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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. Do you anticipate any large purchases in the next year (i.e., appliances, furniture, etc.)?
If you answered yes to this question, you will require a high credit limit/low interest rate credit card. Although this may
seem obvious to some, not all people need these things. You might want to consider getting a card with rewards attached to
something you are interested in, such as an airline miles card.
2. How long will you anticipate keeping the principal of a purchase on your card?
You will need a low interest rate if you answered more than 3 months on this question. Don't be discouraged by a low credit
limit, however, as you'll save money with a low interest rate.
3. Do you want to pay your entire balance every month?
If you want to pay your entire balance every month, you should consider finding a 0% credit card. For example, as long as you
pay your bill promptly and in its entirety every month, credit cards such as American Express won't charge you interest.
4. Are you planning to use this card for purchases over a short time period or do you intend to hold it for a long time?
If you plan on holding on to your credit card for along time, you should look for a card that has a moderate credit limit and
a low interest rate. If you wish to use your credit card on a short-term basis only, a card that has an introductory 0% interest
rate is best, coupled with a plan to pay off the balance by the end of the introductory term.
5. Do you currently have credit limits totaling more than 40% of your annual income or balances outstanding on those cards
greater than 50% of the credit limit?
You may have some difficulty securing new credit cards if you answered yes to any part of this question. Part of your credit
score is determined by the amount of credit you carry and the ratio of the balance outstanding to the credit limit. Even if you
have paid on time, some banks are unwilling to grant additional credit. Therefore, regardless of how close you are to the
acceptable credit rating, the best credit card for you may be a card specializing in bad credit.
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