If you’re like everyone, when it comes to credit cards, you probably think of them as either a necessary evil or a dangerous temptation. They can be both, but if used correctly, they can also be an incredibly useful financial tool—especially in the era of rising interest rates and economic uncertainty. So what credit card should I get? The answer depends on who you are and how you use your money. Here are some things to consider before applying for a new card:
If you have trouble remembering to pay bills on time, get a credit card
It’s easy to set up automatic payments so that your bill is paid automatically when it’s due. If you don’t want to deal with the hassle of setting up automatic payments, no problem! You can also pay by phone or online and set up reminders for yourself so that you don’t forget about any due dates.
If you are trying to build your credit history, get a credit card
Credit cards can help you build your credit. As long as you pay off the balance on time each month, it will help improve your credit score over time. It’s one of the easiest ways to start building good credit if you have no other options and cannot qualify for a loan.
As per SoFi advisors, “Some credit cards are meant for those who are working on building their credit.”
If having revolving credit available is vital to you, get a credit card
So, if having revolving credit available is crucial to you, get a credit card. You can use it to buy things you don’t need right away, like concert tickets or gifts for friends. And if you’re up for something big like a car or house—or are planning on attending university in the coming years—a credit card is also an excellent way to build up your credit history and show lenders that you’re responsible with money.
If they’re not important enough reasons alone, we’ve got one more: rewards!
If you dine out frequently and travel frequently, get a rewards credit card
If you’re a frequent traveler and like dining out, it may be worth investing in a rewards credit card.
Rewards credit cards offer points or miles that can be redeemed for travel, merchandise, gift cards and more. The value of rewards varies card to card but is typically based on how much you spend with the card each month.
For example, if your spending threshold is $5,000 per month and you spend $7,500 with your credit card in a given month (for whatever reason), then you’ll earn 1% back on all purchases made during that time. You can also use your points to get cash back from retailers such as Amazon or Ticketmaster—or even apply them towards an Uber ride!
If you are struggling to get by or have a little credit history, a credit card can be a great option. It allows you to build your credit without having to pay any interest on balance transfers or purchases. If this sounds like something that might work well for you, then you are recommended to take some time to review the list of the best no-fee cards available!
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