With many types of credit cards available to choose from, you may have a tough time deciding which one is right for you. Taking on a new line of credit is a big decision, and if you don't pick the right card, you could find yourself in a lot of debt and see your credit score drop. Here are a few tips to help you pick a credit card that works for you and can protect your score:
Be aware of the types of cards available
Before you apply, remember that each credit card is different. There are general-purpose cards, which are the most common; secured cards that can help you limit your spending; and even retail credit cards that can be used for department stores. When you apply for a new line of credit, you will get a credit report pulled by the lender, so make sure you have repaired any blemishes on there.
The card you pick could have a great impact on your credit score if not used properly, so when you are perusing credit card company websites or looking at an offer you got in the mail, choose one that is best for you.
Look for extra security
Credit card protection is starting to get much more advanced than it was years ago. Most cards come with standard protection to safeguard you from theft or reimburse you if there was fraudulent activity on your card, but it wouldn't hurt to apply for a card that comes with extra security. Check the fine print of a card's extra features and see if you can get protection that applies to how you are going to use this card. For instance, if you travel a lot, you can get a card that comes with travel insurance.
Negotiate interest rates
Having a good credit score before you apply for new cards is beneficial. The better your score, the better interest rates you can get for your account. A rate that is lower than your current cards can do wonders in knocking down your interest charges, which can make it easier to pay back your debt.
Remember that your interest rates are not set in stone. You can always try to negotiate with your lender to get a better rate, but if they will not allow this, you can work to improve your credit score and refinance to a card with a lower interest rate at a later time.