One of the reasons why there are so many types of credits cards is that all cards are not made equal. If you can pay off the balance at the end of every month, you’ll need a card that’s different from someone who wants to carry the balance. If you use the card consistently, you may also want to pay a fee to get rewards like air transfer or shopping vouchers.
What To Consider
Note that most financial experts recommend that every person limit themselves to one or two credit cards. This helps you keep track of your balances and avoid expensive mistakes. It also helps in improving credit rating since people with a number of credit cards can be deemed a credit risk. Here are some aspects that you should pay attention to when choosing credit cards.
Fees And Charges
This is the biggest thing to watch out for. The fees for credit cards generally include interest rate charged on the balances, annual fees, penalties for late payments and other costs. This can vary from one company to another.
Financial experts recommend that you pay off your balance every month. On the other hand, if you want to carry the balance, go for credit cards that have a low rate of interest for an extended period of time.
Acceptance Of Credit Cards
You’d definitely want to go for cards that are accepted everywhere. That’s a simple fact of convenience. Two of the most popular credit cards in the US are Visa and MasterCard, since they’re widely accepted everywhere. If you have a particular preference, check whether it’s accepted everywhere.
Rewards And Perks
There are numerous credit cards which offer a host of rewards and benefits. Try and estimate the value of the benefits when you’re trying to figure out which one to choose.
Determine The Credit Limit
The credit limit is the maximum amount which you can charge from credit cards before you actually make a payment to settle the outstanding. The more you can borrow, the better. But that’s only if you have the confidence that you can pay the full amount back. Otherwise, it can lead to dangerous consequences where you find yourself in huge debt and unable to pay it all off.
There are a variety of ways to search for credit cards. The simplest trick is to look for promotional emails. But that’s not always the best option, since it may not give you access to the best credit cards. The internet is the best place to search. Narrow down on what you want from your card, and choose a card that can satisfy those requirements.
There are companies that work on collecting and maintaining credit information of consumers. These are known as credit reporting agencies (CRAs). There are three such major CRAs in the country, namely Equifax, Experian, and TransUnion. Apart from these, there are other smaller-scale agencies too that specialize at the job. If you’re worried about “where to get my credit score?,” the larger CRAs are the most reliable bets.
These major CRAs obtain information from companies that you hold business and transactions with. People or companies that lend you money regularly report to these CRAs on your repaying status. There is also detailed information on the amount you are indebted and whether you have ever defaulted on your payments. Aside from the reports obtained from lenders, these companies also tally your general records based on certain other aspects. Some of these aspects are your public records from the local and state judiciary. These include your tax records and bankruptcy information. This information makes up an important chunk of your credit score and its report.
Equifax
Present in 24 countries, Equifax is an agency that offers consumers protection against identity theft and credit fraudulence. They also sell credit reports and credit monitoring assistance to businesses.
Experian
Experian started off in London and is now a trusted agency in 39 different countries. It provides you with a credit score, credit report, and even credit tracker on subscription. The agency uses FICO 8 system of credit score calculation. Experian was a part of Forbes’ “World’s Most Innovative Companies” in 2018.
TransUnion
Based across 30 countries with a database of over 1 billion consumers, TransUnion is another CRA giant. The agency, like the other ones, will provide you with your credit score and your credit reports. In case you decide to freeze your TransUnion credit report, it will also go the extra mile to notify Equifax and Experian, which frankly is a big help especially in case of identity theft and credit fraud.
So, the next time you are sat wondering “where to get my credit score?,” think of these three giants that provide you with an annual credit score and credit report for free once each year. However, if you are looking for more frequent updates, you can subscribe to their services and receive your monthly updates.
Did you know that you have more than a single credit score? Agencies calculate your credit score based on the data in your credit reports. If you are wondering, “where to get my credit score?,” there are three main credit reporting agencies. These can have different credit scores for you if your information on each of their credit reports is different. Also, these agencies charge a fee to reveal your credit score.
Recently, it has become easier to track and get hold of your credit score without paying any fees. You can get it from your credit card company, your loan provider, and even from a non-profit counselor. Here are a few tips you can use to check your score.