I don’t need to tell you that costs are rising. We see it every time we check out online, at the pump, or in a store. As Americans struggle to cover the cost of everyday essentials, they are putting more of those purchases on a credit card. That’s why it’s important, now more than ever, to use the right credit card.
Ask yourself these questions to help choose a better credit card for you.
1. Do you regularly carry a balance on your credit cards?
If the answer is no, choose a card that allows you to earn rewards for your spending—like travel rewards, cash back or points. However, if you plan to carry a balance more often than not, a better option is to avoid rewards credit cards and look for a card with a low interest rate.
2. Do you have credit card debt?
If you’re consistently carrying a balance from month to month on your credit card, a balance transfer credit card may be the best fit. Move the balance from your high-interest credit card to one with a lower interest rate.
3. Do you travel frequently?
If you travel more than just a few times per year, using a credit card that pays you back in travel rewards is a great way to leverage your spending. If travel is off the table for now, choose a card that has perks that are more applicable to your lifestyle.
4. Do you make a lot of purchases on your card each month?
If you use your credit card often and can pay off the balance in full every month, your best bet is a credit card that pays the most rewards points and lets you earn points on every purchase—not just those in certain categories—giving you the most value for your spending.
5. Do you have a small business?
A business rewards credit card often includes features like expense category reports, receipt tracking and additional rewards for certain business spending. It also helps keep business and personal expenses separated.
6. Is your credit less than stellar?
If your credit score is not quite where it needs to be to qualify for a credit card, you still have options. Try a secured credit card—all you have to do is submit a refundable security deposit to open your account, then use it like any other credit card. It’s also a great way to establish credit or improve your credit score.
If you’re seriously looking for ways to improve your budget and save more, talk with a financial professional to make sure you’re making the smart money moves.