Deciding on the Best Credit Card for Your Needs | Cleveland Bradley County Teachers Federal Credit Union

If you are hoping to build up your credit score, one of the smartest things you can do is to sign up for a credit card and pay your balance off in full every month. This pattern of good borrowing behavior is a great sign to lenders that you are responsible enough to receive borrowed funds, and with each on time, in full payment, your credit score will get a nice boost in the process.

However, the current credit card market is oversaturated with options, and if you are new to the research process, it is quite easy to get overwhelmed. Fortunately, there are a few tips for narrowing down your choices so you can find the best card to suit your needs and boost your credit.

How to Choose the Right Credit Card for Your Situation

Determine what your credit score is right now. Everyone has to start somewhere when it comes to building a credit score, so figuring out what your baseline is would be a smart place to start! There are different qualification requirements for different cards, so understanding what your current credit score is will help you decide what cards you can currently qualify for.

Pick your desired perks. Because there are so many credit cards out there, many companies offer great perks to incentivize people to choose their product out of all the others. Maybe you would like to build travel points, get cash back or simply avoid paying an annual fee for your card—whatever it is, there is likely a card out there somewhere that fits the bill! Just be sure your card of choice is not charging hidden fees or otherwise making up for great perks when you read the fine print.

Pay attention to the Annual Percentage Rate (APR). A credit card’s APR will tell you what percentage of interest you will be charged on any unpaid balances. Again, the best way to build your credit is to pay your card off in full each month, but if you are making a large purchase, a card with a 0% APR can be a good way to do so.

If you need help setting up your banking processes and building your credit score, come chat with us! We have plenty of expertise in the realm of finances and would be more than happy to help. Contact us today to learn more.