Getting a credit card is excellent for building your credit score, but it can also be the fastest way to destroy your finances if you need to do everything right. This guide will help you choose the best credit card for your lifestyle and budget and show you how fast you can get a credit card.
Choose a card that fits your lifestyle.
In addition to the rewards, you’ll receive, ensure your card’s intro and interest rates fit your spending habits. For example, if you need to figure out how much cash you’ll be spending on your new card, consider going with a lower introductory rate.
If you’ve already got a solid idea of your spending habits and want to get the best deal possible on all fronts, go with a low-interest-rate credit card with no annual fee.
Consider rewards options.
A rewards card is a great way to earn free stuff with every purchase. The value of the rewards you get can vary by your credit card type and how much you spend on it. Rewards, like cash back and points, tend to be based on a percentage of your spending with the card: for example, if your rewards are worth $0.02 for every dollar spent in a specific way (say 5% cash back), then that means for every $100 spent with your credit card, you’ll earn two dollars in rewards.
Know about 0% introductory rates.
If you have bad credit and are looking for a credit card, it’s important to know about 0% introductory rates. These cards can help you build credit faster.
However, there are some things to keep in mind when using them:
- Ensure the rate is lower than the APR after the introductory period expires. If this isn’t true, you may end up with an APR higher than advertised on the card’s front page during its introductory period. That means your payments will be more expensive than if you had gone with another option instead of this one.
- Pay off your balance before it expires so that interest won’t accrue on any remaining balance once that happens!
Start with a secured card if you have bad credit.
If you have bad credit, there is no better way to start building your credit history than with a secured card. Secured cards are safer than unsecured cards because they require collateral for you to get one. This collateral can be in the form of an initial deposit or a bank account that will be used as collateral. Once the issuer feels that your security deposit is sufficient, they will approve your application and send you a card—no further action is required!
According to SoFi, “if your credit card is nearing its expiration date, you can expect to get a replacement card anywhere.”
The best way to get a credit card is to take time and choose the right one. There are many different types with different features, so you should research them before applying for one. If none of the cards on this list work for you, then consider applying for an unsecured card—they have higher limits than secured ones and are easier to qualify for!