There are different types of credit cards. It only makes sense that you’d choose them differently. Different features are important when you’re choosing a balance transfer credit card than when you’re choosing a standard credit card. Learn how to choose a credit card based on its type.
How to Choose a Standard Credit Card
The standard credit card is the most common type of credit card. It has a revolving balance with an interest rate and finance charges when you carry a balance beyond the grace period. Since these cards don’t have many features, choose the best card based on the interest rate and fees.
The Best Way to Choose a Secured Credit Card
A secured credit card is a good option for people who’ve had trouble with credit in the past and need to rebuild a bad credit history.
People who are new to credit might also benefit from a secured credit card. Secured credit cards require you to make a deposit against the credit limit on the account, so the minimum deposit amount is often an important deciding factor. Expect to see more fees with a secured credit cards than with a standard credit cards.
What to Look for In a Balance Transfer Credit Card
Balance transfer credit cards are good for combining several credit card balances or for taking advantage of a lower interest rate. Not only should you consider the introductory balance transfer interest rate, but also how long the rate lasts and the rate that applies once the promotional rate expires.
Choosing a Rewards Credit Card
Rewards credit cards give you a bonus based on your card usage. Choosing the right rewards credit card means picking one that gives rewards you can use. With a good rewards card, you can outearn any costs, e.g. annual fee, without too much hassle.
How to Pick the Right Student Credit Card
Student credit cards are designed for college-aged consumers who are just starting out with credit.
These cards typically give credit to college students who lack a credit history. Not every credit card with “student” in the title is actually good for students. So, if you’re on the market for one of these cards, make sure you pay attention to the credit card terms.