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When choosing the best credit card for you, in addition to being approved, it's important that the card is tailored to your individual financial needs and objectives with low interest rates. The following information will help you decide what to look for:
Questions And Answers
1. Are you planning any large purchases in the next year?
If so, you require a high credit limit/low interest rate credit card. Also consider getting a card with rewards, such as an airline miles card.
2. How long will you maintain the purchase principal on your card?
You need a low interest rate for more than 3 months, look for a card with a moderate credit limit and a low interest rate. Don't let a low credit limit bother you, because you'll save money with the low interest rate.
For a short-term basis only, a card with an introductory 0% interest rate is best, coupled with a firm plan to pay off the balance by the end of the introductory term.
3. Do you intend to pay your entire balance every month?
As long as you pay promptly and completely every month, credit cards won't charge you interest, therefore the interest rate really doesn't matter. Find a good rewards or money-back card.
4. Do you currently have credit limits totaling over 40% of your annual income or balances outstanding on those cards greater than 50% of the credit limit?
You likely willhave trouble getting a new credit card if either part is true. Part of your credit score is determined by the amount of credit you have and many banks are unwilling to grant more credit. Therefore the best credit card may strangely be one specializing in bad credit. | 