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How to find the right credit card for you

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Ever wonder how to find the right credit card, given all the choices? Break it down by asking yourself: What will I use credit cards for? What features and benefits do I value most? Will I pay off the balance each month?

Here is a walk-through of how different lifestyles, spending habits and financial goals might fit with certain types of credit cards. You are likely to find that more than one situation describes you.

1. The Careful Credit-Builder

Certain types of cards can help you build credit if you’re just starting out, or they can help you rebuild credit if you’ve had a financial setback. As you use them responsibly, your good payment history is reported to the major credit bureaus, which can improve your credit record and credit score over time.

Student credit cards are designed to help current college students establish and build credit. These cards may have lower credit lines and tools to help students manage their cards. Some student cards may even offer cash or travel rewards or a lower interest rate.

Standard cards are another starting point for users who are new to credit. These cards may offer lower credit limits, and may offer rewards, depending on the issuer.

If you have a damaged credit history (or none at all), you may want to look at secured credit cards, which use a security deposit as collateral. In some cases, your security deposit along with other factors will determine your credit limit for the account. Some secured credit cards have a preset credit limit. These cards can be used just like any other credit card—nothing about them indicates that they are secured products.

2. The Rewards-Conscious Consumer

Affinity credit cards may offer extra features like product warranties, purchase protection, travel insurance and emergency services, while showcasing your support for a sports team, college or cause. You might get related benefits such as a discount at the alumni store for a college card, or a portion of each purchase you make might go to benefit the associated charity.

Airline and hotel cards offer travel-related benefits, rewards and perks. If you choose an airline-specific card, your purchases are likely to earn rewards you can only redeem with that airline; the same applies to hotel cards. Often, airlines and hotels may partner to offer more benefits options.

Frequent shoppers devoted to one store or restaurant might find a private label credit card worthwhile for the cardholder-only special offers, discounts and access to private sales or promotions. Most of these cards, commonly called store credit cards, have annual fees, and some can’t be used anywhere else.

Smart tip

Consider looking for perks that align with your interests, such as discounts on Homecoming Weekend tickets at your alma mater or contributions to your favorite nonprofit.

3. The “Keep My Rewards Options Open” Earner

If you use a credit card for everyday purchases, research rewards cards, cash back cards and flexible travel rewards programs. You can earn rewards such as points or cash based on the amount of your purchases, or points toward travel expenses but not necessarily with just one airline or hotel. You may have other benefits as well, such as purchase protection. Certain purchase categories may earn extra points or cash back, so you can choose one that fits your spending.

Gas cards typically provide cash back or rewards for what you spend on fuel. But they aren’t just for drivers—some gas cards also provide cash back or rewards to commuters for qualifying rideshares and other transit costs. The cards may also offer lower rewards for purchases in other categories.

4. The Business Owner

Running a business means making some routine purchases. Business credit cards typically offer cash back and travel rewards on routine costs like internet, cable and phone service and office supplies, as well as in other categories. They may offer programs that make it easy to add employee cards and tools that make bookkeeping simpler.

Smart tip

Consider using your business credit card perks to reward employees. A gift card is always a good choice, but you may even be able to offer a trip that includes airfare and hotel.

5. The Balance Carrier

Rewards and perks are a big draw if you pay off your balance each month. But If you know you’re likely to carry a balance from month to month, look for a card with the lowest APR you can find.

Transferring a balance from a card with a high APR to a low interest card is another tactic you can use to help reduce the interest you pay over time. You may even be able to qualify for a 0% APR on balance transfers, which can help you pay down your balance faster. Just make sure to manage your spending overall so that you can make progress on lowering your balance instead of adding to it.

6. The Just-in-Case Minimalist

If you tend not to use credit cards but want to have one in reserve for emergencies, you won’t want to pay an annual fee for a card you don’t use. Consider one of the many no-fee credit cards on the market.


What questions should I ask about rates, fees and features?

Rates and fees are an important part of the decision process. The law requires that this information be clearly displayed in a comparison box or chart in credit card agreements, on credit card sites and in mail promotions. Also consider any special features that might help you decide.

Make sure you ask about:

  • Annual fees. Some cards charge a fee every year, which can vary by the issuer and the additional benefits you receive.
  • Annual percentage rates (APR) may vary by the type of card transactions you make (regular purchases, cash advances, and balance transfers). Depending on the transaction type, interest may start being charged on different time frames (e.g., immediately vs. at your next statement).
  • Additional fees and penalties. Transactions in another country may carry a service charge, and late or missed payments may generate penalties.
  • Limits on discounts, warranties, purchase protection and rebates.
  • Security features like fraud protection.
  • Extras like mobile apps that allow you to manage your card’s security and make payments on the go, free FICO® scores and alerts for payment reminders.

Now that you know more about how to match your wants and needs to different credit card categories, rates and features, and how to assess your personal spending, you should be well-equipped to find the right credit card—or combination of cards—to suit your needs.

Close Disclaimer

The material provided on this website is for informational use only and is not intended for financial or investment advice. Bank of America Corporation and/or its affiliates assume no liability for any loss or damage resulting from one’s reliance on the material provided. Please also note that such material is not updated regularly and that some of the information may not therefore be current. Consult with your own financial professional when making decisions regarding your financial or investment management. ©2024 Bank of America Corporation.

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