Building credit is an important part of financial well-being. This shows potential lenders that you have the ability to make timely payments and manage money efficiently. However, you need to choose a credit card that matches you and your spending habits. Do you travel a lot, or will you waste miles? Looking for something with low interest if you have a balance? Here are some other important questions to ask yourself so that you can find a credit card that will help you build your credit score.
How is your credit
Are you starting from scratch or with a credit score of less than 600? The good news is that there are plenty of cards out there for you, but the bad news is that they will come at a higher APR or annual percentage rate. It doesn’t matter if you pay your balance in full every month, because APR is a percentage of your balance that will be charged to you over a period of one year. A good credit card for building and rebuilding your credit card is the Discover It – Secure Card, which has no annual charge and offers a 2 percent return on purchases. It has a variable APR of 22.99 percent, which is considered slightly higher, as the average APR is 16 percent. Capital One Platinum is another great choice. Although it does not offer any rewards, it has no annual fee and no APR (an increase in your interest rate when you make a payment).
Do you travel a lot
The benefits of credit card travel can range from free trips to travel insurance, but do you really need it? If wandering or traveling is not part of your job, it may not be profitable to charge an annual fee for a travel card. But, if you like going out of town, there’s a lot in the Chase Sapphire priority card. For an annual fee of $ 95, cardholders earn डॉलर 5 per dollar for travel purchased through Chase Ultimate Rewards, 3 3 per dollar for meals and 2 2 per dollar for all other travel purchases. In addition, by March 2022, you will earn a total of 5 points per dollar on lift rides. The Capital One Venture Rewards card gives you unlimited 2X miles on each purchase that does not expire for the entire lifetime of the card.
Do you need to stick to a specific budget?
If you fear that the credit card will cost you out of control, a secure credit card can help you control your purchases. For secure credit lines, you need to deposit in front. You can keep as much as you put in your credit card on your credit card. We’ve mentioned Discover It® Secure Card as a great alternative. Another solid option is OpenSky® Secure Visa®, which lets you deposit anywhere from 200- $ 3000. The card also offers a 17.39 percent auto insurance benefit and a relatively low variable APR. The annual fee is $ 35.
Are you in the army
Military members can qualify for a credit card with huge benefits. The Navy Federal Credit Union Platinum Card has a lower APR of 8.24 percent, as well as coverage for rental cars and travel and emergency assistance, along with NFCU’s Platinum Credit Card. The USAA Preferred Cash Rewards Visa signature card gives you an unlimited 1.5 percent cash back on most purchases, as well as a 4 percent APR during deployment and a 14.45 percent APR return home. Also, you can maintain 4 percent APR for one year after completing active duty.
Do you like deals?
Are you always shopping for the best offer? Cashback cards can make those offers even sweeter. Citi® Double Cash Card has no annual charge and offers 2% cashback when you make a monthly minimum payment. Another great option is the Discover It® Cash Back Card, which gives you 1 percent cashback on every purchase, as well as 5 percent cash back on a different category of purchases each quarter. These categories include everything from restaurants, PayPal, Amazon Mazon.com and gas stations.
Disclaimer: The views, suggestions, and opinions expressed here are the sole responsibility of the experts. No journalist was involved in the writing and production of this article.