When choosing a credit card, there are multiple factors that should be taken into consideration. To name a few: How many credit cards do you already have? What is your credit score? How much credit card debt do you have? What is your main goal to get a new credit card?
There are tons of great credit cards, so we help make things simple.
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About Card Types
Travel Credit Cards
If you would like to get discounts on travel, hotels, flights and other travel related categories, this type of card is for you. Users of travel reward cards get flier miles, cash rewards, points, etc. These credit cards also give you special travel perks, such as travel insurance, free check-in of your luggage, access to VIP airport lounges or hotel room upgrades.
Low Interest Cards
These cards are great for making a large purchase. Many companies offer their own 0% APR card when you buy from their store. This can help make a large purchase or many small purchases and pay 0 to low interest over a period of time.
With a great selection of retail credit cards, you’re sure to find a card that fits the way you shop. From gas and groceries to clothing and sporting goods, we’ve got store credit cards with some amazing rewards for the way you shop.
Cash Back Cards
A cash back rewards card can give you points for every purchase you make, from groceries to your monthly bills. The number of points can vary based on where you spend and what you are buying. You get cash back, no fluff or points.
Balance Transfer Cards
These types of cards are great to consolidate your credit or move from a high interest card to a lower interest card. Many of the top cards offer low to 0% introductory transfer rate and no fees, so pay attention to the APR after the introductory rate has ended. A move to a balance transfer credit card could help you manage interest and pay down debt faster. The lower the rate, the better, so be sure to do your research.
Low Credit Score Cards
Credit scores are determined from quantitative analysis through the major credit agencies that determine a person's credit score. There are specialized credit cards unique to users with lower credit scores. These cards offer a variety of uses and are typically built to help a user increase their credit. Credit can be re-established by using secured credit cards. Secured credit cards require a minimum deposit. Often you are responsible for reloading the card. In turn, the credit card company will report your activity to the three major credit bureaus and allow you to begin rebuilding your credit profile.
Students without a credit card should be thinking about getting one. Not only will a student card allow you to make cash-free purchases, but if you regularly pay your card off on time you can also begin to build a solid credit history. The best part is some cards will offer cash back just for using it on your normal student purchases.
Having a business credit card is a must if you make purchases for a business. Not only is the line of credit important, but these often allow you to earn points and cash back on regular business expenses. Plus, many offer low or 0% APR, which means users get to maximize their business purchases while paying low to no interest.
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How to Improve Your Chances When Applying to Credit Cards
First of all, you need to know your credit score. Credit scores are one of the most important factors when credit card issuers review your card application. These are the scores that banks typically go by:
- 300 – 629: Bad Credit
- 630 – 689: Average Credit
- 690 – 719: Good Credit
- 720 – Above: Excellent Credit
To help improve your scores or maintain scores, it’s best to make payments on time, keep balances low, and avoid any new debt.
The second thing to do is reduce your debt, if possible. A whopping 30% of your credit score is determined by your debt. Try not to maintain any more than 30% of your credit card limit.
Third, you need to shop around for credit card offers and don’t apply to multiple credit cards at once. Each time you apply for credit, it ends up on your credit report.
Next, you’ll want to be sure you include all income on your application. This helps clarify your debt to income ratios.
Lastly, be smart and stay determined. If you get denied, try to understand why you might have been denied.
— source: investopedia.com
Best Credit Cards of 2020:
- Citi® Double Cash Card – 18 month BT offer. Cash Back
- Chase Sapphire Preferred® Card. Bonus Rewards
- Comerica Bank Visa® Platinum Card. Balance Transfers
- Bank of America® Travel Rewards for Students. Students
- Discover it® Secured. Bad Credit
- Petal® Visa® Credit Card. Beginners
- U.S. Bank Visa® Platinum Card. Rates
- Blue Cash Preferred® Card from American Express. Groceries
- Capital One® Venture® Rewards Credit Card. Travel Rewards