Credit cards are a staple financial resource that hundreds of millions of people worldwide rely on for their routine spending needs. Finding a great credit card that serves your unique use case is a must for any type of consumer. Regardless of the country or region of the world you live in, borrowed capital can offer a solid backstop for any emergency spending needs, among many other uses.
Utilizing a tool like the iSelect credit card comparison resource can help get you started along this journey toward better personal finance. Credit card comparisons are important for consumers because not every lender will provide you with the same interest rate, perks, and benefits. Finding the card that matches your needs is all about research, and a tool that can help make side-by-side comparisons is crucial in this task. The first place that any consumer should look when seeking out a new card is inward. With this guide used in tandem with a credit card comparison tool, you won’t have to sweat the next time you’re shopping around for a great card.
Consider your credit score when applying for a new card.
Credit card offers fluctuate just like your credit score. With an excellent credit history, you can expect a far better lending opportunity from any card issuer. Likewise, for those nursing a low credit score, higher interest rates are likely to follow any new card offer. Because scores tend to fluctuate with a pretty significant degree of give on both ends, keeping track of your credit rating and applying for new cards when your score reaches a high point is a great way to ensure that you are always receiving the best possible offers for loans, lines of credit, and more.
Your credit history offers a statistical yet inadequate window into your credibility as a credit user as a borrower. Banks and other financial institutions don’t want to lend money to people who they think will default on their loans, and so as a result, borrowers who show a long history of good money management are offered the best rates on any new borrowing agreement. Paying back debts promptly and maintaining low overall utilization are great ways to continue boosting your score over the long term. In the United States, for instance, the average consumer owes around $6,000 in credit account debt, with a total line of credit hovering around $31,000 (a roughly 19% utilization). Using this as a benchmark can help you increase your score before any planning application for a new card.
Do your research on cardmember perks and bonus offers.
Cards come with a raft of different bonus offers. Card issuers are constantly trying to entice consumers to switch over to their brand with the help of zero interest offers, bonus cash back opportunities, and travel rewards or unique access to amenities in cities, attractions, and airports all over the world. Depending on the lifestyle you lead, selecting a card that offers specialized benefits can help make your quality of life jump in an instant. For example, frequent travelers will benefit from a card that offers travel reward points and includes members’ access to clubs within local or global airport hubs.
Utilizing this access alone might be enough to sway a cardholder away from another brand in favor of the perks they receive each time they check-in for a flight. Cashback is another big one; for a consumer who doesn’t frequently pull out their credit card, paying for gasoline or groceries every month with this card and then paying it back immediately can provide you with a healthy boost to your overall financial situation.
Consider these themes to get the most out of your next card.