Credit Cards
Whether you're after your first card, travel rewards, cash back or low-interest options, we’ve got you covered. Explore the best offers and find expert tips to help you get closer to your financial happy place.
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How to Find the Right Credit Card
Assess your goals: Based on your current financial goals, decide what you're looking for in a card. Focus on meeting your immediate needs, whether it's to build credit, enjoy lower interest rates or earn richer rewards.
Review credit score requirements: Find cards that require credit scores similar to yours. If you're looking at elite credit cards with a less-than-elite credit score, you may be wasting your time.
Compare cards: Build a list of cards that match your goals and accept applications at your credit score. You can use our rankings, reviews and head-to-head comparisons to understand the differences quickly.
Check fees and interest rates: Every fee and interest rate related to the credit cards you are considering can increase the level of debt you're in. When all else is the same, you want cards with lower fees and rates.
Compare rewards and offers: As you review the cards you've gathered, stay focused on your primary goal for this new card. Remember, you want the best card for your goal, not the OK card with a cool sign-up bonus.
Get pre-approved and apply: Many card issuers, including the major issuers like Citi, Chase and American Express, offer pre-approval processes that allow you to find out if you'll be approved using a soft credit check that won't hurt your credit score. Once you're pre-approved, you'll have the opportunity to formally apply or elect not to get the card.
Use responsibly and assess: Once you have your card, use it responsibly. If possible, pay off your entire balance every month to avoid interest charges. As you build your credit and your needs change, assess your cards at least once a year to see if they're still working for you.
Types of Credit Cards
There are different types of credit cards, each with their own benefits and drawbacks. Take a look at the different kinds of credit cards to find the right one for you.
Rewards Credit Cards
Rewards credit cards offer rewards for spending. The rewards might be cash back or points that you can redeem for travel, gift cards, or to pay some of your bill. Some rewards cards also offer perks like purchase protection, travel insurance, and status with some hotel or car rental chains. Rewards credit cards also sometimes offer special discounts with certain merchants for people who have their card. Rewards cards usually come with higher annual fees than non-rewards cards.
Balance Transfer Credit Cards
Balance transfer credit cards offer no- or low interest rates for a fixed period on balances you transfer from other credit cards. This can be a terrific tool for paying off credit card debt because during the promotional period, your balance won’t accrue interest. However, these cards also charge a fee, usually a percentage of the balance you’re transferring, for you to use them. If the fee is less than you’d pay in interest over the same period, a balance transfer card can help save you some money as you pay down debt.
Cash Back Credit Cards
Cash back credit cards are a type of rewards card that gives cash back as a percentage of your spend. The cash back amount can be fixed or change depending on the category of spending. For example, some cash back cards will give you 1% cash back on all purchases, but as much as 3% cash back in a category like gas or groceries. These cards usually have an annual fee.
Small Business Credit Cards
Small business credit cards are credit cards made for businesses to use. With a small business credit card, you can track business expenses all in one place, and in some cases, earn rewards like cash back or points and miles.
Travel Credit Cards
Travel credit cards are a type of rewards card, but with a focus on travel. Instead of cash back, these cards give points based on your spending. These points can be transferred to airlines, hotels and other travel providers, allowing you to travel for free. Some of these cards also offer their own travel services, where they act as a travel agent for you and can get you perks like early check in or free breakfast at some hotels. Many travel credit cards can also get you access to some airport lounges.
Student Credit Cards
Student credit cards typically have low - or no annual fee and a fairly low spending limit. They can be a great tool for establishing credit.
About Doug Milnes, CFA
Doug Milnes is a CFA charterholder with over 10 years of experience in corporate finance. He led the Credit Cards vertical at MoneyGeek. At Duff & Phelps, he performed valuations. He later conducted financial planning and analysis at several other companies. His analysis has been cited by U.S. News & World Report, The Hill, the Los Angeles Times, The New York Times and many other outlets.
Doug holds a master's degree in data science from Northwestern University. He covers credit card strategy, debt management and rewards.