Consider a card that pays the cardholder in miles that can be redeemed for travel expenses. Both cards are single-rate earning cards that allow you to redeem miles as credits to eligible travel expenses i. Check to make sure that any travel-based credit card also offers no foreign transaction fees.
Specific retailer credit cards may also be beneficial. These types of credit cards offer benefits and rewards tied to a specific retailer a cardholder frequents—or is about to spend a lot of money with in the near future.
Many of these cards are only accepted by the named retailer. Need a new work wardrobe? Amazon also offers a number of cards that offer increased rewards on their brands. Sometimes specific rewards may justify paying an annual credit card fee. The key brands here involve travel. If someone stays most often at Marriott hotel properties or flies American Airlines, he or she may choose to apply for a Marriott Bonvoy or an AAdvantage-branded credit card.
Most of these brand-loyal credit cards charge an annual fee. Try to pick the credit card that offers the most likely-to-be-used benefits in excess of the annual fee. All of these cards charge an annual fee.
Each of these cards represents a specific brand loyalty for travelers. When it comes to airlines, there are various benefits when choosing an airline-specific card. For example, the Alaska Airlines card offers convenient flights across the U. Beside travel rewards, there are some credit cards with annual fees that offer rewards on grocery and gas spending. Cash back is received in the form of Reward Dollars that can be redeemed as a statement credit.
Cash back is received in the form of Reward Dollars that can be easily redeemed for statement credits earned with the no-annual-fee version of the card i.
The key for any cardholder is to identify his or her own behaviors that can provide an opportunity for greater rewards—before shelling out an annual fee. Big rewards often accompany much higher annual fees and high credit limits are a tempting opportunity to spend more than necessary. See rates and fees and hefty benefits, including a large welcome bonus. Be careful not to make a high-fee super-premium card your sole credit card.
The Platinum Card is destined for frequent travelers who intend to fully leverage the rich set of luxury travel benefits and Platinum Concierge service. In the right hands, the classic status card's staggering annual fee is well justified.
Some people happily acquire credit cards solely for welcome bonuses and then cancel the card—often before the annual fee charge arrives after one year. Before signing up for too many cards, consider what each card can offer say, no foreign transaction fees, travel rewards or cash back on groceries or gas.
Weigh the available bonuses against any card already in possession before making a decision. When getting ready to sign up for a first credit card, instead of grabbing the first offer advertised, do some research. For example, for student credit cards, check out the details of the non-student version of that card that the cardholder can graduate to and compare it to other options available to working adults.
Having a solid credit line, along with a low credit utilization rate, will help people take out larger loans with low interest rates when purchasing a car or a house later in life.
As mentioned above, signing up for a lot of cards at once in a short period of time could hurt your credit score. It can also be difficult to manage payments for so many credit cards at once. Each card will also likely have a different payment due date. Remember, many people carry just one credit card.
This, of course, involves risk. Use credit cards whenever possible, making sure a reward is received. Make sure to pay off every credit card balance in full every month. Chauncey grew up on a farm in rural northern California. At 18 he ran away and saw the world with a backpack and a credit card, discovering that the true value of any point or mile is the experience it facilitates.
He remains most at home on a tractor, but has learned that opportunity is where he finds it and discomfort is more interesting than complacency. She has visited over 45 countries and lived in Thailand, China, and Ireland where her son was born. Her kids have over 20 stamps in their own passports. Her passion lies in showing families how to travel more while keeping their savings and sanity.
Her guidebook, Disney World Hacks, is a bestseller on Amazon. Select Region. United States. No APR change for paying late. Credit Score Fair Credit - Check to see if you pre-qualify for the card without affecting your credit Aimed at those with fair credit Reports to all three major credit bureaus. Unlimited 1.
Earn unlimited 1. Credit Score Average, Fair, Limited. No foreign transaction fees Applicants with fair credit may be approved Increased credit line possible in as little as 6 months. Pay no annual fee Be automatically considered for a higher credit line in as little as 6 months Fraud coverage if your card is lost or stolen Use online banking to access your account, even from your smartphone, with our mobile app Check out quickly and securely with a contactless card, without touching a terminal or handing your card to a cashier.
Click Here To Learn More. Credit Score Fair - Regular APR: Bank Secured Visa Card is ever lost or stolen Auto Pay: Avoid interest and late fees with automatic payments that put you in control. It can also help you pay down a balance faster Enroll in Online Banking and get your TransUnion Credit Score at no cost and receive email alerts when there are big changes to your credit report.
Credit Card. Avant Credit Card. Capital One Platinum Credit Card. Credit Score. Methodology To come up with this list of the best credit cards for rebuilding credit, Forbes Advisor compared more than credit cards for poor credit, fair credit, and average credit. Rewards: Earn 1. The only real downside to be aware of is the annual fee. Check your credit score to see where you stand. Decide if you want to earn rewards. Rewards can be a major plus if you know how to use credit responsibly, but they can also entice people to overspend.
Look for cardholder benefits you want the most. Check for cards that have the cardholder benefits you want, whether that includes no foreign transaction fees, travel insurance, extended warranties, or some other perk. Check for free credit scores and other credit-building tools.
Look for cards that offer a free FICO score on your credit card statement as well as the potential to monitor your credit progress over time. Information provided on Forbes Advisor is for educational purposes only. Your financial situation is unique and the products and services we review may not be right for your circumstances. We do not offer financial advice, advisory or brokerage services, nor do we recommend or advise individuals or to buy or sell particular stocks or securities.
Performance information may have changed since the time of publication. Past performance is not indicative of future results. Forbes Advisor adheres to strict editorial integrity standards.
To the best of our knowledge, all content is accurate as of the date posted, though offers contained herein may no longer be available. Holly Johnson. Caroline Lupini. Was this article helpful? Share your feedback. Send feedback to the editorial team. Rate this Article.
Thank You for your feedback! Something went wrong. Please try again later. The Forbes Advisor editorial team is independent and objective. To help support our reporting work, and to continue our ability to provide this content for free to our readers, we receive compensation from the companies that advertise on the Forbes Advisor site. This compensation comes from two main sources. First , we provide paid placements to advertisers to present their offers. In addition to changing your due date, you can set up autopay for at least the minimum due to ensure payments are made on time.
The percentage of the total credit you're using, also known as amounts owed or credit utilization rate , is the second-most important factor of your credit score. For every new card you open, you'll receive a new credit limit which increases your available credit. This can be a great way to improve your credit utilization rate and credit score, but only if you maintain the same or similar amount of spending as before you opened a new card.
If you use the additional line of credit to overspend, you risk raising your utilization and therefore hurting your credit score. Credit scores factor in the average length of time you've had credit — not the age of your oldest account. Therefore, every new credit card you open decreases the average length of your credit history. While new card accounts often lower your credit score about five points , it typically rebounds in a few months.
However, if you frequently open new cards, the negative effect can add up. That's a significant difference and may cause your credit score to drop, especially if you open several accounts within a short time period. You should also aim to keep your oldest credit card open since it increases the average length of time you have credit. If you don't frequently use your oldest card, it may become inactive.
The easiest fix for this is to maintain an active account by putting a small recurring charge on your card and setting up autopay. When you submit a new credit card application, lenders normally perform a hard inquiry into your credit history, which will appear on your credit report.
0コメント