What Credit Card Should I Get? How to Find the Right Card

Opening a credit card for the first time can feel like unlocking a financial superpower. Specifically, this tiny piece of plastic gives you the power to spend whenever you need to and even rewards you for spending.

But, figuring out which credit card to sign up for can be tricky due to the varying interest rates, rewards programs, and sign-up offers. To help out, this article will take an in-depth look at the basics of credit cards and help answer the question: What credit card should I get?

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MoneyLion helps you discover some of the best credit card options based on your financial and lifestyle needs.  

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How to decide what credit card you should get

Opening a credit card is a lot like buying a car: the best choice for you will depend on your lifestyle, needs, and financial situation. 

With a car, you need to consider factors like whether to get an SUV or a sedan, what level of gas mileage is acceptable, whether to finance the car or purchase it outright, what price is within your budget, and much more. 

When deciding on which credit card to get, you’ll need to compare and consider the following six factors:

1. Credit score requirement
2. Credit limit
3. Interest rates
4. Fees
5. Introductory offers
6. Rewards programs

Let’s dive in…

Credit score requirement

Your credit score plays a crucial role in determining which credit cards you can qualify for and the benefits you’ll have access to. 

Think of your credit score like your financial GPA: just like a higher GPA unlocks access to prestigious colleges, a higher credit score unlocks access to credit cards with premium rewards, lower interest rates, and valuable perks.

Your credit score is calculated using algorithms that analyze information from your credit report, including your history of borrowing and repaying money. Lenders use this score to assess the risk of lending money or extending credit to you. Credit scores typically range from 300 to 850:

• Poor: 580 or less 
• Fair: 580-669
• Good: 670-740
• Very Good: 739-799
• Excellent: 800 or more

Lenders examine your credit score when deciding whether or not to approve you for a credit card. Premium cards are usually only available for people with very good (739-799) or excellent (800 or more) credit scores. But, there are still plenty of credit card options for people with poor, fair, or good credit. 

💡 For example, the Chase Freedom Unlimited card, which offers 1.5% cash back on all purchases and has no annual fee, typically requires a good to excellent credit score (670 or higher). However, if you have a lower credit score then you can explore cards like the Capital One QuicksilverOne Cash Rewards Credit Card. This card offers 1.5% cash back on all purchases, has a $39 annual fee, and is available to people with fair or no credit. 

For those with very low credit scores or no credit history, a secured credit card or a credit builder card might be the best starting point. These cards require a security deposit but can help you build credit over time. 

Learn More: How to Improve Your Credit Score

The good news is that with responsible credit use – like making payments on time and keeping your credit utilization low – you can gradually improve your score and qualify for better cards. 

Credit limit

Your credit limit is the amount of money that you can spend on your credit card after you’ve been approved. There are credit card options and limits available for people in all different financial situations. For example, here are the average credit limits for a few popular credit cards: 

• Citi Secured Mastercard: Average credit limit: $2,609 
• Bank of America Travel Rewards Credit Card: Average credit limit: $9,703
• Chase Sapphire Reserve Credit Card average: Average credit limit: $15,430 

If you are just starting out with a credit card then you’ll likely get approved for a modest credit limit (unless you’re a high earner or have a lot of money in the bank). 

A “modest” credit limit is usually a few hundred or a few thousand dollars. But, your lender will likely extend your credit limit if you consistently pay off your card balance over time (emphasis on “if”).

Learn More: What a Good Credit Limit Should Look Like

Interest rates

Knowing your credit card’s exact interest rate isn’t very important because *spoiler alert * it’s going to be high. Credit cards are notorious for charging incredibly high interest rates, usually between 20% and 30%. Here’s how that compares to other forms of debt:

1. Average student loan rate: 4.83%
2. Average mortgage rate: 7.11%
3. Average personal loan rate: 12.48%
4. Average credit card rate: 22.8%

If you pay off your credit card balance each month then you won’t be charged interest. But, if you start to carry a balance on your card then you’ll be charged an arm and a leg in interest. Falling behind on your credit card payments is one of the most common ways to get stuck in a cycle of debt. So important to repay your credit card promptly.

Additionally, be wary of signing up for a credit card with your favorite retailer – no matter how much you like to splurge at TJMaxx or Target. Data from the Consumer Financial Protection Bureau shows that retail credit cards are often more expensive than general-purpose cards. Per this report, 90% of retail credit cards had a max APR over 30% compared to just 38% of general-purpose cards.

Fees

In addition to charging interest, many credit cards also charge a range of fees. Common credit card fees include:

• Annual fees: A yearly charge for using a credit card, typically applied to premium cards with enhanced rewards or benefits.
• Late payment fees: Fees charged when you fail to make the minimum payment by the due date.
• Foreign transaction fees: Fees charged (usually 1-3% of the transaction amount) when you make purchases in a foreign currency or through international merchants.
• Balance transfer fees: A one-time fee (commonly 3-5% of the transferred amount) charged when you move debt from one credit card to another, often to take advantage of a lower interest rate.

It’s important to understand all of the fees that a card may charge before signing up. You can learn more about this topic by reading about the 12 most common credit card fees and how to avoid them.

Learn More: How to Lower Credit Card Interest Rate

Introductory offers

Most credit cards usually offer a sign-up bonus to help attract customers. Most of these bonuses offer points or cash back if you open a new account and spend a certain amount within a set period of time. For example, here are two introductory offers for popular cards:

1. Citi Strata Premier: Earn 75,000 points after spending $4,000 in the first three months from account opening (worth $750 in travel rewards).
2. Chase Freedom Unlimited Credit Card: Earn a $200 bonus after spending $500 on purchases in the first 3 months from account opening 

Introductory offers can be tempting and sometimes offer you hundreds of dollars in rewards and cash credits just for signing up. But – while they can be a nice perk – it’s usually best to avoid signing up for a credit card solely because of its sign-up bonus. 

Instead, focus on finding a card that will fit your financial needs the best over the coming years. Back to the car analogy: you wouldn’t buy a car that doesn’t fit your needs just because the dealer offered $200 off. 

Rewards programs

Rewards programs are one of the most common reasons that people sign up for credit cards. While most credit card companies have their own unique rewards programs, they all work in a similar fashion:

1. Earn points by spending: In general, you’ll earn a certain amount of points for each dollar that you spend. Some cards offer the same number of points no matter what you spend your money on. But, other cards offer bonus reward points for certain spending categories (2x points for spending on gas, 5x for spending on restaurants, etc). Some cards also offer cash back instead of points.

2. Accrue points: The rate at which you accumulate credit card points depends on how much you spend. Usually, it takes a few weeks to a month for points from previous purchases to appear in your account. 

3. Spend your points or redeem cashback (the fun part): You can spend points or cash back as you accrue them to help with daily expenses. Or, you can also collect points over time to help pay for large purchases (like a vacation). 

Before signing up for a credit card, it’s a good idea to look at your historical spending history to see how many points you could potentially earn from different cards. 

Most common types of credit cards

Now that you know the basics of credit cards, let’s take the first step towards figuring out “what credit card should I get?” – AKA figuring out which type of credit card is best for you. This is like figuring out whether you need a sedan, SUV, or some type of hybrid.

There are 11 types of credit cards in total. But, we’re going to focus this discussion on the five most common types.

Student credit cards

Student credit cards are the most common type of card for senior citizens. 

Just kidding! We’re just making sure you’re paying attention. As you probably guessed, student credit cards are designed for young adults, especially college or high school students. 

Credit card companies know that students usually don’t have full-time income and or credit history. So, they offer specialized credit cards that are easy for college students to get approved for.

These cards usually offer cash back on purchases, no annual fees, and even rewards for good grades. They are also easy to get approved for, making them an excellent entry point for building credit responsibly. If you’re a young adult, student, or parent then you can learn more about student credit cards by reading: 

Explore: 9 Best Credit Cards for Young Adults

Explore: 9 Best Credit Cards for College Students

Secured credit cards

Secured cards require a cash deposit as collateral, which acts as the credit limit and can help you get approved for a card even if you have poor or no credit. These cards are primarily designed to help you build or rebuild credit responsibly and offer few rewards. 

Think about a secured credit card like a stepping stone. If you have poor or no credit then you can sign up for a secured credit card, which can help you build your credit score over time and eventually graduate to a credit card that offers more perks.

Explore our favorite secured cards with the 10 best credit cards for building credit.

Rewards credit cards

Rewards cards offer points bonuses for making purchases through your card, usually in the form of points or cash back. Most people use their points to help pay for everyday expenses while others save them to help cover large expenses. But, you can redeem your points however you’d like.

Some cards offer flat-rate rewards (you earn the same amount of rewards for all purchases) while others offer bonus categories (you earn extra rewards for spending in certain areas, like dining or groceries).

These types of cards are best for people who already spend a lot in certain categories. For example, if you have a family of six and already spend a pretty penny on groceries then you may want to explore a credit card that rewards grocery spending.

Travel credit cards

Travel credit cards are perfect for frequent travelers and offer benefits like airline miles, hotel points, airport lounge access, and travel insurance. Yes, you can potentially turn your everyday grocery spending into a free flight or hotel stay thanks to credit card rewards points. 

Depending on your card, you may even be able to transfer points between loyalty programs. For example, transferring Chase Ultimate Rewards points from your Chase credit card to Hilton so that you can book a hotel stay.

You can learn more about travel credit cards by reading the best travel credit cards of 2025.

Balance transfer credit cards

Balance transfer cards are used to transfer high-interest debt from other cards to take advantage of an introductory low or 0% APR period. If you have a large balance on a credit card then you can temporarily avoid paying interest by transferring the balance to a card that offers 0% interest for a set period. 

Using a balance transfer card gives you time to pay down your balance without it growing bigger by accruing interest. These cards are designed to help you manage and pay down debt faster. However, they typically charge a transfer fee and require disciplined repayment during the promotional period.

You can learn more about balance transfer cards by reading about the best balance transfer cards for fair credit.

What Type of Credit Card Should I Get?

The world of credit cards can seem a bit overwhelming at first, especially when lenders are throwing terms like “introductory APR” or “foreign transaction fees” at you. But, figuring out what type of credit card you should get essentially boils down to answering these two questions:

1. What kind of credit card should I get? The most common types of cards are student cards, secured, rewards, travel, and balance transfers. 

2. Which card in this category is the most appealing? Once you’ve narrowed down the type of card that you want, do some research to find the most popular cards in that category. We’ve listed tons of extra resources in this article to help you out.

We hope that you’ve found this article valuable when it comes to learning about the types of credit cards that you should get. Thank you so much for reading!

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