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Choosing a Credit Card

choosing a credit card
There are some many credit cards out there that a person can have trouble finding the one that is right for them. The credit cards have different interest levels based on credit score. There are also different cards that offer different rewards. There are some things to keep in mind when choosing a credit card.
Check Credit Score
When applying for a new credit card, a person should know their credit score. This will help determine if a person is able to be approved for the card and the interest rate they will need to pay. The higher the credit score a person has, the lower their interest rates will be. A person can get a free copy of their credit report once a year with scores from the three major credit bureaus. There are even some credit card companies that will provide the score to the applicant. If a person has a lower credit score than they thought, they can take steps to improve their credit. A person can then apply for credit card or wait until they bring their credit score up.
Types of Cards
There are credit cards for different purposes. There are credit cards that can help a person repair their damaged credit, there are cards with low-interest rates, and there are credit cards that allow a person to earn rewards. If a person is looking to improve damaged credit they may need to put a security deposit down for their new credit card. This amount is around $200 and will be returned when the account is upgraded or if the account is closed without a balance. If a person is looking for a low-interest rate some credit cards of an introductory rate of 0% APR for a specified amount of time. There are credit cards that offer different types of rewards. A person should look for the rewards that they need when signing up for the card. Some common rewards are cash back on purchases and bonuses such as frequent flyer miles. The miles are good for people that travel often.
Annual Fees
Some credit cards charge an annual fee just for having the card. The price will vary based on a credit card. Unless a person has poor credit, they should be able to find a card that does not charge an annual fee. If a person is trying to rebuild their credit they are more than likely going to need to pay an annual fee.
Interest Rates
This is one of the most important things to look at when opening a new credit card. The interest rate can be a 0% APR or it can be as high as 30% based on credit history. If a person is lucky and they are offered a 0% APR they need to pay attention to how long this rate will be valid for and when it will run out. A person should shop around and find the credit card that is willing to offer them the lowest interest rates.
Credit Limit
The credit limit is the amount of money that a person will be allowed to charge on their credit card. This can be several hundred dollars or several thousand dollars based on credit score and credit history. If a person is building their credit they may not need that much money. If a person is looking to make an expensive purchase or another big-ticket item they may want to find a card that will give them a higher credit limit. Over time, as a person uses the card and makes their payment, the credit limit can increase.
These are some things to keep in mind when choosing a credit card. Looking at these details can help a person save money and can then them find a credit card that is able to fit their needs.