Monday, August 8, 2022

What Should My Next Credit Card Be

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Clarks Credit Card Decision Tree

What Credit Card Should YOU Get Next in 2021? (I have the answer.)

Clark often gets asked: Which credit card should I get?

And inevitably, his response is some variation of: It depends. Tell me more about your financial life.

Thats because giving advice on the right credit card can require a very personalized response.

Are you new to credit and youre looking for a card to get things started? A credit card whiz who is looking for a 5th rewards card for your wallet? Or maybe youre someone in between who just wants to make sure youre getting the most out of your monthly spending.

The suggestion for each of those consumers would likely be a different credit card.

Because of that, I sat down with Clark to pick his brain to develop a tool to help you find your individual answer to the question: Which credit card should I get?

What came out of that discussion is this decision tree.

Youll want to answer all the questions and follow your own path. Kind of like a choose your own adventure book from when you were a kid only this adult version could save you big bucks!

Oh, and when youre done, youll want to make sure the card youre considering falls in line with Clarks rules on how many credit cards you should have.

Question : What Is Your Credit Score

First things first: Clark wants to know what type of credit score youre working with.

A lower credit score may mean you need to find a card geared toward improving your credit history so that eventually youll be eligible for the card with the shiny rewards you desire. Some quick tips for improving your score via credit card usage include: making purchases each billing period, keeping your credit utilization rate low and paying your bill both in full and on time each month.

Clark says a 680 credit score is the approximate line in the sand that card issuers may use to determine eligibility for their popular credit cards.

If your credit score is below 680 Clark wants you to visit your local credit union to ask about a credit builder program. Alternatively, he says you could apply for the Petal Card or consider getting a secured credit card.
If your credit score is above 680 Move on to Question 2.
If you dont know your credit score Read this article on how you can get your credit score for free and then return to Question 1.

Blue Cash Everyday Card From American Express: Best For Long Low Intro Apr

Why we picked it: The Blue Cash Everyday comes with a lengthy intro APR on new purchases 0% for the first 15 months . Along with the generous APR window, this card features a great welcome offer where cardholders can earn a $200 statement credit after they spend $2,000 in purchases within the first 6 months.

Pros: Although it doesnt match all that the Blue Cash Preferred® Card from American Express can do, this card still features great cash back rates without an annual fee. Earn 3% back at U.S. supermarkets on up to $6,000 in purchases a year , and earn 2% back at U.S. gas stations, perfect for the growing family.

Cons: The limitations on your 3% categories might hold you back from some much-appreciated earnings late in the year, and rewards cant be transferred or combined.

Who should apply? Family shoppers might want to take a good look at these high-earning rewards categories. Plus, the intro APR on purchases can come in handy if you want to make a large purchase and carry the balance for a bit.

Who should skip? If you have good credit but your spending typically occurs in other categories, look to other cards here. While this card has a lot to offer, you want to capitalize on your usual spending with an everyday card. Also, American Express isnt always accepted internationally, so its not a great choice for travelers.

Read our Blue Cash Everyday Card from American Express review or jump back to this cards offer details.

Read Also: Alaska Airlines Credit Card No Annual Fee

When You Cant Pay In Full

In between the most and least ideal credit card payment amounts is the amount you can afford to pay toward your balance. Review your income and expenses and decide how much you can realistically put toward your balance without straining yourself financially. Anything above the minimum will help reduce your balance, allow you to pay less interest, and help you pay off your balance faster. The more you can pay toward your credit card balance, the better.

Do You Need A Business Credit Card

Should I Get a Credit Card?

If youre charging business expenses to a credit card, it makes sense to have a dedicated card that you only use for business purchases. Not only does this help keep your finances organized, it maintains proper separation between your business and personal expenses, which can work to your favor in the event of a tax audit or legal action against you.

This doesnt have to be a business credit card especially if youre a solopreneur or you simply charge expenses and are reimbursed by your employer.

Business credit cards like these, however, come with additional features designed to help you track business expenses and give employees access to credit cards. And the rewards on these cards can be quite good. To apply, youll need to have excellent personal credit as well as an established business entity.

Things to pay attention to when choosing a business credit card:

  • What features, if any, does it offer to help you run your business?
  • Does the card charge for additional employee credit cards?
  • Are rewards comparable or better than what you could get from a personal credit card?
  • If youll use the card to pay off business purchases over time, is the APR competitive?

Read Also: Pay My Bill Best Buy Credit Card

Disadvantages To Having Multiple Credit Cards

Too many credit cards can entice you to overspend and take on more debt than you can handle. And if youre considering adding more credit cards to your portfolio, keep in mind that every time you apply for a credit card, the issuer will run a credit check to determine whether or not to approve you. This can ding your score. And, some issuers will turn you down if you apply for too many cards in too short a period of time.

But for someone who can pay their bills in full and on time, and doesnt mind the effort of juggling multiple cards, owning several cards can be part of a plan that works for them.

Additional Notes For World Of Hyatt Elites

If you earn MGM status via MGMs partnership with World of Hyatt, youll probably find the new MGM Rewards program to be an improvement over M life.

You might as well match your status if you have World of Hyatt elite status. However, Im still seeing the M life Rewards program on MGMs website right now so you may need to wait for the MGM Rewards program to go live on MGMs website before matching.

Once youre ready to match your status, click here and log in to your World of Hyatt account. Some World of Hyatt elites have experienced issues connecting their accounts if theyre already logged into their MGM account. I recommend logging out of your MGM account before attempting your status match.

If you want quick World of Hyatt elite status, consider adding the World of Hyatt Credit Card to your wallet. This card automatically grants Discoverist status and five qualifying night credits each year.

Finally, Hyatt has two off-strip Hyatt Place hotels in Las Vegas. And we know that the Rio Las Vegas will be renovated and eventually become multiple World of Hyatt properties. When asked about the value World of Hyatt loyalists get when staying with MGM resorts in Las Vegas compared to staying with a Hyatt-branded property, Mansukhani said:

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What Information Credit Scores Do Not Consider

FICO® and VantageScore do not consider the following information when calculating credit scores:

  • Your race, color, religion, national origin, sex or marital status.
  • Your age.
  • Your salary, occupation, title, employer, date employed or employment history.
  • Where you live.
  • Soft inquiries. Soft inquiries are usually initiated by others, like companies making promotional offers of credit or your lender conducting periodic reviews of your existing credit accounts. Soft inquiries also occur when you check your own credit report or when you use from companies like Experian. These inquiries do not impact your credit scores.

Canadas Best Student Credit Cards For 2022

When To Apply For Your Next Credit Card?

By , Keph Senett and Courtney Reilly-Larke on January 28, 2022

Build your credit history while earning rewards for groceries, flights, free movies and more.

If youre a student and are looking to build a credit historyor simply want some rewards that will ensure instant ramen noodles arent your only dinner optiona credit card that offers a great combination of generous rewards and low annual fees is exactly what you need. The key is to be responsible with your credit card spending and pay off the balance every month so that buying a first car or home in the future will be within your grasp.

Read Also: Best Buy Reward Zone Credit Card Login

Watch Out For Interest Rates

If you dont pay off your credit card balance in full at the end of the month, youll pay interest on your whole balance. This is unless youre in a 0% introductory period.

As a new customer, you might get an introductory rate when you first get the card. But check whether this covers purchases or balance transfers or both. Remember, it wont cover cash withdrawals.

Also, check what the interest rate will be once the introductory period is over and make sure you repay in full before then if you can.

Balance Transfer Credit Cards

A balance transfer card is one that offers a low or 0% APR for transfers made to the card for an introductory period of time. After that introductory period, the cards standard variable APR will typically apply. There may be a balance transfer fee to shift debt to a balance transfer card, usually 3% to 5% of the amount being transferred.

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Get A Single Cash Back Card

Starting out, we recommend a first credit card one that has no annual fee and pays cash back rewards on every purchase. For instance, the Discover it® Cash Back card offers 5% cash back on everyday purchases at different places each quarter up to a quarterly maximum of $1,500 in spending when activated. Plus, earn unlimited 1% cash back on all other purchases automatically. This provides a great opportunity to learn the ins and outs of credit card rewards. Even if the credit line is not much to start, it may be enough to cover major expenses each month.

Cardholders may also consider a card that uses the Visa or MasterCard network, which are accepted by more retailers, especially abroad, than Discover. Top picks include the Citi® Double Cash Card, Chase Freedom Flex, Chase Freedom Unlimited® and Capital One Quicksilver Cash Rewards Credit Card.

Students applying for a first credit card who dont have much income or credit history should read about the best student credit cards available.

A Guide To Credit Cards For Good Credit

Which Credit Card Should I Get?

Good credit is your reward for all those months of on-time payments and other terrific credit habits. However, one or two wrong steps can cause your score to drop quickly. Thats why its important to understand the nuances of credit and the impact it has on your overall financial health.

We analyzed more than 300 credit cards where approval is contingent on good credit and evaluated them based on: rates and fees, rewards, redemption options, customer service, and other benefits. Below are our best cards for good credit along with tips to improve your credit score.

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Apply For The Card That Offers You The Highest Overall Value

Narrowing your choices is the easy part, but deciding between two or three similar cards can be quite difficult. If you’ve already found a clear winner after Step 3, go with that one. If not, its time for a tiebreaker round.

Look closely for differences. All other values being equal, here are some factors that might set a card apart:

Citi Custom Cash Card

Best for automatic bonus category

  • This card is best for: Someone who wants the high rewards rate of a bonus cash back card without having to activate or choose categories in advance.
  • This card is not a great choice for: Strategic shoppers who prefer plotting out their cash back strategy each quarter before they start spending.
  • What makes this card unique? The cash back program adjusts to your spending habits in the top eligible category each billing cycle so youll earn the highest rate where youve spent the most.
  • Is the Citi Custom Cash Card worth it? As a primary credit card, maybe. The monthly $500 cap on your top eligible 5 percent bonus category each billing can seriously stunt max earning potential for some people, so it works much better as a secondary card paired with a primary Citi card.

Also Check: Myindigo Credit Card

Best Student Credit Card For Air Miles

With no annual fee and a solid way to rack up Air Miles, this card is the perfect way for students who are away studying to earn free flights home.

  • Annual fee: $0
  • Welcome bonus: 800 Air Miles Bonus Miles when you spend at least $1,000 on the card within the first 3 months.
  • Rewards: Earn 1 mile per $25 spent and three times the miles at participating Air Miles partner stores . Plus, earn miles twice when shopping at Air Miles partners.
  • Perks: Either redeem miles for travel rewards or online e-gift cards and in-store discounts at Air Miles partners in increments of 95 miles for $10. The airmilesshops.ca online e-store offers discounts and bonus miles from hundreds of retailers. Items you purchase using the card receive double the manufacturers original warranty protection, up to one year get up to 25% off base rates at eligible National and Alamo rental location

What Is The Easiest Card To Get Approved For

My Next Credit Card? | Chase Sapphire Preferred | Should You Get The Sapphire Preferred

If you have little or no credit history, or a poor credit score, you may find the best chances of approval with a secured credit card. These cards require an upfront cash security deposit upon approval, which usually acts as your credit limit. While they typically offer few rewards and high fees, secured cards can be a useful tool for establishing credit.

Read Also: Fingerhut Free Credit Score

Best For Cash Back: Capital One Quicksilver Cash Rewards Credit Card

Earn $200 cash bonus once you spend $500 on purchases within 3 months from account opening.

1.5% cash back on every purchase, every day.
INTRO PURCHASE APR0% for 15 Months
Balance Transfer Fee3% of the amount of each transferred balance that posts to your account at a promotional APR that we may offer you. None for balances transferred at the Transfer APR.
Foreign transaction fee
  • Pros & Cons

This card earns an unlimited 1.5% cash back on every purchase with no caps on how much you can receive. Plus, you’ll earn a one-time cash bonus of $200 when you spend $500 on purchases within three months of opening your account. New cardholders will also enjoy no interest for 15 months with a 0% intro APR offer. There is no annual fee or foreign transaction fees on international purchases.

  • Simple rewards program with a solid return

  • No annual or foreign transaction fees

  • One-time bonus is relatively modest

Signing A Credit Agreement

If your application is accepted you will be asked to sign a . This is a legal document which sets out what you and the provider are agreeing to. The credit agreement includes details such as how much you can borrow, how much and when to repay, the interest rate and charges that can be added, your rights and responsibilities under the agreement and any other conditions that apply to it. Always try to read the small print so you know exactly what you are agreeing to.

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Monitor Your Credit Report And Score

Checking your credit score right before you apply for a new loan or credit card can help you understand your chances of qualifying for favorable termsbut checking it further ahead of time gives you the chance to improve your score, and possibly save hundreds or thousands of dollars in interest. Experian offers free credit monitoring for your Experian report, which in addition to a free score and report, includes alerts if there’s a suspicious change in your report.

Keeping track of your score can help you take measures to improve it so you’ll increase your odds of qualifying for a loan, credit card, apartment or insurance policyall while improving your financial health.

Capital One Venture X Rewards Credit Card

Factors You Need To Consider When Choosing A Credit Card

4.5/5

  • 10X Earn unlimited 10X miles on hotels and rental cars booked through Capital One Travel and 5X miles on flights booked through Capital One Travel.
  • 2X Earn unlimited 2X miles on all other purchases
  • 10X Earn unlimited 10X miles on hotels and rental cars booked through Capital One Travel and 5X miles on flights booked through Capital One Travel.
  • 2X Earn unlimited 2X miles on all other purchases

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