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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 simple 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.

1. Check your credit score

This is crucial for a start, as it lets you determine which credit cards you are eligible for. Typically the cards with the best perks and bonuses are available for people with good and excellent credit, and if you have a credit score lower than that, you need to build it first using secured credit cards or cards for poor credit. If you don't know where you stand, check your credit scores. Nowadays you can do it using a variety of online services. Most issuers use the FICO scoring model. In this system, your credit score may be bad, fair, good, or excellent (these are the most common options, but there may be variations).

Note that different credit bureaus may have different credit scores because they use different formulas. If the number is lower than you expected, check your credit report to see what's causing the problem and then try to improve or dispute it. Anyway, as soon as you know your credit score, you can proceed to the next step.

2. Identify 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 trying to reach. For example, if you are not a frequent traveler, then a travel airline credit card won't do much good for you.

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


Secured cards are meant exactly for people with limited or bad credit or no credit history at all who want to build credit. Such cards usually require a refundable security deposit of around $200 that may be returned to you when the account is upgraded to an unsecured one or closed in good standing.

Student cards are designed to help students build their credit history. They are easier to qualify for than most cards.

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


Balance Transfer Cards are useful when you already carry a balance on one or more cards and want to consolidate your debt or pay the balance off during the promotional 0% interest period. This period may be as long as one year or even two, and it can be of much help because interest payments cause your debt to grow faster and make it difficult to pay it off. Just keep in mind that balance transfer credit cards usually require good to excellent credit.

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

If You Want to Earn Rewards, Get a Point Rewards, Travel or Cash Back Credit Card


A rewards card is good for you if you are determined to earn rewards on your purchases. If you are a frequent traveler, then a travel credit card may work well for you, as it will allow you to earn miles towards future travel.

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.

If you are a more experienced user of credit cards with rewards, you can consider credit cards with point rewards. Such cards often come with elevated rewards in specific categories. Thus, you can find the card that will give the biggest return on your biggest spending.

All in all, whatever your spending habits are, you can always choose a credit card that suits them best. If you still have doubts, use our credit card navigator that will find a perfect credit card for you.

Once you are approved for a new credit card, make sure you manage it responsibly - make all due payments on time, never max out or carry a balance, and generally care about your credit history. When managed responsibly, the credit card will work well for you.

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.