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.

Market Snapshot: 1,000+ Credit Card Offers

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.

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

It generally takes 7-10 business days to get a new credit card after being approved for an account. But some credit card companies offer expedited delivery for new plastic, often for free. So it’s possible to get a new credit card in as little as 1 business day, or even overnight.

To see the delivery timeframes and costs by major issuer, check out WalletHub’s guide on how long it takes to get a credit card.

Many people like specific credit card companies or card networks for one reason or another. Customer service is important to some. Others prioritize the various benefits that card networks provide. But none of that matters as much as a given card’s terms. In other words, if you get the best combination of rewards, interest rates and fees for your needs, it doesn’t really matter who issues the card or what network it’s on.

That said, there are a couple of cases in which a card’s network or issuer really is important. For starters, you should make sure to get a no foreign transaction fee credit card on either the Visa or MasterCard network if you plan to travel abroad or buy things from internationally-based merchants. Visa and MasterCard are much more widely accepted abroad than Discover and American Express. And using plastic will help you save on currency conversion.

In addition, your credit card options will be somewhat limited if you have less-than-good credit and are not a college student. Not all credit card companies offer cards to such individuals. Capital One and USAA are two of the only major issuers with cards for people across the creditworthiness spectrum.

To learn more about the reputations of major credit card companies, check out WalletHub’s latest Credit Card Customer Satisfaction Study.

The CARD Act is what's different now. This credit card law, which took effect in Feb. 2010, has dramatically strengthened consumer rights and made the industry more transparent.

Among the highlights of the law are provisions that:

• Reduce penalty fees;
• Eliminate arbitrary interest-rate increases on existing balances;
• Promote communication between issuers and consumers;
• Require fair payment allocation.

If you have specific questions about an existing credit card account, you will have to contact the card’s issuer directly. You can do so by calling the number on the back of your card. Credit card companies do provide WalletHub with information that would allow us to help with account-specific issues, such as problems with your monthly statement or logistical matters.

We still welcome any and all general credit card questions, though. You can check out credit card questions from other WalletHub users and pose your own questions to the community on WalletHub’s Answers page.

Finally, rating and reviewing your own credit cards is a great way to help answer questions that other users might have about those offers. Plus, WalletHub’s credit card finder tools get better and better the more consumers rate and write reviews for cards that they have used.

A major credit card is one on a major card network, of which there are four: Visa, MasterCard, American Express and Discover. These networks dictate where credit cards can be used and facilitate the payment process between credit card users, merchants, and credit card issuers. If you aren’t sure which network your card is on, just check the plastic. It will be listed on the front, usually in the bottom right corner.

Alternatively, any credit card from one of the largest banks or credit unions could be considered a major credit card. The label doesn’t really matter, though. What matters is finding a card with good terms for the transactions that you plan to make.