Even though our financial future is something we’re all concerned about, not enough people take the necessary precautions for financial stability. A big part of our monthly, short-term spendings can be easily covered by choosing the right credit card. With careful planning, your next credit card bill doesn’t have to be a negative experience. Carefully researching your options before settling for your new credit card can save you both money and frustrations in the future.
In order to make the right choice, you’re going to need to go through some of your financial habits, ignore the most common bank adverts, and check into some of the specifics:
Analyze Your Financial Needs
Doing your own finances isn’t a pretty task. Having a budget and reconciling it between what you want to buy and what you need to buy can be stressful. However, it’s a necessity if you want financial stability. Understanding the way you spend your money can make it easier for you to choose the right credit card.
Another thing that’s important is knowing how you spend your money and what you’re usually spending it on. Do you spend more on groceries or do you eat out more often? Will you pay your credit card bills on time or will you be late with the payments? Do you need a no-interest period in the beginning? These are just some of the questions that you should be asking yourself before choosing a credit card.
Ignore The Advertised Offers
Just because the credit card ad is pretty doesn’t mean it’s the best deal. You should always look at the complete picture, and not just the fancy, upfront benefits. You can do this by reading the fine print as well. This should offer a more complete picture of all the perks, benefits, rewards, and obligations that you would have if you chose that particular credit card.
Opt For Price Protection
Price protection is a credit card benefit that could come in very handy, especially for expensive items. If you purchase a certain item that goes on sale in the near future, usually within a month or so, your credit card company should refund the difference if it offers price protection. The same goes for items that you’ve bought in one place but you found them to be cheaper at another place. Naturally, the items must be an exact match.
The main drawback is that unlike other credit card benefits, price protection isn’t an automated service. This means that you’re going to have to register the item you’ve bought in order for the credit card company to be able to track down the price change. Moreover, you’ll have to file in the paperwork yourself. If you come to think about it, the drawback is worth it, especially when the item you bought goes on sale.
Look For Extra Warranties
This is probably something that most people overlook when they plan for a new credit card. The majority of items that you would buy with a credit card come with a warranty. However, most sellers offer additional warranties, for a price.
You probably know that those extended warranties aren’t worth the money you’re paying. Why pay that price when an increasing number of credit card companies offer extended warranties for products purchased with their credit cards? As an added bonus, you should know that there are certain companies which offer replacements in the event that your newly purchased item is either stolen or breaks within the first few months of purchase. Instead of spending money on extra warranties, opt for a credit card that does this for you and hold on to the receipts.