How to Apply for Personal Credit Cards

How to choose the right personal credit card for you

how to choose the best personal credit card

People turn to credit cards as an additional source of finance for their needs. Whether it’s for purchasing goods or paying for services, our plastic friends sure come in handy, especially if you have limited funds.

However, some credit card holders have nightmare stories to share about their struggles to pay off their balances on time. This is why it’s so critical to choose the right credit card that works best for your lifestyle.

Pick the wrong credit card, and you could end up spending even more money than you actually borrowed.

Here is some useful information that you might want to consider in choosing the right credit card.

1Types Of Credit Cards

2What Type Of Spender Are You?

When choosing a credit card, you should determine what type of spender you are. To do this, you should take a good look at your spending habits and your capability to pay your balances on time.

This will not only help you manage your expenses right but also put the credit card to good use.

Here’s a list of the most common types of spenders and the ideal credit card for each of them.

Check them out below.

The Habitual Spender

If you’re struggling to pay off your monthly credit card bill, chances are, you are a habitual spender. This type of spender uses their credit cards as they do their debit cards.

As a result, they continuously incur interest charges. Some even fail to pay off their debt on time, thus resulting in even higher interest payments.

Habitual spenders may find it beneficial to opt for a low interest rate credit card with very little or no annual fee.

A balance transfer credit card is also a good option, especially if you want to consolidate debts.

The Occasional Spender

An occasional spender is those who consider a credit card as a necessary financial tool that must be used only when the need arises.

Usually, this type of spender utilizes a credit card for emergencies and infrequent spending, such as sales or going on a vacation.

They also tend to pay off the complete balance every month to avoid higher interest rates.

If you consider yourself an occasional spender, a low interest rate credit card may suit you best.

Just be sure to settle your debts during their introductory period to avoid higher rates.

The Everyday Spender

There are others who use their credit card to cover their daily needs but pay the total balance off every month.

If you are one of those who rely on credit cards to do your grocery shopping, pay bills, or purchase online, then you might be an everyday spender.

Such spenders usually settle their monthly credit card balances every month, which could range from $2,000 and up.

If you are an everyday spender, you might want to consider a rewards credit card.

This will allow you to earn rewards for every transaction you make. It is worth noting though that this type of credit card usually comes with higher annual fees, so it’s best to utilize it wisely.

The Big Spender

If you’re forking out over $5,000 a month on your credit card but pay your balance off every month, then you are considered a big spender.

Almost all types of credit card will work best for you, especially if you’re conscientious about settling your balances every month.

Rewards-based credit cards are usually a good option for big spenders.

3Advantages Of Credit Cards

4Disadvantages Of Credit Cards

5Tips On Choosing The Right Credit Card

Ever wonder which type of credit card is best for you?  Check this out...

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