How To Choose The Best Credit Card That Matches Your Lifestyle

Finding the right credit card to match your lifestyle can sometimes be quite challenging. But, when you’re able to create this match, it gives you many wonderful benefits financially. When the credit card you own matches your needs and your lifestyle, you’re better able to make use of the card to your advantage. Using a credit card appropriately has more financial benefits than dangers.

credit card

With the vast array of card options out in the market today, yes, it can be a challenge to select the right one. These tips help select the best card for your preferences:

1. Eliminate Options Not Eligible To You

Even when you go just to one bank, let it be known to you that there’s still going to be several options presented to you, even for starter credit cards. Right there and then, you’ve got to find a way to narrow down your choices immediately.

This you can do by looking at the maximum spending limit capacity of the card. When this is way beyond what you can earn in a month, then you know this card doesn’t suit your lifestyle. Else, you’re only going to put yourself in a dangerous trap of debt by not being able to pay for all that you’ve spent.

2. Consider Your Spending Habits

As you’ve narrowed down some options, now another question you’ve got to ask yourself is how you intend to use the card. Are you confident that you can pay for the card in full, right in the next month when it comes due? Or are there instances that you know you’re going to fall short with your payments? Is the card something that you’re going to use for all your bills, utilities, and even shopping expenses? Or is it something that you’ll only pull out during emergencies?

To answer these questions, be mindful of these following pointers:

  • If the card is only going to be used for emergencies, then choose a card without a lot of features, and with the lowest interest rate possible, plus low maintenance fees.
  • If you know that you can pay the card in full every month, the interest rate shouldn’t be a factor for you to consider. You should consider the card with no annual fee and a more extended grace period instead.
  • If the card is something that you’re going to use for all of your bills, choose the one with a more generous spending limit. Also, consider the perks such as cashback, points earned, and other rewards. This is a good way for you to accumulate points as you pay for your bills.

3. Consider Also The Tertiary Perks

Apart from the inherent rewards and points that come along with the card, consider also the possible tertiary perks. These refer to the establishments that your card provider has partnered with to provide the best benefits to you, the cardholder. Usually, you’ll get to know this by talking more with the bank representative. It may even be seen in the detail of the fine print of the documents that come along with the card’s application forms.

Make it a habit to read through those. Choose the tertiary perks that you know you can best use. Do you enjoy dining out with your family? Select the card with restaurant perks. Would you love those gift checks for extra shopping perks? Then choose that.

4. Check Also The Fees And Penalties

As fun and fabulous as having a credit card might be, do note that it also comes with fees and penalties. Remember that when you’re paying through credit card, you’re not paying with your own money. You’re borrowing from the bank. This means that cards are also inherently laden with fees and other penalties.

The fees typically revolve around the following areas:

  • Fees for transactions
  • The difference in exchange rates
  • Balance transfers
  • Cash advances
  • Paying the bill late

While these fees may be universal, the difference usually is with the amount of the fees and penalties. When the card is something that you know you’re going to use regularly, be mindful also of the additional charges that these fees are going to entail. Else, it might cause a big hole in your monthly budget.

Conclusion

A credit card is always a handy tool to have. But, when misused, it can also lead to more danger than is good. Especially when the credit card doesn’t match your lifestyle and preferences, you wouldn’t be able to make the most out of its perks. This makes your credit card’s features useless. As you select one from among the variety of options, keep these tips in mind. That way, you can better match your credit card with that of your needs.

About Mohit Tater

Mohit is the co-founder and editor of Entrepreneurship Life, a place where entrepreneurs, start-ups, and business owners can find wide ranging information, advice, resources, and tools for starting, running, and growing their businesses.

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