(MoneyHippo.com) – When most people think of credit cards, they think of mounting debt, interest rates, and last resort spending. Yet, if you use these types of cards with a disciplined strategy, they could have some significant benefits. You might want to consider taking advantage of a cashback credit card or one giving you travel rewards for your purchases, but which one is best? The answer is: It depends.
One major benefit of a cashback credit card is using the money you earn for anything. A travel reward card only gives you points toward traveling adventures. So, if you don’t travel a lot, a cashback card may fit your lifestyle better. On the other hand, avid travelers might see big benefits from a card that rewards consumers with points for discounted and free travel.
Keep in mind that any credit card you open will impact your credit score. As long as you make payments on time, your score will likely go up long-term, but there will be a temporary hit on your credit rating when you open the card.
Once you choose the one that best fits your lifestyle, look at the individual card. Does it have an annual fee? What’s the interest rate? Consider the whole package before picking one to use and deciding if the benefit is worth the cost.
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