The content is accurate at the time of publication and is subject to change.

Choosing a credit card is true art - and at the same time it's a piece of cake. To decide which credit card to apply for, you need some analytical skills, some calculations and some simplest input data to perform the analysis. The best thing here - it's actually much easier than it sounds, you just need to follow two simple steps below.

1. Know your credit score

This is crucial for a start, as it lets you determine which credit cards you may be eligible for. Typically, cards with the best perks and bonuses are available to people with good to excellent credit, and if you have a credit score lower than 670 points, you need to consider cards recommended for fair credit. Scores below 600 considered bad credit, meaning you will need to consider credit cards recommended for limited, poor or bad credit.

If you don't know what your credit score is, get a copy of your credit reports and check your credit scores. That's right - scores. You have at least three credit scores from each of the major credit bureaus - TransUnion, Equifax, and Experian. Different credit bureaus may have different credit scores, because they use different formulas.

If your credit score is lower than you expected, check your credit reports to see what's causing the problem (errors, accounts you do not recognize, late payments, etc.) and then try to deal with it. Anyway, as soon as you're ready with your credit score, you can proceed to the next step. Just keep in mind that credit card issuers can check your FICO score from more than one credit bureaus and some even check with all three.

2. Understand your goals

Generally, there are 3 types of cards if you break them into categories according to their purposes. Essentially, they are:

  • Cards that help you build your credit.
  • Cards that save you money on interest.
  • Cards that earn you rewards.

The best card for you is the one that caters to your needs and reaches the very goal that you are striving to reach. For example, if you are not a frequent traveler, then a travel airline credit card won't be of much benefit for you.

If you Want to Build Credit, Apply for a Student or a Secured Credit Card


Secured cards are designed for people who have no, limited or bad credit and want to improve their credit score. Secured cards usually require a refundable deposit of around $200 or more, which essentially becomes your credit limit. Once you outgrow your secured credit card, you can either close it or upgrade to an unsecured account (if applicable).

Student cards are usually exclusively for students, but some cards allow non-students too. Student credit cards are made to help young people build their credit history. Such cards are easier to qualify for than most consumer credit cards, have rewards and low fees.

If you Want to Save Money on Interest, Consider a Balance Transfer Card, 0% Intro APR on Purchases or Low Interest Cards


Balance Transfer Cards are useful when you already carry a balance on one or more cards and want to consolidate them or pay the balance off during the promotional no interest period. Just keep in mind that you will most likely have to pay a balance transfer fee (around 3%-5% of the transferred amount) and the 0% interest won't last forever. When the promotional period ends, you will be charged interest on the remaining balance at your go-to APR. So try to pay off your card debt before the promotion ends to get maximum savings.

0% intro APR on purchases or low interest cards are perfect if you want to make a big purchase as 0% interest allows you to pay it off before the interest charges hit. Note that all these types are mostly made for people with good and excellent credit, and are harder to find for people with less than perfect credit.

If You Want to Earn Rewards, Apply for Travel, Point Rewards or Cash Back Credit Card


If you want to earn rewards on your purchases, a rewards credit card is a great option. If you are a frequent traveler and want to earn rewards towards future travel, then a travel credit card with miles or point rewards can be your card of choice.

A cash back credit card is more appropriate for everyday shopping, because you get simple and straightforward cash back every time you make a purchase. A good cash back card can earn 2% back on all purchases. Other cards may offer elevated rewards, up to 5% cash back, in specific categories or in rotating categories.

All in all, whatever your spending habits are, you can always find a credit card for you. If you still have doubts, use our credit card navigator to see your options.

tags : Credit Cards Credit Score

Disclaimer: This editorial content is not provided or commissioned by the banks or credit card issuer(s). Opinions expressed here are the author's alone, not those of the banks or credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the banks or credit card issuer(s). Reasonable efforts are made to present accurate info, however all info is presented without warranty. Consult with the issuing bank of the card or account for terms & conditions.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are accurate as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.