Saturday, December 3, 2022

How To Find The Best Credit Card For You

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Will The Rejection Of Your Credit Card Application Affect Your Credit Score

Video: How to find the best credit card for you

Generally, the rejection of your application for a credit card will not directly impact your CIBIL score. Your CIBIL score is largely affected by default in payments and an unstable income source. You can always reapply for a new card once you have understood the reasons why your credit card application was rejected the first time and rectify the same. This can be done by paying off all dues.

Here Are The Best Cards For People With Excellent Credit

The Citi Rewards+® Card offers an interesting combination of bonuses that can amplify your travel rewards points. Cardholders will earn 2 ThankYou Points per dollar at supermarkets and gas stations for the first $6,000 in spending per year and 1 ThankYou Point per dollar on all other eligible purchases. Plus, for a limited time, earn 5 ThankYou Points per dollar on air travel and hotels up to $6,000 in the first 12 months of account opening. On the surface, that may not look that impressive, but your earnings are increased by two great programs.

First, every purchase is rounded up to the nearest 10 points. If you run into the convenience store and use the card for a $2 purchase, then youll earn 10 points . So depending on the purchase, you can earn more than 2 points per dollar. When redeeming rewards, youll get a 10% bonus on the first 100,000 points redeemed per year.

Points are best redeemed for travel, but other options include gift cards and shopping with ThankYou points at Amazon or Best Buy. However you use your points, its a good idea to consider the cash price of what you intend to redeem your points for before you redeem.

How To Choose The Right Credit Card For You

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Editors note: This is a recurring post, regularly updated with new information. This page includes information about the Discover it Student Cash Back that is not currently available on The Points Guy and may be out of date.

Whether youre hoping to save money on your monthly grocery bill, rack up rewards for free travel, want a card to help earn rewards on business expenses or have some other earnings goal, there is a credit card out there for you.

These days, there are even more options than ever before. Popular credit cards that have been around for years have gotten refreshes , and new cards have hit the market for customers to enjoy .

With more options, however, comes more potential confusion over which card is the best for you. Since many of the best credit cards include annual fees, its important that you choose the right credit card for your goals and spending habits so you can ensure any and all cards in your wallet are worth the expense. Today, were walking through how to choose the best credit card for you.

Recommended Reading: Best Buy Card Citi

Pull Your Credit Score

Some credit cards are reserved only for applicants who have an excellent credit history, while others have more lenient requirements. In order to qualify, you’ll need to have a that meets that card’s requirements. Credit card issuers use your credit score to determine your creditworthiness.

This is why it helps to know your credit score going into credit card applications, so you can narrow down your options to only those you have a good chance at qualifying for. Here are some ways to get your credit score for free:

  • Some credit cards offer your free credit score, so check to see if yours does.
  • Discover Bank’s Credit Scorecard is available to anyone, even if you don’t bank with them.
  • Experian’s CreditWorks Basic subscription is free and includes your credit score and credit monitoring.
  • Your bank or credit union might be able to give you your credit score.

The most common credit score is a FICO® Score, which is calculated using variables such as the length of your credit history, your track record for on-time payments and your credit utilization , among other things. FICO® Scores range as follows:

  • Poor credit: Under 580
  • Fair credit: Between 580 and 669
  • Good credit: Between 670 and 739
  • Very Good credit: Between 740 and 799
  • Excellent credit: 800 and above

We suggest that you have good to excellent credit for your best chances at qualifying for a top credit card.

Best Store Credit Card

Best No Annual Fee Cash

While PC Financial offers three credit cards for users , the no-fee PC Financial World Elite Mastercard lands top spot for its extensive insurance coverage, and supreme point value.

Using this card, customers can earn:

  • 45 points per dollar at Shoppers Drug Mart
  • 30 points per dollar at Loblaws banner stores
  • 30 points per litre Esso and Mobil gas stations
  • 30 points per dollar at PC Travel
  • 10 points per dollar on all other purchases

Why we like it:

For loyal customers, the PC Financial World Elite Mastercard offers better point value than any other store credit card on the market. Plus, at 10 points per dollar on all other purchases, youâll still earn rewards even when youâre not shopping at a PC-affiliated business. The card also comes with an impressive amount of insurance and security benefits, including Travel Emergency Medical Insurance, car rental collision/loss damage waiver insurance, identity theft assistance, and 24/7 concierge service. And while the cardâs $80,000 minimum income requirement may seem slightly steep, cardowners who spend at least $25,000 per year on any other PC Financial card may get the opportunity to upgrade to the World Elite.

Additional perks:

The card offers an interest-free grace period for the first 21 days of ownership, as well as the option of adding account balance protection.

Also Check: Best Buy Bank Credit Card

Rogers World Elite Mastercard

Frequent U.S. travellers and cross-border shoppers need a card that wont break the bank when it comes to the foreign transaction fees that most banks charge. It is usually 2.5% for purchases made in another currency. The Rogers World Elite gets this nod because it offers 3% cash back on U.S.-currency purchases, which works out to a 0.5% return when you factor in foreign transaction fees. Pair that with no annual fee, and 1.5% back on all other purchases, and you have a competitive card.

However, world travellers will want to keep in mind that only the regular 1.5% earn rate will apply on foreign currency purchases outside the U.S., so you wont come out ahead after being hit with the 2.5% foreign transaction fee.

This card does include travel medical insurance, which covers you for trips up to 10 days. However, it also comes with a $15,000-a-year minimum spend, and a steep annual income requirement. So youll want to consider another option if you dont make $80,000 a year as an individual, or $150,000 as a household.

  • Annual fee: $0
  • Welcome bonus: $25 when you make your first purchase within your first 3 months
  • Earn rate: 3% on purchases in U.S. currency and 1.5% cash back on all other purchases
  • Income requirement: $80,000 individual $150,000 household
  • Additional benefits: Travel emergency medical insurance for 10 days rental car insurance trip interruption and cancellation coverage

Summary

Select Reviews Three Simple Steps You Can Follow To Choose The Best Credit Card That Provides You With The Most Benefit

Selects editorial team works independently to review financial products and write articles we think our readers will find useful. We earn a commission from affiliate partners on many offers, but not all offers on Select are from affiliate partners.

If you’re in the market for a new , you may be overwhelmed by the hundreds of options available. There are seemingly endless varieties of cards offering rewards, no-interest periods and the chance to build credit, which can make it hard to settle on the right one for your wallet.

There’s no one-size-fits-all credit card, so the best credit card for you may differ from your friend. However, there are some steps you can take to help narrow down your options when you’re looking to get a new card.

Below, Select reviews three simple steps you can follow to choose the credit card that provides you with the most benefit.

Are you a small business owner? Check out how to choose a business credit card.

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Want To Build Credit During College Apply For A Student Credit Card

Most of the cards mentioned above require you to have a good credit score, which means a proven history of paying bills on time and being a responsible borrower. While youre in college, getting one of the cards that help you build credit so that you can eventually add more of our best credit cards to your wallet is a great step to take. Plus, building credit also helps when it comes time to finance a car, apply for a mortgage and more. Many student credit cards are available to college students who are just starting out with little to no credit, and many also still earn rewards.

The Discover It Student Credit Card is an option. Youll earn 5% back on rotating categories , such as gas stations, grocery stores and more. Theres no annual fee. Its a popular starter card for college students looking to jump into earning rewards but who dont quite have the score needed for some of those higher-tier rewards cards mentioned earlier.

The information for the Discover it Student Credit Card has been collected independently by The Points Guy. The card details on this page have not been reviewed or provided by the card issuer.

Related: Best cards for students

% Purchase Credit Cards

How to Find the Best Credit Card for You!

With a 0% purchase credit card, no interest is charged on debt built up through new purchases you make on the card for a set period – although you still have to at least pay back the minimum amount requested each month.

That means as long as you clear the full amount before the 0% period ends, you can effectively borrow money for free. Just make sure you do pay off the debt within the offer period, or you could get stung with high interest rates on anything left on the card.

You can compare 0% purchase credit cards with Uswitch.

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Top Small Business Credit Cards

How Many Starter Cards Should I Apply For

is exciting by itself. It may tempt you to apply for more. The more the better, right? If you can build your credit with one card, you should be able to build it higher and faster with more cards.

Not so fast. You may want to wait at least six months before applying for more credit cards so you can establish good habits with your first card and show youre using it wisely and paying the balance on time each month. Make sure your first card isnt leading you to overspend.

Once youve had your card for a while, maybe only just a few months, you may start to get offers from other credit card companies. Research them carefully for interest rates, fees, and other important features before deciding if you want to apply.

FICO, the main credit score company, calculates new credit as 10% of a credit score. Opening many new accounts in a short period is seen as risky and that youre desperate for money.

Applying for a credit card results in a hard inquiry by an issuer who pulls your credit report from a credit bureau. This can cause a credit score to drop up to five points, which isnt much, but can add up if you apply for a number of cards at the same time.

Instead, wait a few months between applications. Hard inquiries stay on a credit report for two years, but the FICO scores ignore them after 12 months.

So, how many starter cards should you apply for? One is a good start.

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Mbna Rewards Platinum Plus Mastercard*

The MBNA Rewards Platinum Plus Mastercard offers a strong sign-up bonus for a no-fee card, and the 10,000 points on offer are easy to earn. All you need to do is spend $500 in grocery and restaurant purchases within 90 days of getting your card to receive the first 5,000 points. Sign up for paperless e-statements to receive the rest. MBNA Points are flexible and easy to redeem for a variety of things including travel, where you get the most bang for your buck at 100 points to claim $1 in travel. For reference, it takes 200 points to claim $1 in cash back.

  • Annual fee: $0
  • Welcome offer: For the first 90 days, you can get up to 10,000 points : 5,000 for registering for paperless e-statements, 5,000 for spending $500 in purchases with the card. Plus, earn 4 points for every $1 spent on eligible restaurant, grocery, digital media, membership and household utility purchases.
  • Earn rate:Earn 2 points for every $1 spent on eligible groceries and restaurants and 1 point per $1 on everything else.
  • Additional benefits: Purchase assurance and extended warranty

Best Credit Cards For Middle Of The Road Spenders

Get Carded: Find the Best Credit Card for You

These are my suggestions for middle of the road spenders who dont want to keep up with quarterly changes in rewards categories or worry about which card they use for each purchase. For the most part, these cards offer flat-rate rewards on any purchases.

Citi Double Cash Card

As you saw above, the Citi Double Cash Card is my top pick for a flat rate rewards card. It gives you 2% cash back on all purchases and has no annual fee. Again, the downside is that it doesnt offer any bonuses for signing up.

Capital One Venture Rewards

This card gives you travel points at a flat rate of 2 miles on all purchases. If you spend $3,000 in the first three months, then youll get a bonus of 40,000 miles. After the first year, this card has an annual fee of $59.

Capital One Quicksilver Cash Rewards

This flat-rate card gives you 1.5% cash back on every purchase you make. It offers a $100 bonus after you spend $500 in the first three months. Theres no annual fee.

BankAmericard Cash Rewards

This card gives you 1% back on every purchase, plus 2% back at grocery stores and 3% on gas. Youll get a bonus of $100 after you spend $500 in the first 90 days. Theres no annual fee.

Finally, lets consider the third type of spenders who scored highly on the personal finance quiz.

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If Necessary Work To Rebuild Your Credit

In general, the better your score, the better the cards you’ll qualify for. Good to excellent credit can qualify you for higher rewards, lower interest rates and more perks. So if your credit score isnt quite where you would want it to be, what can you do?

  • Start by checking your credit report, because errors and long-forgotten debts can have negative effects. You can get one free report per year from each of the three major credit bureaus Equifax, Experian and TransUnion at AnnualCreditReport.com. Dispute any errors with the credit bureaus.

  • From there, adopt credit-building habits. A secured credit card can help you establish your credit history, but be sure to pay your credit card bill on time each month. Pay other bills on time, too, like your electricity or gas bills. Limit your credit card spending to no more than 30% of your total credit limit each billing cycle. If you have a low credit limit, that may mean you should use your card for a few expenses, and pay with cash or a debit card for the rest. Be patient through this process it can take time before your new habits result in an increase for your credit scores.

Apply For The Credit Card You Want

Once you’re done choosing a credit card, here’s how to apply for a credit card:

  • Go to the credit card’s page and click the “Apply Now” option.
  • Enter the required information. Credit card companies usually require your personal information, mailing address, and financial information.
  • Submit the application and wait for a response.
  • Hopefully, you’ll get an instant approval. If so, you can expect your card in the mail within seven to 10 business days.

    There are also two other potential outcomes. The card issuer may need more time to review your application. In that case, you can wait for a decision, which you’ll get by mail and possibly by email. You could also follow up by phone.

    If your application is denied, you can call the credit card company’s reconsideration line to see if it will change its decision. Or, of course, you could apply for a different credit card. Fortunately, once you know how to choose a credit card, the process goes faster each time.

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