How to Effectively Choose the Best Credit Card for You

Published On November 7, 2016 | By Peter Austin | finance

There is no such thing as an overall best credit card in any category, nor is there a way to rank credit cards from the best to the worst. Every person will have a credit card that is the best fit for them based on their individual spending habits and credit situation. Understanding the options surrounding credit cards is imperative to finding the credit card that will best benefit you.

Identify Your Needs

The first thing you need to do when you are looking for a credit card is establishing what your needs are. In general, there are three types of credit cards: cards that help you improve your credit, cards that save you money on interest, and cards that earn you rewards. Knowing the difference can help you choose the best credit card for your individual situation.Image result for How to Effectively Choose the Best Credit Card for You

Your credit score will have an impact on what type of credit card you will qualify for. If you have poor credit, the best credit card for you will be a secured credit card. This type of credit card will require you to send in security funds that you will get back when the account is either upgraded or closed in good standing. If you are someone who only uses your credit card for emergencies, then the best credit card for you will be one that has little to no interest, although you will have to have excellent credit to qualify for this type of card. Finally, if you will be using your credit card on a regular basis but you plan to pay off the balance each month, a credit card that rewards you with points, miles, or cash back on every dollar you spend will be the right fit for you. While you don’t need to have excellent credit to apply for this card, you do need to be in good credit standing to be approved.  

Applying for Cards

Now that you have established which credit cards are best for you, you want to be sure that you only apply for the best credit cards in Malaysia. You don’t want to choose a secured credit card with a 25.98% interest rate when there is one available to you with a 19.98% interest rate. Don’t apply for a credit card through your bank just because you bank there. Research online and ensure that you are only choosing the cards with the best rates and terms.

Once you have narrowed things down to the card that best fits your needs and comes with the best terms, you should only be considering one card. Ideally, you will only apply for one card, as each application will appear on your credit report as an inquiry and can affect your overall credit rating.

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