How to choose a credit card
Whether you want to earn rewards, minimize interest or build credit, choosing the right credit card depends on your priorities. And Capital One offers credit cards for many different credit levels and spending habits.
This guide is here to help you learn what to look for in a credit card—and how to choose a credit card that works best for you.
What you’ll learn:
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You can narrow down your credit card options by reviewing your credit scores, identifying your goal and comparing interest rates and fees.
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Some credit cards have credit-level requirements for eligibility, and some are geared for certain lifestyles or spending habits.
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Comparing Capital One credit cards online can help you find the card that’s most suitable for you. You can even check to see if you’ll be approved with 100% certainty.
How to choose which credit card is best for you: 3 tips
If you’re in the market for a new credit card, here are three helpful tips for picking a credit card that’s right for you.
1. Review your credit and gauge your eligibility
Some credit cards are designated for a certain credit level. For example, some cards are geared toward those with excellent credit. Other cards might be better suited for people who are building credit. So knowing your credit scores can give you a better idea of which credit cards you might be eligible for.
Using CreditWise from Capital One is one easy way to see where your credit stands. It can help you better understand your credit scores and keep up with changes to your credit reports. Using CreditWise won’t hurt your credit scores. And it’s free, regardless of whether you’re a Capital One cardholder. You can also request free copies of your credit reports from AnnualCreditReport.com.
Some credit card issuers may let you check your eligibility before applying for a card or accepting a card offer. At Capital One, it’s quick and easy to see if you’ll be approved with 100% certainty—without hurting your credit scores.
2. Determine your goal
Thinking about why you want a new card can help you narrow down your options because there are different types of credit cards that may be best for different goals or needs. Here are a few examples of primary goals you might have for a new credit card:
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Building your credit: Using a credit card responsibly can help you improve your credit scores and build a good credit history. If this is your goal, a secured credit card could be a good option.
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Paying off high-interest debt: You may be able to use a balance transfer to move debt from a high-interest credit card to a card with a promotional annual percentage rate (APR).
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Earning rewards: The right card can help you earn rewards and bonuses for spending you would be doing anyway. You might apply for a card with cash back rewards or a card that rewards you with travel miles.
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Financing a large purchase: A new credit card might offer a low introductory APR, which could help you save on interest.
Another way to narrow down your search is to focus on finding cards that align with your lifestyle, spending habits and personal preferences. Capital One has many credit card options to choose from, including cards for students, frequent travelers and even foodies.
3. Research and compare terms and fees
Looking at credit cards’ terms and conditions can help you be aware of any fees you’ll be charged once you become a cardholder. Plus, learning more about each card’s interest rates and fees could help you decide which card is right for you. Here are some key terms to compare:
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APR and interest: Interest is the cost you pay to borrow money. A credit card’s interest rate and APR are typically the same. You can avoid interest on new purchases by paying off your statement each month. But if you plan to carry a balance, compare the cards’ ongoing interest rates.
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Promotional APR: If you’re considering a card that has a promotional APR with a lower-than-normal interest rate, be sure you understand when the promotion ends—and how it might affect your finances if you haven’t paid off your balance by then.
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Credit card fees: Depending on the card and how you use it, you may be charged different credit card fees. These might include balance transfer fees, annual fees, late payment fees and more.
Picking a credit card FAQ
Here are answers to some frequently asked questions about choosing a credit card.
What are some things to avoid when choosing a credit card?
When choosing a credit card, watch out for unnecessary fees, interest rates that don’t suit your repayment habits and rewards programs that don’t match how you spend. Taking the time to consider these factors could help you feel confident you’re getting value from your credit card. For example, if a card has an annual fee, consider whether you’ll get enough value from the card’s benefits to justify the expense.
Taking some time before you apply or checking your eligibility for card offers could also help you avoid hard inquiries into your credit, which could hurt your credit scores.
How many credit cards should you have?
There’s no one-size-fits-all answer to how many credit cards you should have. The right number can vary from person to person. If the credit cards are used responsibly, they can have a positive effect on your credit scores. But if having multiple cards makes it a struggle to keep up with payments or avoid high balances, it can negatively impact your credit scores.
What is considered a good credit score to get a credit card?
According to credit-scoring company FICO®, a good credit score falls between 670 and 739. The better your credit scores, the more credit card options and favorable terms might be available to you.
But even if your credit scores aren’t considered good, that doesn’t mean you can’t qualify for a credit card. Options like secured credit cards and cards for fair credit can help people who are building their credit.
Key takeaways: How to choose a credit card
There are so many different kinds of credit cards out there. Taking the time to check your credit scores, research card options and compare card terms can help you find the right card for you.
Whether you’re new to credit or searching for your next credit card, Capital One can help:
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See if you’ll be approved for credit cards without harming your credit scores.
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If you’re looking to build your credit with responsible use, explore cards for people with fair credit.
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Earn cash back on every purchase, every day, with a cash back rewards card.
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Monitor your credit report and score with CreditWise. Using it won’t hurt your scores.
