Although we are not talking about picking your life partner, the fact is once a person chooses a credit card, they tend to use it for a long time. The credit score is dependent on the life of a credit card, and using a single card for long gives you leverage. Moreover, people, these days tend to store their card details on various online sites and shopping portals for easy checkout. Having a new card would mean altering all such details, and that is a hassle that most people would not want to go through. This makes the process of choosing a credit card all the way all the more crucial. In this article, we provide a step-by-step guide on picking the best credit card
Identifying the purpose of your credit card
Every person uses a credit card for different purposes, and identifying the same is the first step in picking the most suitable credit card. If your credit card is meant for business use or debt consolidation, then you will need to research your card accordingly. Banks offer different credit cards for different uses. If your credit card is aimed at general spending, go for the one that has the best rewards and the lowest interest rates.
Evaluate your spending habits
Start by taking a look at your spending habits and decide whether you plan to carry a balance or not. Then go through some of your last credit card bills to identify the most frequent purchases. Then study the promotional categories of the different cards. While some of them will be rotational others will be constant throughout the year. Work out which of these are most flattering to your lifestyle-related expenses, and you will be able to shortlist a few cards.
Compare different credit cards
The first thing that you need to keep in mind when comparing credit cards is whether paying a higher annual fee is worth the rewards or not. Carefully analyze the perks, cashback, and reward points that each card has to offer. Also, take into account the welcome bonus that the bank might give you and work out how much of that you will be using. Then evaluate that against the corresponding interest fee that the bank will make you pay and then work out the most suitable card for yourself.
Ensure that you fulfill the qualifying requirements
Just figuring out what you want will be of no help if the bank does not give you the credit card. All credit card issuers make the conditions clear about whom they want to offer the card to. Read up on the credit score or minimum balance that the credit card issuer is looking for and see if you fulfil the same. If you do not satisfy it, do not waste your time applying for it.
Once you have all of this sorted, the next step would be to apply for the credit card. It is suggested that you do so online. Depending on your preferred bank, you will get a response in a few hours or days. Of course, factors like your credit history and salary will be the deciding factor. Since we assume, you have been careful about the steps mentioned above, the chances of your rejection are minimal, and in a matter of days, you will have a credit card in your hand.