When it comes to credit cards, there are a lot of things to consider. Do you want a card that offers cash back? What about one with a high credit limit? And what about the annual fee? It’s important to shop around and compare different cards before you make a decision. We’ll explain the different features of credit cards so that you can make an informed decision when applying. We’ll also discuss how applying for a credit card can affect your credit score, and what you should do if you’re not approved.
Credit cards come with a lot of different features, and it can be hard to know which one is right for you. The first thing you should consider is what you’ll use the card for. If you’re planning on using it for everyday purchases, then a cash back card might be a good option. Or, if you’re looking to build up your credit, then a card with a low APR might be the best choice.
Once you’ve decided what you’ll use the card for, it’s time to compare different cards. When you’re comparing cards, there are a few things you should look at:
Credit limit: This is the maximum amount of money you can charge to the card. It’s generally recommended to keep your overall credit usage below 30% of you total credit availability. Overall credit usage is the amount of credit you’re using across all credit cards and loans, and total credit availability is the sum of credit limits across all of your credit cards and loans.
APR (Annual Percentage Rate): This is the interest rate you’ll be charged on any balances you carry over from month to month. Paying off your card every month can help to minimize the interest you’ll pay, which is helpful when you have a higher APR.
Annual fee: Some cards come with an annual fee, which is a charge you have to pay every year just for having the card. Cards with annual fees sometimes carry higher rewards and lower APR’s than cards without them.
Rewards: Some cards offer rewards, such as cash back or points, that you can redeem for travel or other purchases.
Once you’ve compared different cards, it’s time to apply. When you apply for a credit card, the issuer will do a hard pull on your credit report. This can temporarily lower your credit score by a few points.
If you’re not sure which card to get, or if you’re worried about how applying for a credit card will affect your credit score, please give us a call today to discuss. We can give you information to help you compare different cards and choose the one that’s right for you.
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