Tips for Choosing the Right Credit Card for You

Having a credit card lets you make purchases without having cash and build financial credibility. But before opening a credit card, you need to know the types that you can apply for, as each has different perks. Delve into the important tips for choosing the right credit card for you. 

Check Your Credit Score

You should always check your credit score before you apply for a card, as a higher score increases the likelihood of receiving approval. If you’ve never taken out a loan and this is your first credit card, you may have to cosign on a card with a parent or partner to become eligible.

If you have a low credit score, hold off on opening a card for now, as opening a card drops your score temporarily. Due to this drop, you should never open several cards at once—regardless of your credit score—since it can make it harder to rebuild your credit.

Pro Tip

You can check your credit score for free by contacting a credit bureau such as Equifax or TransUnion.

Review Card Perks

Some credit cards come with specific benefits such as points, which you can later use on rewards or cash back. As you investigate each card option, consider whether there are rewards, what they are, and how quickly you earn them. Credit cards that make it easy to obtain perks have higher intrinsic value than those that do not.

Likewise, a credit card can help you establish and build your credit score if you make all payments on time. The better your credit score is, the easier it is to take out loans with fair interest rates.

Look Into Card Requirements

Another tip for choosing the right credit card for you is to review all costs of opening a specific credit card. Sometimes, opening a credit card comes with an annual fee to keep the card open. Alternatively, financial institutions such as credit unions require you to have an account with them before opening a card.

While looking at card requirements, also read about potential penalties. What happens if you can’t make a payment in full? Sometimes, companies charge a late fee or interest for any missed payments.

Determine Your Need for the Card

Finally, determine your overall need for the card based on your spending habits. There are different types of credit cards; some can help you improve damaged credit, while others can help you save money. Also, certain department stores offer credit cards to customers that you can only use in their store to get discounts. Other credit cards work nearly anywhere.

Shell Western FCU

All members of Shell Western FCU can apply to open a credit card with our credit union. Our low-interest credit cards are perfect for building credit and come at various interest rates depending on the type of credit card you open. Become a member of Shell Western today to apply for your credit card!