Due for a Second Credit Card? Here’s How to Pick the Right Card.


When applying for a credit card, it’s always important to know the exact kind of card you need. (Don’t know how to apply for a credit card? Check here.) There are 5 factors one should consider before applying for another credit card viz:

What do you need the card for?

Do you need it for your business? You have some debts you want to pay off? You want a card you can use abroad? To earn more points for flights and hotels? Identifying what you need the card for, can help you make the right choice of credit card to apply for.

Type of purchases you make usually

The type of purchases you make has a huge influence on time credit card. Knowing the right card that suits the type of purchases you make can save you some money. If you book a lot of hotel rooms, a reward credit card can get you double points when you book at a certain hotel. A store credit card can save you some money if you shop regularly at a particular store.

Your credit score

Your credit score determines if a particular card provider will grant your request for a card. It also determines how much interest you’ll pay on each card. Knowing your credit score will help you make smart choices and apply for suitable cards which won’t be declined.

Rewards you expect to get

There are cards that offer more cash back, and there are cards that do not collect extra charges for payments made abroad. There are 0% purchase cards with which you can pay no interest for a long time. There are air miles credit cards that earn you points you can use on an airline. These extra features are subject to terms and conditions before they can be enjoyed. You can check comparison sites for these extra features and know which suits you best.

The APR of each card

The Annual percentage rate is a measure of how much the card is expected to cost you. While there are set rules and procedures by which the APR is calculated, how much you spend on a card, however, depends generally on how you use the cards – the kind of purchases you make, how much you spend on the card each month and how much you repay. There are also certain hidden factors like the representative APR which card providers set based on your credit card history.

There are several credit card options you can pick from. Considering these 5 factors first before filling out an application form can help you make the right choice. Every declined credit card application leaves a little footprint on your credit score and reduces the chances of you getting a suitable credit card. Making the right choice will also mean more money saved for you and better credibility.


Nicole's Nickels

Author: Nicole's Nickels

Nicole's Nickels aims to give you the best in personal tips to help you get control of your finances.

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