5 Things To Consider When Choosing Your Next Credit Card | Refresh Financial

5 Things To Consider When Choosing Your Next Credit Card

 Choosing Your Next Credit Card

Deciding to grab a credit card is a great way you can continue building your credit score. However, sifting through all the available credit cards in Canada can be a daunting task. How do you determine which card is right for you? If you're looking at picking up a credit card for yourself, don't feel overwhelmed! In the interest of making your choice easier, we’ve put together a list of factors that you should consider when choosing your next credit card. They are in the order of importance.

1. Secured or unsecured?

- If you are currently struggling with poor credit, your only option when it comes to credit cards could be a secured credit card. That's okay, though. A secured credit card is still a fantastic way to start building your score! If you're looking for a secured card, check out Refresh Financial's secured credit card. With a low-interest rate and annual fee, the card comes with access to an entire course on money management. So, not only will you be able to improve your credit, you'll know how to maintain your progress with all the great learning resources at your disposal! Click here for more information on the Refresh Financial secured credit card.

2. Interest rate

- Every credit card has an interest rate attached to it. The higher the interest rate, the more it will cost you if you carry a balance. Depending on where your credit score is at will determine what types of interest rates you qualify for. People who have excellent credit scores will always get access to the best interest rates, so it definitely pays to improve your credit before taking on a new credit card.

3. Annual fee

- Many credit cards have an annual fee associated with them which can run from a couple of dollars to hundreds. Just because a card has a higher annual fee, it does not necessarily mean that it's a better card. It goes without saying, but search for cards with a low annual fee. If you can find a good one that has no annual fee, that's even better. Before you make a decision, ask yourself: will the annual fee cut into money budgeted for other important things? And, will you be able to pay off the annual fee right away so it doesn’t collect interest?

4. Rewards

- Rewards are great if they come with the card that’s best for you. They can range from free groceries at your favorite grocery store to points towards travel and transportation. Although they can make a sizeable impact when it comes to your budget, they shouldn't be the sole reason you choose a new card. You have to make sure that all the financial specifications are things you can still live with.

5. Perks

- Perks that accompany your credit card can come in the form of discounts or access to special events, but like rewards, these should be considered a happy bonus. They shouldn’t be the sole reason you choose your new card.

In short, your card should be something that's affordable and won't get you into any financial trouble. It should be there as a tool to help you build your credit and pay more conveniently, so long as you are living within your means.

What are some of the factors you consider before choosing a credit card? Let us know in the comments!

 

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