Finding the Perfect Credit Card
November 13, 2012
Choosing the right credit card can be a challenge, with hundreds of cards available to us today, each offering various combinations of interest rates, fees, and benefits. Credit cards can be a useful tool – they can provide protection on certain purchases, travel insurance, rewards, and several other features – so it’s worth spending some time comparing the features and benefits of a variety of credit cards before committing to one. Following are some tips to help you find the credit card that best suits your lifestyle.
- Know what kind of user you are – Do you carry a balance? Are you a heavy credit card user? These are just some of the questions to ask yourself when comparing credit card options. If you tend to carry a balance, your top priority should be to find a low-interest rate card, with no annual fee. If you use your credit card frequently and pay your balance monthly, you could benefit from a card with an exclusive rewards package.
- Consider the rewards and benefits – Some cards offer rewards and benefits with no annual fee, and some require an annual fee. The value of any rewards and benefits should be greater than the cost you pay to get them. When evaluating different reward programs, consider programs that offer flexibility, for example, Libro’s MasterCard® credit cards come with the Choice Rewards® program, that allow cardholders to collect points that are redeemable for either travel or merchandise, or can even be used towards a charitable donation.
Also be certain that the rewards are something you will actually use, and are easily earned and redeemed. Some rewards programs have partnerships with retailers, who reward customers with bonus points during a defined period of time, which is a great way to top up your rewards.
- Consider a specialized credit card – You may want to consider whether you need a specialized credit card. For example, a student credit card, which is tailored to students with limited incomes, offer features such low-interest rates or no annual fee. Another example of a specialized credit card is a retail credit card that offers discounts or reward programs for people who shop at a particular store."
- Don’t rush the decision – Take the time to do your research, so you are happy with your credit card over the long term. Opening and closing accounts every year until you find the right fit can hurt your credit score. The longer you hold onto a credit card, the higher your credit score will go.
Whether you’re a student, looking for a no-fee card, or a jet-setter, looking to maximize travel rewards, Libro offers a selection of MasterCard credit cards to suit your lifestyle. Your Coach can help you review the features and benefits of each card and help you select one that will benefit you over the long term.
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