Choosing The Best Credit Cards For You

The best credit cards for you are those tailored towhere you will save money.
your individual financial needs and objectives with lowIf you answered yes to the third question, you may be
interest rates and, of course, those for which you willinterested in finding a 0% interest charge card, such as
be approved. To find out what youre looking for,American Express. These cards will not charge you
answer the following questions:interest as long as you pay your bill promptly and in its
1. Do you anticipate any large purchases in the nextentirety every month.
year (i.e. furniture, appliances, etc.)?If you answered that you want to hold on to your
2. How long will do you anticipate keeping the principalcredit card in the fourth question, you should look for a
of a purchase on your card?moderate credit limit and a low interest rate. If you
3. Do you want to pay your entire balance everyanswered that you plan to use this credit card only in
month?the short term, then you should look for a card with an
4. Are you planning to use this card for purchasesintroductory 0% interest rate. These are best coupled
over a short time period or do you intend to hold it forwith a plan to pay off the balance by the end of the
a long time?introductory term.
5. Do you currently have credit limits totaling more thanIf you answered yes to either part of the fifth question,
40% of your annual income or balances outstandingyou may have some difficulty securing new credit
on those cards greater than 50% of the credit limit?cards. Part of your credit score is determined by the
If you answered yes to the first question, you will needamount of credit you carry and the ratio of the
a card with a high credit limit and a low interest rate.balance outstanding to the credit limit. Some banks are
This may seem obvious but not all people need theseunwilling to grant additional credit to those applicants
things. You may do best getting a card with rewardswhose credit scores are low due to outstanding credit,
attached to something you are interested in, like aneven if you have paid on time. The best credit card for
airline miles card.you may be a card specializing in bad credit,
If you answered greater than three months on theregardless of how close you are to the acceptable
second question, you will need a low interest rate. Docredit rating.
not be discouraged by a low credit limit. The interest is