How to choose the right credit card

Credit cards can be a fantastic way to help you manage your money, I have found them extremely useful for my everyday life and an absolute essential tool for me when I am on my travels. I have found myself picking a number of free flights and other deals from using my credit cards in the right way. I went with Aeroplan partners recently and I cannot stop telling my friends about how good the card is! It’s the best way I have found to earn air miles, they are extremely important for me because it means that I can hop onboard planes for absolutely nothing if I use my credit card for certain purchases. Here are some great tips I think we should all use when looking at which credit card to use.

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Understand your spending

Start to think about how you will use the credit card. Will you be paying off the balance each month without missing a single instalment of do you think that you will be paying off a small amount each month? Maybe you are going to get a card so you have to hand in case of emergencies. If you are going to be paying off your balance in full each and every month then the rate of interest that you are offered does not matter to you, you should be looking at a card that doesn’t have an annual fee. If you anticipate that you will always have a balance on the credit card then you need to find a card that has a very low interest rate. If it is for emergency purposes, then best card for you is one that has a low interest, no fees and no added extras.

Added Incentives

A lot of cards will come with incentive programmes attached to them, the majority of cards these days will reward you for using them. So, if like me, you travel a lot then finding a card where you can earn air miles is absolutely essential, trust me that after a year or two you will be thankful that you have built up so many miles. A number of cards will also come with benefits like giving you money back that you make on each purchase you make. Look out for the benefits that suit your lifestyle and go with that card.

Charges

You really need to do your research on this issue. What are the penalty charges that you may incur if you miss a payment? What are the interest charges? Do they charge you for overseas purchases? All of these are important because if, for example, you miss a payment you do not want to be heavily penalised by the card company which will leave you in more trouble. Always read the small print and understand all penalties and fees before you sign up.