How To Effectively Match Your Credit Card Needs

by : Neil Farman

Are you under a financial burden? Then find a way out; simple and easy with the array of facilities like credit cards and charge cards available today. These facilities can ease your tension to a great extent. But it all basically depends on the right card. Before selecting an appropriate card, consider some questions like Do I have good or bad credit?

Do I normally pay balances in full or part payment? Do I travel a lot and use specific brands or select apparel from designer stores?

Answers to these simple questions lend a valuable insight on the right type of card to suit your needs. Sometimes you might just have to change the way you use your card or opt for a better one to suit your requirements. The most viable option is to select a card so as to suit your present life style.

Credit card companies offer various programs to educate the customers about various cards to suit their specific needs. But finally it is the consumer's choice to decide what they prefer from a card.

Spending pattern evaluation

Before selecting a card, first analyze your spending pattern and payment habits to determine how you spend your hard earned money. So you can start by accessing your bank or credit card statements for the past one-year and then jot down the expense category, where you tend to spend the most and then lastly end it with your optional expenses.

Next, try and note the payment modes and check whether you paid by cash or credit card or charge card or through your debit card. Also check whether you cleared the amount partially or wholly.

If you wish to widen and have a more in-depth approach then you can download your financial debts straight from bank or credit card companies, it doesn't really matter how you approach or use the assessment. This plan would help you identify your spending pattern.

Match your needs with the credit cards

Once the basic assessments are done then analyze the results and identify your spending style, to match the habits with your credit or charge card preferences and privileges. If you have a bad credit then you should avoid a secured card that requires collateral in the form of cash or anything with monetary value.

If you pay your balances in full or avoid paying interest then a credit card without any annual fee would be the best option as compared to other cards. You could also consider a charge card or prepaid card to dodge the financial charges.

On the other hand, if you prefer carrying forward a monthly balance then a credit card with a low introductory or fixed APR would be an ideal bet.