit > Credit Cards > Credit Card Information > Choosing the Best Credit Card
Some goals are obvious like lower interest or airline miles, but in combination with spending habits can become a bit trickier. If you tend to max out your cards quickly and pay off the minimum payment each month, choosing an airline miles card might not make sense. The miles you earn will end up costing you far more than they're worth. Likewise, if you tend to pay off your statement ending balance with religious fervour then a lower interest rate should be a much lower priority than other benefits.
You know your goals, so a simple exercise should help you choose the best credit card for you.
b. If you answered (b), you probably have good credit and all the choices you could hope for. For you, a balanced card with low interest and rewards might be the perfect card. Unfortunately, low interest and rewards rarely touch the same card without an annual fee being involved. That's not always such a bad thing, however. Depending on how much you spend each year, the savings in interest (between your big expenditures) plus the value of the reward might outweigh the fee. If rewards aren't important, look for the lowest interest you can get. If you really only carry a balance for a few months out of the year, a reward might be right for you. You've got choices, so click to compare Credit Cards
c. If you answered (c), your credit rating might still be okay (depending how long you've been doing this) and you may have some flexibility about the cards available to you, but you'll want to be aware that by making only the minimum payment your balance will be subject to interest, so your top priority should be the lowest interest rate you can get and getting that balance you're carrying under control. It shouldn't be about more spending power for you, but smarter money management. In fact you may want to avoid higher limit cards as the interest will gradually drag you up to whatever max is on the card - eventually ruining your credit. A low interest card that also offers 0% on balance transfers might be the perfect choice. You'll want to cut up any existing cards as soon as you take on another in an effort to turn your credit around, so transferring higher interest balances to a card that offers 0% on balance transfers will give you some time to pay off big chunks without incurring interest charges. Avoid spending on the new card until you get your balance under firm control and you'll be on your way to much improved credit. Believe it or not, your credit is at a crossroads - start being responsible with it now. Click for Balance Transfer Cards
d. If you answered (d), first, stop missing payments. Second, until you break yourself of the habit, find a card with low late fees and low interest. Third, stop spending beyond your means. Cut up your old cards and take a serious look at your credit usage. How much have you spent on interest and late fees in the last year, last two years? If you don't know, phone your card provider and ask. Then think of what you would've rather spent that money on. Credit is not an opportunity to buy what you can't afford. That's a trap and it'll ruin your credit and put you in debt. Your priorities should be low interest, low late fees and low spending limits. Of course you might just want to cut up the cards you have, pay off what you owe and start over next year.
e. If you answered (e), cut up your cards and stop looking for credit cards online. You don't need more credit; you need to change your behavior. Life is easier with good credit.
f. If you answered (f), forget credit, at least for a few years. Take any cards you have that haven't been cancelled for you and destroy them in some dramatic fashion. Your credit is likely crap, and you could probably use the help of a professional, as well as some sound advice.
Choosing the Best Credit Card for Your Needs
With so many credit card offers available, choosing the right card can be trying at best, a right pain at worst, but it doesn't have to be. Choosing a credit card generally comes down to the goals and spending habits of the individual.Some goals are obvious like lower interest or airline miles, but in combination with spending habits can become a bit trickier. If you tend to max out your cards quickly and pay off the minimum payment each month, choosing an airline miles card might not make sense. The miles you earn will end up costing you far more than they're worth. Likewise, if you tend to pay off your statement ending balance with religious fervour then a lower interest rate should be a much lower priority than other benefits.
You know your goals, so a simple exercise should help you choose the best credit card for you.
One Question Credit Quiz
Which of the following describes your payment tendencies with current or previous cards?Credit Answers
a. If you answered (a), congratulations! You likely have a good credit rating and unlimited choices on cards available. For you, it should all come down to what card offers the best benefits. Interest rate doesn't matter, where cash back or airline miles might. Look for a card that rewards you for being responsible with your credit. Be careful not to pick up too many cards though. Having a huge amount of available credit or large number of creditors, even if you never use the credit, can actually hurt your pristine credit rating. Click to Compare Cash Back & Rewards Cardsb. If you answered (b), you probably have good credit and all the choices you could hope for. For you, a balanced card with low interest and rewards might be the perfect card. Unfortunately, low interest and rewards rarely touch the same card without an annual fee being involved. That's not always such a bad thing, however. Depending on how much you spend each year, the savings in interest (between your big expenditures) plus the value of the reward might outweigh the fee. If rewards aren't important, look for the lowest interest you can get. If you really only carry a balance for a few months out of the year, a reward might be right for you. You've got choices, so click to compare Credit Cards
c. If you answered (c), your credit rating might still be okay (depending how long you've been doing this) and you may have some flexibility about the cards available to you, but you'll want to be aware that by making only the minimum payment your balance will be subject to interest, so your top priority should be the lowest interest rate you can get and getting that balance you're carrying under control. It shouldn't be about more spending power for you, but smarter money management. In fact you may want to avoid higher limit cards as the interest will gradually drag you up to whatever max is on the card - eventually ruining your credit. A low interest card that also offers 0% on balance transfers might be the perfect choice. You'll want to cut up any existing cards as soon as you take on another in an effort to turn your credit around, so transferring higher interest balances to a card that offers 0% on balance transfers will give you some time to pay off big chunks without incurring interest charges. Avoid spending on the new card until you get your balance under firm control and you'll be on your way to much improved credit. Believe it or not, your credit is at a crossroads - start being responsible with it now. Click for Balance Transfer Cards
d. If you answered (d), first, stop missing payments. Second, until you break yourself of the habit, find a card with low late fees and low interest. Third, stop spending beyond your means. Cut up your old cards and take a serious look at your credit usage. How much have you spent on interest and late fees in the last year, last two years? If you don't know, phone your card provider and ask. Then think of what you would've rather spent that money on. Credit is not an opportunity to buy what you can't afford. That's a trap and it'll ruin your credit and put you in debt. Your priorities should be low interest, low late fees and low spending limits. Of course you might just want to cut up the cards you have, pay off what you owe and start over next year.
e. If you answered (e), cut up your cards and stop looking for credit cards online. You don't need more credit; you need to change your behavior. Life is easier with good credit.
f. If you answered (f), forget credit, at least for a few years. Take any cards you have that haven't been cancelled for you and destroy them in some dramatic fashion. Your credit is likely crap, and you could probably use the help of a professional, as well as some sound advice.
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