Credit card is beneficial for making payment with great convenience. But to make your financial life easier, selecting the right card is necessary. To choose the right credit card, consider the following:

  • Lifestyle

Before choosing a credit card, question yourself how you are going to use it. Will you pay the credit card bill timely? Are you going to pay every single thing with it or you will use it only during emergencies?

  • If you will pay bills without failing, then the interest rate is not a matter of concern to you.  Go ahead with the card with no annual fee. 
  • If you will be carrying a balance, then going with a card that has the lowest interest rate would be wise. 
  • A card with a good credit limit and rewards program can be your choice if you will make every purchase by using it.
  • If you want credit card only for emergency situations, then a card with low-interest rate and fee is recommended. 
  • Interest Rate

You will have an annual percentage rate on your credit card; it can be fixed or variable. A fixed rate allows you to understand your monthly interest rate, but with variable, the interest rate fluctuates. 

Even a card with fixed interest changes, depending upon your late payments or going above limit. Sometimes even the card issuer can think of changing the interest rate, but they have to notify you before doing that. 

  • Credit Limit

Your credit limit is the money that you can borrow to spend. It is decided after viewing your credit history. If your spending crosses the credit limit, it negatively impacts your credit score.   

Select the credit card after figuring your financial needs. Get the one that benefits you the most by comparing its benefits and offers with others.

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