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.

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.

An APR on a credit card basically shows how much interest a balance will accrue over the course of a year. For example, a $1,000 balance on a card with a 25% APR would grow to about $1,250 in 12 months.

The APR on a credit card is not its interest rate, however. When you carry a balance from month to month, interest is assessed on a daily basis. A credit card’s interest rate is therefore its APR divided by 365 (days in a year). So a card with a 25% APR charges interest at a 0.068% daily rate. Furthermore, given that interest charges from one day become part of the balance accruing interest the next day, your effective APR (EAPR) will always be a bit higher than the advertised, or nominal, APR. For example, the effective APR on a card with a 25% nominal APR would be about 28.39%.

You can read more about credit card APRs and how interest works from WalletHub’s guides on the topics.

There is no right answer for how many credit cards you should have or how many credit cards is too many. The specifics differ from person to person, depending on how well an individual can manage one credit card, then two credit cards, and so on. So while three credit cards could be too many for one person, someone else might be able to comfortably manage seven. But that’s about where most people draw the line. The average adult has 5.6 credit cards, including 3.1 cards that can be used anywhere and 2.5 store cards. 

Having several credit cards can help you save more money by allowing you to get the best collection of rates and rewards for your biggest transactions. And it can help your credit score if you keep your utilization low and your payments on time. But what you should watch out for is applying for too many cards too quickly. It’s best to not apply for more than one per year, or six months, as each application puts a hard inquiry on your credit report and temporarily hurts your score. 

Here’s what determines if you have too many credit cards:

• Your credit report and score. If you have a history of financial mistakes, such as missed payments or worse, you should be careful about overdoing it. Besides, it may be hard to get too many cards worth having if you have damaged credit. 
• Your utilization and payment history. You don’t want to rack up more debt than you can comfortably afford to pay, or you risk carrying large balances and wasting lots of money on interest. And if you’re maxing out all the cards you have, credit card companies probably won’t want to give you additional spending power. 
• Company rules. Some issuers have unofficial rules regarding how many credit cards is too many for an applicant to have and still get approved for a new one. This could be an overall card limit or based on how many existing accounts you have with the issuer you’re seeking a new card from. There are lots of rumors floating around that Chase does this, for example.
• You’re having trouble keeping track. Even if your credit is good and you’ve been keeping your payments current, at some point it may be hard to manage all your open accounts. 

While we can’t tell you for sure how many credit cards you should have, the more data that’s at your disposal, the easier it will be to make that decision. WalletHub can help with free daily credit score updates and personalized credit-improvement advice.

Applying for a credit card does hurt your credit score, but only temporarily. Any time you apply for new credit, whether that’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 and can cause a dip in your score for up to 12 months. In most cases, your score should only drop a few points and rebound within 3-6 months. But if there are numerous hard inquiries added to your report in a short period of time, the damage will be greater and last longer. 

And if you’re worried that applying for a new credit card will hurt your credit, there are ways to minimize the damage.

What you should know about applying for a new credit card:

• The fewer credit accounts you have and the shorter your credit history is, the more a hard inquiry will affect your score.
• It doesn’t matter whether the hard credit pull results in a denial or acceptance. The inquiry will cause some slight damage either way.
• The more hard inquiries there are within a short timeframe, the more your score will fall.
• If you’re worried about inquiries hurting your score, it makes sense to time them so as to immediately precede your application for a mortgage or auto loan.

While applying for a new credit card does hurt your credit score, it’s usually not enough of a drop to worry about. Using your new card responsibly should quickly help your score recover and 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 another important loan application.

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 are financial instruments that offer access to a line of credit that can be used for purchases, balance transfers or cash advances. When you use a credit card, you’re borrowing money from the issuer to make the transaction, and then repaying that loan at the end of each billing cycle, either in part or in full. You should pay your bill in full each month to avoid being charged interest. If you can’t pay your balance in full, at least make the minimum payment required. Interest will still be applied to the remaining balance, but you won’t damage your credit score.

Many credit cards also 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. Credit cards offer short-term loans 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.

Generally, credit cards with the best rewards, rates, and benefits go to people with high credit scores and little-to-no debt. Essentially, the most proven and creditworthy individuals get the best credit cards. But if you’re new to credit, credit cards are the best credit-building tools around. Even if you never use the card to make purchases, the issuer will report positive information to the credit bureaus every month. And it’s very easy for someone with no credit to get a card, especially a secured card where your credit limit is based on how much you put down as a security deposit.

How Credit Cards Work:

• Credit cards allow users to buy now and pay later, even over the course of months.
• If cardholders don’t pay their full balance by the due date each month, interest charges are added to the balance each day.
• Credit cards allow cardholders to build credit, unlike debit cards. Having good credit is extremely important when it comes to renting an apartment or buying a home, and can get cardholders better rates on things like insurance and mortgages.
• Some credit cards reward cardholders for making purchases. Some cards charge annual membership fees.
• Credit card approval depends on an applicant’s overall creditworthiness. Credit history, income and debt obligations are important factors.

Now that you’ve been introduced to credit cards in general, it’s time to get better acquainted with the various types of credit cards that exist, the ways in which they could cost you if you’re not careful, and why you really should get one at the end of the day. You can find all of that and more below.

Types of Credit Cards

There are well over 1,000 credit card offers on the market right now. That might seem overwhelming, but credit cards can be grouped into several categories that make them more digestible.

• Cash Back Credit Cards

Cash back credit cards reward users by returning a certain percentage of each purchase made. You can then redeem the cash back that you earn for credits toward your card’s bill, paper checks, bank account deposits, or gift cards for your favorite stores. The options vary by card.

• Travel Rewards Credit Cards

Travel rewards credit cards offer points or miles on purchases that you can then redeem to pay for recent travel expenses and/or future trips. Some travel credit cards are affiliated with specific airlines, hotels or other travel companies. Others give rewards that work equally well for all travel.

• Business Credit Cards

Business credit cards can only be used for business purchases and are only available to business owners or other company representatives. They usually reward users with cash back or travel miles, often providing bonus rewards in purchase categories popular with the business community. Business credit cards also come with benefits particularly useful to business people, like airport lounge access and helpful expense tracking tools.

• Student Credit Cards

Students with limited or no credit history can get better credit cards than their lack of experience would otherwise merit. Credit card issuers recognize that college graduates are likely to earn more in their lifetime than non-graduates. Students also tend to be relatively young. That is a combination that could lead to years and years of highly profitable banking needs for a financial institution that gets in early to fulfill.

• Secured Credit Cards

Secured cards require a security deposit, which then acts as your credit limit (the amount you can spend on your card). Since you can only spend as much as you’ve deposited, the risk is much less for issuers, and they’ll approve less creditworthy individuals who may not be able to get other cards. Secured credit cards can help you build credit just like any other credit card, however.

There are plenty of other ways to segment the credit card market, too, including by the credit rating required for approval. To learn more, check out WalletHub’s breakdown of all the different types of credit cards available right now.

How Does Credit Card Interest Work?

Credit card interest is charged on whatever balance you carry from billing period to billing period. Credit card interest rates are some of the most expensive interest rates you’ll come across, so it’s best to pay your bill in full each month. If you have a balance remaining after the due date, interest charges are applied immediately. Even worse, interest continues to be added on each day, and the previous day’s interest becomes part of the balance you owe interest on the next. You have to pay two consecutive bills in full to break this cycle.

If you can’t pay your full credit card bill by the due date, be sure to make at least the minimum payment. Minimum payments differ card-to-card but are usually a flat fee, like $25, or a small percentage of your balance, like 2%-3%. Making the minimum payment does not prevent interest from being charged on the remaining balance, but it does prevent you from being charged late fees and your credit score from being damaged.

For a more in-depth look at credit card interest, how it works, and mistakes to avoid, check out WalletHub’s credit card interest guide.

Credit Card Fees

An annual fee is the yearly cost of simply owning whatever credit card you have. There are plenty of credit cards with no annual fees, so it’s easy to avoid paying if that’s your priority.

There are other fees that could come into play, too. For example, late fees are assessed when you don’t pay your credit card bill on time, and are usually around $35-$38. Balance transfer fees apply when you move a debt from a credit card or loan to a new credit card account. And cash advance fees apply when you use your credit card to get cash from an ATM or bank teller. Balance transfer and cash advance fees are usually either a percentage (like 3%-5%) or a flat fee (typically around $10), whichever of those is more.

If you want to learn more, take a closer look at the most common types of credit card fees and how to avoid them.

Should You Get a Credit Card?

Yes, you should get a credit card. If you’re able to get a credit card and use it responsibly, the benefits far outweigh any potential negatives. For instance, using a credit card is the easiest way to build your credit, which is important for many things you’ll do in life. Even just having open credit cards, regardless of how often you use them, helps build credit.

Getting a credit card can be a daunting process, but WalletHub’s editors have made it easy. We’ll guide you through everything from deciding which type of credit card you should get[/url] and [url https://wallethub.com/edu/cc/how-to-apply-for-a-credit-card/25512/]how to apply[/url] for your card of choice, to what you should do if [url https://wallethub.com/edu/cc/credit-card-application-declined/25833/]your application is denied.

For personalized credit card recommendations, you can also sign up for a free WalletHub account. It’s easier than ever now to get a credit card, and with all of the great rewards and other perks to choose from, there’s little reason to wait.

Major credit cards are any cards that belong to one of the four big credit card networks: Visa, Mastercard, American Express and Discover. That’s what stores mean by “we accept all major credit cards.” A major credit card will almost always have the logo of its network displayed prominently on the front (in some cases it’ll be on the back). If a card doesn’t have such a logo, it’s likely a store card that can only be used at a specific retailer. 

Some major credit cards can also be considered more “major” than others, depending on the issuer. The 15 largest credit card companies account for more than 75% of all outstanding balances. So a Visa, Mastercard, American Express or Discover card from one of them – Chase or Capital One, for example, might fit the description of a major credit card a bit better than one from the dozens of other banks and credit unions that issue credit cards. Major-issuer credit cards are the product of large-scale operations, after all, and often provide perks to match, from an easy-to-use website and free mobile app to better rates, rewards and fees.  

Here’s what you need to know about major credit cards:

• Major credit cards are those on the Visa, Mastercard, American Express and Discover networks.
• Most U.S. merchants accept all major credit cards, although American Express lags behind the others by about 2 million locations.
• Visa and Mastercard are accepted virtually everywhere in the world, while Discover cards work in 185 countries and territories and American Express in 160+. Discover and Amex aren’t necessarily widely accepted in all the countries that take them, either. 
• American Express and Discover issue credit cards, in addition to serving as card networks. Visa and Mastercard do not. 
• Chase, Bank of America, Capital One, Wells Fargo and U.S. Bank are among the other major credit card issuers. 

When picking a major credit card to use, it’s easy to narrow your search down. If you don’t plan to travel much, any network will do. But if you’re going to use your card abroad a lot, Visa and Mastercard are the safest bets. 

By the way, it’s worth noting that Visa, Mastercard, American Express and Discover aren’t the world’s only major card networks. You’ve also got the likes of India’s RuPay and China’s UnionPay. But cards on those networks are only available to people in those countries. 

YMMV is an abbreviation for “Your Mileage May Vary.” Basically, it means one person’s experience with a product may be different from another’s.

YMMV is often used in online forums to describe credit cards…

• Whose terms vary from cardholder to cardholder;
• That don’t have clear-cut approval requirements; or
• With offers that are available only for a limited time or to certain people.

YMMV is an informal term, however. And you are unlikely to see it on any credit card company websites.