Cash is being replaced by credit cards, isn’t it? Well, okay, it’s not like cash is no longer necessary and it’s not like nobody is using it, but its usage has been minimized with the introduction of these financial tools. Naturally, not everyone uses a kredittkort at this time, as some people are still reluctant to try them out for one reason or another, but they are definitely widespread and rather popular today. So, you’re now thinking of joining this world and getting yourself one of those plastic financial tools, huh?
Well, there are numerous reasons why that can be a great decision. It is the safer and the more convenient option, and there are financial benefits to using a kredittkort, which leads some experts to argue that practically every purchase should be made with it, and you’ll learn more about why that could be a great thing if you visit this page. Anyway, apart from being safer and more convenient, a kredittkort can also help you track your spending, and improve upon some of your habits if necessary, as well as save money.
There’s no question that you’re aware of the benefits of using this card, so dwelling on that is not our priority right now. If you’ve chosen to get this financial tool, you’ve weighed all the pros and cons already, and you’re aware of the positive influence that it could have on your financial situation. Using a kredittkort is smart, alright, and we all know it. We have a different topic to address and cover, though.
For most people, deciding to get a kredittkort comes naturally. Hesitating is not necessary, since everyone’s aware of the great sides of credit cards. Nevertheless, most people do have a hard time deciding which kredittkort to get. Some, of course, assume that they’re all the same, and that there’s not much to think about before applying, which is a very dangerous course of thought, as it can lead to errors. Others, however, are much more careful, and rightfully so.
They’re Not All The Same
I’d advise you to be in the group of those more careful ones, because here’s something you have to know. Not all credit cards are the same. So, the idea of picking one out in minutes is not exactly realistic if you want to get the perfect deal. If you don’t care about what kind of a deal you’ll be getting, then it is perfectly realistic and nobody will stop you from making such a hasty move. You do care, though, since this is your finances we’re talking about here, and you want to do what’s best for your budget.
How To Test & Choose The Right One
Since you do care, you’ll have much more to do than randomly picking out a credit card you’ll find moments after deciding that you want to get one. It takes a bit more time and a bit more effort to make this specific choice, and you basically have to test kredittkort you’re considering, and then test a few more. The road of testing and eliminating poor solutions as you go is the road toward scoring the best deal. When I say “test”, I don’t mean you should get them all and check how they’ll behave in the future, as that could lead you to get into debt, which is not something you’re looking forward to. So, you’ll have to do the actual testing before making a choice, and I’ll now tell you how.
1-Think About What You’ll Use It For
People don’t always use credit cards for the same purpose. I get if this sounds a bit unusual, since these financial tools have the same purpose, in a sense. Well, that may be so on the surface, but there’s something deeper to consider here. Simply put, some cards will help you build your credit score, others will make paying off some existing debts easier, and some will help you fund a new purchase, or earn certain rewards. The purposes are, clearly, very different, and you have to consider your intentions.
2-Keep Your Spending Habits In Mind
Your spending habits will also help you test the kredittkort you’re considering. By learning where your money goes each month, you’ll also learn if you can make the most out of it by perhaps using a card to your advantage. For instance, if you spend a lot on dining, groceries, or gas, you could find a card that turns those types of costs into particular rewards that you can redeem at a later stage. It’s all about knowing what you spend your money on and checking if you can earn something back.
3-Check Your Credit Score
Unsurprisingly, your present credit score will have a great influence on the quality of the kredittkort you’ll be able to get, and on the question of whether you’ll get approved for one in the first place. Checking your credit score may not be a part of testing the card, but it is still a very important step. It allows you to determine if some improvements should be made prior to applying for a kredittkort. Don’t forget to check if there are some credit errors on those reports, because those can substantially and unfairly lower your score.
4-Decide If Cash Back Matters To You
I’ve briefly mentioned the benefits of using a credit card, but we now have to get into a bit more detail, because you have to test the ones you’re considering and finally choose one. Some kredittkort providers offer the cashback option, i.e. the option of getting a percentage of the money you spend on certain things back as cash. If cash back is something that matters to you, then you should test if the cards you have in mind can offer you that option. Cash back is certainly a great benefit, but people sometimes decide to give it up on account of some other ones. And, you’ll need to determine your own preferences.
5- Or If You Prefer Other Benefits, Such As Reward Points
You could give up cashback if you prefer the benefit of, say, earning redeemable reward points that I’ve talked about above already. It all boils down to what you prefer and to what your spending habits are better for. After all, you won’t earn these reward points for every purchase you make, as there are categories of goods and services that the kredittkort providers offer the points. So, never lose sight of your spending habits when testing the cards.
6-Decide On The Type
The above steps should be enough to get you familiar with different kredittkort types and to test which type could be best for you. Before you go any further, and you’ll need to go further since this is not the end of your choosing journey, make sure to decide on the right type, out of those that you’ve been considering. Remember, your credit score, your spending habits and your intentions for the card will all influence this choice.
7-Determine What Your Personal Limit On Interest Rates Is
The kredittkort interest rates can be similar from provider to provider, but even small differences can have a huge impact on the overall interest amount. While everyone prefers lower interest rates, some people decide to go for higher ones in case they find that there are other important benefits to take advantage of with a specific card. What you have to do here is determine your personal limit on interest rates, i.e. a rate that you don’t want to go over. That will narrow down your choices.
Once you’ve narrowed down the choices, the testing process will become simpler, as you won’t have that many cards and that many providers to test and compare. You’ll still have to do the comparisons, though, because not doing that will lead to random decisions, and random decisions are never the way to go when it comes to, well, pretty much anything. They’re especially not the way to go when finances are in question. So, start comparing the kredittkort solutions that have made it to your list of potential ones.
9-Check Which Ones Meet Your Criteria
This is the stage in which you’ll be testing which kredittkort best meets your criteria. You’ll check out multiple different ones, and have a look at what they offer in terms of cashback solutions, reward points and similar things that you’ve decided are important for you. Finding a card that fits in with your requirements, your spending habits, and your specific use intentions, such as a credit score increase or something else, is rather significant, which means that you’ll have to keep your criteria in mind at all times. After all, what kind of testing would it be if you completely disregarded the criteria? Not a very successful one!
10-Review The Application Requirements
There are, of course, application requirements set forward by the providers, and you’ll need to meet those if you want to be approved. Thus, apart from testing if they meet your criteria, you’ll have to test if you meet theirs, as this has to be a win-win situation for everyone. If you fail to meet the important requirements, the providers will simply reject your application and deny issuing you a kredittkort. Since you don’t want to get rejected, checking the requirements in advance is the way to go, as you’ll save yourself the trouble of having to apply multiple times until you finally get it right.