From travel rewards to low interest to cash back, there’s a credit card option for everyone. But how do you pick the one that works best for your lifestyle and budget? We can help prioritize what you’re looking for and give some guidelines for finding the right credit card for you.
Cash back or cash rewards cards can be a good choice for a lot of people. You are rewarded a percentage of what you spend (usually 1%, but can be more) and the rewards usually do not expire. You can use them to pay off your monthly balance or deposit your rewards into your checking account. Be aware of your interest rate as these types of cards tend to be best for those who pay off their balance monthly.
If you use credit for daily purchases and carry a balance monthly, a low interest rate card might be best for you. These types of cards generally require a good to excellent credit score to qualify, but if you’re approved, they can save you money over time.
Cards with travel rewards are popular and can come with a slew of perks. When it comes to travel, decide what you would use most. If you’re a frequent flyer, then air miles are a good choice. If you want to earn points for hotels, look for a card that offers redeemable rewards for hotels. Before applying, it’s important to understand how the points work. When do they expire? Do you have to book trips through a certain website? Are there only certain times you can use the points? If your points do expire, is there a way to get them back? The more you understand your points, the better you can make them work for you.
Student credit cards are a great way for young adults to begin building credit and learn how to balance credit with their finances. If this is your first credit card, it’s a good idea to start with a low limit to avoid the temptation to spend more than you can afford. Also, take into account late payment and over limit fees. This type of card could be a good learning tool, so understand the consequences of not paying on time or staying below your credit limit.
When picking a credit card, you should look at more than the rewards. Annual fees, introductory interest rate time periods, the interest rate after the introductory period and foreign transaction fees are all things to keep an eye out for. Decide what is more important for you and prioritize the pros and cons before applying.
Get started by talking with your banker or by taking a look at the line of credit cards South State offers here.