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Credit Cards: How to Choose One and Use it Wisely

Shopping habits.

First of all, decide why you need a credit card. Will you use the card every month, or do you plan to just keep a balance? Are you going to use it for your general expenses, or for other purposes, such as paying off debts or business expenses?

If you intend to pay the full amount of the bill every month, then, for you, the interest rate does not really matter. It is better to look for a card without an annual fee and a longer grace period so that you do not incur a financial charge. If you intend to maintain a balance, then you need the lowest interest rate and minimum starting rate. If it will be used only for emergencies, switch to a no-frills card with a very low interest rate and low commission.

Credit limit.

This is the amount of money a credit card issuer can lend to you. Depending on your credit history, it can be from several hundred to tens of thousands. There are cases when the credit limit is increased to the maximum amount. This may, however, damage your credit score. Some credit card issuers have reduced customer credit limits to an amount below their current balance. Use this function wisely, and do not take a very large credit limit if you do not need a large amount.