Saving A Buck: Choosing the right credit card

Posted on: 1:32 pm, July 11, 2013, by , updated on: 05:22pm, July 11, 2013

OKLAHOMA CITY–Many families avoid credit cards in an effort to steer clear of massive interest rates and fees.

However, credit cards are not always a bad thing.

If you get the right one, it could really help you to save a buck.

Some financial experts say for the right people, credit cards can really pay you through perks, like cash back.

Rae Boswell and her family use credit cards for all their purchases and say it has really paid off.

Boswell and her family use a rewards card that gives them miles.

Boswell said, “We went to California a year ago and used our miles and I think it was $5 a ticket. If we paid for it, it was going to be over $2,000 for all of us to go!”

The key is that she pays the cards off every month and stays within a set budget.

Lance Baker, with Stifel, Nicolaus & Company, said, “I think responsibility is the first thing that’s important with a credit card.”

Baker is an investment manager who says when choosing a card, it’s important to pick one that fits your family’s needs.

He says  interest rates, annual fees and rewards should all factor into your decision.

Baker said, “If they are going to carry a balance at all, the most important thing is that interest rate.”

He says do not apply for several cards at one time.

Instead, use sites like Mint.com, CreditCardInsider.com and Bankrate.com to help compare cards to find one that fits your family.

Baker said, “You don’t want to go and apply to six or seven different ones, that can really hamper your score.”

Since the Boswells pay their cards off every month, it’s become not only a convenient way to pay, but a way her family can take a little vacation that might otherwise be too costly.

Boswell said, “We like to travel and so it’s kind of a bonus to get to travel for free.”

Many rewards cards come with annual fees but experts say that’s no reason to avoid them.

They say it may be worth a fee of less than $100 a year if you’re getting cash back or free travel.