Faithful readers – most of you know that I paid off my credit-card debt in October of this year. The journey was tough and it took me 347 days to pay back the debt, but the feeling inside once it was all paid back is simply indescribable. Since my financial situation has improved, I am looking into getting another credit card. Simply because having extra credit never hurts, as long as the credit holder is responsible. I feel that I learned my lesson with credit card debt this time around, due to certain lifestyle changes I made in my life. I’m no longer using my credit card for everyday purchases and when I do use my credit card, I absolutely make sure that it’s paid off in full at the end of every month.
I want to be certain that the credit card I choose fits my lifestyle. There are hundreds of different credit cards out there, however I want to opt for a credit card with most benefits in return for my spending habits. And, no I’m not chasing rewards. Frankly, I could care less for the rewards, instead what’s important to me in a credit card is as follows:
- No annual fee
- Low interest rate
- Not interested in teaser rates
- Rewards are good, but not mandatory
- Not interested in travel cards ( I’m not a frequent flyer)
Another twist towards getting a new credit card is that I’m a business owner. Should I get a credit card for my business? It’s definitely an option I am considering. Simply it would make it easier at year end to consolidate all my business purchases, track purchases and most importantly keep my business transactions separate from personal transactions. When the time comes, I will update you guys on which business credit card I opted for.
Since I’m not chasing rewards, it’s easier for me to select a credit card with a lower interest. There are drawbacks that credit card companies apply when offering reward cards, with such rewards as cash-back. The drawback of most reward cards (not all) is that there is an annual fee associated with the credit card and the interest rate is higher -typically around 19 percent.
Since becoming credit card debt free, I mostly use my credit card to purchase gas or that big ticket item, such as a new laptop. I get double the warranty by using my credit card, versus the standard one year manufacturers warranty and that also eliminates the need for me to purchase extended warranty.
What’s next then? I can tell you that I still haven’t decided on any credit card. However, I’m still doing my research and while doing my credit card research, two places that I used and that offer instrumental guides towards selecting your next credit card:
- Money Sense – Canada’s Best Credit Cards 2011
- Red Flag Deals – Credit Card Comparison
Both Money Sense and Red Flag Deals offer credit card tools (small 4-5 question questionnaire) here and here. You simply answer the questions asked in the questionnaire and the best credit card options are presented to you at the end.
Were all in a different boats, but there is one credit card that is right for everyone. Depending on the type of life you lead, it is crucial to select a credit card that fits your lifestyle. Some of us are looking to rebuild our credit and others are looking to get the most rewards back. However, we all have one thing in common – to save money with our credit cards.
One thing we all should never forget is that a credit card is just a tool that is meant to make our lives easier. Becoming dependent on credit will only spell trouble in the future and those rewards we collected while incurring credit card debt are essentially worthless. Now were in debt, paying back the credit card debt and paying for someone’s trip down south.
As for me, I’ve yet to conclude on my next credit card. I have an idea of what I want. A big part of me is scared on having a lot more credit available, but this is part of life, growing up and becoming responsible.
Choose your credit card wisely and make the credit work for you and not the other way around.