How to Choose a Credit Card: 5 Questions to Answer

Today's credit card market abounds in credit card offers. That is why when you are up to fill out a new credit card application you might face a number of nontrivial problems trying to make the right choice. Do you know exactly how to choose a credit card that will perfectly fit your financial purposes and needs?

If you are not quite sure about it, we will try to help you with making the right decision. What you need to do is to ask the right questions. We have singled out 5 major questions that, to our mind, will lead you to your perfect credit card. All you will have to do is answer the questions.

There is one general and crucial question when it comes to choosing a credit card. What do you need a credit card for? However, this might be a too general question for a new-card-deal-owner-to-be. In order to make the process of choosing the best credit card for you easier, we split this fundamental question into 5 sub-questions. And here they are.

Do you have credit history?

If you do not, then you have several options. You can apply for a secured credit card, where you will have to make a security deposit, which will determine your credit line. You can also apply for a bad/no credit card. Or if you are a college student, you can get a student credit card.

What is your credit score?

Knowing your credit score before applying for a credit card is crucial. You can learn your credit score from your credit report, which you can get for free once a year at every of the three major US credit bureaus. (i.e. you can get 3 free copies of your report a year). When you know your credit score, it is much easier to find an appropriate credit card - for no, bad, fair, good or excellent credit.

What is your major expenditure item? / What are your spending habits?

If you drive a lot, a gasoline credit card will be a great option for you. It will significantly cut your expenses on gasoline. You love to travel? Then airline and hotel rewards card deals will allow you to save on airfare, hotel expenses, and will make your trips even more comfortable, pleasant and safe.

If you own a business, then business credit cards are just a must-have for you. This type of cards enables you to re-organize your company financial management and offers you discounts and business-related services. If you cannot specify your major field of expenses, but your credit history allows you to qualify for rewards credit cards, a cash back credit card will grant you bonuses (cash rebates, to be more exact) for different purchases.

Are you planning to make a large purchase?

If you really are, then you should consider getting a low rate credit card. With such plastics you will save money on interest. Or if you feel that you can afford paying the borrowed money back within a couple of weeks, pay attention to the length of a card's grace period. Choose the card with the longest one. It may vary from 10 to 28 days. And stay away from balance transfer cards. Most of them do not come with 0% into APR on purchases.

Do you want to do away with your credit card debts?

At this point, a balance transfer card will be the right decision. Such a card offers very favorable rates and terms for paying down debts. You can transfer one of your outstanding balances or consolidate your credit card debts on a card for balance transfers offering beneficial 0% APR for balance transfers. But mind the balance transfer fee, which usually equals to 3% of the amount transferred.

So, these are the 5 questions that will help you find the right credit card for you. Spare no efforts to answer them, and your perfect credit card will ripe to be seized.