Author: John Richard Miranda
Over time, credit cards are slowly transforming from a form of convenience into an everyday financial necessity.
Many financial experts will tell you that it is better to pay with a credit card than with cash. However, these cards can be a double-edged sword, as applying for a card that does not fit your lifestyle might end up affecting your credit score and overall experience.
There is no “best credit card” but different options for different types of people. Whether you’re a blogger, a traveler, a housewife, or tech-savvy, there is always the right card for you.
When you apply for a credit card, the issuing bank takes multiple factors into account, including your credit history, debt to income ratio, delinquencies, and income.
So what’s the best card for low-income earners in the U.S.? We did some research on this and discovered the things you should look out for;
Pre-approval process that will not affect your credit score
For low-income earners, keeping a credit score intact is a must. When applying for a new credit card, look for options that can pre-approve your application with a “soft inquiry” that does not affect your credit score.
No Annual Fees
When you want to make the most out of your hard-earned money, this one is a no-brainer. Why spend money on these fees when your goal is to spend less especially when there are many options that offer 0$ per year.
Cashback Rewards
Every dollar counts so getting back your $ every time you use your card is a feature that we would like to have in our credit cards.
Purchase Protection and Return Protection
This feature allows you to file a complaint with your issuer in order to receive a replacement, repair, or reimbursement in case of fraud or damaged items.
Loyalty Points and Rewards Programs
These points can then be used to redeem rewards like vouchers, and travel miles or even to pay off your balances. Some cards also have Rewards Programs that offer discounts or rewards each time you use your card on accredited merchants.
With this information in mind, the next step when you choose a credit card is to compare them. Each time you are given information on a credit card, research for standard information about the card. This should include the; interest rate, annual fees, and other charges and features. It will help you to easily compare their services to other reliable options.
Here are some websites you can check for card comparison:
- nerdwallet.com
- money.usnews.com
- wallethub.com
- consumerreports.org
- finder.com
Finally, ensure you avoid overspending, incurring unnecessary debt, and be up to date with your payment. If you follow these guidelines and the tips discussed above, you will get the best out of your credit card usage.
