*Article contributed by Sarah Williams.
Credit cards are not a one-size-fits-all option. Most credit cards have relevant bonuses that can be used depending on what you usually purchase. For instance, there are mileage reward cards, rebates, and travel redemptions from accumulated transactions when you use your credit card.
Choosing from among the top credit cards will depend on what you mostly spend your money on and the lifestyle that you have. If you’re a frequent traveler, it’s best to have a credit card that allows you to earn points for every transaction done. These points can be redeemed for travel services, including airline tickets, hotel accommodations, or car rentals.
Choosing the Right Credit Card Based on Your Needs
Good credit history is always a pre-requisite to get a good credit line. Though most applications go through a rigorous background check, choosing the right credit card for your needs gives you the proper advantage.
Issuing banks offer plenty of reward programs based on the user’s spending habits. These programs will allow you to earn points that can be redeemed or used based on the purpose of the reward program.
There are gasoline points and rebates, airline-specific points, general rewards programs, and more.
Choosing your plastic from the top credit cards entails:
- An honest opinion about your financial needs and spending habits.
- Reading through the fine prints.
- Doing independent verification before jumping into an offer.
- Looking for a card issuer that offers a price protection program.
- Getting a card that allows you to transfer balances at low rates.
Being prudent with your card use has always been the key to keeping a good credit score. Although credit cards have been a constant need in our modern living, it is still a better practice to distinguish your needs from your wants.
Maintaining a Good Credit Standing to Get Better Credit Card Offers
While every financial institution lists some practical strategies to keep a good credit score, it all boils down at how good you are at managing your finances. For one, your credit score is based on your payment history, your new credit line, level of debt, and your credit age.
Most of this information is managed by credit reporting agencies, including TransUnion, Equifax, and Experian. A good credit score, is nonetheless, brought by your ability to pay off your debts and your previous spending histories.
Having your credit score pulled out several times can be a good reason for having a low credit score. Unsolicited card offers, inquiries from potential lenders, and probes from mortgage companies can also lower your score.
Always Be Aware of Your Credit Card Spending
Most credit card problems originate from not tracking the amount you have borrowed from your card issuer. So if you have not made a concerted effort to monitor your credit card use, it might lead you to the pitfalls of delinquency.
Having a credit card will always work to your advantage if you know how to pay your dues on time. It just takes a little diligence to track your spending habits and be wise enough to understand your needs versus your wants.
*Article contributed by Sarah Williams.