Identifying a Credit Card That Matches Your Spending Personality

Different credit cards come with different rewards options that give you return only when you spend in the particular ways. There are some cashback credit cards that will offer higher rates on certain purchases, while the lower interest credit card can save you money over time while taking care of your payments. The best one depends on your spending personality.

By knowing your spending personality, you can better determine which credit card best fits your lifestyle, and will deliver the most value out of it.

Learn about these spending personalities to find out your fit and to identify the type of credit card that suits your needs the best:

• A Frequent Flyer: If you're a frequent flyer who travels either just for fun and adventure or out of some business purposes, you will want to have a premium credit card that offers you points or airline miles after you hit a certain spend threshold in a given time period. Some of these premium cards offer credits for airlines, hotels or airport security screening programs, as well as airport lounge access. Although they cost a large annual fee, you will most likely earn it back through various perks and benefits.



• Cash-Back Expert: If you're the kind of person who is an expert in knowing the exact value of your rewards in cash and who never misses any opportunity to earn them by going each time the plastic way for spending, you'll love to have the bonus-category cash-back credit cards with you. They offer higher rates on certain purchases and 1% on everything else. You can also consider a flat-rate cash-back card that pays 2% for all purchases and if paired with the bonus-category card, it yields more value. These types of credit cards are also favorable for shopaholics.

• The Strategic Shopper: There are certain credit cards that don't offer cash back on everyday spending. However, they may offer higher percentages back on specific, quarterly rotating categories. So, if your spending personality is to wait for the right time to buy in bulk to get the most out of your spending, then you should certainly own one of them. This type of credit card helps when you have a bigger expense in hand like your kitchen renovation.

• Bad Credit Scorer: If you have a bad credit score or no credit at all, there are some secured credit cards that will not only provide you credit in need but also an opportunity to rebuild your credit score. Though these credit cards come with a higher APR (Annual Percentage Rate), they may help you build a good credit score if you pay the credit card in full every month. Also, they require a security deposit that you can get back after closing your account or upgrading it to a regular, unsecured card.

Using a credit card that matches your spending personality helps in getting the most benefit and also builds a good credit score for you. It's even better to own different types of credit cards for supporting your different spending habits. However, you should certainly close the ones which don't match your spending personality and charges annual fees.