How to Choose the Best Credit Card for You
Researching for the right credit card can become a tedious process, but it is essential to conduct research before signing up for any line of credit. There are many factors to weigh before you apply for a new credit card, such as: checking your credit score, evaluate your spending habits and increasing your financial literacy. Here's what you need to look for when researching the best credit card for you.
Check Your Credit Score
Find out what credit card offers you may be eligible for by checking your credit score. The higher the score, the better the chance of getting approved for your desired credit card. The Priority Choice Checking Account offered by Fairmont Federal Credit Union includes a 3-in-1 credit report that is sent directly to your email each month. This will help you monitor your score and can help you quickly identify any fraud. Federal law also entitles you to one free copy of your credit report from each of the three major credit bureaus every 12 months. You can access your once yearly free report here.
Evaluate Your Spending Habits
Do you find yourself spending a large amount each month to provide groceries for your family? Maybe you also have a dream to travel more? Optimizing your credit card strategy could create opportunities and increase your rewards across various spending categories.
Some credit cards, like the Fairmont FCU Travel Rewards + Card offered through Elan Financial Services, provides additional benefits when you make purchases in specific areas. By selecting a credit card that offers rewards for your most frequent expenses, you have the potential to accumulate more points, miles, or cash back based on the type of card you choose.
Increase Your Financial Literacy
Understanding the information you are reading is crucial to making the best decision possible. Being familiar with the terms below will better enable you to compare offers and choose the perfect credit card.
Variable APR: This stands for variable annual percentage rate. Variable APRs can fluctuate. So, while a variable APR could potentially provide lower interest rates upfront, it could also increase as the associated index increases.
Fees: Credit card fees are additional costs associated with certain credit cards. Common credit card fees are annual fees, late payment fees and balance transfer fees. It is common for a credit card to come with associated fees, but you should understand what you're agreeing to before applying for a new account.
Minimum payments: A minimum payment is the lowest amount of money you can pay to your card issuer each month. If you don't pay the minimum payment, you may incur late fees, damaging your credit rating. Ensure you can always pay more than the minimum balance on any credit card. Preferably, don’t spend more money on a credit card than you can pay off each month.
Rewards: Credit card rewards are usually tied to how much you spend on the account. Rewards may come in the form of points, miles or cash back you can earn and redeem.
Ultimately, choosing the right credit card comes down to your personal needs. You should consider a card that offers the most rewards in your biggest spending categories and aligns with your personal path to financial success.
Are you searching for which credit card is right for you? Visit one of our branches to get free, friendly, face-to-face advice today! You can also visit our website for more information on the credit cards that Fairmont FCU offers through Elan Financial Services.
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References:
https://www.creditkarma.com/advice/i/what-is-apr
https://thepointsguy.com/credit-cards/how-to-choose-a-credit-card/
