Once you decide to sign up for a new credit card, you should consider the fact that you might be using it for a very long time. Thus, this is not a decision to be taken lightly.
It can be inconvenient to change credit cards too often. This is mostly because we prefer to set up auto-pay from our accounts.
As a result, choosing the right card is an important decision. Keep reading our complete guide that will make the process easy.
What is the Purpose?
It is very important first to determine the main reason you need a credit card. A card with the lowest interest rate or the most interesting rewards is appropriate in case you are searching for a credit card to do your general spending.
If you intend to use your card for debt consolidation or business expenses, you’ll need to look for other card options. Institutions have cards for different needs, so it is important to choose the right one for your circumstances.
Type of Card
There are several types of cards, depending on your preferences, so you need to select the right option for you.
- In case your aim is to reduce the interest you pay on your existing debt, you can use a balance transfer card. This also helps you consolidate the credit card debt.
- If you want to use your card for an important acquisition which you won’t pay off instantly, you should choose a card offering 0% introductory APR.
- A cashback card is the most appropriate if you want to receive your compensations and a statement credit to lower your bills.
- A travel credit card is fit for gathering points for hotel or airline miles.
- If you chase to gain points or freebies with a particular airline or hotel, you should use a hotel or airline card.
- If you need a card to make acquisitions for your business, we advise you to use a business card.
- A secured card is what you need in case you try to settle a credit score or restore your credit after an unexpected event.
- A student credit card is what suits you in case you’re still studying and trying to improve your credit.
Once you establish what type of card fits your needs best, you can consider further specific card offers.
Check Terms and Fees
The main aspects you need to take into consideration while choosing the most appropriate type of card for you are the following.
- APR: This is the interest rate you’ll pay if you carry a balance. Many cards have a low promotional APR either for purchases or for balance transfers. The low promotional APR for balance transfers or purchases rises once you’ve had your card for approximately 12 to 18 months.
- Rewards: Credit card perks are most commonly about 1% to 2% of your expenses. For certain categories, rewards can be 5%.
- Minimum payments: You should establish how much you have to pay each month. Usually, you need to choose between a percentage of the balance due or a fixed minimum amount (around 25$).
- Annual fee: There are some particular cards that come with an annual fee, which is fair to pay if you’ll gain sufficient perks to offset that fee.
- Other fees: These usually refer to additional fees such as foreign transaction fees while traveling abroad, fees for cash advances, balance transfer fees, or fees in case of a missed payment.
Find Out About Qualifying Requirements
You need to have a credit score that reflects your qualification level for the desired credit card.
Usually, the creditors do not mention the qualification requirements, and the card issuers typically indicate if the card offer is limited to people with higher credits or when the people trying to improve their score have access to their cards.
Contact Visa Inc.
If you have more questions about the credit cards they offer, you can contact Visa Inc. directly at their main address, One Market Plaza. San Francisco, CA 94105 USA.
Summary
The card you are choosing can be changed. If, in a year or two, you will review the steps and decide it doesn’t fit your needs anymore, then you reconsider your options and choose a credit card that suits better your expenses profile. Make sure you read multiple reviews and consider your options before choosing the best credit card for your needs.
Note: There are risks involved when applying for and using credit. Consult the bank’s terms and conditions page for more information.
