With thousands of options to choose between, picking a credit card can be a challenge. Ultimately, the best credit card to get comes down to the type of card you want, your spending habits and your credit.
Here’s what you need to know about the different credit card options that are available to help you narrow down your list, plus how to determine the right fit for you.
Types of Credit Cards
There are several types of credit cards from which you can choose. Regardless of which card you have in mind, make sure you meet its credit requirements and that its features work well with your lifestyle.
Here are common types of credit cards:
Rewards Credit Cards
How a rewards card works: Rewards credit cards offer cash back, points or miles on your everyday spending, and often also a welcome bonus.
Depending on which card you choose, you may earn a flat rewards rate on everything, a tiered rewards structure with bonus rewards on certain spending categories or rotating rewards with different bonus categories throughout the year.
Cash back credit cards often don’t charge an annual fee and may also offer an introductory 0% APR promotion, but they typically don’t offer a lot of perks. In contrast, travel credit cards are more likely to charge annual fees, but they may also offer various benefits, such as travel credits, airport lounge access, perks with your favorite airline or hotel brand and more.
Who a rewards card is best for: Consider a rewards credit card if you want to make the most of your everyday spending and can afford to pay your bill in full every month.
As you compare rewards credit cards, try to find one with a rewards structure that aligns well with your spending habits. Also, look for other features you want, and if a card charges an annual fee, make sure the benefits are worth it.
What credit score you need: The best rewards credit cards typically require good or excellent credit—meaning a FICO® Score☉ and Experian credit report and Experian credit report and Experian credit report and Experian credit report and Experian credit report of 670 or higher. However, there are also rewards cards available to borrowers with fair or even poor credit scores.
Learn more: How to Choose a Rewards Credit Card
Earn rewards for your spending
See your top credit card matches based on your credit profile and spending habits.
Get the right card to earn cash back or points on your purchases and maximize your perks.
Apply for rewards cards matched for you and that you’re more likely to qualify for.
Balance Transfer Credit Cards
How a balance transfer card works: Balance transfer credit cards allow you to move debt from one or more other credit cards via a balance transfer and pay off the balance with a 0% introductory APR for 12 to 21 months, depending on the card.
This arrangement isn’t always completely free, though. Many balance transfer credit cards charge an upfront fee—typically 3% to 5% of the transfer amount—to process the transaction. Depending on how much debt you have and how much you stand to gain in interest savings, however, it could be well worth it to pay the fee.
In many cases, balance transfer credit cards also offer rewards, providing you with long-term value after the promotional 0% APR period expires.
Who a balance transfer card is best for: A balance transfer card is an excellent fit for someone who has high-interest debt on another credit card, wants to save money on interest with a 0% intro APR promotion and won’t be tempted to run up balances on the paid-off cards.
As you compare balance transfer cards, pay special attention to the length of the promotional period, along with other features that are important to you.
What credit score you need: Generally speaking, you’ll need good or excellent credit to get approved for a balance transfer card. However, there may be some options available to fair-credit borrowers.
Learn more: Pros and Cons of Balance Transfer Cards
0% Intro APR Credit Cards
How a 0% intro APR card works: Also called low-interest credit cards, these cards typically offer an introductory 0% APR promotion, during which you’ll pay no interest on purchases for a set period—typically between 12 and 21 months.
This promotion gives you time to make a large purchase or several purchases and pay them off over time interest-free. As long as you pay the balance in full by the end of the promotional period, you won’t pay any interest. However, if you have a remaining balance by the time the promotional period is over, your leftover balance will be assessed interest based on the card’s standard APR.
These cards may also provide rewards, welcome offers and other valuable benefits.
Who a 0% intro APR card is best for: A 0% intro APR credit card is perfect for people who have one or more large expenses coming up and can’t afford to pay them off quickly.
For example, you could use one for wedding expenses, moving costs, medical bills, minor home renovations or repairs or even emergency expenses.
When comparing 0% intro APR credit cards, focus on the length of the promotional period, along with the rewards rates, welcome bonus and other features you want in a card.
What credit score you need: You’ll typically need good or excellent credit to get a card with a 0% APR promotion. That said, some student credit cards offer this benefit without requiring a credit history at all.
Learn more: What You Need to Know About 0% APR Credit Card Offers
Student Credit Cards
How a student card works: If you’re a college student, you may be able to qualify for a student credit card. These cards don’t require a security deposit and often come with perks that can help you establish good credit habits.
Who a student card is best for: Student credit cards are specifically designed for college students, and many won’t approve your application if you’re not actively attending school or planning on it.
As you shop around for a student credit card, look at the credit score requirements, rewards rates and other perks.
What credit score you need: Credit requirements can vary by card, with some requiring at least some credit history and others no credit history at all.
Learn more: How to Build Credit as a College Student
Secured Credit Cards
How a secured card works: These credit cards work almost exactly like traditional credit cards, with just one distinction: Secured credit cards require that you put up a security deposit—often equal to your approved credit limit—to get approved.
That means that if you’re willing to put down $200, you can typically get just a $200 credit limit. As you use the card and make payments, the card issuer will report the activity to the credit bureaus. Make sure any card you’re considering reports to all three credit bureaus (Experian, TransUnion and Equifax).
The best secured credit cards don’t charge an annual fee, but they tend to have higher interest rates. In some cases, you may be able to earn rewards while you work on building your credit.
Who a secured card is best for: Secured credit cards are specifically designed for people with poor credit, a limited credit history or no credit at all.
So, consider applying for one if you need some help building or rebuilding your credit history.
What credit score you need: You can typically get approved for a secured credit card with poor credit or no credit history at all.
Learn more: How to Use a Secured Credit Card
Store Credit Cards
How a store card works: Store credit cards are offered by many retailers and often will net you rewards or perks when you shop at the store that issued them. You may even get a one-time discount when you apply for the card or get approved.
Closed-loop store credit cards can only be used with the co-branded retailer, while open-loop retail cards allow you to make purchases just about anywhere.
Some store credit cards can be accessible even if your credit isn’t in great shape. However, they typically charge higher interest rates and have lower credit limits than traditional rewards credit cards.
Who a store card is best for: You could consider a store credit card if you spend a lot of money with a particular retailer and want to enjoy extra rewards, discounts and other perks when you shop there.
Alternatively, a store credit card could be worth a look if your credit is less than stellar and you want to avoid a secured credit card.
What credit score you need: Closed-loop store credit cards may be accessible to people with poor or fair credit. However, open-loop cards may have more stringent eligibility criteria, requiring good or excellent credit in some cases.
Learn more: Pros and Cons of Store Credit Cards
