Build Credit Effortlessly With These Excellent Secured Cards From Our Partners

When selecting a credit card, consider these six key factors:

1. Credit Score and History: Your credit score influences approval and card options. Excellent credit opens doors to premium rewards.

2. Welcome Offers: Many cards provide sign-up bonuses; compare these perks, as they can significantly vary.

3. Rewards Type: Choose between points, miles, or cash back based on your spending preferences and redemption goals.

4. Rewards Categories: Opt for flat-rate rewards for simplicity or bonus categories that align with your spending habits.

5. Annual Fees: Evaluate if a card’s benefits justify annual fees; both fee and no-fee cards can be worthwhile.

6. Interest and Fees: Be mindful of interest rates and fees, especially if you plan to carry a balance or seek a low-interest card.

Considering these aspects ensures your chosen card aligns with your financial needs and spending patterns.

Credit card options cater to various financial goals, but the array can be overwhelming. To simplify, we’ve categorized them into five types:

1. Travel Credit Cards:

• Focus on earning points or miles for travel-related rewards.
• Benefits include airport lounge access, travel credits, and elite status with loyalty programs.
• Ideal for those wanting travel rewards and enhanced travel experiences.

Compare travel credit cards.

2. Cash Back Credit Cards:

• Earn cash back instead of points or miles.
• Redeem for statement credits, deposits, checks, or gift cards.
• Suitable for those prioritizing cash back over travel rewards.

3. Balance Transfer Credit Cards:

• Offer a 0% intro APR on balance transfers for a specified period.
• Useful for transferring debt and avoiding interest charges temporarily.

Compare balance transfer credit cards.

4. Credit Cards for Building Credit:

• Designed for individuals with fair, bad, or no credit.
• Includes secured and unsecured options to help build credit history.
• Ideal for those aiming to qualify for better cards in the future.

Compare secured credit cards.

5. Business Credit Cards:

• Geared towards small business owners with business-related benefits.
• Helps separate personal and business expenses for tax purposes.
• Suitable for business owners seeking perks tailored to their needs.

Getting a new credit card might have adverse effects on your credit score through two avenues:

1. Lenders conduct a hard inquiry on your credit reports, leading to a minor decrease in your credit score.
2. The introduction of a new credit card reduces the average age of your credit accounts, potentially impacting your credit score.

While hard inquiries linger on your credit report for two years, their impact on your credit score usually lasts for just one year.

TIP: Not all credit cards require a hard inquiry to open. If you are worried about hurting your credit score, consider a credit card option that does a soft inquiry instead.

Credit card issuers and lenders usually report your monthly credit usage. Therefore, it’s advisable to use your credit card regularly. This practice contributes to building your credit score and ensures the continued activity of your credit account, provided you make full and timely payments.

TIP: If you want to keep your credit utilization low while still using your credit card monthly, use your credit card as the auto-payment for small, monthly purchases like subscriptions.

Closing a credit card can harm your credit standing by decreasing your available credit, thereby elevating your debt-to-income ratio. It is generally recommended to keep accounts open unless there’s a compelling reason to close them. An example might be closing a card that imposes excessive fees.