Credit Cards Can Be Your Friend!

Discover the ins and outs of credit cards and how they can benefit you.

What’s a Credit Card?

Credit cards are tools that allow you to borrow money up to a certain limit, buy things, and then pay back later with interest. Understanding how they work and how to use them wisely can make them an asset for you. Credit cards can be a great thing if they are:

Paid off on time
Not carrying a large balance
Maximizing the rewards that your card offers

Credit Card Rewards

Earn points, miles, or cash back on your purchases. Know which cards offer the best rewards for your spending habits.

Credit Card Interest

Interest can accumulate when you don’t pay off your balance in full at the end of each month. Understand how it’s calculated and how to avoid it.

Check Out Our Favorite Credit Cards!

discover it credit card recommendation for new credit users or students

Discover It Student Card

– 5% cash back on selected purchase locations like Amazon, gas stations, grocery stores, and wholesale clubs every quarter

– 1% cash back on all other purchases

– No annual fee

– Great card for those starting out on credit!

american express credit card recommendation for people looking for city credit cards

Blue Cash Preferred Card

– 6% cash back on supermarkets (up to $6,000), U.S. streaming services, and 3% on transit purchases

– $95 fee after first year being free

– Low APR for first year

– Great card for people who live in a city with lots of grocery expenses

fidelity signature rewards visa credit card recommendation for new credit users

Fidelity Rewards Visa Signature Card

– 2% cash back on every single purchase you make (Unlimited purchases)

– No annual fee

– Rewards never expire

– Can redeem cash back directly to your investment accounts with a Fidelity Account

Wells Fargo Autograph Card

– 3x unlimited rewards (3% cash back equivalent) on restaurants, travel, gas, transit, streaming services, and phone plans

– 1x points on all other purchases

– 0% introductory APR

– No annual fee

Learn About Credit Cards

Ultimate Guide To Credit Cards

Dive into the world of credit cards, from their features and benefits to the importance of responsible use. Our comprehensive guide will help you navigate credit card offers, understand security measures, and maximize rewards,…

Click Here To View All Credit Card Articles

How does a credit card differ from a debit card?

While both credit and debit cards look similar, a credit card allows you to borrow money up to a certain limit, which you’ll need to pay back with interest. On the other hand, a debit card deducts money directly from your bank account.

How can I apply for a credit card?

You can apply for a credit card online, through a bank, or via mail. Ensure you meet the issuer’s criteria, like age, income, and credit score, before applying.

What does APR mean?

APR stands for Annual Percentage Rate. It represents the annual rate charged for borrowing and is expressed as a yearly rate. It includes the interest rate and additional fees or costs associated with the credit card.

Why is it essential to have a good credit score?

A good credit score indicates financial responsibility, making it easier to qualify for loans, mortgages, and better credit card offers. It can also lead to lower interest rates and save money over time.

What are credit card rewards?

Credit card rewards are incentives provided by card issuers. These can be in the form of cashback, points, or miles, and can be redeemed for various goods, services, travel, or cash.

How can I avoid paying interest on my credit card?

To avoid paying interest, pay off the full balance listed on your credit card statement each month before the due date.

What happens if I miss a credit card payment?

Missing a payment can lead to late fees, increased interest rates, and a negative impact on your credit score. If you think you’ll miss a payment, contact your card issuer as they might offer solutions or grace periods.

Are credit cards safe to use?

Credit cards come with various security features, making them one of the safer payment methods. However, it’s crucial to practice safe habits, like regularly checking statements, setting up account alerts, and not sharing your card details.

How old do you need to be to get a credit card?

In the United States, the minimum age to get a credit card on your own is 18 years old. However, there are some specifics to consider:

Authorized Users: Individuals under 18 can be added as an authorized user on someone else’s account, like a parent or guardian. This means they get a card in their name but are not the primary responsible party for the charges.

Proof of Income: For those between 18 and 21, the Credit CARD Act of 2009 mandates that they must provide evidence of independent income or assets proving they can repay charged amounts. Without this, they’d need a co-signer to qualify.

Co-signers: If someone 21 or older co-signs for the card, you can get it even without independent income. The co-signer, however, will be on the hook for the debt if you can’t pay it off.