Credit Cards

Finding the right credit card can be stressful, with so many offers to consider and so much jargon and fine print to decipher. But as long as you follow these simple pointers, you’ll be fine.

1. Compare credit cards before applying. Otherwise, there’s no way of telling whether you’re getting the best deal. Marketing can be deceiving, after all. 
2. Make sure your credit is match. You should only consider applying for a credit card if it matches your credit standing. For example, don’t apply for an excellent-credit credit card if you have fair credit. Getting turned down will only make it harder to get approved the second time around.
3. Don’t apply in bulk. You should not submit more than a couple credit card applications within a short period of time, as this can lead to a roughly six-month dip in your credit score.

For more tips, check out WalletHub’s guide on finding the right type of credit card for your needs. And for your convenience, here are some benchmarks to consider as you wade your way through the credit card comparison process:

Market Snapshot: 1,000+ Credit Card Offers

You can learn more about the average terms offered by credit cards in popular categories from WalletHub’s latest Credit Card Landscape Report. 

We believe most people should have a credit card. It’s simply the easiest way to add positive information to your major credit reports on an ongoing basis. That, in turn, will help you build credit history and improve your credit standing. And credit improvement can save you a ton of money on loans and lines of credit as well as open doors to opportunities such as a new job or apartment.
Actually using your credit card to make purchases is another story, though. Whether that’s a good idea depends on if doing so will cause you to spend more than you would otherwise.
If it won’t lead to bad habits, you’ll be able to take advantage of a credit card’s many other benefits. They range from the ability to earn rewards on everyday spending or pay for big-ticket purchases over time to assorted travel perks and the convenience of shopping online.
And if a credit card would lead to overspending, you can still benefit from its credit-building capabilities. As long as you make sure to pay any fees that are assessed, you can simply lock your card in a drawer and watch positive information flow into your credit report on a monthly basis. After all, your credit utilization will be zero and you’ll be classified as having paid on time.

Credit cards are not one size fits all. Not only does your credit standing dictate what offers you’ll be able to get approved for, but different people require different terms and features from their credit cards, depending on their spending and payment habits. Below, you will find some general guidelines that will help steer you toward the best credit card for your particular needs.

1. If you have trouble garnering credit card approval or have bad credit history, your best bet is a secured credit card.
2. If you are a student, you should obviously get a student credit card.
3. If you need some extra time to pay off a big-ticket purchase, ignore rewards and get the best possible 0% APR credit card.
4. If you have existing credit card debt, a balance transfer credit card will help you save money and repay what you owe faster.
5. If you pay your bill in full every month, focus your credit card comparison efforts on finding the best rewards card for your lifestyle.
6. If you’re a small business owner, use a personal credit card for company purchases that you won’t be able to pay off in full by the end of the month. This will help protect you from surprise changes to your interest rate. And small business owners are held equally liable no matter what type of card they use, according to a WalletHub study.
   You should also use a business rewards credit card for everyday company expenses. This will give you access to enhanced expense tracking features and centralized rewards for all account users.

Unfortunately, if you’re already in financial trouble (e.g. late on payments, in collections, etc.), getting access to credit could be difficult. That’s problematic because using credit responsibly is the best way to rebound from such mistakes. So if you can’t get approved for a secured card, you might want to explore these other debt solutions to figure out what your next step should be.

Your credit standing indicates what type of credit card you can get approved for. For example, someone with bad credit will not be able to qualify for a credit card that requires excellent credit. So checking your latest credit score before getting too deep into the credit card comparison process will save you time as well as help reduce your odds of rejection.
Your credit history also affects much more than just your credit score search. It also impacts your car insurance premiums, the security deposit you’ll have to place in renting an apartment, and even your ability to get certain types of jobs. You can learn more about how credit scores work and what they’re used for by reading WalletHub’s credit score guide.

Depending on the credit card company, you may have up to four options for submitting a credit card application:

1. Through the mail
2. Online
3. Over the phone
4. At a branch location

Most people are accustomed to applying for big-bank credit cards through the mail, and online credit card applications are becoming increasingly popular. But the truth is that how you apply for a credit card is just a matter of personal preference. Making an educated decision about which card to apply for is far more important. And that’s why we recommend using WalletHub.
At WalletHub, comparing hundreds of credit cards is as simple as a few clicks of your mouse. Trying to replicate that by spreading paper credit cards applications across your kitchen table, for example, just won’t produce the same results. Plus, for those of you concerned about sharing personal financial information over the internet, every online credit card application is encrypted using SSL technology. You can read more about WalletHub’s data protection practices here.