The essential guide
What is credit card?
Choose a credit card based on how you will use and repay it. Rewards have limited value if interest or fees outweigh what you earn.
Quick path
Explore credit cardsHow it works
The basic idea
Cash back, travel, balance transfers, and credit building. Compare cards you have a real shot at. Providers evaluate eligibility and set their own terms. Your goal is to compare equivalent offers, understand the complete cost, and choose only what fits comfortably within your budget.
What to compare
- Purchase and balance-transfer APR
- Annual and transaction fees
- Reward earning and redemption rules
- Introductory offer expiration
When it may make sense
- You can repay purchases predictably
- Benefits match regular spending
- You understand the post-promotion terms
Risks and watchouts
- Overspending to earn rewards
- Deferred or promotional interest
- Foreign, balance-transfer, and cash-advance fees
What to prepare
- Typical monthly spending
- Expected repayment pattern
- Existing balances to transfer
- Credit range
Common questions
How many cards should I apply for?
One at a time. Each application is a hard inquiry, and several in a short window looks like distress to an underwriter.
Are balance transfers worth it?
They can be, if you will clear the balance inside the promotional window. Factor in the transfer fee, typically 3% to 5%, and what the rate becomes afterward.
Does closing a card hurt my score?
It can, by lowering your total available credit and eventually shortening your average account age. Keeping a no-fee card open is usually the simpler choice.