4. Apply For The Card That Offers You The Highest Overall Value
Narrowing your choices is the easy part, but deciding between two or three similar cards can be quite difficult. If you’ve already found a clear winner after Step 3, go with that one. If not, it’s time for a tiebreaker round.
Look closely for differences. All other values being equal, here are some factors that might set a card apart:
For Student And Secured Cards:
- Credit limit automatically increases. Certain cards let you increase your limit after a few consecutive on-time payments.
- Interest paid on your deposit. Some secured cards place your security deposit in an interest-earning CD. This way, you can earn a small amount of money on it.
For Low-Interest, 0% Apr Or Balance Transfer Cards:
- Debt payoff planner. Some issuers let you create your own debt payoff plan on an online portal, a valuable tool if you’re overwhelmed with debt.
- No late fees or penalty APR. Certain cards waive these charges. If you fall behind on payments, this could come in handy.
For Rewards, Travel Or Cash-Back Cards:
- Lower required spending. The less you need to spend to qualify for a sign-up bonus, the better.
- No expiration date on rewards. On some cards, you can use your rewards as long as you keep the card open.
When you finally pick a card, keep in mind that, on the application, you can include all income you have reasonable access to, not just your personal income. For students, that can include money from grants and scholarships, or allowances from parents. For others, it may include a partner or spouse’s income.
So You’ve Found The Best Credit Card. What’s Next?
Choosing the best credit card is an important decision, but don’t stop there. Use your card the right way to get the most for your money. If you’re trying to establish credit, pay your bill in full every month and don’t use too much of your available credit. Stick to your debt payoff plan if you snagged a 0% APR deal. And if you’re trying to rack up rewards, use your card for everyday purchases and pay your bill in full every month.
The credit card you choose should help you achieve your financial goals in the most affordable, efficient way possible, whether you’re trying to build credit, borrow money or earn rewards. Don’t settle for less.
This article was originally published on NerdWallet.