Save Money One-card so­lu­tion can swipe away card credit card over­load

The Denver Post - - BUSINESS -

There is no “best” one credit card that is right for ev­ery­one. It de­pends on your spend­ing habits, whether you ha­bit­u­ally carry a bal­ance and what kind of re­wards you find most use­ful.

If you carry a bal­ance: Credit card debt is ex­pen­sive, so if you don’t al­ways pay things off in full ev­ery month, pri­or­i­tize a low in­ter­est rate.

If you travel fre­quently: Travel credit cards of­fer good re­wards only if you travel of­ten enough to use those re­wards. If you don’t, a cash back card is the bet­ter op­tion. Still, the ex­tra con­ve­niences that come with some travel cards, like free checked bags, can make these cards worth­while even to oc­ca­sional trav­el­ers.

If you spend a lot in one or two bud­get ar­eas: Some re­wards credit cards of­fer higher re­turns on things like gro­ceries, gas or restau­rants. Look for a card that will re­ward the way you spend.

If you’re con­cerned about fees: An an­nual fee on a credit card can be worth it, as long as the re­wards are high enough to out­weigh the fee. Pre­mium travel cards, in par­tic­u­lar, have high fees but gen­er­ous re­wards. For a good no-fee card, your best bet is prob­a­bly a cash back card.

Be­fore you pare your credit cards down to just one, think about your credit score. Clos­ing older ac­counts re­duces the amount of credit you have avail­able, and low­ers the aver­age age of your ac­counts. Both of those things can lower your score. Hav­ing more credit cards also demon­strates that you can han­dle lots of credit, said Tracy Becker, pres­i­dent of North Shore Ad­vi­sory in Elms­ford, N.Y, which pro­vides credit-build­ing and mon­i­tor­ing ser­vices.

Becker rec­om­mends putting just one re­cur­ring bill, like a gym mem­ber­ship, on an older ac­count and then set­ting up an au­to­matic pay­ment so you pay on time.

Newspapers in English

Newspapers from USA

© PressReader. All rights reserved.