ARE YOU LOOKING FOR THE BEST CREDIT CARD OUT THERE? WELL, WHAT MAKES A CARD THE BEST? THAT’S
DIFFERENT FOR EVERYBODY. I’M NICK FROM TEAM CLARK. I’VE WRITTEN
A TON OF CREDIT CARD REVIEWS AND TODAY I WANT TO SHARE WHAT YOU SHOULD BE LOOKING FOR TO
FIND THE BEST CREDIT CARD FOR YOU. WE’LL LOOK AT SEVERAL TYPES OF CARDS THAT
ARE GOOD FOR DIFFERENT PARTS OF YOUR LIFE. BUT, IN ORDER TO KNOW WHAT TYPE OF CARD IS
BEST FOR YOU, IT’S IMPORTANT TO UNDERSTAND YOUR FINANCIAL GOALS.
THE FIRST STEP IS TO EVALUATE YOUR FINANCIAL SITUATION AND HOW YOU SPEND YOUR MONEY.
KEEP CAREFUL TRACK OF WHERE YOU’RE SPENDING YOUR MONEY AND WHAT YOU’RE BUYING.
THE POINT OF TRACKING IS TO SHOW YOU WHAT TYPE OF CREDIT CARD WILL BE THE BEST FIT FOR
YOUR SPENDING HABITS AND GOALS. SO YOU HAVE TO ASK YOURSELF, WHAT GOAL ARE
YOU TRYING TO ACHIEVE BY GETTING A NEW CREDIT CARD? DO YOU WANT TO BUILD CREDIT, HAVE A
SAFETY NET OR EARN CASH AND REWARDS? IF YOU SPEND WITH A DEBIT CARD, THE EASIEST
WAY TO SEE HOW YOU SPEND YOUR MONEY IS TO CHECK THE LAST THREE MONTHS OF YOUR BANKING
STATEMENTS. YOU CAN ALSO USE A PROGRAM LIKE MINT TO SEE
YOUR KEY SPENDING CATEGORIES OR USE A BUDGET SHEET LIKE THE ONE WE HAVE ON CLARK.COM.
IF YOU ALREADY HAVE A CREDIT CARD AND ARE LOOKING FOR A NEW ONE, TRACKING YOUR SPENDING
CAN BE EVEN EASIER. IF YOUR CREDIT CARD ISSUER HAS AN APP, OFTEN THE SPENDING CATEGORY WILL
SHOW UP NEXT TO YOUR PURCHASE. MANY ALSO GIVE YOU FREE ACCESS TO SPENDING
PIE CHARTS TO HELP YOU SEE WHERE YOUR MONEY IS GOING.
WHEN YOU’RE ANALYZING YOUR SPENDING, NOTE THAT NOT ALL CARD ISSUERS USE THE SAME IN
THE WAY THAT THEY CLASSIFY WHAT YOU BOUGHT. FOR EXAMPLE, IF YOU BUY GROCERIES AT WALMART,
IT MAY NOT BE LISTED UNDER GROCERY PURCHASES BUT AS A WAREHOUSE OR SUPER-STORE PURCHASE
INSTEAD. THE BIGGEST RULES TO REMEMBER ARE: SPEND LESS
THAN WHAT YOU MAKE AND PAY YOUR BILL IN FULL EVERY MONTH. IF YOU CAN DO THAT, THEN A CREDIT
CARD IS A VIABLE OPTION FOR YOU. Now let's talk about different types of cards.
There are secured cards, low-interest cards, cash back cards and reward cards that offer
perks for different types of purchases. Let's talk about secured credit cards first.
IF YOU’RE TRYING TO BUILD CREDIT, A SECURED CARD MAY BE THE RIGHT CHOICE. SECURED CARDS
WORK A LITTLE DIFFERENTLY THAN STANDARD CREDIT CARDS.
YOU’LL BE REQUIRED TO MAKE A CASH DEPOSIT AS A SIGN OF CREDIT WORTHINESS. AND THE CREDIT
LIMIT ON SECURED CARDS IS USUALLY TIED TO THIS DEPOSIT. FOR EXAMPLE, IF YOU DEPOSIT
$500, THE CREDIT LIMIT IS $500. YOU’RE BASICALLY BORROWING YOUR OWN MONEY
TO PROVE THAT YOU’RE RELIABLE AND CAN MAKE PAYMENTS ON TIME.
BUT YOU’LL BE ABLE TO SPEND WITH A SECURED CARD LIKE YOU WOULD WITH A TRADITIONAL CREDIT
CARD. KEEP IN MIND THAT A SECURED CARD IS A STEPPING
STONE TO A CREDIT CARD AND CAN TEACH YOU TO TREAT CREDIT LIKE IT’S YOUR OWN SMALL AMOUNT
OF CASH. ANOTHER TYPE OF CARD THAT YOU’LL WANT TO
CONSIDER IS ONE WITH AN ULTRA-LOW INTEREST RATE. THESE CARDS USUALLY DON’T HAVE FLASHY
REWARDS, BUT IF YOU HAVE TO CARRY A BALANCE BECAUSE OF AN EMERGENCY, THIS IS THE TYPE
OF CARD YOU'LL WANT IN YOUR WALLET. IF EVEN A MINOR UNEXPECTED EXPENSE CAN UPSET
YOUR FINANCES, SAVE MONEY TO BUILD AN EMERGENCY FUND OVER TIME. THAT WAY, YOU WON’T HAVE
TO RELY ON A CREDIT CARD TO KEEP YOU AFLOAT. MONEY EXPERT CLARK HOWARD RECOMMENDS CHECKING
WITH YOUR LOCAL CREDIT UNION SINCE MANY OF THEM OFFER SOME OF THE LOWEST INTEREST RATE
CARDS OUT THERE. NOW LET’S TALK ABOUT CASHBACK CARDS -- THESE
ARE A TEAM CLARK FAVORITE BECAUSE YOU GET REWARDED NO MATTER WHAT YOU SPEND MONEY ON.
WE’VE RECOMMENDED THE CITI DOUBLE CASH CARD FOR YEARS BECAUSE IT GIVES YOU UNLIMITED 2%
CASH BACK ON ALL TRANSACTIONS. 1% CASH BACK WHEN YOU MAKE A PURCHASE, THEN 1% CASH BACK
WHEN YOU PAY YOUR BILL. THERE ARE SOME OTHER CARDS THAT WE HIGHLY
RECOMMEND LIKE THE FIDELITY REWARDS 2% CASHBACK, THE PAYPAL CASHBACK MASTERCARD AND THE NAVY
FEDERAL CASH REWARDS CARD. THEN THERE ARE ROTATING CATEGORY REWARDS CARDS.
THEY GIVE YOU MORE CASH BACK OR POINTS ON SPECIFIC CATEGORIES DURING DIFFERENT PARTS
OF THE YEAR. EACH ROTATING CATEGORY CARD HAS A SCHEDULE
THAT TELLS CUSTOMERS WHEN THEY EARN THE MOST. GENERALLY, THE TOP CATEGORY WILL EARN 5% AND
ALL OTHER CATEGORIES WILL EARN 1%. USUALLY, IT’S BEST TO USE THESE CARDS IN
CONJUNCTION WITH OTHER CARDS SO THAT YOU’RE EARNING MORE THAN THE MINIMUM CASH BACK.
THIS IS A MORE ADVANCED WAY OF EARNING REWARDS BUT IT CAN BE BENEFICIAL IF YOU CAN KEEP TRACK
OF THOSE SPENDING CATEGORIES. NOW FOR THE CARDS THAT USUALLY DRAW PEOPLE
IN: REWARDS CARDS. THIS COULD BE FOR TRAVEL, GAS, GROCERIES, A CERTAIN STORE OR DINING
AND ENTERTAINMENT. FOR GROCERIES, WE LIKE THE AMERICAN EXPRESS
BLUE CASH PREFERRED BECAUSE IT OFFERS 6% CASH BACK IN THAT CATEGORY.
THE CAPITAL ONE SAVOR CARD IS GOOD FOR CASH BACK ON DINING AND ENTERTAINMENT.
CHECK OUT REVIEWS FOR OTHER POPULAR CARDS LIKE THE COSTCO ANYWHERE VISA, THE SAM’S
CLUB MASTERCARD, THE TARGET RED CARD AND THE CHASE SAPPHIRE CARDS LINKED IN THE DESCRIPTION
BELOW.
PEOPLE LOVE REWARDS CARDS BECAUSE THEY LIKE THE IDEA OF WHAT THE CARD REPRESENTS. THIS
CAN BE ESPECIALLY TRUE WITH TRAVEL CARDS WHERE YOU ACCRUE POINTS YOU CAN USE TO PAY FOR FLIGHTS
OR HOTEL STAYS. BUT YOU REALLY NEED TO TRACK YOUR SPENDING
TO SEE IF YOU SPEND ENOUGH MONEY IN THAT CATEGORY FOR A SPECIFIC REWARDS CARD TO BE WORTH IT
FOR YOU. TWO QUICK WARNINGS:
FIRST, IF YOU CARRY A BALANCE ON ANY CARD, YOU’LL HAVE TO PAY INTEREST.
YOU DON’T WANT TO GIVE CREDIT CARD COMPANIES FREE MONEY THAT YOU WORKED HARD TO EARN.
SO TRACK YOUR CHARGES TO KEEP FROM SPENDING MORE THAN YOU CAN PAY BACK IN A SINGLE MONTH.
SECOND, DON’T GET FLEECED BY WELCOME BONUSES AND SPECIAL INTRODUCTORY OFFERS. SOMETIMES
THEY ARE WORTH IT, BUT MAKE SURE YOU UNDERSTAND THE TERMS BEFORE APPLYING FOR ANY CARD.
YOU COULD MAKE A BAD LONG-TERM DECISION FOR SHORT-TERM GAIN.
WHEN YOU HAVE A CREDIT CARD, YOU HAVE MORE RESPONSIBILITY TO HANDLE. SO BOTTOM LINE:
DON’T SPEND MONEY YOU DON’T HAVE IF YOU CAN AVOID IT.
TO LEARN MORE ABOUT MANAGING YOUR CREDIT, READ CLARK’S CREDIT CARD RULES THAT WE HAVE
LINKED IN THE DESCRIPTION. I HOPE YOU FOUND THIS VIDEO HELPFUL AND THAT
YOU CHOOSE A CARD THAT REALLY FITS YOUR FINANCIAL LIFE.
SUBSCRIBE TO OUR CHANNEL AND WATCH SOME OF OUR OTHER VIDEOS TO LEARN HOW TO MANAGE YOUR
CREDIT WISELY. PLUS, YOU CAN ALWAYS READ MORE ABOUT YOUR MONEY AT CLARK.COM.