hose square pieces of plastic we call credit cards are an essential part of the modern lifestyle. They help create a ready cash supply and let you do activities like renting a car, getting a hotel room, or simply shopping online. Credit cards can come with a lot of pitfalls though. Hidden charges and fees can make your bill much bigger than you originally thought it would be. Choosing the right credit card for your lifestyle is one way to avoid these credit traps. Here are five steps to finding the perfect credit card.
1. Credit rating. If you want lower interest rates on your credit card, then a higher credit rating is the way to accomplish that. Order your score from one of the three major credit companies or look online to find your free credit report. A credit score under 650 could make it difficult for you to find a card that will not make you pay exorbitant interest rates. Late payments or large amounts of debt can negatively affect your score, so avoid them when possible.
2. Research. Look at card offers online and offline. Each company is required to give you APR rates, the size of your credit line, who is providing that credit line, length of your grace period, any annual fee requirement, and any fees for credit insurance. Hidden fees could be your downfall in the future if you are not careful now. Baltimore Banking Rates can help you find the lowest credit card rates on the current market.
3. Figure out what you want. Look through the card offers. Discover what appeals to you and what does not. Credit cards come in many different forms. What may have been right for a friend or parent may not be right for you. Student credit cards could be appropriate for a younger spender. A travel rewards card could be right for the always-on-the-move businessman. Make sure you know what will work best for you before applying.
4. Credit union? While many people worry that credit unions are not insured by the FDIC, many are insured. This can be verified by looking at their website or simply giving the credit union a call. Credit unions offer lower interest rates to their customers than most banks do. However, many have restrictions for becoming a member. For a teacher’s credit union, you will probably have to be a teacher in that area. Furthermore, credit unions frequently require customers to open up a savings account before getting a credit card. If you qualify, consider this option to receive lower interest rates.
5. Compare. Now that you have done all the research and figured out exactly what you want, look at the cards which fit your criteria. Evaluate their interest rates and choose the one which fits you best. Enjoy your new credit card and spend wisely!