What is the Best Credit Card? How To Select A Bank - Molen & Associates

Stay Ahead of Law Changes & Protect Yourself Against Being Audited: Corporate Transparency Act and Reasonable Compensation

What to Look for When Selecting a Credit Card

Americans are taught the dangers of credit cards from an early age. Young adults are often warned about ballooning debt, extreme interest rates, and lifelong consequences. Even if a debtor passes away, the burden will fall on their relatives. U.S. banks are currently raking in 113 billion dollars of interest and fees every year from the one trillion dollars of credit card balances. While rising credit card debt does pose a serious problem for U.S. consumers, a lack of credit can be just as detrimental. Whether you are a new college grad looking to build credit, or have years of credit history, here is what you should look for when applying for a credit card.

When deciding on a credit card, you will be limited to the quality and longevity of your credit history. Lenders won’t provide their best offers to someone with poor or no credit. Checking and understanding your credit score is the first step to making an informed decision. For below average credit scores, student cards and secured cards offer high approval rates and an opportunity to increase your score. Student credit cards are tailored to students and recent graduates. Many of these cards offer relevant rewards for students such as rewards for good grades. A secured card works like a prepaid debit card in that you must make a deposit to get one. The main advantage of using either of these cards is that the card company will report your activity to the major credit bureaus in order to build your score.

A strong credit score means that you are a less risky customer who will be approved for better offers. Consumers who have high expenses and want to avoid interest should look for a card with a 0% APR introductory offer. These periods of 0% APR typically last for 6 to 18 months and allow the card holder to make purchases without gaining interest. This benefit often applies to both purchases and balance transfers, so if you are moving money from one card to another, then this offer can really make a difference. While a 0% APR period on balance transfers does avoid interest, there are still fees associated with the original balance being transferred. If you are after the best balance transfer card then get one with a long 0% APR period, and balance transfer fees that are slim to none.

Any decent credit card offers some type of reward for using it, so the question is how these rewards are accumulated and how they benefit you. Many cards offer one-time cash bonuses when you spend a set amount within a set period. While these bonuses are enticing, it is also important to consider the long-term rewards offered. For a hands-off approach, the best choice is a card that offers a steady cash back rate or miles on every purchase. Alternatively, an involved cardholder will benefit most from rotating category rewards. These categories change on a regular basis and offer increased rewards for different places such as gas stations, restaurants, and grocery stores. Finally, you must consider what rewards your card offers. Each card has unique rewards like travel, shopping, and cash back, so it is important to choose a card that most benefits your lifestyle.

Regardless of what card you choose, it is important to research different options and understand the terms and fees. Too many Americans use credit cards to buy things they can’t afford, and in the process destroy their credit and financial future. That’s why it’s important to be deliberate when applying for a new credit card, and to understand the risks associated with interest, late payment penalties, and bad credit.

https://www.magnifymoney.com/blog/news/u-s-credit-card-debt-by-the-numbers628618371/

https://www.creditkarma.com/credit-cards/i/choose-best-credit-card/

https://www.creditkarma.com/credit-cards/i/how-secured-card-works/

https://www.creditcards.com/student/

https://www.discovercard.com/application/terms?srcCde=GEGN

The Molen & Associates Difference

Mike Forsyth

“Super helpful and timely. This is our first year with them and we look forward to trusting them with our taxes and business books for years to come.”

Caitlin Daulong

“Molen & Associates is amazing! They run an incredibly streamlined process, which makes filing taxes a breeze. So impressed with their attention to detail, organization, and swift execution every year. Cannot recommend them enough!”

Sy Sahrai

“I’ve been with Mr. Molen’s company for few years and I felt treated like family respect and dignity. They are caring, professional and honest, which hard to find these days. Love working with them.”

Compensation and K-1 Reporting for Partnership Owners

As a business owner of a partnership, understanding how your compensation and earnings are reported and taxed is crucial for managing your finances and staying compliant with IRS regulations. Unlike S-Corporations (S-Corps), partnerships cannot pay their owners a W-2...

W-2 Salary vs. Distributions vs. K-1 for S-Corp Owners

W-2 Salary vs. Distributions vs. K-1 for S-Corp Owners As an S-Corporation (S-Corp) owner, understanding the distinctions between W-2 wages, distributions, and K-1 profits is essential for managing your tax obligations and business finances. In this article, we will...

Non-Compete Law Changes in 2024: What Employers and Workers Need to Know

Non-compete agreements have long been a standard tool for employers seeking to protect sensitive business information and retain talent, but their future is now uncertain. In 2024, sweeping changes to non-compete agreements are expected, driven by the Federal Trade...

FLSA Changes in 2024: What Employers and Employees Need to Know

The Fair Labor Standards Act (FLSA) governs minimum wage, overtime pay, and working hours, ensuring that employees across the U.S. are treated fairly. In 2024, significant changes to the FLSA overtime rules will take effect, directly impacting both employers and...

What Tax Documents Should I Save, and How Long Should I Save Them?

What Tax Documents Should I Save, and How Long Should I Save Them? Maintaining proper tax records is crucial for both individuals and businesses. Not only does it ensure compliance with tax laws, but it also provides a safeguard in case of audits or disputes. This...

Underpayment Penalties and How to Avoid Them

Underpayment Penalties and How to Avoid Them Underpayment penalties can be a significant concern for taxpayers, both individuals and corporations. These penalties are imposed when taxpayers fail to pay enough tax throughout the year, either through withholding or...

Choosing the Right Filing Status for Your Taxes: A Comprehensive Guide

Choosing the Right Filing Status for Your Taxes: A Comprehensive Guide When it comes to filing your taxes, one of the most crucial decisions you'll make is selecting the appropriate filing status. Your filing status affects your filing requirements, standard...

Why Corporations and S-Corporations Cannot Deduct Shareholder Expenses Directly on the Corporate Return

Why Corporations and S-Corporations Cannot Deduct Shareholder Expenses Directly on the Corporate Return   When it comes to managing business expenses, corporations and S-corporations face specific rules and limitations, particularly concerning the expenses...

Understanding Storm-Related Tax Implications for Texas Tax Filers: Hurricane Beryl and the May Derecho

  As Texans, we know all too well the impact that severe weather can have on our lives and communities. This year, we've faced two significant challenges: Hurricane Beryl and the May derecho that swept through the Houston area. In the wake of these natural...

Roth vs Traditional IRA: A Comprehensive Guide

When planning for retirement, choosing the right Individual Retirement Account (IRA) can significantly impact your financial future. The two most popular types of IRAs are the Roth IRA and the Traditional IRA. Each has its unique benefits and drawbacks, and...

Request an Appointment Today

8 + 12 =

Call us at

Pin It on Pinterest

Share This