Credit Cards: Which One is Right for You?

| Tedis Baboumian |

If you’re thinking about applying for a credit card, you’ll quickly realize that there are so many choices which makes it pretty hard to decide which is the right one for you. There is no such thing as one card that’s the best for everyone since different people have different priorities. Spend some time doing a little research so you can find the right card for you.

Secured Credit Cards for Little or No Credit History

If you have no credit history at all, or if you’re getting a card after a credit problem such as bankruptcy, you may want to think about getting a secured credit card. This type of card usually requires you to deposit some money to secure the card. Your credit limit is usually the same as the amount of the deposit.

Unsecured Credit Cards

Most credit cards fall into this category. Unsecured cards do not require a deposit of funds upfront. You’ll need to compare cards based on the interest rate, whether there’s an annual fee and which rewards are most important to you.

Student Credit Cards

Are you a college student? There are credit cards geared specifically to students as a way of helping them to start building credit. These cards may have a low credit limit and may offer rewards such as a statement credit for good grades.

Retail Store Cards

Another option for building your credit is to obtain a credit card from a retail store, since you may be approved for one of these with less-than-perfect credit. These cards can be used only at a specific store and usually come with a low credit limit and a high-interest rate.

Zero Interest Rate Cards

Credit card companies may offer an introductory period of as long as 18-20 months with a zero percent interest rate. This allows you to transfer balances from other cards and save interest on a short-term basis. Make sure you check into what the interest rate will be after the introductory period.

Rewards Cards

Different types of reward cards appeal to different people. Cashback rewards cards allow you to earn points for purchases that can be used as a statement credit or cashback. If you spend a lot of money on gas, you may be interested in a gas rewards card that offers rewards on gas purchases. If you’re someone who likes to travel, travel rewards cards allow you to earn points or miles that you can redeem on travel expenses such as airfare and hotel stays.

Taking Care of Your Credit

Choosing the right credit card can help you finance important purchases while you build your credit history. Whatever credit card you choose, be sure to be responsible with it. One missed payment can have a negative impact on your credit score. Don’t apply for several cards at the same time because that can also bring down your credit score.

Take care of your credit by making sure that the information on your credit report is accurate. Dovly can make this process easy with our automated credit engine that tracks errors on your credit report, finds them, and fixes them. Get in touch with us today to find out more about how Dovly can help you.

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