How to choose the right credit card? With so many options it can be hard to decide and there will always be a debate about which one is better. But the fact is the credit card you choose should depend on you. The kind of lifestyle you lead, your credit score and what you intend to use it for.

There are some credit cards designed for long term borrowing, others that are designed for those that just run short of cash at the end of every month and need something to tide them over but there are also cards that offer perks such as loyalty points or vouchers.

What is the best credit card for me? Here is how to answer that question.

1. Cards With Perks

There are cards where you stand to earn big if you know how to use them. Many major airlines such as American Airlines, Delta as well as non-American international brands like Emirates and Qantas, offer loyalty credit cards.

These will often give you a signup bonus of a certain amount of air-miles and will offer 1 or higher air miles for every dollar that you spend on the card.

There are also some cards that you can pay a flat yearly fee for which give you additional perks such as a higher rate of air miles to the dollar or airport lounge access even if you are flying economy or coach class.

Airlines are not the only companies to offer these types of credit card. Amazon and most big supermarkets also have their own credit cards to encourage and reward spending in their store.

Apple also recently launched its own credit card which gives daily cashback on most purchases made with Apple Pay. But there is a higher rate of cashback on Apple goods. Cashback can also be obtained through services like RebateKey.

How to Use Credit Cards with Perks?

These credit cards are generally designed by people who spend a lot of money from their usual checking accounts but want an easy way to pick up extra perks. They should be paid back on time as they often have a high rate of interest and should not be used to borrow money in the long term.

Many people who are good at using these cards will have one for each store they spend in and will work out which ones will get them the biggest return in terms of points. There are websites designed for giving advice on how to do this.

2. Zero Interest Cards

Some credit cards offer no interest for a fixed period such as the first year or the first six months. This can be great if you know you have money coming in within that fixed period.

But these types of credit cards can be ruinous if you simply pretend there is no penalty for not paying them back and use them to live within your means. This is not a great way to decide how to pick a credit card.

Spending on a credit card and then not paying it off can ruin your credit score and can prevent you from being able to get credit cards or other types of credit in the future.

3. Cards For Low Credit Scores

If you have a low credit score it can restrict your ability to apply for some of the credit cards that offer good perks and you may need to put in some effort to rebuild your credit score.

First, be sure to run a credit check on yourself using an online provider to find out what your credit score actually is on the FICO scoring system. If it is low then do not despair.

There are credit cards that are designed for low credit scores. They typically come with a lot more restrictions and a much lower credit limit. You might even have to pay a high deposit or fee to begin with to guarantee you will make your repayments on time.

The purpose of these cards is to rebuild trust over a number of months or years to showcase your ability to pay off credit. The long term goal is to be able to upgrade to a normal credit card from the same credit card company and to then have the ability to move to a different company.

Choose the Right Credit Card For Your Needs

Whilst to choose the right credit card might seem difficult at first, in fact, it simply comes down to choosing the perfect card for you and your lifestyle.

If you have high spending habits then you probably will want to investigate credit cards with perks for major companies such as Apple, Amazon or airlines such as American Airlines.

If used correctly they can really boost your rewards and ensure you get a free flight or an upgrade to business class. However, to ensure you do not get stung they must be paid back in time.

If you are looking for a credit card to give you a long term loan then an interest-free credit card for a fixed period can be a good idea. But only if you ensure you do not simply spend on it without thinking and compare the credit card with getting a loan from a bank.

If your credit score is low then some credit cards can be a great way of fixing your score, offering lower credit limits and an upfront deposit in return for a credit card.

If you are interested in reading more about cashback then be sure to check out our services to see how we might be of help.

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