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.”

Unlocking the Benefits of Charitable Contributions: A Guide to Maximizing Your Tax Advantages

Unlocking the Benefits of Charitable Contributions: A Guide to Maximizing Your Tax Advantages In the realm of personal finance and tax planning, charitable contributions emerge as a powerful tool not only for supporting causes close to your heart but also for...

Detailed Guide on Cryptocurrency Taxation and Reporting

Detailed Guide on Cryptocurrency Taxation and Reporting  In the United States, the Internal Revenue Service (IRS) has clear guidelines on the taxation of cryptocurrency, which is considered property for tax purposes. This classification has significant implications...

Gig Economy Taxation: a Detailed Overview

Gig Economy Taxation: a Detailed Overview Reporting Income as a Gig Worker Gig economy workers must report all income earned from their endeavors. This includes, but is not limited to: Earnings from part-time, temporary, or side gigs. Income not reported on...

Standard Deduction vs. Itemizing: A Comprehensive Guide for Small Business Owners and Self-Employed Individuals

Standard Deduction vs. Itemizing: A Comprehensive Guide for Small Business Owners and Self-Employed Individuals   As tax season approaches, one of the most significant decisions you’ll face as a small business owner or self-employed individual is whether to take...

Real Estate and Taxes: A Comprehensive Guide

Real Estate and Taxes: A Comprehensive Guide Real estate taxation is a multifaceted topic that encompasses various forms of taxes, including income tax, property tax, and sometimes even sales tax. Whether you’re dealing with personal or business real estate,...

Steps to Filing a Tax Extension

Is Filing an Extension Bad?   We get this question probably a thousand times a year. An extension is not inherently bad, it is truly personal preference. An extension will not increase your risk for an audit or red flag your return with the IRS. In fact, it is...

How to Pay Your Child From Your Business

How To Pay Your Children From Your Business Paying your children through your business can be a strategic way to manage your business's taxable income, while also providing your children with income and potentially teaching them about the value of work.  While it is a...

Tax Tips for Newlyweds

Tax & Financial Tips for Newlyweds in Houston Marriage is a significant milestone that not only unites two individuals in partnership, but in most cases, also merges their financial and tax situations. For newlyweds in Houston, understanding the tax implications...

Self-Employment Taxes: A Deeper Dive

Self-Employment Taxes: A Deeper Dive Self-employment taxes are a critical component of the tax system in the United States, impacting individuals who work for themselves. Understanding the nuances of these taxes can help self-employed individuals plan and manage their...

Education Tax Benefits: Maximizing Savings with Credits and Deductions

Education Tax Benefits: Maximizing Savings with Credits and Deductions Navigating the complexities of tax season can be daunting, but for those bearing the costs of higher education, there are valuable tax benefits that can ease the financial burden. Among these are...

Request an Appointment Today

14 + 12 =

Call us at

Pin It on Pinterest

Share This