How to Choose the Next Credit Card
I have several credit cards, and they are all held by me for different reasons. There is one that I use for my favorite airline, one that I use to accumulate travel points, one that I got in college and keep mostly for sentimental reasons … the list goes on.
So when people ask me which credit card they should get, I usually can’t give them a harsh answer. Of course, I can tell you which cards I like, but that doesn’t solve anything for you.
In truth, the best credit card doesn’t just depend on which card offers the biggest signup bonus or has the coolest design. It’s about your own financial factors: your spending habits, your credit history, your goals.
To be successful with any financial instrument, you need to use the one that suits your needs.
To make it easier to determine the type of credit card you should apply for, we’ve put together a flowchart to help you review it. Instead of worrying about brand names or new customer propositions, think about the facts of your situation. The right card might come as a surprise to you.
TL; DR: Don’t feel like you want the biggest, brightest credit card because that’s what you see in your ads or advertise on the internet. If you think of credit cards as a financial tool, you remember that you need the right tool for the job – and that job makes your financial life more convenient without bringing you into debt.
This is why I make the last point in the table on spending levels before recommending anyone to apply for a top tier premium card. The biggest benefit from these cards is often the lucrative sign up bonuses they offer. But you also need to be a major sponsor to meet the proposal requirements without any creative math. If you typically bail out $ 500 every month, it doesn’t make sense to subscribe to a card that only gives you a basket of extra points if you spend $ 4,000 in three months.
Any more questions about choosing the perfect credit card? I’ve included some resources below, but feel free to ask questions in the comments as well.