If you want to save money on credit card costs or on your purchases, you need to choose a Right Credit Card which suits you and your needs the best.
There are several factors you need to consider while choosing the right credit card.
Right Credit Card – Your Occupation
Some credit cards may contain special offers, rates and fees due to your occupation.
- Student credit cards – If you are a student, considering your low monthly income, credit card issuers may offer up student credit cards with lower annual fees and credit limits.
- Business credit cards – If you are a business owner who wants to keep track of company expenses, applying for a business credit can be a better option.
- Frequent flyer credit card – You can earn points as you spend and you can use these points for your travel expenses such as flights, lounge passes, hotels, car rentals, etc.
- Travel credit cards – You are allowed to withdraw money from international ATMs without being charged foreign transaction fees.
Your Income is important
You need to meet minimum income requirements to qualify for a credit card and each type of credit card come up with different income requirements. What you need to do is to compare and choose the one which suits your budget and your income better.
- Rewards credit cards – You can earn points as you spend and use that points for your upcoming expenses. But, you have to be prepared to face higher premiums, interest rates and fees.
- Gold, platinum and black cards – Strict criteria makes being eligible difficult but as long as your income is high, you may qualify for these cards. They contain higher annual fees and premium options but if you spend too much, they can be beneficial due to their higher credit limits.
Your Repayment Ability
You need to be aware of annual fees and interest rate of the credit card you want to choose before applying.
- No annual fee credit cards: You don’t need to pay off an annual account fee which helps you to save money on credit card costs. But, you need to pay off your balances on time since they have higher interest rates.
- Low interest rate credit cards: They usually come up with average 9.99% interest rate which is much more lower than interest rates of other types of credit cards. Some low interest rate credit cards do not require you to pay off interest for a promotional period.