When applying for a credit card, there are many factors to consider. Whether you are a business owner, a student, or just an average traveler, your financial situation is important to keep in mind. No matter what you spend your money on, you should be able to reap the benefits from any card you choose. Since most businesses accept credit cards, it would be in your best interest to find the right match for you. Here are seven cheapest credit cards to benefit your financial situation.
The Above-Average Credit Owner
If you are a consumer with above-average credit, you will do well with an unsecured credit card. This is the most common credit card type, and are typically available from most banks. Because you have good credit, you won’t be required to put down a security deposit. One of the cheapest unsecured credit cards is a balance transfer card. With this card, you will be able to transfer a previous high-interest card balance to your new card. The starting annual percentage rate (APR) starts at 0%, and over time will only rise to a maximum of 5%. Another cheap unsecured credit card is a low interest credit card. This card also has a low starting APR, and allows several months to a year to pay off your card. Additionally, as the name suggests, this card has little to no interest. Choosing an unsecured credit card is the cheapest option for someone with above-average credit.
The Work-In-Progress Credit Owner
If you are working on your credit score, you are most likely to get approved for a secured credit card. This means that there will be a deposit for applying for this card, usually equal to the credit amount. This may not sound like the cheapest option, but there are benefits that come with this card that make up for the deposit. Some secured credit cards offer interest based on your original deposit. If you stick with this credit card, over time you will earn money based on this interest. Additionally, these cards require a monthly payment. If you keep to these payments on-time, your credit will start to build up. Another option for someone with bad credit is a prepaid card. With a prepaid card, you put money on the card ahead of time. This way, you can’t go over your limit. This is helpful for some people to keep track of their spending. Secured credit cards are the best, cheapest option for someone with bad credit.
The Business Owner
For the average business owner, there are many choices for a business credit card. For a startup business, you will need to look for a credit card that accepts no credit history. Or, you can consider using your own personal credit history to get approved for a business credit card. Other business owners prefer to keep their good credit score for business and personal separate. This is where a business credit card is the best choice. Business credit cards also come with many benefits, making them a cheap option for any company. With certain purchases, business cards may offer rewards and savings. For a larger company, the credit card may offer higher credit limits, as well as multiple cards for your employees. Not only is this a cheap, beneficial option for your business, but it also helps you keep track of all company purchases. Business credit cards are the best option for a company that wants to save on finances.
If you are a frequent traveler, there are many different credit cards to help you save. For the average commuter, a lot of hard-earned money is spent on gas every week. Gas credit cards offer several benefits to commuters, such as a percentage cash back or rebates to specific gas companies. If you often travel by airplane, you could save with a frequent flier credit card. The more you spend, the more miles you are rewarded. If you spend enough, your miles could add up to a free trip. Other credit cards offer hotel or travel points. Depending on the amount you spend, the credit card company will offer you points to use at different hotels or attractions such as a theme park. If you are a frequent traveler, this type of credit card will help you save with the benefits that it offers.
Many credit cards offer rewards or points towards different merchant companies. For someone who does a lot of shopping, the best visa card would be a beneficial option. If there is a specific company that you often buy from, your cheapest option would be to apply for a retail rewards credit card with this company. With this card, you will earn points or rewards based on every day purchases. Additionally, many of these businesses offer double or more points for purchases made from their company. This way, your spending will pay for itself with built-up points and rewards. Over time, you can redeem these points with different products from that specific company. Retail rewards credit cards are the overall cheapest option for a frequent shopper.
For a four-year student applying for a credit card, it’s not exactly easy. Usually, students don’t have a lot of credit history, making it hard for them to get approved by a credit card company. However, there is a cheap option for these students. Student credit cards were created for this exact situation. Because they are enrolled in a four-year college, the credit card company understands that they are having trouble building up their credit score. Because of this, these credit cards are very easy to get approved for. However, these students are usually offered a lower credit limit because of their low or lack of credit score. This typically is not an obstacle for a four-year student, because they are not usually spending a lot of money at school. A student credit card is a cheap, beneficial option for any four-year student with no credit score.
The General Purchaser
If you are just an average, general purchaser, there are many cheap credit card options for you. One type of credit card for any consumer is one with a rewards program. For every dollar you spend, you earn a type of incentive, such as points or credit, towards a certain company or reward. For each card, there is a rewards structure that offers different payoffs depending on how many points you have accumulated. The most beneficial credit card for a consumer is a cash back credit card. For most of these card types, you earn 1% cash back on all purchases. Some companies offer more cash back at certain store. Others promise a higher percentage of cash back for larger purchases. No matter which you choose, you will benefit from the rewards offered with this credit card.
Choosing a credit card can be a tough decision. There are many factors to consider when applying for a card, especially your financial situation. Keep in mind what you often spend your money on. Using this, you can choose a card that will benefit you based on your purchases and the rewards given. Consider your credit score as well. There are many cards that can help you build up your credit score over time. Keep all of this in mind when choosing the cheapest credit card to benefit your financial situation.