A Comprehensive Guide on Choosing the Best Credit Card for You

Introduction

With so many credit cards available on the market, it’s natural to wonder, “Which credit card is best for me?” And while we’d like to give you a simple point-blank answer, the truth is that we need to get to know you a bit better first (after all, you wouldn’t want us telling you the “best snack for you” without knowing what food sensitivities you have or how your metabolism works).

By the end of this article, you’ll have a tailor-made answer to which credit card is best for you. Sound good? Let’s get started.

How To Choose the Best Credit Card for You

There’s a credit card available for just about every kind of consumer with almost any credit score.

We’re not just talking credit cards with different interest rates and fees. We’re talking credit cards that offer specialized perks and rewards — or don’t — and are designed to appeal to people from various demographics with a wide range of qualifications and desires.

Here’s how to choose a credit card that best fits your needs and situation.

Check Your Credit

Based on your credit score, you could be qualified for a better option with more attractive perks like lower fees, higher credit limits, or more rewards.

Your bank account or credit card might give you your credit score for free. You can also purchase it through one of the three major credit bureaus: Equifax, Experian, or TransUnion.

Then check your credit report so you can see where your score came from. You get one free copy of your credit report every year from each bureau, according to federal law. You can grab them from the federally authorized AnnualCreditReport.com.

There’s also a chance you have no credit score at all. This often happens with students and young adults who have never had credit before, or recent immigrants whose credit history is in another country. But you can start with a modest credit line and relatively higher rates and fees until you can establish a credit score and a positive credit history.

What Type of Credit Card Do You Need?

The best card for you is the one that suits your needs and goals. Four factors help determine your options: credit, features, rewards, and fees.

Based off credit

Now that you know where you stand on the credit score spectrum, you can choose a credit card type that fits your current credit journey.

• No credit: Choose a card designed to build your credit history, like a secured credit card where you back your credit line by allowing the creditor to hold a deposit.
• Poor or fair credit: Choose a card that’s designed to help you improve your credit score, like a credit-building card. It will likely come with a lower limit and higher interest rate, but it lets you prove you can regularly make your payments on time. You may even be able to earn points or cash back rewards.
• Good or very good credit: Choose a card that reflects your options. You can be pickier and go for higher-level points or cash back rewards, as well as enticing introductory offers like bonus cash back or a 0% APR for a limited time.
• Excellent credit: You pretty much have your pick of the litter here, so choose a low-interest card with rewards, points, or other features that matter to you.

Based off features

While many credit cards come packed with additional features these days, finding one that doesn’t provide what you want could be a dealbreaker.

Features you might look for include:

• Color and design options
• Contactless payments
• Promotional interest rates
• Automatic credit line increases
• Special discounts or rebates
• Free credit score checks
• Zero fraud liability
• Purchase protection
• Supplemental insurance
• Authorized users
• Online access or mobile app

The choice for you will depend on your goals. Are you trying to consolidate debt? Find a card offering 0% interest on balance transfers. Are you always on the go? Look for a card that comes with a highly rated mobile app.

Based off rewards

Some credit cards come with rewards, where you get something just for using the card as you spend.

There are basically three types of rewards programs:

• Cash back
• Points
• Miles

Cash back rewards are usually statement credits based on a percentage of what you spend on eligible purchases.

Some rewards will depend on the category; for example, a travel-focused card might give you 5% cash back on car rentals and airline tickets, and 1% cash back on everything else. An everyday card might give you 2% on gas and groceries.

Cash back rewards appeal to bargain hunters, coupon clippers, and anyone looking to save money by using their card.

Rewards points give you points on eligible purchases instead of “cash” in the form of a statement credit. However, these points can often be redeemed for cash back or other perks like travel and dining discounts, gift cards, and more.

Again, points often increase or decrease depending on the category. You might get additional points for retail purchases, utility bills, pet supplies, travel expenses, or dining out, depending on the card’s focus.

Points appeal to those wishing to optimize a certain spending category, like household economists, shopping enthusiasts, entertainment lovers, savvy travelers, or gourmet food connoisseurs.

Rewards miles, including airline miles or frequent flyer miles, are calculated like points. But they’re specifically focused on travel and often easily redeemed at airlines in exchange for travel distance.

Miles earned with generic mileage rewards cards can be used for air travel, travel services, merchandise, gift cards, or discounts. Miles earned with airline-branded cards are usually reserved for air travel with that specific airline or partner travel services.

Mileage rewards appeal to frequent flyers, including business owners, out-of-state students, or those who visit family often. It can also be a good choice for someone who wants to save up for a special vacation or other trip.

Based off fees

You don’t have control over every credit card fee. For example, if you don’t pay your bill on time, you’ll be charged late fees regardless. But these fees might vary based on your chosen card and your credit score.

There are also annual fees that come with certain cards. Sometimes annual fees are charged on subprime cards as insurance against the cardholder defaulting. Because, let’s face it, offering credit to someone with a history of not paying bills could turn out to be a bad gamble.

But other annual fees are charged because of additional perks that come with that card. For example, the elusive Amex “black card” (officially named the American Express Centurion^® Card) comes with a $5,000 annual fee and a $10,000 initiation fee. But the perks are substantial, and for a high roller who travels a lot, it’s totally worth it.

When choosing your card, you’ll want to consider how much you spend in the qualifying categories, and whether your rewards will add up to more than the annual fee. For example, frequent travelers might make back their annual fee on a travel card in the first 30 days, while someone who just wants a credit card for emergencies needs a lower fee.

Narrow Your Choices by Asking the Right Questions

To focus in on your options and find the card best tailored to you, ask yourself a few questions.

• How good is your credit?
• What features do you expect in a card?
• What rewards and other perks are you looking for?
• What are your spending habits?
• What shopping categories are most appealing to you?
• What are your interests and hobbies?
• What kind of entertainment do you enjoy?
• How often do you travel or dine out?
• How do you feel about annual fees?

The answers to these questions will steer you toward the perfect card.

Apply for the Best-Value Credit Card That Fits Your Needs

Now that you know how to choose a credit card, and which types fit your lifestyle, the next step is to see if you pre-qualify for one that suits you. And if the pre-qualification screening indicates that you’ll probably be approved, go ahead and apply for that card.

If you’re a traveler who wants to earn miles, focus on travel cards. If you’re a parent who buys a lot of groceries, look for cards that offer rewards on grocery shopping. Every card is a great value for somebody, and just “meh” for someone else.

But don’t go applying for a bunch of cards willy-nilly. Every time you hit “submit,” that’s a hard inquiry that could impact your credit score. So the best course of action is to spread out your applications over time.

Choosing the Right Credit One Bank Credit Card for You

Credit One Bank has cards in many of these categories, and you can start your search by viewing the credit card selection or even taking the interactive card finder quiz.

If you like to travel or dine out, the Wander Card is perfect for you. And if you like to earn cash back rewards on everyday expenses like gas, groceries and mobile phone bills, check out the X5 Visa. Or maybe you’re a fan of NASCAR or the Vegas Golden Knights.

You may qualify for a Credit One Bank card even if you don’t have perfect credit, and some of the rewards and perks are among the best available.

Bottom Line

Now that you know the various choices and options you have in finding the best credit card for you, the only thing you need to do is zero in on which ones suit your needs. If you’re looking for a new credit card that offers rewards and might check all your boxes, see if you pre-qualify for one from Credit One Bank.