Best Credit Cards For You ...

If you are looking for a review of credit cards, you are not going to get it here.  There are a lot of credit reviews out there.  A lot of publications, such as Money Magazine/CNN Money, publish what they thought is the best credit cards out there. If you search through personal finance blogs, you will find a lot of reviews, but beware with those reviews as sometime the best cards may not be on the list.  That is because they may only list those where they have affiliate links.  Those that they get money from if you sign up for that credit card from their links.

But I will go against the crowd and say that you don't need another credit card.  The best credit card is probably the one that is already in your wallet.  Yes, when you compare with other credit cards, the offer from the credit cards you have may not be the best out there, but I truly believe it may be the best for your case.

Why do I think that way?  Remember, opening a new card will affect your credit scores.  One of the criteria for credit score is the length of time the account has been opened.  Don't just simply chase "best credit cards" just because they offer slightly better cash back.  I have two credit cards, AMEX Blue Cash and Citibank Dividend Platinum Select.  I have had those cards since 2000.  Fortunately for me, AMEX Blue Cash has been considered as one of the best (at least until recently when they made changes to the rewards).  But if you own no-fee credit cards, with or without rewards, don't just sign up for a new card simply because you can get extra 0.5% or more for your cash back.  Review how much you spend, how much you will get back and how it will impact your credit score.  Credit score is still a mystery to me and I think for many people too.

But if you don't have a credit card or have been totally dissatisfied with your credit card provider, then look at those reviews and select on that fits your spending habit.  One warning, for some people, the reward is use as a justification to spend more.  If that will happen to you, here is what I would suggest, go with no-reward credit card.  Yes, you read is right.  Go with no-reward card if you have caught yourself saying or thinking, "Well, at least I am getting 2% of my purchase."

For those that don't use credit card and only use debit card, here is what I would suggest.  If you switch to debit card because of previous issue with running up credit card debt, don't even think about opening a credit card again until you know for sure you have change your spending habits.  But if you think you have good control of your spending habits, I would suggest go open a new credit cards.  I think credit card offers better consumer protection than debit card.  (Note: I will discuss why I think this is the case in the future posts)  In addition, you may get something extra in return.  Again, only if you have good control of your spending habits.

* Photo by Andres Rueda