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Thursday Feb 23, 2017

Credit Card: Choosing the Right One

25 April 2011

Credit cards are among the greatest invention, however there are certain aspects of using credit cards that can cause a strain on your finances.

When you consider the fact that high interest charges and fees, it can easily be considered hazards for cardholders who do not pay attention to when payments are due, or even their balance. You may also find that certain credit cards may not offer the perks you want, whether it is reward points, travel insurance or even cash back rewards.

With that in mind, it is crucial you spend time researching what credit card suits your needs best, avoiding paying for services you may not even use, and getting the most for your money.

Choosing the right credit card

When you decide on getting a credit card, the first step is to compare the features among credit cards. You can start looking virtually anywhere, but it is always a good idea to start where you currently bank. This allows all of your finances to be in one location, making it easier to get payments done easily by not having to visit various bank websites.

Consider what you are looking for in a credit card; are you looking to earn some sort of rewards? Or are you looking for one that offers great travel insurance? Or maybe you want a credit card that offers a low interest rate? When you determine what kind of credit card you are looking for, compile your list, and compare the annual fees, interest rates, minimum payments, etc.

What do I do from there?

Once you have narrowed down your list, it is time to pick the one you deem to suit your needs best.

At that point nothing more can be done than apply for the credit card and wait for approval (it does not take that long for the financial institution to determine that).

When you receive your credit card you have to understand that it is important to maintain good credit, and in order to do that it is necessary you maintain a watchful eye on your spending and your payments. You should not be missing any payments, your interest rate can increase if you miss a few minimum payments, which is because you are telling the financial institution that you are someone who is likely to default on your credit card if you are late on paying your minimum payments.

In the event you spend too much and incur a lot of debt, then you have to start paying more than the minimum if you want to see your credit card debt erase. It will take years if you pay just the minimum, and you will be paying a lot in interest in the end.

Remember, having a credit card is a huge responsibility, and it requires attention. You should be managing your spending accordingly with it, and if possible pay off your entire balance instead of just the minimum.

image source: PaDumBumPsh

About the Author


My favorite weapon of choice is the samurai sword. I use it to cut my chicken during dinner, cut my hair and periodically carve my name into stone when I am bored. I love meditating on top of a 15ft high pole and eating those sushi’s with smoked salmon on top. I love everything there is about Canada and everything financially related to Canadians. I write deily posts from Canadian Banks to Credit Card information.

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