What are the Pros and Cons of Different Types of Credit Cards?

What credit card should I choose? What are the Pros and Cons of different types of credit cards?
Expert answer by Alex Gerard,
10+ years experience in banking consulting

Here are some tips for you.

1) Get yourself a reward credit card. People usually prefer cash back rewards, but other types of rewards can also be valuable - airline miles or flexible points that you can exchange for cash or for frequent miles.

You can get a card that offers 5-6% of maximum cash back on certain categories, but it is more beneficial to have a flat rate card - with 1.5-3% rewards on every purchase.

read card review Apply Now
at issuer’s secured site
good credit
fair credit
intro purchase APR 0% for 14 monthsregular APR11.49 - 23.49% (V)
intro BT APR 0% for 14 months 3% BT fee
rewards 1 or 5% 
  • earn 5% on quarterly changing category up to $1,500 quarterly maximum in purchases
  • 1% on all other purchases

 

no annual fee

5% cash back on selected quarterly category

high limits

read review

Best flat rate 2% rewards cards today are Citi Double Cash and Fidelity AmEx, both have no annual fee.

read card review Apply Now
at issuer’s secured site
excellent
intro purchase APR no intro offerregular APR13.99% (V)
intro BT APR 0% for 12 months 3% BT fee min $10
rewards 2% per dollar 
  • get 2% on all purchases 
  • need to have Fidelity account - free, no minimum, no maintenance fee

no annual fee

2% flat rate cash back

need to open Fidelity account (free)

read review
read card review Apply Now
at issuer’s secured site
good credit
intro purchase APR no intro offerregular APR13.49 - 23.49% (V)
intro BT APR 0% for 18 months 3% BT fee $5 min
rewards 1% +1% for paying off balance
  • earn 1% cash back on all purchases
  • get 1% more when you pay of your purchases in full on time

no annual fee

1% cash back with no limitations

plus 1% more when you pay off balance in full

read review

More on cashback cards here

2) It is not easy to calculate if the card rewards rate will worth paying the annual fee, so the easy rule is to focus only on no annual fee cards - there is a plenty of them today for any taste

read card review Apply Now
at issuer’s secured site
excellent
intro purchase APR 0% for 21 monthsregular APR13.99 - 23.99% (V)
intro BT APR 0% for 21 months 3% BT fee $5 min

no annual fee

0% APR for 21 months for BT and purchases

read review
read card review Apply Now
at issuer’s secured site
good credit
fair credit
intro purchase APR 0% for 14 monthsregular APR11.49 - 23.49% (V)
intro BT APR 0% for 14 months 3% BT fee
rewards 1% or 2% 
  • earn 2% cashback on gas and restaurants with $1,000 quarterly limit in combined purchases
  • 1% on all other purchases

no annual fee

2% on gas and dining out

read review

Some of the best no annual fee cards here

3) If you carry a balance on your credit card, you should focus not on the rewards but on low APR on your card.

With 0% introductory APR for 12-18 months, you can have a good interest break, but it is generally better to have a low regular APR card (8-10% ongoing APR), like Simmons bank card or Barclaycard Ring.

read card review Apply Now
at issuer’s secured site
excellent
intro purchase APR no intro offerregular APR8.00% (V)
intro BT APR 8% no BT fee

Excellent Credit Required - Applicants that do not have excellent credit will not be approved

Low 8% variable standard purchase APR and platinum benefits

No balance transfer fee for balances transferred in response to this online offer

No Annual Fee

read review
read card review Apply Now
at issuer’s secured site
excellent
intro purchase APR 0% for 15 monthsregular APR13.49% Variable
intro BT APR 0% for 15 months no BT fee

0% Introductory APR for the first 15 months on purchases. Plus, you'll get a 0% introductory APR for 15 months on Balance Transfers made within 45 days of account opening. After that, a variable APR will apply, 13.49%

No annual fee

No balance transfer fees

No foreign transaction fees

Chip technology, so paying for your purchases is more secure at chip-card terminals in the U.S. and abroad

Free online access to FICO® Credit Score

read review

More on low APR credit cards here

 

2 + 12 =
Solve this simple math problem and enter the result. E.g. for 1+3, enter 4.

Vertical Tabs

SIGN UP TO GET FREE
CREDIT SCORE UPDATES
and
exclusive members-only deals
Follow us
Facebook Twitter Google+