Credit

How to Choose the Best Credit Card For You

Written by Ana
Pay for goods by credit card through a smartphone in a coffee shop.

Not all the credit cards are made for you. You’re unique with a strikingly distinct personality and success! That’s why you’ve your individual financial needs too.

A carelessly chosen credit card that does not match a cardholder’ personality is more than a financial loss for the cardholder; it causes mental discomfort and frustration.

A better strategy is to think before you leap: choose the best fit for your personality and spending habits.

While looking for a credit card, some people find it challenging to figure out which one of the credit cards is the best for them. Even some of them face a complete mental block when it comes to making a choice out of a never-ending list!

To make the selection of credit card easier, I’ve outlined a four-step strategy to select your credit card from among the credit cards’ unending list with a seemingly endless list of features.

The four-step strategy to choose a credit card

Choose your card using the four steps strategy:

  1. Review your current credit score
  2. Figure out your top five features-fit
  3. Make a list of your Credit Card options
  4. Narrow down the list and select a card

1.  Review your current credit score

The first and the most critical point to evaluate is your current credit standing. It is important because your credit score, if lower, limits your choice.

If you’ve got countless options because of a high credit score, prioritize your choices using step 2 of the four-step strategy.

Likewise, if your credit score does not allow you to go about a specific type of card, just do not waste your time and focus on your available options. It’ll save you a lot of useless effort.

2.  Figure out your top five features-fit

Once you are aware of your credit standing, make a list of top five features you need or like such as:

  • Low interest
  • Zero interest periods
  • Rewards redeeming options
  • Options to get rid of debt
  • Features to build better credit score

It’s better to make the list in order of priority – the most important feature first and so on. For most people, zero interest rate period is an attractive first feature. The idea of zero-interest credit cards is intriguing! Also, it’s is worth going in for it.

This step is important. Primarily, drawing up a list of credit card features – even making a mental note of it – makes your decision-making process simple, straightforward, and speedy.

3.  Make a list of your Credit Card options

Carefully, shop around for features, not for the credit card – the packaged deal of features. Make an expanded list of all available credit cards that have top five features.

Actively, turn down the cards that are out of your choice because of the understanding of your personal needs gained in step 1 & 2.

4.  Narrow down the list and select a card

Finally, it’s time to compare the features of cards one by one.

If the first feature is the low-interest rate, choose all the cards with the lowest interest rate and start considering the second feature.

If the second feature is redeeming option for travelling, choose credit cards that offer redeeming options of your choice.

Going forward, you’ll be able cut the list down to 3-5 cards of your choice.

Choose the best fit for you!

If you want to go about a higher level of accuracy, use the strategy table I’ve designed for you.

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Ana

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