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Credit Cards

Choose the right card, avoid interest and use credit to your advantage.

By Fountain Finances Editorial TeamUpdated

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How to compare credit cards

The right card depends on how you will use it. Compare these features before applying:

FeatureWhy it matters
Ongoing APRThe interest rate on balances you carry past the due date
Intro APR offerA temporary 0% or low rate on purchases or balance transfers
Annual feeA yearly cost that rewards must outweigh
RewardsCash back, points or miles, and how easily you can redeem them
FeesBalance transfer, foreign transaction, late and cash advance fees
Credit neededWhether you are likely to qualify

Card issuers must present key terms in a standardized table in the application, often called the “Schumer box,” which makes side-by-side comparison easier.

Credit cards for beginners

If you have little or no credit history, a secured card — backed by a refundable deposit — or a starter card with a low limit and no annual fee can help you build credit. Use it for small, planned purchases and pay the statement in full. See our comparison of credit cards for beginners and read how to build credit.

Use cards without paying interest

Most cards offer a grace period: if you pay the full statement balance by the due date, you are not charged interest on new purchases. Carry a balance, and interest accrues daily at the card’s APR. Learn how in how credit card interest works, or model a payoff with the credit card payoff calculator.

Rewards and balance transfers

If you pay in full, credit card rewards can return a meaningful amount each year. If you carry balances, a balance transfer card may save more than any rewards program.

Frequently asked questions

How do I choose the right credit card?

Start with your goal and your credit. If you are building credit, look at secured or starter cards with no annual fee. If you pay in full every month, compare rewards. If you carry a balance, focus on a low ongoing APR or a 0% intro offer.

What credit score do I need for a good credit card?

Many rewards cards are designed for applicants with good to excellent credit, roughly 670 and above on the FICO scale. Secured cards are available with limited or damaged credit.

Does carrying a balance help my credit score?

No. You do not need to carry a balance or pay interest to build credit. Paying your statement balance in full each month builds a positive history and avoids interest.

Part of our Credit & Credit Cards hub and our complete personal finance guide. Read our editorial standards.

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