Comparing credit cards can be confusing. You have to consider interest rates, fees, and associated benefits. The right card for you should reflect how you use it. If you pay the full balance monthly, the interest rate is of little concern. Focus on any annual fee and benefits such as rewards (air travel or cash back features). If you carry over balances, the interest rate should be a top concern.
The right mortgage for you should balance interest rate, length, and down payment requirements to fit your situation. Adjustable rate mortgages usually have lower rates, but your payments may increase. Long-term mortgages usually lock in a higher rate. If you expect to stay in your current home only a few years, an adjustable rate mortgage may be best. If an increase in monthly payments would be too painful, look at a fixed rate mortgage or an adjustable one with rate adjustment limits.
Prioritize Borrowing Based on Long-Term Value
- College educations
- True necessities
- Major furniture purchases
- Expensive jewelry rarely worn
Being conservative in your use of borrowing can help you take control of your financial future. Borrowing for the right reasons and living up to your repayment responsibilities can make borrowing a useful financial tool.