The Update

How Do I Choose a Credit Card that Fits My Lifestyle

The credit card that’s best for you depends on your life circumstances, financial habits and goals. Let’s take a quick look at four kinds of credit cards so you can better choose the one that best fits you.

Low-Interest Cards

Lower rates + lower payments. RGCU Everyday Visa Cards have low introductory offers, no annual fee, no balance transfer fees and more.

Pros:

• Pay off debt quicker
• Consolidate debts into one payment
• Qualify even with a low credit score

Cons:

• Ongoing APR can be higher than average
• The new credit line can trigger overspending

Great choice for: consumers looking for a way to consolidate their debt, pay it off quicker and lower their overall interest.

Not recommended for: consumers who are likely to overspend by having more available credit and are unlikely to pay off their debt before the introductory period ends.

Rewards Cards

RGCU Rewards Cards earn points on everyday purchases that can be redeemed for cash back, gift cards, travel, and more.

Pros:

• Rewards can be significant
• Credit limits are often generous

Cons:

• Generally require a strong credit history and high credit score
• May have a high annual fee

Great choice for: big spenders with high credit scores who are able to pay their monthly credit card balance in full.

Not recommended for: cardholders who will find the rewards system too complicated.

Retail Cards

Retail cards, or store cards, can fall into two categories:

Closed loop – which means the card can only be used by the associated retailer, like the Target RedCard™.

Open loop – sponsored by a retailer and backed by a major credit card network.

These credit cards offer lots of kickback in the form of ongoing discounts, cash-back and special promotions.

Pros:

• Ongoing discounts

Cons:

• Can have smaller credit limits
• May have steep interest rates
• Often require high credit scores
• May only be able to use at specific stores

Great choice for: Loyal customers of a specific brand who have excellent credit scores.

Not recommended for: the budget-averse shopper, as these cards can lead to racking up lots of debt.

Use this guide to help you choose the credit card that best fits your lifestyle.