See the best alternative cards for no credit for If you're a beginner to credit cards, see our step-by-step guide to choosing a credit card. It starts by helping you figure out what cards you can qualify for, then walks you through deciding what kind of card best fits your needs. The process in short:. Check your credit. The higher your credit score, the more likely you are to qualify for the best cards. NerdWallet offers free access to credit scores.
Decide on a broad card type. If your credit score needs work, get a card designed for building or mending credit. Otherwise, choose between a card that will give you rewards for your spending or one that will save you money on interest. Narrow your choices. If you want a rewards card, do you prefer cash back or points, and how much effort are you willing to put into managing your rewards? Do you need to do a balance transfer? Are you a student or a business owner who could benefit from a specialized card?
Apply for a card that gives you the best overall value. Every credit card delivers value in its own way, through its own unique combination of features. And there are trade-offs involved.
If you want rewards, for example, you'll probably have to accept a higher interest rate. If you want high-value perks, you'll likely pay an annual fee. If you want a low interest rate and no fees, you shouldn't expect much else from the card. Here are the main points of comparison when looking at credit cards. Some people are dead-set against paying a fee just for the privilege of carrying a credit card. But paying an annual fee is worth it in certain circumstances.
For example:. To earn significantly better rewards rates. To unlock valuable perks, such as airport lounge access or free checked bags. To get a card when you might not otherwise be able to, such as by avoiding a credit check. With any annual fee, the math comes down to whether the value you get from the card exceeds the dollar amount you pay. Still determined not to pay? See our best credit cards with no annual fee of Depending on what you plan to do with the card, you'll want to take these other fees into account:.
Balance transfer fee. This is a charge you pay to move debt from one card to another. See our best credit cards with no balance transfer fee of Foreign transaction fee. If you travel internationally, getting a card that doesn't charge this fee is a must.
See our best credit cards with no foreign transaction fee of Cash advance fee. Using your credit card to get cash is expensive. You'll usually pay an upfront fee, the interest rate for cash advances is often higher than for purchases, and in many cases, grace periods don't apply to cash advances, so you start paying interest on them immediately.
A few cards don't charge a fee for cash advances. Some cards don't allow advances at all. Late fees and returned-payment fees. These fees can be steep, but they are avoidable. Most cards charge them, but some do not. Credit card companies drum up business by offering people with good credit a low introductory interest rate.
The ongoing rate is what you pay after any introductory rate expires. Some cards charge a single rate for all cardholders; others allow for a range of rates depending on your creditworthiness. In general, the better your credit, the more likely you are to qualify for a low rate.
That said, if you pay your balance in full every month, your interest rate doesn't actually matter because you're never charged interest. Ongoing credit card interest rates are usually identified as "variable. Most rates are tied to the prime rate, which is the rate that big banks charge their best customers. When the prime rate goes up or down , so will your card's rate.
Still, some cards offer a rate just a few points above prime. For super-low ongoing rates, your best bet is a credit union. Cash-back cards refund a certain percentage of the purchase price. Other cards give you a certain number of points or miles per dollar spent. Every card sets its own rewards structure, so apples-to-apples comparisons can be difficult.
But when comparing rewards programs, think in terms of:. Earn rate. What do you get for every dollar spent? Redemption value. How much do you get for your rewards when it comes time to use them? Redemption options. How much flexibility do you have in using your rewards? The purpose is to get you in the habit of using the card. The bonuses on many travel cards are often big enough to cover the card's annual fee for the first few years.
See our best credit card sign-up bonuses of Unlike rewards, which are what you receive for using a credit card, perks are benefits you get just for carrying a card.
With some cards, particularly travel credit cards, it may be the perks that provide the bulk of the value. Airline credit cards and hotel credit cards can easily pay for their annual fee with their perks.
A full list of potential perks would be too long to include here, but common examples include:. Lounge access. Free checked bags. Priority boarding. Elite status. Hotel benefits. Free nights. Automatic room upgrades. Free amenities. Statement credits. Automatic credit for such things as travel expenses, purchases from selected merchants or the application fee for trusted-traveler programs. Purchase protections. Extended warranties.
Protection in case of theft or damage. Price protection which refunds the difference if you find the same item cheaper elsewhere. Return guarantees. Rental car coverage.
Supplemental coverage on top of your own auto insurance policy, or even primary coverage in place of your own policy. Learn about credit card rental coverage. Cell phone insurance. Coverage in case of loss or damage. You usually have to pay for your service with your card to qualify. Credit tracking and security. Free credit score. Credit monitoring services. Ability to "lock" your card. When you're looking to build or restore credit, several features are more important for you than for people who already have good credit.
Reporting to credit bureaus. Cards that help you improve your credit when it's limited or damaged. Cards that save you money on interest. The best card for you is one with features designed to meet your specific needs. If you don't travel much, for example, then the best travel card in the world isn't going to do you a lot of good.
Student credit cards , unsecured cards meant for college students who are new to credit, are easier to qualify for than other types of credit cards.
Your deposit is returned to you when the account is upgraded or closed in good standing. A balance transfer offer could help you pay off a high-interest debt interest-free. Keep in mind that these offers may be harder to find if you have average or poor credit.
A rewards credit card is a good match for you if you pay off your balance in full every month and never incur interest. These cards typically have higher APRs, but offer larger sign-up bonuses and give you points, miles or cash back on every dollar you spend. As you go through the top picks, consider these questions.
Will this card help me build my credit? Look for a card that reports your credit card payments to the three major credit bureaus. Many secured cards don't do this. How much does it cost to open an account, including the annual fee? Unless you have very poor credit, you can likely avoid this expense. For secured cards, the lower the security deposit, the better, although your credit limit may be tied directly to how much of a deposit you make. Can I graduate to a better card later on?
Choose a card that will let you build your credit and upgrade to a card with more competitive terms. This makes it easier to leave your card open longer, boosting your average age of accounts in the long run. Look for a card that gives you enough time to pay off your debt interest-free. Does the card offer rewards? Search Credit Cards. Loans Personal Loans. Home Loans. Auto Loans. Auto Refinance My Loan. Get a New Loan. Auto Insurance. Home Buy a Home. Refinance My Loan. Home Insurance. Real Estate Agents.
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If you want to open a credit card, these are the best times to apply: You turn Credit cards require you to be 18 in order to open your own account, making it the ideal time to get a card.
Opening a card at 18 allows you to get a jump-start on building credit so you can establish a good credit history sooner rather than later. Keep in mind that you'll need to have a steady source of income to qualify. Check out the best college student credit cards. You have good credit : If your credit is in good standing, meaning you have a credit score of or greater, you're in a strong position to qualify for a credit card.
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