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With thousands of options to choose between, comparing credit cards can feel like a challenge. But the right one for you ultimately comes down to the type of card you want, your spending habits and your credit.
Here's what you need to know about the credit card options available to you, along with how to narrow your list and find the best fit.
What Is the Best Credit Card to Get?
There's no single best credit card for everyone, but some cards offer more benefits than others. Each one has its own set of features, fees and terms, some of which will suit you better than others depending on your preferences, spending habits and credit.
Some people are best served by a single, straightforward card they use for everything, while others prefer to carry a few cards that each maximize rewards in different spending categories. Neither approach is inherently better, so the right answer comes down to how much effort you want to put into managing your accounts and how much extra value you stand to gain in return.
The first step in choosing a card is learning about the different options in front of you and understanding how each one could work for your situation.
Learn more: What to Consider When Choosing a New Credit Card
Types of Credit Cards
There are several types of credit cards to choose from, and whichever one you have in mind, it's worth making sure you meet its credit requirements and that its features fit your lifestyle. Here are some of the most common types you'll come across.
| Card Type | Credit Scores Needed | Best For |
|---|---|---|
| Rewards | Good to excellent for the best cards, with some fair and poor credit options | Earning cash back, points or miles on everyday spending |
| Balance transfer | Generally good to excellent | Paying down high-interest debt with a 0% intro APR |
| 0% intro APR | Generally good to excellent | Spreading out a large purchase or several purchases without paying interest |
| Student | Little to no credit history | College students starting to build credit |
| Secured | Poor or no credit | Building or rebuilding credit with a refundable deposit |
| Store | Poor to fair, though open-loop cards can require good credit or better | Frequent shoppers at a specific retailer |
Rewards Credit Cards
How a rewards card works: Rewards credit cards earn cash back, points or miles on your everyday spending, and they often come with an intro bonus as well.
Depending on the card you choose, you might earn a flat rewards rate on everything you buy, have a tiered structure that pays more in certain spending categories, or have rotating rewards with bonus categories that change throughout the year.
Cash back cards often skip the annual fee and may include an introductory 0% APR promotion, though they typically don't carry many extra perks. Travel cards, by contrast, are more likely to charge an annual fee, but they can offer benefits such as travel credits, airport lounge access and perks tied to your favorite airline or hotel brand.
Who a rewards card is best for: A rewards card is worth considering if you want to make the most of your everyday spending and can comfortably pay your bill in full every month.
As you compare rewards credit cards, look for one with a rewards structure that lines up with how you already spend. If a card charges an annual fee, make sure the benefits are worth the cost.
What FICO® Score☉ Θ you need: The best rewards cards typically call for good or excellent credit, meaning a FICO® Score of 670 or higher. However, there are also rewards cards available to people with fair or even poor credit.
Learn more: How to Choose a Rewards Credit Card
Balance Transfer Credit Cards
How a balance transfer card works: Balance transfer credit cards let you move debt from one or more other cards through a balance transfer and pay it down with a 0% introductory APR that typically lasts anywhere from 12 to 21 months, depending on the card.
This arrangement isn't always completely free, though. Many balance transfer cards charge an upfront fee, typically 3% to 5% of the amount you transfer, to process the transaction. Depending on how much debt you're carrying and how much you stand to save in interest, paying that fee can still be well worth it.
Example: Transferring $5,000 to a card with a 3% fee would cost $150 upfront. But that fee can be easy to justify if it lets you clear the balance during the 0% promotional window instead of paying interest on it month after month at your old card's rate.
In many cases, balance transfer cards also earn rewards, giving you some long-term value once the promotional period ends.
Who a balance transfer card is best for: A balance transfer card is an excellent fit if you have high-interest debt on another card, want to save money with a 0% intro APR promotion and won't be tempted to run up new balances on the cards you've just paid off.
As you compare balance transfer cards, pay close attention to the length of the promotional period along with any other features that matter to you.
What FICO® Score you need: Generally speaking, you'll need good or excellent credit to get approved for a balance transfer card, although there may be some options available to fair-credit borrowers.
Learn more: Pros and Cons of Balance Transfer Cards
0% Intro APR Credit Cards
How a 0% intro APR card works: Also called low-interest credit cards, these cards usually offer an introductory 0% APR promotion during which you'll pay no interest on purchases for a set period, often somewhere between six and 21 months.
This promotion gives you time to make a large purchase, or several purchases, and pay them off over time without interest. As long as you clear the balance in full before the promotional period ends, you won't owe any interest. However, any leftover balance after that point will start accruing interest at the card's standard APR.
Many of these cards also come with rewards, welcome offers and other valuable benefits.
Who a 0% intro APR card is best for: A 0% intro APR credit card works well for people who have one or more large expenses coming up and can't afford to pay them off right away. This may include wedding costs, moving expenses, medical bills, minor home repairs or even an emergency expense.
When comparing 0% intro APR credit cards, focus on the length of the promotional period along with the rewards rates, welcome bonus and any other features you want.
What FICO® Score you need: You'll typically need good or excellent credit to land a card with a 0% APR promotion, though some student credit cards offer the benefit without requiring any credit history at all.
Learn more: What You Need to Know About 0% APR Credit Card Offers
Student Credit Cards
How a student card works: If you're a college student, you may be able to qualify for a student credit card, which doesn't require a security deposit. Many student credit cards also offer rewards, though the rewards rates are often lower than what you can expect from a top rewards credit card.
Who a student card is best for: Student cards are designed specifically for college students, and many won't approve your application unless you're actively attending school or planning to. As you shop around for a student credit card, take a look at the credit requirements, rewards rates and any other perks on offer.
What FICO® Score you need: Credit requirements vary from card to card, with some asking for at least a little credit history and others requiring none at all.
There's an income requirement worth knowing about too. Under federal credit card rules, if you're younger than 21, you generally need to show your own independent income or assets, or apply with a cosigner who's at least 21. So, you could have trouble getting approved, even if you meet the credit requirements.
Learn more: How to Build Credit as a College Student
Secured Credit Cards
How a secured card works: Secured credit cards work almost exactly like traditional credit cards, with one key difference: They require a security deposit, often equal to your approved credit limit, before you can get approved.
That means if you're willing to put down $200, you'll typically get a $200 credit limit. As you use the card and make payments, the issuer reports your activity to the credit bureaus, so it's worth confirming that any card you consider reports to all three (Experian, TransUnion and Equifax).
Some of the best secured cards skip the annual fee but tend to carry higher interest rates, and in some cases, you can even earn rewards while you build your credit.
Who a secured card is best for: Secured cards are made for people with poor credit, a limited credit history or no credit at all, so it's worth considering one if you need help building or rebuilding your credit history.
What FICO® Score you need: You can typically get approved for a secured credit card with poor credit or no credit history at all.
Learn more: How to Use a Secured Credit Card
Store Credit Cards
How a store card works: Store credit cards are offered by many retailers and often earn you rewards or perks when you shop with the store that issued them. You may even get a sizable one-time discount just for applying or getting approved.
Closed-loop store cards can only be used with the retailer that issued them, while open-loop store cards can be used just about anywhere. Some store cards are accessible even if your credit isn't in great shape, though they typically charge higher interest rates and offer lower credit limits than traditional rewards cards.
Who a store card is best for: A store card can make sense if you spend a lot with a particular retailer and want extra rewards, discounts and perks when you shop there. It can also be worth a look if your credit is less than stellar and you'd rather avoid a secured card.
What FICO® Score you need: Closed-loop store cards may be within reach for people with poor or fair credit. On the flip side, open-loop cards can have stricter requirements.
Learn more: Pros and Cons of Store Credit Cards
How Your Credit Score Affects Which Credit Cards You Can Qualify For
Your credit scores are one of the biggest factors card issuers look at, so knowing where you stand can save you time and help you avoid applying for cards that are out of reach. Lenders use your score to gauge how likely you are to repay what you borrow, and the higher it is, the more options and better terms you'll generally have available.
Some credit card issuers use the FICO Bankcard Score—an industry-specific version built for credit card lenders that runs on a 250 to 900 scale—while others use a base FICO® Score.
Either way, the base FICO® Score is the one you can most easily check for free, which makes it a practical way to gauge your creditworthiness before you apply. It ranges from 300 to 850 and falls into the following five tiers:
- Poor (300 to 579): Your options are mostly secured cards and some closed-loop store cards, which are designed to help you build credit.
- Fair (580 to 669): You may qualify for some unsecured cards, including store cards and cards built for fair credit, though often with higher rates and fewer rewards.
- Good (670 to 739): Most mainstream rewards cards, balance transfer cards and 0% intro APR cards become available to you.
- Very good (740 to 799): You can expect approval for a wide range of cards with strong terms, including premium rewards and travel cards.
- Exceptional (800 to 850): You'll have access to the best cards on the market, including top travel and rewards cards, along with the most favorable rates issuers offer.
Keep in mind that your FICO® Score is only part of the picture. When you apply, an issuer also weighs factors such as your income, your existing debt and whether you already have a relationship with the bank. In other words, two people with identical scores can still receive different decisions.
If your score sits near the boundary between two tiers, it's often worth taking a few months to pay down balances and let your number settle into the higher range before you apply for a card that requires it.
Tip: One way to gauge your odds before you apply for a credit card is to use Experian's credit card comparison platform, which shows personalized options based on your credit profile so you can focus on cards you're more likely to qualify for. Prequalifying this way relies on a soft inquiry, so checking your offers won't affect your credit scores.
How to Choose a Credit Card
Once you have a sense of where your credit stands, finding the right card comes down to weighing a handful of factors that matter most and matching them to how you actually spend:
- Check your credit. Knowing where your credit health stands gives you a good idea of which cards you can get. You can review the FICO® Score ranges to see how your number compares. With great credit you may have your pick of the best options, while a lower score may narrow your choices.
- Think about how you'll use the card. Review your expenses over the past few months to see where most of your money goes, then look for a card whose rewards rate aligns with that spending. Alternatively, you may consider a low-interest or balance transfer card if you want to pay down debt or expect to make a large purchase.
- Compare the fees and APR. Look beyond the annual fee to other costs that can add up, such as foreign transaction fees, balance transfer fees and late fees. Also, pay close attention to the ongoing APR if there's any chance you'll carry a balance from one month to the next.
- Weigh the rewards, perks and credit limit. Decide which benefits genuinely appeal to you and make sure a card delivers enough value to offset any annual fee. If a higher starting credit limit matters to you, factor that in as well.
- Choose a card and apply. Once you've found the card with the features you want, apply online by providing some basic information about yourself. You'll typically get a decision within seconds.
Learn more: How to Get Approved for a Credit Card
What to Know When Choosing a Credit Card for the First Time
If you're new to credit, our guide to getting your first credit card walks through the process, but a few good habits will set you up well from day one:
- Pay on time and in full. Most cards offer a grace period of at least 21 days, and paying your full balance by the due date means you won't owe interest. If you carry a balance, interest starts adding up. And if a payment goes unpaid for 30 days, the issuer can report it to the credit bureaus and do real damage to your score.
- Keep your balance low. Your credit utilization rate is a major factor in your FICO® Score, and experts often suggest keeping it below 30%, though the lower it is, the better.
- Space out your applications. Each credit card application typically triggers a hard inquiry, and while one won't do much, several in a short window can add up. As such, it's wise to wait at least six months between them.
- Read the card agreement before you apply. The terms spell out the interest rates, fees and other conditions tied to your account. Reviewing them upfront helps you avoid surprises once you start using the card.
What to Do if Your Credit Card Application Is Denied
If you apply for a card and your application is denied, the issuer will send you an adverse action letter that explains why. A denial isn't permanent, and understanding the reasons behind it puts you in a stronger position to get approved later.
Here are some steps you can take to improve your chances the next time around:
- Carefully review the adverse action letter. Your first step is understanding why you were turned down. You should receive the notice within 30 days of the decision.
- Review your credit reports. This helps you pinpoint which areas need work. If you spot negative information that's inaccurate, you have the right to file a dispute with the credit reporting agencies.
- Ask the issuer to reconsider. In some cases, you may be able to get a denial overturned. For example, if you forgot to include an income source or you're willing to shift some available credit from another card with the same issuer, it's worth reaching out to make your case.
- Improve your approval odds. Depending on what your adverse action notice and credit reports reveal, you can take steps to strengthen your creditworthiness. Options may include paying down balances, clearing other debts or becoming an authorized user on a loved one's account.
- Apply for a more suitable card. If your scores are simply too low for the card you wanted, look for one that's a better fit for your current credit profile. Consider starting with a card built for your tier so you can work your way up to stronger options over time.
Frequently Asked Questions
What Is a Good APR for a Credit Card?
Generally speaking, a good credit card interest rate is one below the national average, though lower credit scores usually mean a higher APR. Either way, it's best to pay your balance in full each month to avoid interest entirely.
Is an Annual Fee Worth It?
Many cards charge annual fees, usually under $100 but sometimes hundreds of dollars. Depending on the benefits and how you use them, paying an annual fee can be worthwhile. Estimate the value you'd get from the rewards and perks, then subtract the fee to compare cards.
How Should I Use a Credit Card?
Used responsibly, a credit card is a convenient way to pay for purchases and build credit. Charge only what you can afford to repay, pay your bill in full and on time each month, and keep your balance low relative to your credit limit to get the most benefit.
Learn more: The Simple Guide to Using Credit Cards
How Many Credit Cards Should I Have?
There's no universal right number, since it depends on your goals and how well you can manage multiple accounts. What matters most is paying every bill on time and keeping your balances low, both of which support healthy credit scores regardless of how many cards you carry.
Choose the Best Card for Right Now
The best credit card for you today may not be the best one a few years from now, since your credit scores, spending and priorities all tend to change over time. Rather than chasing a single perfect card, focus on the one that fits your situation right now and revisit your options every year or two.
Knowing where your credit stands makes that decision easier, and you can keep an eye on it anytime with free credit monitoring from Experian, which includes your FICO® Score and Experian credit report.