Today with so many banks issuing a multitude of cards identifying the best credit card for yourself is a quite a challenge.
As no single credit card is superior to all others in all kinds or no one card is the best for all individuals, it is imperative that you do your research to find the best credit card before you apply for a credit card. We at mymoneykarma.com want to empower you to compare your choices and ask yourself the right questions, based on that you can discover the card that is the best fit for your ways of managing money and credit circumstance.
Mymoneykarma outlines the following steps to find the right credit card for you
Check you credit worthiness ( Credit Score )
Discover which credit card offers you may be qualified for by checking your credit worthiness. The better your score, the more chances of you being approved for cards with better benefits. Different approaches to check your score:
- Check you free credit score at mymoneykarma.com
- Many credit card companies give cardholders free credit score.
- The major credit bureaus (CIBIL & Equifax) sell credit scores. With the recent change in regulation you can also get one credit report a year from either credit bureaus for free.
In case your credit score isn’t what you expected, check your credit reports to see what’s creating the issue. This will help you to find ways to improve it, from changing your ways of managing money to report an error on your reports.
Find best suited type of credit card you need
There are generally three types of credit cards:
- Cards that help you enhance your credit.
- Cards that save you cash on interest.
- Cards that earn rewards.
The best card for you will be the one which has features that meet your regular needs. For Example If you don’t shop much, then the best shopping card in the world isn’t going to do you a lot of good or if you don’t fly often having miles card would not be useful. Analyse your spend automatically at mymoneykarma.com and see which. categories you spend the most on and then try and find cards that give you rewards in those spend categories.
If you want to build or rebuild credit: Secured credit card
Unsecured cards which are for someone who are new to credit, are easy to qualify than other types of credit cards, these types of cards normally have a security deposit. Your deposit is given back when you are in good books of the bank in terms of payment history.
If you want to save on interest: Low-interest, 0% APR (Annual percentage rate ) on balance transfer card
A card with an initial 0% APR on balance transfer and less interest could be a decent match for you if you plan to use your credit card during crises, or in the event that you have an unpredictable pay and convey an adjust every now and then. The balance transfer offer could help you pay off a high-interest free. Remember that these offers might be harder to discover if you have normal or poor credit. Read the blog post on mymoneykarma.com on balance transfer.
If you want to earn rewards: Rewards, travel or cash back
A reward credit card is a decent match for you in the event that you pay off your balance each month and never carry interest. These cards ordinarily have higher APRs, however offer bigger join rewards and give you focuses, miles or money back on each rupee you spend.
Narrow your choices by asking the right questions
Visit mymoneykarma.com‘s credit card comparison tool and search option you can find various types of credit card that you want and that meet your credit score and month to month spending.
Key questions to focus on for different types of cards :
For Secured cards:
- Will this card help me construct my credit? Search for a card that reports your credit card installments to the credit authorities. Many secured cards don’t do this.
- What amount does it cost to open a record, including the yearly charge? The prizes on these cards by and large aren’t sufficiently high to warrant a yearly expense. Unless you have a poor credit, you can likely to stay away from this expense. For secured cards, the lower the security deposit, the better, despite the fact that your credit limit might be directly tied to the amount of a deposit you make.
- Could I graduate to a superior card later on? Pick a card that will give you a chance to build your credit and move up to a card with more benefits. This makes it less demanding to leave your card open longer, boosting your normal time of account over the long haul.
For low-interest, 0% APR on balance transfer cards:
To what extent is the 0% APR period, and what is the progressing interest APR?
Search for a card that gives you enough time to pay off your debt interest free. In case you’re planning for carrying your balances for more than quite a long while, consider a credit card with a low continuous APR.
What is the card’s balance transfer policy?
In case you’re doing an balance transfer, look into a card’s balance transfer fee. Discover what sorts of debt you can exchange and whether there’s a threshold point to the amount you can move over. Take note of that the balance transfer APR on a card might be not quite the same as the purchase APR.
Does the card offer rewards?
In case you’re searching for just a couple of months of 0% APR — maybe rather than a join reward — you might have the capacity to discover a card that gives out continuous rewards
Debt pay off organizer. A few guarantors let you make your own debt payoff plan, an important tool in case you’re overpowered by debt.
No late charges or punishment APR. Certain cards forgo these charges. If you fall behind on installments, this could prove to be useful.
For rewards, travel or cash-back cards:
How do I spend my money?
Search for a card that conveys the most prizes for the classifications you spend the most on. In case you’re a big spender, think about getting as a card with a yearly expense, if your rewards earning would balance the cost. In case you’re wanting to utilize the card abroad, search for one with no foreign exchange expenses and chip-and-PIN ability, instead of the chip-and-signature technology that is standard in the India. This goes for different types of cards as well.
How difficult is this credit card?
If you would prefer not to fight with limited award seat availability, spending tops, moving extra rewards, consider a card with flat rate cash back as rewards. The reason for this is most of these other features require more active management to get the best out of the rewards.
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. That enables you to save up on your rewards and gives you flexibility to redeem them when you need the rewards.
Apply for the card that offers you the highest overall value
Narrowing your decisions is the simple part, however settling on a few comparable cards can be very troublesome. If you have a clear winner , run with that one. If not, it’s the ideal opportunity for a tie between two cards. Look carefully for differences. There are a few variables that may separate a card from other. mymoneykarma.com makes that easier for you by allowing you to compare the shortlisted credit cards on important features for you to efficiently choose the one best for you.
Picking the best credit card is an vital choice, however don’t stop there. Utilize your card the correct way to take full advantage of your cash. In case you’re attempting to build up credit, pay up all required funds each month and don’t utilize a lot of your accessible credit.
Credit card you pick ought to help you accomplish your money related objectives in the most reasonable, productive way conceivable, whether you’re attempting to build credit, obtain cash or win rewards. Try not to settle for less. Most importantly responsible use of credit will benefit you greatly in the long run so keep that in mind when you spend on you credit card.