The Various Credit Card Types
One of the first things you need to do is determine what type of credit card best suits your needs. Various types of cards offer various types of programs. For example, the most basic credit card typically has low fees and generally offers only a small credit limit. These cards generally offer no rewards, perks or benefits like warranty protection.
Other higher-end cards offer perks including cash-back, travel rewards, emergency assistance and more. Before you decide on the right credit card, consider how you'll be using your card and what benefits would be best for your needs. Remember, some cards can only be used at a specific store or other outlet and in some cases, a secured credit card may meet your needs.
How You Use Your Card Matters
Some consumers use their credit cards like cash but pay their balances off every month in full. Other consumers pay portions of their credit cards which means a lower interest rate is more important. Those who tend to use their credit cards only for emergencies will want to find a credit card that offers low or no annual fee or they will be paying for something they're not using.
Keep in mind, if you travel frequently, you can benefit from getting a card that offers travel rewards if the restrictions are not onerous. Those who use their credit cards frequently but pay off their balances in full may find a card with cash rewards helps boost their spending power.
When you're considering your options for credit cards, remember, your financial goals play a role in choosing the right card. You should get a free copy of your credit report before you apply for any new credit cards to make sure there are no errors that could cause you problems. Your Member Financial Representative at Oklahoma Central Credit Union can help you decide what credit cards are best suited for your current spending and savings goals. Remember, credit cards create a new financial obligation and may have a negative impact on your budgeting so make your decision wisely. To learn how to obtain a free copy of your credit report, check out Oklahoma Central's guide to checking your credit.