Money for Any Reason You May Need!

Which Credit Cards Offer the Best Options for You?

Choosing the right credit card depends heavily on your current and past track record. Your credit score, items in your credit history report, your payment history, and the amount of debt you have can all impact and ultimately determine which cards are the best options for you.

Credit Score

Your credit score can impact your choice of which card to get in several ways:

• Low scores show you as a risk due to poor payment records or other financial difficulties.
• A less than great score can mean you pay a higher interest rate on the card you do end up getting.
• You may not be able to get as high a line of credit as you want when you have a low credit score.

Credit History Report

It is important to check your credit history report at least once a year because it contains important information:

• You can check to see if there are any errors that would impact your choice of credit card.
• Your credit history report shows lenders your history of debt management and shows if you pay on time or are frequently late.
• Items such as defaults on card, bankruptcy, and other big financial issues will be recorded on the report and it is helpful to know what the lenders will see before you go and talk to them about getting a line of credit.

Payment History

Staying on top of your payments now can help you get a better line of credit down the road:

• Good payment records show you are responsible and reliable and lenders will trust you more to pay back the money they lend you.
• Paying more than the minimal due each month helps keep your debt under control and also shows that you are not living outside of your means.
• Payment history shows a long-term picture of what the credit company can expect from you and will make them either trust you or distrust you with their money.

Debt Amount

Lenders will also look at how much total debt you have because it helps them see how you live:

• When you have debt that you cannot pay off, it shows creditors that you tend to spend more than you make, which is not good for them getting their money back.
• Having a lot of existing debt will also make a credit card company leery about giving you more credit since it is just adding fuel to the fire.
• If you have a lot of debt for a short time and are able to pay it off, that shows that you recover and plan well for unseen emergencies and are good at managing your money, which is what the credit companies want.

With these factors in mind, you can begin looking at the credit card offers you receive. Some will offer low interest rates for a short time but then have high rates for the rest of the year. Others will give you cash back or reward incentives for certain purchases. There are credit cards that will help you rebuild your credit to a better level. Other cards are designed for those with little to no credit or very bad credit. The credit card that presents the best option for you is one that fits your needs, offers the credit line you can safely manage, and does not kill you with high interest rates. Only you can decide what is ultimately best for you. But be sure you take all of these points into account when you make your decision, and make sure that you are only using the credit when you need it, so as not to add any negative marks to your credit rating that could affect future credit decisions.