Anyone have advice on what to look for in a credit card?

The fastest ways to improve your credit score are to pay down your balances, dispute incorrect information on your credit report, make more frequent payments, and reduce credit utilization. Credit utilization (how much of your credit limits you use each month) contributes to a portion of your credit score that accounts for 20% - 30% of your overall score. So, an adjustment there can result in a big credit boost pretty quickly. Similarly, you can dispute incorrect information with a quick online request or phone call. You won’t always get an immediate credit score increase, but correcting errors on your credit report is a great place to start.... read full answer

There are a few other ways to increase your credit score quickly, from becoming an authorized user to increasing your credit limit. They may not all be equally effective for everyone, as it can take years to build a consistently good or excellent credit score. In fact, some strategies could send your credit score in the wrong direction before leading to an increase. For example, requesting a credit limit increase can result in a hard inquiry that damages your credit a bit in the short-term, but having more credit available could produce long-term gains if used responsibly.

Here’s how to improve your credit score fast:

1. Pay down your balances. If you aren’t eligible for a credit limit increase, focus on paying down existing debt. Paying down a large chunk of debt at once will help your credit utilization ratio and bump up your score. If you can’t make a large payment all at once, try to pay more than just the minimum monthly amount. If you have multiple debts, start by making payments on the debt that has the highest interest rate so you can limit interest charges.
2. Dispute incorrect information on your credit report. You should file a dispute for any incorrect negative info on your report. Once the dispute goes through, incorrect items will drop off your file, and your score should improve. You may have to wait 30 days for the credit bureau to review your dispute before you see any changes.
3. Make more frequent payments. Credit utilization is calculated based on the statement balance on each of your credit cards. You can reduce these balances, thus decreasing your credit utilization and increasing your credit score, by making payments before the end of each billing period. Then, pay off the remaining balance by the due date to avoid interest charges and credit-score damage.
4. Become an authorized user. If you’re just starting out, or your credit report has a string of negative marks, a good move would be to become an authorized user on someone else’s credit card and build your credit over time. Just make sure the primary holder is responsible and pays their bills on time.
5. Add new payments to your credit file. There are new services that can add positive information, like on-time utility payments, rent payments, and positive bank balances to your credit report. Not all of these programs apply to all credit bureaus, and some cost money to utilize, but they could boost your credit score over a few months.
6. Increase your credit limit. A higher credit limit can reduce your credit utilization ratio, assuming your spending does not increase. The only potential problem is that asking for a credit limit increase usually results in a hard credit inquiry, which would temporarily hurt your credit score a bit. But if you get a credit limit increase without asking, or you have a few months before you need the highest credit score possible, a higher limit could definitely help.

Everyone’s credit situation is different, so not every option will be relevant or available to you. The best way to find out exactly what you can do to quickly improve your score is to check out the personalized advice in the Credit Analysis section of your WalletHub dashboard.

To choose a credit card for the first time, you should first decide what will you use it for. You should also check your credit score and weigh your current financial situation. This is to assess whether you can make monthly payments on time and in full. If you’re planning on carrying a balance, make sure you understand things such as ... read full answerminimum payments and interest rates.

Above all, be realistic in your expectations. Your first credit card will likely have a low credit limit, a high interest rate, and an annual fee. If your most viable option is a secured card, make sure you know the difference between secured and unsecured credit cards.

Here is how to choose a credit card for the first time:

1. Decide if you need a credit card.
   If used responsibly, a credit card is a good way to start building credit. Good credit can set you up for future car loans or mortgages, and land you favorable interest rates.
2. Determine how the card will be used.
   The credit card you should get depends on what you'll be using it for. There are cards for everyday expenses such as gas and groceries, or transferring existing debt. However, understand that whatever you purchase on the card, you will have to pay it back. Make sure you’re aware of your card’s credit limit, and how credit utilization affects your credit score.
3. Check your credit score and take a look at your finances. If you don't have a credit score, focus on cards for limited or no credit. Otherwise, narrow your search to cards that accept your level of credit. And make sure you have enough income to pay the credit card bill, preferably for the full amount. Covering just the minimum payment will end up costing you more in the long run, due to interest.
4. Consider a secured credit card.
   A secured card is also an option for establishing credit. They tend to be some of the easiest cards to get as you’ll have to put up a security deposit, which will serve as your credit limit. You’ll get a better rate, and fewer fees than with an unsecured card for bad credit.
   
   Plus, with responsible use, you may be eligible for a credit limit increase. You could also transition to an unsecured card with much better terms in time.
5. Consider a student credit card, if eligible.
   Student credit cards are generally open to students with limited or no credit history and often have better terms than their general consumer counterparts.
6. Compare cards and review their terms and conditions carefully.
   Compare against several cards. Research a card’s interest rate, or APR. Familiarize yourself with the card’s grace period, and how you can avoid all those interest charges. Know your minimum payment and when it’s due. If a card has any fees (such as annual fees), know that those charges will impact your credit limit.

Don’t feel like you have to accept the first credit card that’s offered to you. And don't apply for more than one card at the same time. That’s because too many credit card applications can damage your credit score.

Also, having too many credit cards too soon may be an invitation to overspend and overextend all of your available credit. That will quickly damage the very credit history you’re trying to establish. Make sure you use your credit card responsibly while avoiding mistakes. This way, you'll build the credit you need for the best credit cards on the market.