No Fee, Low Interest, or Rewards? Why not all 3! Explore the different types of cards and learn how to benefit from each purchase.
Credit Card Essentials
Credit cards and line of credit accounts are similar revolving credit-based products. They both offer consumers access to necessary funds, whether for daily spending or a big, one-off purchase.
Line of Credit
While a personal line of credit is more commonly categorized as a loan, in reality, it functions more like a credit card. That’s because a line of credit is a form of revolving debt, in which the money you borrow is paid back... only to be borrowed again. There are other similarities between a line of credit and credit card, however, there are also some key differences. Understanding how these two financial products compare and contrast will help in determining which option is the best for a consumer’s personal needs.
Credit Card Essentials
According to a study in December 2019 by the Federal Reserve, Americans still continue to use debit cards nearly twice as often as credit cards, but the total value of purchases utilizing credit cards exceeded debit cards by nearly 30%. What’s the difference between making payments with a debit card versus payments with a credit card? It depends on what you value most!
Low Interest Cards
Recessions cause uncertainty, provoking a greater need to monitor one’s financial health. Fortunately, the best credit card practices to prepare for a recession don’t deviate much from the conventional wisdom. For most consumers, the safest courses of action are to keep making timely payments and limit overspending.
Let Fiona match you with your next credit card
From rewards to low APRs, get personalized credit card offers
To improve your odds of being approved for a new credit card account, try these steps:
Request your free credit score to determine your credit profile.
Learn about credit cards designed for your credit profile, so that you apply for offers that you are likely to be approved for.
If your application is initially rejected, be sure to call the card issuer and ask for reconsideration. Applicants often may be able to reallocate their credit lines or offer other information that results in approval.
With hundreds of available credit cards on the market, it's important to understand what your spending habits are in order to choose the card that's right for you.
For example, cardholders who carry a balance should consider a card with the lowest interest rate or perhaps a 0% APR introductory period. A lower interest rate means you will pay less money toward interest charges as you pay down credit card debt. On the other hand, cardholders who always pay their statement balances in full will avoid interest charges and may be more interested in a card that offers the most valuable rewards, based on their spending habits and lifestyle.
You can help ensure that you meet the credit card issuer's criteria by knowing what your credit score is. That way, you can get matched with cards you're more likely to get approved for. Consider using our credit score partner, TransUnion, to determine your credit rating.
Finally, you should consider any benefits offered by the card, such as air miles, cash back or travel insurance, as well as any applicable fees like annual and foreign transaction fees. Fiona makes comparing credit card rewards easy, by showing you a dollar value for how much you’ll earn within a year of using each credit card.
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