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How To Choose a Credit Card That Will Benefit You During This Pandemic

The recent global pandemic has hit businesses and negatively influenced the economy. Consequently, the question of whether choosing a credit card is crucial. This article aims at helping you determine which credit card fits you and why.

FINDING A VERSATILE CREDIT CARD

Before contemplating on getting one, you need to have a clear perception of why you need the card; creditors tailor credit cards for different consumers with different rates and opportunities for extra rewards. Also, you may require checking out a credit card with low-interest rates and more reward opportunities.

Some credit cards allow you to earn points when you spend some certain amount, and the tips can purchase products like Amazon. A good example is Amex Business Platinum Card; when you get bonuses for spending $10000 and extra 25000 points on additional $10000 for the first three months. Ensure you put into consideration the bonuses and rewards that come with a credit card.

HAVE A LONG-TERM APPROACH

As much as its tempting to go for quick fixes and cash advances during this time, be aware that there is life after COVID-19; this means that if you rush into impulse debts right now, you may end up trapped in high-interest debts in the future.

Consider getting a card that offers a nil interest period for starters; if you manage paying back before the time expires, then all interests waver. With a good credit score, landing a creditor who is willing to give you 0% interest period for 12 months is easy. An example is Ink Business Cash; also you get a $500 membership bonus after spending $3000 in the first three months of sign-up. Besides, you get 5%, 2% or 1% cash refund when you make purchases in gas stations and generally any purchase.

CONSIDER YOUR SPENDING

If you aim at keeping punctual monthly or annual payments, you need to ensure to maximize your spending. Before going for any credit card, especially now that most people are unemployed, review what you frequently purchase and find a card that has constant rewards and bonuses on those items.

  • Gas
  • Groceries
  • Business purchases such as office furniture, trading goods
  • Restaurants
  • Travel tickets and expenditure

Creditors offer either seasonal rewards or all-year-round on these services;

Also, this consideration ensures you don’t end up getting wasted rewards, for example, travel bonuses which are not applicable at this time.

NARROW THE SEARCH

After the above considerations, now is the time to decide which credit card works for you. Below is a list of some credit cards you can put into considerations;

  • A card with 0% introductory APR; this is very beneficial to bulky or long-life purchases
  • A cash return card, if you want flexible rewards for paying your bills or other assets, then this fits you right. Note that different creditors offer different cashback options
  • A business card; if you are looking for an option that will enable you to make business purchases or maybe innovating your business, for example, changing your retail shop into an online venture where you make deliveries.
  • A student card, if you are still schooling, but you are in dire need to start building on your credit while at the same time taking care of the small bills in this adverse situation.
  • A balance transfer card, if you intend on integrating your debts or minimizing interest on current debts, then this is the one to go for

Some creditors are becoming lenient to ensure that people are not anxious about how to handle their bills and debts during this pandemic. Below is a list of such, however, note that it is not exclusively limited.

  • American’s Express, the lenders have a corona virus hub where they offer various support options of how to keep your finances at bay at this time. Secondly, they are offering potential financial solutions like lowering payments, wavers on delayed payments and minimizing interest reductions temporarily.
  • Bank of America, as of March, the bank announces their assistance on individual accounts; this includes refunds on delayed or deferred payments.
  • Barclays bank, the bank’s COVID-19 hub is offering services to its consumers by advising them accordingly on payment reliefs, transactions and fraudulent concerns.
  • Capital One, the creditors, has asked their consumers experiencing financial hurdles to reach out in case they need any assistance.
  • Citi, members, are applying for waivers eliminating minimum or late payments for two statements period. That aside, they are offering mortgages and student loans tolerance programs.
  • USAA, the creditors are offering 90- day payment for deferral cards, 60-day loan payment extensions and extra considerations for mortgages.
  • Wells Fargo, they are offering individual reliefs for deferrals and waivers to their consumer. Mainly on credit cards, mortgages, auto and personal loans.

As an entrepreneur, ensure you get a credit card that will not harm your finances in the long run. Also keep in mind that the more you spend, the higher your interest. Ensure you have your spending under control during this pandemic, taking advantage of the various rewards and bonuses. Finally, take advantage of lending institutions that are creating some formal solutions to waver interests.