The world of credit cards is big, and it can be intimidating for the average consumer just trying to find the right card for their lifestyle. But with a little bit of knowledge and research, anyone can find a credit card that is perfect for them. So here is your credit card guide to help you choose the right one:

Know what you want

When choosing a credit card, it is essential to know what you want. A credit card is a financial tool. You can use it to make purchases and pay off debts over time. For example, the idea of having a credit card may sound appealing at first because it allows you to purchase items now and pay later, but that’s not all there is to consider when choosing a credit card.

A good rule of thumb when selecting the right one for you is to choose one that fits your lifestyle, has rewards that are useful in your daily routine and has low fees, low-interest rates and so on.

Check your credit score

Checking your credit score is the first step in deciding what kind of card you should get. Credit scores range from 300 to 850 and are used by lenders to determine your creditworthiness. If you have a low score, you may not be able to qualify for the best cards on the market or even any cards at all.

Your score is based on information from three credit reporting agencies: Equifax, Experian and TransUnion. Your credit history includes your recent borrowing habits and payment history, as well as other factors, such as whether or not you have ever filed for bankruptcy protection. Lenders will use this information to determine whether it’s safe for them to give you money in exchange for something else (in this case—a car loan).

Apply for cards with higher limits

To determine the best credit card for you, you must know how much you can safely spend. The maximum amount that you can spend on your credit card is known as its limit.

When applying for a new card, try to find one that has a limit of at least 80% of your monthly income and expenses. This means that if your monthly income is $10,000 per month and your monthly expenses are $8,000 per month, then 80% of those figures would be around $8k/month—the amount at which most people should aim when determining how much they spend on their cards each month.

Avoid applying for multiple cards at once.

It’s important to note that applying for multiple cards at once can hurt your credit score. However, some issuers won’t approve an application if you have recently applied for a card.

Your overall credit capacity can significantly increase if you apply for multiple cards at once. It means that the percentage of available credit being used based on the total amount of credit available (your “utilization rate”) increases as well—and this can lower your score or make it harder to get approved in the future.

According to SoFi advisors, “If used responsibly, a credit card can help you to build your credit score and history, which can open up new borrowing opportunities.”

Hopefully, you are now better equipped to choose a credit card. By following these four simple rules, you will be well on getting the right one for you and your needs.