A Rush of Credit Card Offers Hitting You – Go With This Strategy
Credit, credit, credit — it feels like everywhere around you, someone is talking about credit. If you’re tired of coming here and seeing discussions about credit, we apologize. However, there is something to be said about credit. Even though some people are advocating for the end of credit, there are just some things that really do require credit. Unless you happen to get financially lucky enough to win the lottery or gain from an inheritance, you’re going to need to take out a mortgage to purchase your first home. Otherwise, you’re going to have to cough up a lot of cash to get your first home. This is often more money than what most regular people have. So you have to make sure that you’re thinking about the bigger picture when it comes to your future goals. Do you want to have a house someday? If so, a mortgage is going to be in the cards. You’ll also need to come up with earnest money, and a good deposit on your first home. The lender will want to see that you can be as committed as possible to the home’s future. You’ll be taking care of the house for a very long time, so all of this just makes sense.
But let’s go back to the original topic — credit. If you’re like many people, you’re getting a rush of credit card offers in the mail right now. Instead of panicking and wondering which one to even respond to, we’ve come up with a few considerations that you need to make if you really want to make sure that you can get the best credit card for your needs.
First and foremost, you need to think about what purpose you have for a credit card. Are you thinking about getting a credit card for emergency purposes? Then you definitely want to try to get a credit card with a very low interest rate. After all, you don’t want a lot of interest to deal with when you’re trying to use it in the event of an emergency. Of course, interest matters because it effects how much of your payment actually goes towards the original thing that you charged. The higher the interest rate, the more of your total payment goes to that company’s profit (interest) than what you really owe (principal).
Moving on, you also want to think about the type of features that you want. Do you want to get free balance transfers? Do you want to go ahead and have the biggest balances possible? There’s plenty of different options out there if you really want to get a high balance. This will also depend on your credit as well as what size balances you have worked with in the past. If the credit card company feels that you can handle a higher balance, they can make that happen for you.
Overall, you will want to evaluate how you honestly feel about credit. If you’re like many people and see credit as an excuse for reckless spending, then you’re really not going to be able to do much in the world of credit later on. However if you view credit as a tool that can be used sensibly, then you’re going to be ahead of the curve in a lot of ways. Good luck!