Personal Banking

How Do I Pick the Right Credit Card?

By December 16, 2019 April 17th, 2020 No Comments

How Do I Pick the Right Credit Card?

A credit card can be an amazing tool when used correctly. Small business owners can rely on a credit card to make inventory purchases or upgrade technology. Homeowners can use their favorite cash back credit cards to take advantage of deals on everything from furniture to electronics.
One of the biggest keys to maximizing your benefits and minimizing risk is to take your time when choosing a credit card.

There are many different options available, which makes it easier to find a card that’s right for you. Some cards excel at offering low interest, while others have great rewards.

Are you having a hard time choosing the best credit card for you? At American United Federal Credit Union, we can help. We’re happy to sit down with you and explain unfamiliar terms. Here are a few tips for finding a great credit card.

How To Pick the Right Credit Card

The best credit card is one that gives you access to funds when you need them but also lets you enjoy life without constantly worrying about debt. The whole point of having credit is to make your life happier, not more stressful. Consider these factors:

Your Credit Score

The annual percentage rate charged for credit cards often depends on your personal credit score. To qualify for the best APR, you need to have solid credit. A trustworthy option that can help people with existing debt is a secured credit card. This type of card lets you make purchases up to your approved collateral amount. You don’t have to worry about loan fees, and you still get the Visa’s awesome Zero Liability protection.

Your Plans

Are you planning on paying off the full balance every month or making payments on a longer basis? For a large purchase that will take a while to pay off, you may want to focus on a card with the lowest APR. That way you pay less in interest.

Your Goals

What will you use your credit card for? If you mostly need a card for gas purchases, look for one that gives you cashback every time you fill up, such as our Cash Back VISA. This type of credit card basically provides discounts for everyday things such as groceries or home repairs. A cashback card can be perfect for people who primarily use their credit cards for online shopping.

Your Lifestyle

Travel miles can sound awesome, and it’s easy to fall in love with a card that promises to help you pay for a trip to a gorgeous beach somewhere. Before signing on the dotted line, however, make sure that a Cancun vacation is really what you want. There may be other rewards that fit your spending habits better, or you may benefit more from a cashback card instead.

Your Spending Habits

It’s tempting to imagine perfect scenarios where everything goes right, and you never forget to make credit card payments. Is that what your monthly spending is really like? If it’s not always easy to pay the bills, it may be better to keep interest rates low (or use a Share Secured Visa credit card) instead of focusing on huge paydays.

Your Favorite Rewards

Some cards focus on a certain type of benefits, such as travel miles or gasoline discounts only. Fortunately, our ScoreCard Rewards VISA® gives you a huge catalog of rewards to choose from. You earn points that you can spend on everything from laptops to fitness equipment.

Get More Information About the Best Credit Cards of 2020

At American United Federal Credit Union, we want you to be happy. Our friendly team takes the time to help you find the best tools for your family’s financial health.

We can help you understand the fine print when it comes to terms such as APR and cashback. Contact us right away for more information or assistance.

 

Image Credit: Shutterstock/Pixel-Shot

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