Assuming you have paid your account on time and you are not using too many available credit cards, adding someone to your credit card as an authorized user is an easy way to increase their credit score. But for this strategy to work, you need to make sure that the information about the account is included in their credit report. Otherwise, adding someone on your card - whether it's a child, a partner or a parent - will not affect their score.
No credit card is better than other credit cards in all categories – or for everyone. However, by understanding your choices and asking the right questions, you can find the card that best suits your spending habits and creditworthiness.Follow these three steps to find the best credit card for you.
1. Check your credit
Find out which credit card services you might be eligible for by reviewing your credit score. The higher your score, the greater the chance that you will be approved to use a card with a better extra allowance. Ways to check scores include:
If the numbers are not what you expected, check your credit report to see what is causing the problem. Then, if you need to, you can start to figure out how to improve, from changing your spending habits to arguing about a mistake in your report. Federal law allows you to get a free copy of your credit report from each of the three main agencies every 12 months.
2. Determine which type of credit card you need
There are generally three types of credit cards:
The card that works best for you is a functional design to meet your specific needs. For example, if you don't travel a lot, then the best travel card in the world doesn't do much good for you.
- A card that helps you improve your credit when your credit card is restricted or damaged.
- A card that can save you money.
- The card that gets the reward.
If you want to create or rebuild a credit card: student or secured credit card
A student credit card is an unsecured credit card that is designed for college students who are just starting a credit and is more likely to qualify than other types of credit cards. The same is true for secured credit cards, which usually require a deposit of $200 or more. Your deposit will be returned to you when your account is upgraded or closed normally.
If you want to save money: low interest rate, 0% annual interest rate or balance debit card
If you plan to use your credit card in an emergency, or if you have unusual income and often carry a balance, then a 0% early April introduction and a low interest rate credit card may be a good one for you. match. A balance transfer offer can help you pay interest on high interest debt for free. Keep in mind that if your credit level is average or poor, these quotes may be difficult to find.
If you want to get rewards: rewards, travel or cash back
If you pay the full amount every month and never generate interest, the reward credit card is a good match for you. These cards typically have a higher APR, but offer a larger registration bonus and provide points, miles or cash returns for every dollar you pay.
3. Apply for the card that gives you the highest total value
It's easy to narrow down your choices, but making decisions between two or three similar cards is quite difficult. If after the third step you have found a clear winner, then choose that. If not, it is time for the deciding game.
Look closely at the differences. All other values ??are equal. Here are some factors that might separate the cards:
For student cards and security cards:
The credit line is automatically increased. Some cards allow you to increase your limit after several consecutive payments.
Deposit interest. Some secured cards put your deposit on a CD with interest. In this way, you can make a little money.
For low-interest loans, April 0 or a balance debit card:
Debt repayment plan. Some publishers allow you to create your own debt repayment plan on an online portal, which is a valuable tool if you are heavily in debt.
There is no late fee or fine in April. Some cards will be exempt from these fees. This can be useful if you are in arrears with payment.
For rewards, travel or cash back cards:
Reduce the required expenses. The less you spend on registration bonuses, the better.
The reward has no due date. On some cards, you can use your reward as long as you keep the card open.
When you finally choose a card, remember that in the application form, you can include all the income you can reasonably use, not just your personal income. For students, this can include grants and scholarships, or parental allowances. For others, it may include the income of a partner or spouse.
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Filtering the terms and conditions of a credit card can be daunting. Language is not always straightforward, and it is not uncommon to feel lost. According to J.D. Power's 2019 Credit Card Satisfaction Study, two-thirds of consumer reports fully understand credit card rewards. However, cardholders have lower scores on satisfaction with the card issuer's interpretation terms than other credit card features and services. But the more you know your credit card, the better your financial decisions will be.