This post is sponsored by ToppFinans.com
I’m just going to preface this by saying I am NOT a financial expert. As a matter of fact, as a teen and in my early 20s I made some serious financial mistakes. After divorcing my 1st husband my credit was abysmal. I was determined to fix it, make a better financial life for me and my kids, and eventually go debt free. I started reading everything I could get my hands on from any kind of credit expert. Dave Ramsey was a fave of mine for a while. I read some of Suze Orman but she was a bit much for me. I also read info on fixing your credit from other books, online articles, and financial magazines. I started working with creditors, paying off debts, paying cash whenever possible. I was afraid to ever get another credit card but as most will tell you, having one credit card you use regularly and pay off every month is actually a great way to improve your credit score.
Admittedly my credit card options were few and far between at first but I did qualify for one with a $300 limit. The interest rate was pretty high but i didn’t have many options. I was happy to have tool to help me build my credit back up and learn to discipline myself. I’m happy to say I’ve raised my credit score nearly 200 points since all that happened, I’ve paid off nearly $30,000 in debt from my first marriage on my own by working with creditors and collectors at times. Now I do have some options when it comes to credit cards. I personally don’t want more than one and it would still be an credit helper tool. But which credit cards are right?
–Look at the interest rate. Probably one of the biggest things. If you have options you of course want the lower interest rate but sometimes you have to read the fine print. It will say 8% apr for the first year but then they might jack it up to 20% after the first year. You don’t want that
–Watch for annual fees. Some cards do carry annual fees. With my starter card after my 1st marriage I did have to pay an annual fee but after a year of paying on time and not maxing it out they reduced the annual fee rate. After 2 more years of the same they eliminated the annual fee. If you have good credit you should be able to get a credit card without an annual fee.
–What other benefits does the card give you? Interest rate, annual fee, and credit limit are the key factors to consider. Once you have it narrowed down from that point start looking to see which ones offer more benefits. Some credit cards can get you discounts through a member program, some of them give you rewards when you use your card, some have travel benefits if you like to travel. Others have no attached benefits at all. There are even sites out there that let you do comparisons of different credit cards.
Credit cards when used the wrong way can cause years, if not decades, of headache. When used the right way can actually help you build your financial future.
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