A card credit is a card issued by the bank or private financial company that allows the user to borrow funds to pay for goods and services with merchants that accept cards for payment. The user has to return the amount (for the purchases made via Credit Cards) to the card issuer within the period with a small amount of interest added. You can calculate this interest to be paid via a credit card EMI calculator. A credit card offers an interest-free period of up to 45 days.
You have to maintain a healthy relationship with banks to get a credit card. You can also apply for a credit card online by just going to your bank’s official site. If however, you are confused as to which credit card to select, then this article is perfect for you.
There are lots of different types of credit cards available in the market, and one should ideally select the card that is best for their spending habits. Nearly 70% of people make a mistake by choosing the wrong credit card because no credit card can meet everyone’s demands. The best way to find the right card for you is by monitoring your spending and interest in rewards.
Check Your Credit Score And Report.
The first and most important step is to check your credit score and credit report. There are many sites available where you can check your credit score, and interestingly your credit score can also depends on what kind of credit card you hold.
The quality of Credit scores can be ascertained by the range they fall in:
- Very poor: 300 to 579
- Fair: 580 to 669
- Good: 670 to 739
- Very good: 740 to 799
- Excellent: 800 to 850
Once you get to know what category you fall in, it will be easy to tune your credit card search. So, when you apply for a credit card online, remember these things.
Think About Which Type Of Credit Card Fulfils Your Need
Credit card types can broadly be divided into three types viz. Rewards, Credit Builders and 0% APR.
1.Rewards
If you have no debt, this card is perfect for you. A rewards credit card comes in all sizes and shapes with its main advantage being the offering of points and cashback on daily spends (groceries, gas) these can in-turn be redeemed for cash, gift cards and more.
2. Intro 0% APR (Annual Percentage Rate)
If you are interested in financing a new purchase, then this type of card is perfect for you, as it offers no interest on the purchase. Call your agent to know more about this card.
3. Building credit
If you don’t have a good credit score, or credit history you should use this card to build your credit score. A good credit score is a key for unlocking the best interest rate, mortgage, loan and more. The idea here being that you use your credit card to make purchases and promptly repay them before the due dates and without any late charges. This can help you build a good credit history and in turn garner a higher credit score. In case you have to subsequently apply for a credit card online or avail any other loan products this could be helpful.
Shop Around For The Best Credit Card Offers
After you know which type of credit card is best for you, it’s time for you to shop around the best credit card offers. Consider bonus categories for reward card length of intro period for 0% APR cards. Also, do not forget to analyse credit tools for cards that will help you build credit. Also, do not forget to use a credit card EMI calculator for more.
