|
| Hi Taylor
- I just finished paying off my student loans and I'm wondering if
I should get a new credit card to reflect my improved credit score.
Does that kind of thing matter? Are the benefits significant?
|
Hi Shasta
- Yes and YES. A better card with a higher limit can improve your
credit even further, and the benefits offered by banks to people with
good credit are usually much better than what one can get with poor
or fair credit.
For starters, you should have access to lower APRs with your approved
credit score. I don't want you to carry a balance from month to month,
but it's always nice to have lower interest rates in case you do get
caught with some outstanding charges on your card. A lot of cards
will offer 0% APR on balance transfers as well, in case you have some
lingering debt.
Most important will be access to useful perks. If you look good on
paper, you can be trusted with the fanciest cards that bring in the
fanciest rewards. Earn tons of miles and use swanky private lounges
when you go to the airport; get a handful of cash back when you go
to restaurants or pay for gas; apply for a card that links with your
favorite airline or hotel to ensure your spending turns into rewards
you can use.
Many of the best credit cards don't really work unless you spend a
modest amount, so you can't expect to get much of a bonus if you don't
swipe regularly. That's why it's worth researching the cards that
offer bonus points for certain types of spending. Some are better
for business owners and frequent flyers, others work well for parents
who have big families and spend lots of money on groceries each month.
Some cards let you pick the benefits you'll get the most out of, which
is an appealing perk. There's a post at GoFarWithKovar.com
that details 10 of the best cards for people with good credit, so
that's worth checking out if you're in the early stages of your search.
Whatever you choose, don't get too excited by the rewards. It's nice
to get a kickback for your everyday purchases, just don't lose sight
of the fact that you have to spend money in order to get these bonuses.
If you work too hard to earn airline miles, you'll quickly be back
in debt and watching your credit score take a turn for the worse.
As long as you already use a credit card, it ought to be a good one.
Start doing some research and find something that brings in useful
rewards and reflects the excellent credit score you've earned, Shasta!
|
| Legal Disclaimer:
Information presented is for educational purposes only and is not
an offer or solicitation for the sale or purchase of any specific
securities, investments, or investment strategies. Investments involve
risk and, unless otherwise stated, are not guaranteed. Be sure to
first consult with a qualified financial adviser and/or tax professional
before implementing any strategy discussed herein. To submit a question
to be answered in this column, please send it via email to Question@GoFarWithKovar.com,
or via USPS to Taylor Kovar, 415 S 1st St, Suite 300, Lufkin, TX 75901.
|
|
|
HOME
