Credit Cards

A credit card is a rectangular piece of plastic or metal measuring 3.4 inches by 2.1 inches that contains a magnetic stripe as well as an EMV chip with the information needed to complete a purchase. Some new credit cards also have an RFID chip for contactless payments.

Physically, a credit card is the same size as a debit card, prepaid card, gift card or driver’s license. Credit cards work very differently, though.

Key Things to Know About Credit Cards

• Making a purchase with a credit card enables the user to securely borrow money as needed and then repay the card’s issuer after the fact.
• Using a credit card responsibly is the easiest way to build a good credit score.
• Other benefits for credit card users include the opportunity to earn rewards on purchases, the flexibility to pay off large purchases over time, or the chance to reduce the cost of existing debt through a balance transfer.
• Banks and credit unions offer credit cards because they are a good source of income from fees and interest charges.
• To qualify for a credit card account, an applicant must be at least 18 years old with enough income to afford monthly bill payments.
• There is no minimum age to get a credit card as an authorized user.

Overview of How Credit Cards Work

Credit cards require regular payments to keep the account open and in good standing. To that end, cardholders receive a credit card statement once a month detailing purchases and payments made during that billing cycle, and noting when the cardholder must make a payment on the account.

If you pay for your purchases within the window of the grace period on the account (typically between 21 and 25 days after the monthly statement is issued), you won’t have to pay more than you borrowed. If you carry your balance past that, however, you’ll generally have to pay the regular interest rate - or regular APR - on the amount you owe. Credit cards have higher regular APRs than most consumer loans, so it’s best to avoid carrying a balance.

Outside of interest charges, credit cards may come with fees. Late fees apply to nearly all credit cards when you don’t pay at least the minimum payment by the due date. Annual, monthly, and one-time fees may be charged just to have certain credit cards. The credit cards with the biggest benefits and perks - travel credits, free airport lounge memberships, and the highest rewards rates, to name a few - are usually the ones with annual fees.

The easiest credit cards to get approved for with no credit or bad credit are secured credit cards. These cards have annual fees as low as $0 and report monthly to the 3 major credit bureaus. Some even give rewards of 1% or more. To help people with no credit or bad credit maximize their odds of approval for a credit card, WalletHub’s editors compared the approval requirements for more than 1,500 credit card offers, along with their fees, rates and rewards.

What are the easiest credit cards to get approved for?

• Best for No Credit Check: OpenSky® Secured Visa® Credit Card
• Best Unsecured: Credit One Bank® Visa® Credit Card
• Best for No Annual Fee: Petal® 2 Visa® Credit Card
• Best for Low Deposit: Secured Mastercard® from Capital One
• Best for Business: Wells Fargo Business Secured Credit Card
• Best for Students: Journey Student Rewards from Capital One
• Best for No Bank Account: First Progress Platinum Elite Mastercard® Secured Credit Card
• Best Store Card: Fingerhut Credit Account

It’s important to get a good credit card because credit cards are the best credit-building tools available to us. They all report information to the major credit bureaus on a monthly basis, and unlike loans, they don’t require you to incur any debt. Some credit cards are much easier to get approved for than others, though. You can learn all about the best easy approval credit cards below.

This content is not provided or commissioned by any issuer. Opinions expressed here are the author’s alone, not those of an issuer, and have not been reviewed, approved or otherwise endorsed by an issuer. Please keep in mind that while some offers may come from WalletHub advertising partners, sponsorship status played no role in card selection. 

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The best credit cards are offers with stand-out terms in at least one major category, such as rewards, rates or fees. To find the best credit card for your needs, you will need to determine which features are most important to you, based on how you plan to use the card, and then compare offers in search of the best deal. For example, the best rewards credit cards are unlikely to have the best interest rates because they’re meant for people who pay their monthly bills in full. To make things easy for you, WalletHub compared 1,500+ offers in search of the best credit cards in the most popular categories.

Best Credit Cards of March 2021

• Capital One Venture Rewards Credit Card: Travel Rewards
• Chase Sapphire Preferred® Card: Bonus Rewards
• U.S. Bank Visa® Platinum Card: Rates
• Blue Cash Preferred® Card from American Express: Groceries
• Chase Freedom Unlimited®: Good Credit
• Petal® 2 Visa® Credit Card: Beginners
• Discover it® Secured Credit Card: Bad Credit
• Citi® Double Cash Card: Cash Back
• Bank of America® Cash Rewards Credit Card for Students: Students

WalletHub’s picks for 2021's best credit cards include cards for people of all credit levels. They also feature big initial bonuses, rich ongoing rewards and 0% intro rates. Keep reading to learn more about 2021's best credit card offers, which are listed by credit rating below. Following the cards themselves, you’ll also find the answers to some popular questions about the best credit cards and more.

This content is not provided or commissioned by any issuer. Opinions expressed here are the author’s alone, not those of an issuer, and have not been reviewed, approved or otherwise endorsed by an issuer. Please keep in mind that while some offers may come from WalletHub advertising partners, sponsorship status played no role in card selection.

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The average adult has 5.6 credit cards: 3.1 cards that can be used anywhere and 2.5 store cards, according to 2017 data from Experian. But there’s no golden rule for how many credit cards you should have, or how many credit cards is too many. It depends on personal preference as well as your credit standing and organizational skills.

Using more than one credit card can help you save by allowing you to get the best terms for every transaction that you make. No single credit card offers the best rewards in every purchase category, plus the lowest rates and fees. But you can achieve that effect with a collection of cards that each excel in a particular area. For example, you could get the best cash back credit card for everyday spending, the best travel rewards card to earn extra on airfare and hotel reservations, and a 0% credit card before making a big-ticket purchase.

Using multiple credit cards for the wrong reasons, however, can get you into big trouble. Numerous credit card applications in a short period of time can hurt your credit score, for one thing. And even more importantly, having too many credit cards can lead to overspending, expensive interest charges, missed payments and even more credit score damage.

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There is no minimum credit score to get a credit card, if any credit card will do. Some credit card companies don’t even check applicants’ credit history, and the main approval requirement is that you earn more money than you spend. So it’s certainly possible to get a credit card even if you have a very low credit score or no credit score at all.

But there is a difference between getting approved for a credit card in general and getting one of the better offers.

The credit score needed for credit card approval ultimately depends on which specific card you want to get. Most of the time, credit card companies have a credit score tier they’re looking for, and applicants will need a score in the required tier (or higher) for a good chance of approval. The tiers are bad, fair, good and excellent.

The thing is, credit cards require scores that are a bit higher than the traditional minimum for each tier in the overall credit score range, according to WalletHub’s research. So for each credit tier, you can see a “traditional” score range and a “WalletHub recommended” score range below.

Here is the credit score needed for a credit card at each level:

 One way to estimate your credit card approval odds is to check for pre-approval. Many major issuers will allow you to check for free. It won’t hurt your credit score. And you’ll get a pretty good idea of your chances. Plus, if you’re not sure what your score is yet, you can check your latest credit score for free on WalletHub. You’ll also get personalized credit card recommendations with high approval odds.

Just remember that having a qualifying credit score does not guarantee credit card approval. The credit card application process takes many other factors into account. Payment history, existing debt and income play big roles, too.

Credit card companies are the banks and credit unions that issue credit cards to consumers and small business owners. Credit card companies also service cardholders’ accounts by billing for purchases, accepting payments, distributing rewards and more.

See the Best Credit Cards of 2021

Credit card networks play a different role. They dictate where credit cards can be used, facilitate payment processing at the point of sale and administer secondary credit card benefits, such as rental car insurance, travel insurance and extended warranties. The four major card networks are Visa, Mastercard, American Express and Discover. The tricky part is that two of the world’s largest card networks – American Express and Discover – also issue credit cards.

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Credit cards for bad credit help people with credit scores from 300 to 639 rebuild their credit. The best credit cards for bad credit have annual fees as low as $0, and some even give rewards equal to 1% cash back or more on purchases. Plus, all major credit cards for people with poor credit report account information to the credit bureaus each month (some offers are sponsored). That’s why using the right credit card responsibly is the best way to rebuild damaged credit.

The right credit card for most people with bad credit is going to be a secured card. Secured credit cards charge the lowest fees and offer the best approval odds. But if you need a small emergency loan, you’ll have to compare unsecured cards for people with bad credit, which tend to be pretty expensive. If you’re not sure which card to get, you can’t go wrong with one of our editors’ best credit cards for bad credit, which were selected from 1,000+ offers.
 

Best Credit Cards for Bad Credit of 2021:

• Indigo® Mastercard® for Less than Perfect Credit. Bad to Fair Credit
• OpenSky® Secured Visa® Credit Card. Bad or No Credit
• Secured Mastercard® from Capital One. No Annual Fee
• Credit One Bank® Visa® Credit Card. No Deposit
• Discover it® Secured Credit Card. Secured 

Below, you can learn more about these and other credit cards for bad credit. You can also check your latest credit score for free on WalletHub and then track your improvement over time with free daily updates.

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Credit cards for no credit offer high approval odds to people with limited credit history, even if you’re a total newcomer with no borrowing experience. Plus, all major credit cards for people with no credit will make everyday spending safer and more convenient as well as help you build a good credit score (some cards are from WalletHub’s partners). And the best no-credit credit cards can help you save along the way, thanks to $0 annual fees and even some rewards. To help point you in the right direction, WalletHub’s editors compared all the credit cards for people with no credit in our database of 1,000+ offers. You can check out their favorites below.
 

Best Credit Cards for No Credit

• Discover it® Secured Credit Card - No Credit or Bad Credit
• Capital One QuicksilverOne Cash Rewards Credit Card - No Deposit
• OpenSky® Secured Visa® Credit Card - No Credit Check
• Capital One Platinum Credit Card - No Annual Fee
• Petal® 2 Visa® Credit Card - Cash Back
• Deserve® EDU Mastercard for Students - Immigrants & International Students
• Journey Student Rewards from Capital One - Students with No Credit

Responsibly using a credit card for people with no credit is the best way to build credit from scratch. That’s important because your credit standing affects the loan terms you get, the insurance premiums you pay and your ability to rent an apartment, buy a car or even work in certain jobs.

Using a credit card doesn’t have to be risky, either. You don’t even need to spend any money to benefit. Simply having an open credit card account that’s in good standing will send positive information to the major credit bureaus every month. So if you don’t think you’ll be able to pay your bill on time every time, just lock your card in a drawer.

Below, you can learn more about the best credit cards for people with limited credit history, including the easiest credit cards to get with no credit, and how to use them.

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Instant credit card approval and use is rare. Instant approval is always possible when you apply for a credit card online or in person, but only American Express provides an instant credit card number with every card they offer. The instant credit card number allows you to use the account before your physical card arrives. With other issuers, you could get instant credit card approval and a card number to use right away but only for specific transactions. If a store invites you to apply for their card, they will often approve you instantly and let you use your card for purchases in their stores the same day.

Some credit card issuers don’t offer any instant use credit cards. Others have only a few. Each issuer has their own restrictions for when you can get instant use.

Instant Credit Card Approval and Use by Issuer:

• American Express: All cards have the potential for instant credit card numbers, but only if you apply online. If you are approved instantly, you will have a short amount of time to write down your account info. If you don’t, you have to wait for your card by mail.
• Bank of America: You can instantly use the Alaska Airlines Credit Card to book a flight through Alaska Airlines if you apply online and are instantly approved.
• Barclays: If you apply for the Uber Visa through the Uber app and are approved, you can immediately use the card for Uber purchases as it will be linked to the app.
• Blispay: If you are approved for the Blispay Visa, you will be able to access and use a digital version of your card right away. You can use it online or at any store that is set up to accept digital Blispay cards. You will also get a physical card by mail.
• Capital One: You can see account details for any Capital One card through its mobile app, even cards you’ve just been approved for. However, you must have an existing Capital One card account for this to work. You can’t do it for your first card. Also, this feature only appears on some accounts, not all.
• Chase: You can instantly use the Southwest Rapid Rewards Credit Card and United Credit Card. But this is only if you book a flight through the airline website and apply for the card during checkout. If you’re approved, you can pay for that flight only with your card before it comes.
• Citi: You can only get instant use for the Costco Anywhere Visa. If you apply in store and are approved right away, the representative will give you a temporary code to scan at checkout. It functions as your card until the card arrives.
• Discover: There are no options for instant credit cards to use right away.
• First National Bank of Omaha: You can get an instant number with an M Life Rewards Mastercard, but only if you apply in person at an MGM resort M Life Rewards Desk. You can only use it on MGM properties until you get your physical card.
• Synchrony: If you’re instantly approved for a Synchrony-issued store card, you may receive an instant number or at least be able to complete your purchase using the card.
• USAA: You can instantly use any USAA credit card, but only for purchases made through USAA. For example, you could use it for USAA auto insurance. But any purchases outside USAA have to wait until you get the card.
• U.S. Bank: There are no options for instant credit cards to use right away.
• Wells Fargo: There are no options for instant credit cards to use right away.
• Store Cards: You can also ask your favorite retailer if their store card works instantly after you’re approved. Some stores such as Target will issue a temporary store card that you can use right away.

Even if you’re not able to find a credit card that will approve you instantly and give you an instant credit card number for immediate use, don’t despair. At most, a credit card will only take 7-10 business days to arrive after you’re approved. And many credit card companies provide expedited delivery for a small fee or sometimes even for free.

The best credit cards to build credit with charge low annual fees, accept applicants with limited or bad credit, and report to the credit bureaus monthly. Using a credit card responsibly is the best way to build credit, as on-time payments add a track record of positive credit history. Unlike loans, credit cards can also be free to use if you get a card with no annual fee and pay the bill in full every month.
 

Best Credit Cards to Build Credit

• Discover it® Secured Credit Card: Bad Credit
• Credit One Bank® Visa® Credit Card: No Deposit
• OpenSky® Secured Visa® Credit Card: After Bankruptcy
• Capital One QuicksilverOne Cash Rewards Credit Card: Rewards
• Bank of America® Cash Rewards Credit Card for Students: College Students
• Capital One Platinum Credit Card: No Annual Fee

There are two main types of credit cards to build credit with: secured credit cards and unsecured credit cards for people with limited or no credit. A student credit card may also be an option if you’re in college. We recommend seeking out the cheapest offer that you can get approved for. Your goal at this stage should be to start building your credit as soon as possible. If you’re looking for a card to rebuild your credit with, check out the best credit cards for bad credit.

This content is not provided or commissioned by any issuer. Opinions expressed here are the author’s alone, not those of an issuer, and have not been reviewed, approved or otherwise endorsed by an issuer. Please keep in mind that while some offers may come from WalletHub advertising partners, sponsorship status played no role in card selection.

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