OnPath Credit Union

Credit cards are powerful financial tools that can significantly enhance your purchasing power and quality of life. They allow you to build and improve your credit while simultaneously freeing you from the need to carry around cash or wait for your paycheck to arrive before you can go grocery shopping or make everyday purchases.

The convenience of easy access to money and credit is double-edged, and many consumers get out over their financial skis by purchasing more than they can afford to pay off from month to month. Businesses often contribute to these downsides by offering “incentives” to sign up for their sometimes predatory credit card programs. Should you get that big box store credit card just to get a one-time discount? Probably not – but every person is different.

Taking a thoughtful approach to credit cards is the most reliable way to avoid the pitfalls while also enjoying the many benefits credit cards have to offer.

Steps to Take Before Signing up for a New Credit Card

Understand Your Financial Needs and How It Will Help: An honest personal assessment is necessary before signing up for any credit card. Are you getting it for everyday purchases, a single big purchase, to build credit or to enroll in a rewards program? Determining in advance that you can responsibly and sustainably use the card moving forward is an important first step.

Check Your Credit Score: Knowing your credit score helps you understand what type of card you may be eligible for. A higher credit score can lead to better terms and rewards.

Consider the Costs: Be aware of the annual fees, interest rates and other potential charges. These costs can add up quickly if you’re not careful.

Research Different Types of Cards: From rewards cards to balance transfer cards, there are many types of credit cards. Familiarize yourself with them to identify the best one for you.

Evaluate Your Ability to Manage Debt: Honestly assess whether you have the discipline to manage credit wisely. Think twice about your decision if you struggle to make payments on your existing debts or are already stretched thin financially.

Getting Pre-Qualified for a New Credit Card

The pre-qualification process is a little different depending on where and how you’re getting a card. You may have already received letters from credit card companies that say, “You’re Pre-Qualified!” This essentially means the company has already reviewed your financial eligibility and has determined you can get a card. Applying for pre-qualification can often be done online and isn’t nearly as intensive or invasive as applying for a mortgage or auto loan.

If you’re shopping around for credit cards, it’s likely a good idea to check with your bank or credit union first. They already know your finances and can make the process a lot easier and faster. They may also offer credit cards with better terms or features than you might find through other companies.

What to Look for When Choosing a Credit Card

Interests Rates

The most obvious and potentially important variable you should consider when comparing credit cards is interest rates – if you plan on carrying a balance. If you plan to use a credit card in the most responsible way possible by paying it off in full each month, the interest rate doesn’t matter.

Card Rewards

If you do plan on paying off your card each month, it may be better to base your choice on a card’s rewards. There’s a diverse variety of rewards currently available, but sometimes the most straightforward options are the best – like cash back or a basic points system that can be redeemed for cash, gift cards or other goods.

Security Features

An astonishing number of people have had their credit card or debit card compromised. Chances are it’s happened to you or someone you know, likely more than once. Credit card security features have never been more important, so be sure to find out if the credit card provider offers free fraud monitoring and purchase alerts.

Get Your Credit Card Through OnPath Federal Credit Union

We’re proud to offer exceptional Visa credit cards to our members. Included with every card is free fraud monitoring, purchase alerts, a 25-day grace period on purchases and great rewards perks. If you’re already an OnPath FCU member, getting your cards through us is likely the obvious choice for you. Call us at 800.749.6193 to learn more.