Learn How to Chose Your Next Credit Card

To begin, you can use Bankrate’s CardMatch tool to estimate your chances of approval across various cards and issuers. This does not affect your credit score and helps you get a feel for the landscape before diving into individual cards that interest you.

 

Following that, look at card reviews in the category you’re interested in. This will help you examine how any specific cards you were considering compare up against other top-rated cards that match your credit score, rewards, or financing goals.

Finally, apply for the job of your choice. It’s better to limit yourself to one application at a time, as multiple hard inquiries in a short period might cause a significant decline in your credit score. If your application is denied, carefully examine the explanation stated by the issuer. Based on your credit score, salary, or debt-to-income ratio, you may have set your sights too high.

Once you’ve selected a credit card that ticks all of your boxes, the next best step is to maximize your card’s benefits. For the most part, this means using your card exclusively for planned purchases and paying off your debt in full each month. This is especially important if you’re building credit with a credit card. If you carry a load on your new card and max it out, you’re also raising your credit use, which might harm your credit score in the long run.

Also, keep in mind that credit card interest rates can be high and that paying interest on your purchases can negate whatever points you may have earned. So in reality, if you need to carry an amount, a personal loan may be a better option.

 

If you used a balance transfer card to consolidate debt, spend some time shifting your balances over so you can take advantage of the 0% introductory APR as soon as possible. Then, pay off as much debt as you can during the interest-free term on your credit card. With enough discipline, you may be able to pay off a significant portion of your debt — or possibly all of your debt — before the introductory deal on your credit card expires.