How to Choose the Best Credit Card? Easy Tips

The credit card is an ideal tool for everyone nowadays. Not only for making installment purchases, but it is also used to earn benefits and to build a credit history. 

Therefore, when choosing a credit card, it is necessary to analyze what is a priority in your life so that you can choose the one that best suits you. 

In this article, we will show you how to choose the best credit card for your profile. Follow along and find out!

What do I need to get a good credit card?

The choice of a good credit card and its approval will depend on various factors. Therefore, you must have in mind what is essential when applying for your credit card. 

There are basically two criteria that are fundamental to getting better credit cards. See what they are:

Good credit history

It is essential to have a good payment history, without delays or defaults. This shows banks that you are a responsible customer and have the ability to honor your commitments. 

When you apply for a card, the bank or financial institution will analyze your credit history to approve the card for you. 

This history generates a score that assesses your credit risk. The higher the score, the better for getting your credit.

Income

Each bank or financial institution has a minimum income required to approve the credit card. 

This income varies according to the type of card, the benefits offered, and the customer’s profile. 

You will need to provide documents proving your income so that the bank can assess the possibility and issue the card you want.

Types of cards you can take advantage of

When choosing your credit card, it is essential to know that there are different types of cards that you can take advantage of, each serving specific needs. 

See what the main types of credit cards are for you to choose the one that best suits your profile:

Travel cards

Cards aimed at travel are ideal for those who travel frequently, offering benefits such as the accumulation of air miles, access to VIP lounges at airports, travel insurance, and discounts on hotels and car rentals. 

These cards are ideal for those who travel a lot, whether for leisure or business, and want to make the most of the advantages when traveling.

Cashback and rewards cards

Cashback and rewards cards provide the opportunity to receive part of the money spent back on the invoice or in the form of points, which can be exchanged for products, trips, and services.

In general, they offer higher cashback on purchases, discounts at bank partners and stores, and prizes such as gift cards and others.

Cards to build credit history

For those who are building their credit history, cards specifically for this purpose are an advantageous option. 

They are easier to be approved, even for individuals with no credit history.

In order for you to have this type of card, it is sometimes necessary for you to make a security deposit that will serve as a limit, allowing you to use your card.

Business cards

Business cards are aimed at companies and self-employed professionals, offering benefits such as expense control, separate billing, and points accumulation for trips. 

In addition, they usually have higher limits and are released according to the analysis of the company’s history.

How to choose the best credit card: factors to consider

With so many options in the market, it is important to consider various factors before making a decision on which is the best credit card. 

Therefore, we have separated some tips that will help you make this decision and choose the one that can really meet your needs. 

Check out what you should analyze so that you can have a good credit card:

Evaluate annual fees

The first thing to do is to check if the card has an annual fee and what amount is charged.

Some options offer exemption from the annual fee for those who meet certain requirements, such as minimum monthly spending or investments in the financial institution. 

Thus, when you apply, you will know that you are requesting a card with an annual fee that you can pay or that, in many cases, is exempt, ensuring more savings.

Know the interest rates

Another important point is the interest rates charged by the card, both for revolving and installment payments. 

Compare the different options and choose the one that offers the lowest interest rates, especially if you usually use credit to finance purchases. 

The lower the rates you pay, the more savings you will have and the better conditions to use your credit card.

Check for welcome bonuses

Many cards offer welcome bonuses for new customers, such as points, miles, or cashback. This can be a great way to start enjoying the benefits of the card as soon as you are approved. 

Bonuses can come in the form of cashback, points, or even discounts for those who hire the card. Many companies offer the first annual fee free as a bonus, which can also be very interesting for you.

Know the available benefits

In addition to welcome bonuses, credit cards can offer various other benefits. You should know what you will get with these cards so that you can make the most of the conditions. 

You can get bonuses such as: VIP lounges at airports, travel insurance, discounts on partners, cashback on purchases, accumulation of points for exchange for products or services, among many others. 

The tip here is to see all the advantages you will have and enjoy your card.

With these tips, it becomes easier to choose your credit card and know which one is best for your profile. 

Having a good relationship with the bank, building a credit history, and choosing the right card for your profile will make it easier for you to have more facilities and make the most of this financial tool. 

Did you like the tips? See more about credit cards on our website and also read our content about  Emergency Fund.