When you have an excellent credit score, the credit card world is your proverbial oyster. Not only do you have more credit card options, the options available to you include top-tier rewards credit cards. Your payment habits and impeccable credit management have earned a great credit score, make sure you choose a credit card that will help you maintain it.
You’ll receive more credit card offers.
Because you’re a person who can be trusted to repay your debts, credit card issuers are vying for your business. If you haven’t opted-out, you’ll likely have your mailbox stuffed with credit card offers. Just be careful that you don’t get an ego boost from the credit card offers. Remember that credit card issuers are in it to make money. You can “beat” them at their game by being sure to pay your balance in full and on time each month. That way you avoid interest and late fees.
Decide what you most want from a credit card.
You can choose from credit cards that give you rewards, credit cards with low interest rates, and credit cards with 0% introductory rates on purchases and balance transfers. Don’t make the mistakes of trying to get a credit card that fits all of these. If you have a large balance on a credit card with a high interest rate or you’re making a big purchase in the upcoming months, a credit card with a 0% promotional rate is a good option. Otherwise, a rewards credit cards is a great choice to earn some tangible benefits from your spending.
Review rewards carefully.
There are dozens of rewards credit cards on the market and not all of them are great. Choose a rewards credit card based on the type of rewards offered, what you have to do to earn the rewards, and the annual cost of having the credit card. You should always aim to pay your balance in full each month, but this is especially true with rewards credit cards because carrying a balance and paying interest negates the benefit of the rewards you’ve earned.
Annual fees might be a given.
Not only do the best credit cards have excellent rewards, many of them also have annual fees. Some credit card issuers waive the annual fee in the first year of the credit card, giving you 12 months to enjoy the credit card at no cost. Other credit cards begin charging the annual fee on day one. An annual fee isn’t necessarily a bad thing – many premium credit cards offer rewards and perks whose value far exceeds the annual fee. Make sure you fully evaluate the credit card to see if it can benefit you.
Great credit doesn’t guarantee approval.
While you have a much better chance of being approved when you have an excellent credit score, there’s still a chance you can be denied. For example, you can be turned down if your credit card balances are too high, you have too many credit cards, or you’ve opened too many credit cards recently. If you’re denied, the credit card issuer will send a letter or email letting you know exactly why your application wasn’t approved.
You have a lot more to lose.
All it takes is a few late payments to completely ruin a great credit score. And it isn’t nearly as easy to rebuild a bad credit score as it is to maintain a good one. Be careful that you don’t abuse credit card and lose your excellent credit score. Pay on time every time and scale back your credit card spending if it becomes more than you can manage.