Choosing a credit card: cashback, travel, 0% and credit builder
The best credit card depends on one question first: do you pay your balance in full every month? If yes, rewards matter. If not, the interest rate matters more than any reward.
Cashback cards
Return a percentage of your spending as cash. Flat-rate cards pay the same rate on everything; tiered cards pay more in categories such as groceries or fuel. Simple and easy to value.
Travel rewards cards
Earn points or miles that can be worth more than cashback when redeemed for flights or hotels. Many carry an annual fee, so they suit people who travel often and use the perks.
0% balance transfer cards
Let you move existing card debt and pay no interest for an introductory period. Most charge a balance transfer fee, and the rate rises sharply when the period ends. Plan to clear the balance before then.
Credit builder cards
Secured cards and starter cards help people with limited or damaged credit build a history. A secured card needs a refundable deposit that usually sets your limit. Paying on time every month is what builds the score.
Terms to check
- Annual fee
- Regular APR after any introductory offer
- Foreign transaction fees if you travel
- Sign-up bonus spending requirements
Applying for several cards in a short time can lower your credit score temporarily, so apply only for the cards you intend to use.