At an early age, many people are taught the dangers of credit cards. Such dangers can include ballooning debt, extreme interest rates, and lifelong consequences. Generally, even when the debtor passes, the balance will fall to relatives. From the one trillion dollars of credit card balances, U.S. banks are currently raking in 113 billion dollars of interest and fees every year. A lack of credit can be just as detrimental despite the rising credit card debt does pose a serious problem for U.S. consumers. Whether you are trying to establish credit or already have a history, we at Mark Dicus & Company would like to help you know what to look for when applying for a new credit card.
I Have a Low or No Credit Score; How Do I Get a Credit Card?
You will be limited to the quality and longevity of your credit history when selecting a credit card company. The first step to making an informed decision is checking and understanding your credit score. Student cards and secured cards offer high approval rates and an opportunity to increase your score for below average credit scores. For students and recent graduates, student credit cards are tailored for their credit growth. A lot of these companies will offer relevant rewards for students, like rewards and incentives for good grades. In order to obtain a secured card, like a prepaid debit card, you have to make a deposit. To build your score, with either of these cards the card company will report your activity to the major credit bureaus as a major advantage.
Best Credit Cards for Excellent Credit
With a higher credit score, companies view you as less of a risk and will often be approved for better offers. Cards with a 0% APR introductory offer should be the sought-after cards to help you avoid interest. To make purchases without gaining interest, these periods of 0% APR typically last for 6 to 18 months and help save you money. There are still fees associated with the original balance being transferred with a 0% APR period on balance transfers does avoid interest. Making this option exceptionally beneficial to save money on high-interest credit cards. Get a card with a long 0% APR period, and balance transfer fees that are slim to none, especially if you are after the best balance transfer card.
Credit Card Reward Points
Look for accumulative rewards with the decent card companies. For example, when you spend a set amount within a set period, many cards offer one-time cash bonuses. However, it is also important to consider the long-term rewards offered, though these bonuses are enticing. The best choice is a card that offers a steady cash back rate or miles on every purchase. An involved cardholder will benefit most from rotating category rewards alternatively. These categories change on a regular basis and offer increased rewards for different places like restaurants, gas stations, and grocery stores. In the end, you need consider what rewards your card offers and apply them to your day-to-day life.
Bookkeeping, Accounting & More in Everett, Bellevue, Kirkland, Renton, Kent, Tacoma & Seattle, Washington
No matter which credit card you choose, it is important to research different options and understand the terms and fees. Unfortunately, too many people are guilty of relying on credit cards to get things they simply cannot afford, resulting in destroying their credit, burying themselves in debt and damaging their financial future. Make sure you understand the risks associated with interest, late payment penalties, and bad credit. Also, never use the credit card beyond what you can payoff each month. Call us for help managing your finances!