Compare 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. 

It can take anywhere from less than a minute to a few weeks to get approved for a credit card. The amount of time depends on how you apply, how good your credit is relative to the requirements of the card, and whether the issuer can immediately verify your information. You could be instantly approved if you apply online and are obviously qualified. But if you don’t get instant approval, it’ll typically take at least 7-10 business days to hear back.

Here’s what affects how long it takes to get approved for a credit card:

• The way you apply. You can apply for most credit cards by mail, by phone or online. If you apply by mail, that’s going to add an extra 1-7 days just for your application to get there. The other two methods both allow for instant approval.
• Your credit and income. No credit card guarantees instant approval. You’ll only get it if you exceed the issuer’s credit, income and other requirements. If you’re right on the border of qualifying, the issuer will probably take longer to consider your application. The typical wait time is 7-10 business days, which translates to around two weeks.
• Your personal info. You’ll need to enter details like your name, date of birth, address and Social Security number when you apply for any card. That information also is present on your credit reports, which the issuer will check during the approval process. If the information on your application doesn’t match the information on your report, or if it gets flagged as fraudulent, it will hold up the process until the issuer can verify your identity.

So the standard timeframe in which you can expect to be approved for a credit card and receive it by mail is approximately 3-4 weeks. If you’re not approved instantly, count on 7-10 business days for approval and 7-10 business days for delivery. And if you’re itching to get your card faster, don’t forget to ask the issuer about expedited delivery.

The most important things to look for in a credit card are meetable approval requirements, a low annual fee and either generous rewards or a low introductory interest rate. But what exactly you’ll need to look for in a credit card depends on both your credit standing and personal preferences. Step one is getting approved, so you’ll want to look for a card that requires a credit score equal to or lower than yours. If you have bad credit, your best bet is a secured credit card. Otherwise, you need to decide whether to focus on rewards or low interest rates because most credit cards are better in one category or the other. You should go for rewards if you plan to pay your bill in full each month and low rates if not.

Those are the most important factors to consider when shopping for a credit card, as they’ll help you get approved for a great deal. But there are other aspects worth evaluating, too, including merchant acceptance, regular APRs, benefits like rental car insurance and more.

Here’s what to look for in a credit card:

• Approval Odds. Check your credit score, then compare it to a card’s approval requirements. If a card asks for good credit, you’re unlikely to get approved with fair or bad credit, for example. And if you have excellent credit, just about any card on the market is within your reach.
• Rewards. You can focus on rewards if you plan to pay your bill in full each month, as interest won’t be a concern. There are several types of rewards to choose from: cash back, points and miles.
• Introductory Purchase Interest Rates. You might want to make a big-ticket purchase that will take a while to pay off. In that case, a 0% APR credit card is best because you’ll owe no interest for a certain number of months after account opening. But such cards usually don’t have rewards, so they aren’t good for everyday spending.
• Introductory Balance Transfer Interest Rates. If you already have high-interest debt, you’ll want a 0% balance transfer credit card. Just don’t forget to consider balance transfer fees when comparing offers. Make sure not to overlook the regular APR, either. It will apply to any balance remaining when the low-interest intro period ends.
• Regular Interest Rates. A card’s regular APR only matters if you carry a balance from month to month. And it’s best not to do so without a low intro APR because regular rates are very expensive.
• Annual Fee. This is the most important credit card fee to watch out for. Some credit cards are worth paying an annual fee to use. Others aren’t. And there are lots of really good credit cards with no annual fee, too. 
• Foreign Transaction Fee. If you plan to travel internationally or make online purchases through merchants based abroad, you’ll want to avoid these fees. A no foreign transaction fee credit card can save you up to 9% on international transactions, thanks in part to low credit card currency conversion rates.
• Other Fees. Credit cards charge fees for things like late payments and cash advances. But you shouldn’t seek out cards that lack such fees because it’s best to just avoid the transactions that trigger them.
• Usability. Mastercard and Visa are accepted by more merchants than Discover and American Express, both in the U.S. and abroad. The gap is bigger internationally, though. On the other hand, store credit cards only work at certain retailers, rather than wherever one of the four major card networks is accepted.
• Secondary Benefits. Rewards aren’t the only thing you can get out of your card. There are plenty of extra perks offered by issuers and their networks, including purchase protection, extended warranties and travel insurance. These benefits matter, but you should look at them as secondary to other categories.
• Reviews: You don’t need to base your evaluation entirely on what other people say, but it’s good to consider the opinions of both experts and people who own various cards. On most card pages on WalletHub, you’ll see a rating and a review by our editors. You can also check out what other users have to say about each card, along with an average user rating.

WalletHub makes it easy to compare hundreds of credit card offers in seconds. But if you don’t feel like looking for all of this in a credit card yourself, you can get personalized recommendations for credit cards with high approval odds and lots of savings potential by signing up for a free WalletHub account.

There are many advantages and disadvantages of credit cards, but the advantages largely outweigh the disadvantages because bad outcomes are easily avoidable. Credit cards are a convenient way to build credit, finance purchases, convert currency and more. But they can also lead to expensive debt if used irresponsibly, and that could lead to costly credit score damage. There are plenty of other good and bad things to be said about credit cards when you really put them under the microscope. So let’s dive into some of the biggest pros and cons.

Here are the biggest advantages of credit cards:

• Credit building. Credit card issuers report your account details (utilization, payment, etc.) to major credit bureaus every month. This gives you a regular opportunity to add positive information to your credit reports, which will improve your credit standing. You can even benefit simply by opening a credit card and locking it in a drawer.
  Having a positive credit history will make a lot of your biggest decisions in life go smoother. You’ll more easily be able to purchase a car or a home, and you may even have better employment chances.
• Convenience. If you have a credit card, you don’t need to worry about carrying lots of cash at all times. Most merchants accept credit cards. And unlike cash, credit cards are easily replaceable and give you a $0 liability guarantee for fraudulent transactions. They also allow you to make purchases now and pay later.  
• Rewards. Credit cards often reward you for buying things by giving you cash back, miles or points. This can lead to savings on trips, merchandise, gift cards or your credit card bill in the future.
• Benefits. Credit cards usually come with some benefits built into them for no extra cost. For example, you might get insurance for car rentals and accidents while traveling. You might get purchase protection to replace damaged or stolen items you bought with your card. And your purchases could receive extended warranties, among other perks that vary card to card.
• Currency conversion. Using a credit card is the cheapest way to convert your money from U.S. Dollars to another currency. Just make sure the card you use has no foreign transaction fee.

Here are the biggest disadvantages of credit cards:

• Easy to overspend. Since you’re not using physical money or a checkbook and don’t have to pay right away, credit card purchases may not feel quite as expensive when you make them. So it’s easy for balances to get away from you if you’re not careful. One of the best ways to avoid overspending with a credit card is to use the Island Approach. That means using one credit card for nothing but everyday purchases that you should be able to pay off by the due date every month. If interest charges ever show up on that account, it will mean you’ve been overspending.
  If you have a credit card balance that you’re carrying from month to month, or you’re planning to make a purchase that will lead to one, you should use a separate card for that. This will help you get the best collection of credit card terms, save more money and avoid spending too much. Making a budget and tracking your spending to keep yourself honest is a wise idea, too.
• High interest rates. If you don’t pay your balance in full by the due date, you will have to pay interest to the credit card company. And those interest charges will accrue at a very high rate. The average interest rate for all new credit card offers is 18.78%. The more interest charges you rack up, the higher your minimum monthly bill payments will be. And missed payments can lead to even more costly penalty rates as well as credit score damage.
• Fraud. Fraudsters couldsteal your credit card number and make purchases in your name. But so long as you report any such transactions, you won’t have to pay for them.
• Confusing terms. Credit card terms and conditions aren’t always the easiest to understand. In some cases, people end up being surprised by certain interest rates, charges or limits because the credit card company presented them in a confusing manner.
  The best way to avoid such a fate is to do your research when choosing an account. Focus on the types of things that are likely to affect you most, based on how you plan to use the card. WalletHub has also done lots of research on the credit card market, including a complete breakdown of the various benefits each major credit card issuer offers with its cards. Hopefully, that will help you better understand what you’re getting into.
• Multiple ways to hurt your credit. It’s not just missing payments that will hurt you. Applying for a card causes your score to dip temporarily, and using over 30% of your credit line is also bad for your credit. But setting up automatic monthly payments from a bank account, not applying for a new account in the months leading up to mortgage shopping, and either spending less or paying your bill more should help you avoid negative outcomes.

You should get a credit card. It will make everyday spending more convenient and can help you improve your credit standing. But at the same time, you should be aware of the drawbacks and sure to protect yourself. As long as you spend reasonably, pay off your purchases, check your credit report and score often and keep your utilization at a good level, you should benefit greatly.

“Too many” credit cards could be anywhere from 2 to 5 or more, depending on the individual. Everyone should have at least 1 credit card for credit-building purposes, even if they don’t use it to make purchases. But it’s hard to say exactly how many credit cards is too many because the number of cards you should have differs from person to person. It depends on how well you can manage 1 credit card, then 2, and so on.

So while 3 credit cards could be too many for one person, someone else might be able to comfortably manage 6. The average adult has 4 credit cards, according to a 2019 Experian report.

If you’re not sure how many credit cards is too many for you, there are a number of factors you can think about when making your decision. In particular, consider your recent spending and payment history. If you’re having trouble paying the full statement balance by the due date on each account you already have open, think twice about applying for another credit card account.

How to determine how many credit cards is too many for you:

1. Look at your credit report and score. If you have a history of financial mistakes, such as missed payments, you probably don’t want to get more than one card until you prove yourself to be a responsible borrower. Besides, it may be hard to get more than one worthwhile cards with damaged credit, anyway.
2. Review your utilization and payment history. If you’re maxing out all the cards you have, credit card companies probably won’t want to give you more spending power. Plus, credit card debt can be very expensive, and you don’t want to rack up balances that exceed what you can repay comfortably.
3. What does the credit card company think? Some issuers have unofficial rules regarding how many credit cards is too many for an applicant to have. If you have too many cards – either overall, or with that specific card issuer – they may deny your application. There are lots of rumors floating around that Chase will deny a credit card application if you have too many credit cards, for example.
4. Determine how well you’re keeping track of your credit cards. Even if your credit is good and you’ve never forgotten to pay a bill, that doesn’t mean you never will. Having too many open accounts to keep track of can lead to forgotten due dates, interest charges from simply forgetting to pay a credit card in full, and other issues. If you have trouble listing your credit cards from memory, you’re likely to forget to pay one at some point.

There are benefits to having more than one credit card account. Having several credit cards can help you save money by allowing you to get the best collection of rates and rewards for your biggest transactions. For example, you could get a flat-rate cash back credit card for everyday expenses, a bonus rewards card for travel, and a balance transfer card to reduce the cost of existing debt. Having multiple cards can also help your credit score if you keep your utilization low and your payments on time.

What you should watch out for is applying for too many credit cards too quickly. It’s best to not apply for more than one or two per year, as each application puts a hard inquiry on your credit report and temporarily hurts your credit score.

The more data that’s at your disposal, the easier it will be to decide how many credit cards you should have. WalletHub can help with free daily credit score updates and personalized credit-improvement advice.

The best home improvement credit card is the Capital One Quicksilver card because it offers a 0% APR for 15 months and 1.5% cash back on purchases. Plus, there’s a $150 bonus for spending $500 in the first 3 months. By using this card for home improvements, you’ll have over a year to pay back a costly project and will recoup some of the expense through rewards.

If you’re looking to buy everything in one place, the best home improvement store credit cards are the Lowe’s Store Card (5% back on all purchases) and the Home Depot Credit Card (0% deferred interest for 6-24 months). Both offer special financing, but it’s not as good as the 0% APR for 20 months available from the U.S. Bank Visa Platinum card.

Here are the best home improvement credit cards:

• Capital One Quicksilver: 0% APR on purchases for 15 months. 1.5% cash back on all purchases. $150 bonus when you spend $500 in the first 3 months. $0 annual fee. Good credit needed.
• U.S. Bank Visa Platinum: 0% APR on purchases for 20 months. No rewards. $0 annual fee. Excellent credit needed.
• Citi Double Cash: 2% cash back on all purchases, 1% when you buy and 1% when you pay your balance. $0 annual fee. Good credit needed.
• Lowe’s Store Card: 5% off all Lowe’s purchases OR 0% deferred interest for 6 months on purchases of $299+. Equal monthly payment financing of 3.99%, 5.99% or 7.99% for 36, 60 or 84 months respectively on purchases of $2,000+. $0 annual fee. Fair credit needed.
• Home Depot Credit Card: 0% deferred interest for 6-24 months, depending on the amount spent. $0 annual fee. Fair credit needed.
• Amazon.com Credit Card: 3-5 points per $1 on all Amazon purchases, including tools, other home-improvement supplies and decor. $50-$70 gift card after approval. $0 annual fee. Good credit needed.

If you choose to go with a store-branded home improvement credit card, beware of deferred interest. While it might let you go a long time without paying interest, it’s dangerous. You only owe no interest if you pay in full by the end of the 0% APR period. If you don’t pay in full, you owe all the interest you would have been charged during the intro period if the regular APR had been in place.

Cards like Quicksilver, which have true 0% APRs, only charge interest on any remaining balance after the 0% APR ends.

Applying for a credit card does hurt your credit score, but your score should only drop a few points and rebound within 3-6 months if you use your credit card responsibly. The longest the hard inquiry from a credit card application can affect your score is 12 months. After that point, it will still be visible on your credit report for another year but will have no influence on your score.

Pretty much any time you apply for new credit, whether it’s a bank loan or a credit card, the lender does a hard inquiry into your credit history. The inquiry stays on your credit report for two years, but the more responsible you are as a borrower, the sooner your score will turn around. If there are numerous hard inquiries added to your report in a short period of time, however, the damage will be greater and last longer than it would otherwise.

You can see exactly how much applying for a credit card is likely to hurt your credit score by trying out WalletHub’s free credit score simulator. Just remember that even though applying for a credit card may hurt your credit score, that shouldn’t necessarily stop you from doing it. There are ways to minimize the damage and make sure that a temporarily hurt credit score doesn’t actually hurt your wallet, which you can learn more about below.

How applying for a credit card affects your credit score:

• Applying for a credit card usually causes your credit score to drop by a few points for 3-6 months.
• Nearly all credit card applications result in a hard credit inquiry, which can affect your credit score for 12 months and stay on your credit report for up to 2 years.
• Applying for numerous credit cards in a short period of time will hurt your credit score more than a single application.
• The fewer credit accounts you have and the shorter your credit history is, the more a hard inquiry will affect your score.
• Applying for credit can hurt your score whether you get approved or denied.
• Some secured credit cards don’t check your credit when you apply, which means there is no hard inquiry. But your credit score may still dip slightly after opening an account, as new cardholders need to demonstrate they can manage the added responsibility.
• Temporary credit score damage from a credit card application does not have to cost you money. Just wait until your score recovers before using it again for something important – like applying for a mortgage or auto loan.
• Your credit score will recover faster from a credit card application if you pay all your bills on time and keep your balances well below your credit limits on your credit card accounts.

While applying for a credit card does hurt your credit score in most cases, it’s usually not enough of a drop to worry about. Using your new card responsibly should help your score recover quickly and then go higher than it was before. You just don’t want to apply for several new cards at once or risk a hard inquiry right before an important loan application.

You can monitor how applying for a new credit card ends up affecting your credit score by signing up for a free WalletHub account and getting free daily credit score updates. You’ll also get personalized recommendations for the best credit cards to apply for.

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.

A credit card is about 3.375 inches long and 2.125 inches wide. You won’t find cards that deviate from these internationally accepted standards, so your card should easily fit in any wallet. A credit card has a thickness of 0.03 inches and a weight of about 5 grams if it’s plastic and up to 28 grams if it’s metal.

But there are a number of non-literal ways you could answer this question, too.  It’s good to know how long a credit card number is, for example, along with how long it takes to get a card, how long billing cycles last and how long a card is valid for. So we’ll do our best to address all the biggies.

Here’s how long a credit card is (in many ways):

• How long is a credit card in inches? Approximately 3.375 inches long.
• How long is a credit card number? Usually 16 digits but can be as few as 14 and as many as 19.
• How long does it take to get approved for a credit card? After you submit your application, you can get a response as soon as instantly, but it might take up to a month in some cases.
• How long does it take to get a credit card by mail? Typically 7-10 business days after approval, but many issuers let you pay for expedited delivery. 
• How long is a credit card billing cycle? Around a month, but usually ranging from 25-31 days. You can see where your cycle starts and ends on your statement.
• How long is a credit card valid for?Through the end of the month in the expiration date listed on the card.  

Credit cards aren’t too long in a physical sense, but they can take a while for approval, delivery and credit building. If you want advice on the best credit card for you, join WalletHub for free to get personalized credit card recommendations, along with daily updates to your credit report and score. 

Credit cards work based on a buy-now-pay-later arrangement with the cardholder, with fees and interest supporting the cost of lending. When you use a credit card to make a purchase, you’re borrowing money from the credit card’s issuer to complete the transaction, and then repaying the amount at the end of the billing cycle, either in part or in full. By paying the bill in full each month, you’re essentially borrowing money for free, because you will be avoiding interest charges. If you can’t pay your balance in full, at least make the minimum payment required by the due date. Interest will be applied to the remaining balance, but you won’t damage your credit score.

Credit cards also work for transactions other than purchases, including balance transfers and cash advances, which have the potential to be even more profitable for issuers. Balance transfers give people the chance to repay existing debt with a lower interest rate, for a fee – usually 3% to 5% of the transferred amount. Cash advances let you withdraw cash from your credit line, but a high fee and interest rate apply right away.

How Credit Cards Work:

• Credit cards allow users to buy now and pay later, even over the course of months.
• Credit cards enable cardholders to build credit, unlike debit cards.
• Some credit cards reward cardholders for making purchases. Some cards charge annual membership fees.
• If cardholders don’t pay their full balance by the due date each month, interest charges are added to the balance each day.
• Credit card approval depends on an applicant’s overall creditworthiness. Credit history, income and debt obligations are important factors.

How Credit Card Rewards Work

Many credit cards reward cardholders with cash back, points or miles for every purchase made. Plus, the best credit cards often come with signup bonuses that cardholders can earn after meeting a minimum spending requirement in the first few months. Some credit cards offer low introductory interest rates, too.

This isn’t charity, though. Credit cards offer short-term borrowing and give rewards because it’s profitable for credit card issuers. If a cardholder decides to pay off a credit card balance over time, they’ll have to pay interest. And if they have the chance to earn rewards, they’re likely to spend more than they would otherwise.

Building Credit with Credit Cards

Generally, the credit cards with the best rewards, rates, and benefits go to people with high credit scores, a lot of income, and little-to-no debt. But if you’re new to credit, credit cards are the best credit-building tools around. As long as you use the card responsibly and pay the bill on time every month, or never make purchases with the card at all, the issuer will report positive information to the credit bureaus each month. Plus, it’s very easy for someone with no credit to get a credit card, especially a secured card where your credit limit is based on how much you put down as a security deposit.

Learn More About How Credit Cards Work

Now you know how credit cards work, in a nutshell. That said, many of the finer details of credit cards – including all the types of credit cards available and how credit card interest works – don’t exactly fit in a nutshell. That doesn’t make them any less important to learn about, however, especially if you’re considering getting a credit card for the first time.