How many credit cards should I have?

The number of credit cards you should have depends on your goals. For example, you’ll probably want to carry multiple cards if you’re looking to maximize rewards on a broader range of expenses or wield perks specific to your favorite stores, airlines or hotels. However, you may want to stick to one card if you prioritize building credit or a streamlined rewards experience. Having several cards is fine as long as they deliver benefits that you take full advantage of (miles, cash back, perks and so on). Just beware of burdening yourself with annual fees and temporarily bruising your credit score from multiple card applications in a short period. For reference, statistics show that 77 percent of U.S. adults have at least one credit card, with the average American holding three to four credit cards.

Does applying for a credit card hurt your credit score?

A credit card application could have a negative (but temporary and relatively small) effect on your credit score. Getting approved for a credit card or other type of credit account requires some scrutiny of your track record as a borrower. The process can involve two types of credit checks: A “hard” inquiry is when the lender pulls your credit report to make a decision about whether to lend to you. A “soft” inquiry is when the lender checks your credit as part of a preliminary screening. Pre-qualified credit card offers involve soft credit inquiries, so keep an eye out for cards that offer pre-qualification. A hard inquiry can subtract a few points from your credit score temporarily, while a soft inquiry usually has no effect. You’ll want to limit the number of hard inquiries on your credit report, so be as selective as possible about which credit cards you apply for and try to get preapproved first.

How old do I have to be to get a credit card?

Generally, you must be at least 18 years old to be the primary cardholder of a credit card. However, there are considerably more strict requirements to hold a credit card if you’re below the age of 21. You must be able to prove that you can independently pay your credit card bill or you can elect to have a cosigner, who is financially responsible for your bills if you cannot pay. There is also the option to become an authorized user on a parent or guardian’s credit card. With this option, you can have access to a credit line before the age of 18, though age restrictions will depend on the issuer.

Best Credit Cards of September 2024

Compare Bankrate's best credit cards of 2024

Card name	Our pick for	Card highlights	Bankrate Score
Capital One SavorOne Cash Rewards Credit Card	Dining and entertainment	10% cash back on Uber and Uber Eats purchases (through Nov. 14, 2024) 8% cash back on Capital One Entertainment purchases 5% cash back on hotels and rental cars through Capital One Travel 3% cash back on dining, entertainment, select streaming services and grocery store purchases (excluding superstores like Walmart and Target) No annual fee	5.0 / 5 Our writers, editors and industry experts score credit cards based on a variety of factors including card features, bonus offers and independent research. Credit card issuers have no say or influence on how we rate cards. (Read card review) Apply now on Capital One's secure site See Rates & Fees
Discover it® Cash Back	Category variety	5% cash back on activated rotating categories each quarter (on up to $1,500 in purchases, then 1%) Automatic Cashback Match™ for all rewards earned at the end of your first year No annual fee	4.4 / 5 Our writers, editors and industry experts score credit cards based on a variety of factors including card features, bonus offers and independent research. Credit card issuers have no say or influence on how we rate cards. (Read card review) Apply now on Discover's secure site See Rates & Fees
Wells Fargo Reflect® Card	Long intro APR	0% intro APR for 21 months from account opening on qualifying balance transfers (within the first 120 days) and purchases (18.24%, 24.74%, or 29.99% variable APR thereafter; 5% balance transfer fee, $5 minimum) My Wells Fargo Deals can offer cash rewards No annual fee	4.3 / 5 Our writers, editors and industry experts score credit cards based on a variety of factors including card features, bonus offers and independent research. Credit card issuers have no say or influence on how we rate cards. (Read card review) Apply now on Wells Fargo's secure site See Rates & Fees
Citi® Diamond Preferred® Card	Balance transfers with excellent credit	0% intro APR for 21 months from account opening on qualifying balance transfers (within the first four months) and for 12 months on purchases (18.24% to 28.99% variable APR thereafter; 5% balance transfer fee, $5 minimum) Citi Easy Deals, Citi Flex Loans and Citi Entertainment may help save money on eligible purchases, event tickets and alternative payment plans No annual fee	4.1 / 5 Our writers, editors and industry experts score credit cards based on a variety of factors including card features, bonus offers and independent research. Credit card issuers have no say or influence on how we rate cards. (Read card review) Apply now on Citi's secure site See Rates & Fees
Wells Fargo Active Cash® Card	Simplicity	Unlimited 2% cash rewards on purchases No annual fee	4.3 / 5 Our writers, editors and industry experts score credit cards based on a variety of factors including card features, bonus offers and independent research. Credit card issuers have no say or influence on how we rate cards. (Read card review) Apply now on Wells Fargo's secure site See Rates & Fees
Capital One Venture Rewards Credit Card	Bonus offer	5X miles on hotels, vacation rentals and rental cars through Capital One Travel 2X miles on all other purchases Flexible miles can be redeemed for statement credits toward eligible travel purchases within the last 90 days $95 annual fee	4.9 / 5 Our writers, editors and industry experts score credit cards based on a variety of factors including card features, bonus offers and independent research. Credit card issuers have no say or influence on how we rate cards. (Read card review) Apply now on Capital One's secure site See Rates & Fees
Chase Sapphire Preferred® Card	Point value	3X points on online grocery purchases (excluding Walmart, Target and wholesale clubs), dining (including eligible delivery services) and select streaming services 5X points on Chase Travel℠ and Lyft Rides (Lyft offer through March 31, 2025) 2X points on other travel 25% point value boost toward Chase Travel℠ redemption Yearly bonus points and credits: $50 annual hotel stay credit and 10% back on your previous year's total combined spending points $95 annual fee	4.8 / 5 Our writers, editors and industry experts score credit cards based on a variety of factors including card features, bonus offers and independent research. Credit card issuers have no say or influence on how we rate cards. (Read card review) Apply now on Chase's secure site
Chase Freedom Unlimited®	Standalone rewards card	5 percent cash back on travel booked through Chase Travel℠ 3 percent cash back on dining and drugstore purchases 1.5 percent cash back on all other purchases No annual fee	4.8 / 5 Our writers, editors and industry experts score credit cards based on a variety of factors including card features, bonus offers and independent research. Credit card issuers have no say or influence on how we rate cards. (Read card review) Apply now on Chase's secure site
Capital One Venture X Rewards Credit Card	No-frills benefits	10X miles on hotel and rental car bookings through Capital One Travel 5X miles on flights and vacation rentals booked through Capital One Travel 2X miles on all other purchases Annual $300 Capital One Travel credit and 10,000 account anniversary bonus miles can help offset part of the annual fee $395 annual fee	5.0 / 5 Our writers, editors and industry experts score credit cards based on a variety of factors including card features, bonus offers and independent research. Credit card issuers have no say or influence on how we rate cards. (Read card review) Apply now on Capital One's secure site See Rates & Fees
Discover it® Student Cash Back	Students with no credit history	5% cash back on activated rotating categories each quarter (on up to $1,500 in purchases per quarter, then 1%) Automatic Cashback Match for all rewards earned at the end of your first year Low rates and fees, including no foreign transaction fees, penalty APR or late fee on the first late payment (up to $41 after that) No annual fee	5.0 / 5 Our writers, editors and industry experts score credit cards based on a variety of factors including card features, bonus offers and independent research. Credit card issuers have no say or influence on how we rate cards. (Read card review) Apply now on Discover's secure site See Rates & Fees
Capital One VentureOne Rewards Credit Card	Travel card beginners	5X miles on hotels and rental cars booked through Capital One Travel 1.25X miles on all purchases No annual fee	4.1 / 5 Our writers, editors and industry experts score credit cards based on a variety of factors including card features, bonus offers and independent research. Credit card issuers have no say or influence on how we rate cards. (Read card review) Apply now on Capital One's secure site See Rates & Fees
American Express® Gold Card	Food and travel	4X points on restaurants worldwide (on up to $50,000 in purchases per year, then 1x poins) and U.S. supermarket purchases (on up to $25,000 in purchases per year, then 1X points) 3X points on flights booked directly with airlines or via Amex Travel Over $400 in various credits on select dining and Uber Cash, provided as monthly credits toward eligible purchases; Uber Cash expires at the end of the month. Enrollment required for all credits.) $325 annual fee	4.9 / 5 Our writers, editors and industry experts score credit cards based on a variety of factors including card features, bonus offers and independent research. Credit card issuers have no say or influence on how we rate cards. (Read card review) Apply now on American Express's secure site See Rates & Fees , Terms Apply
The Platinum Card® from American Express	Luxury perks	5X points on directly-booked airfare and flights and prepaid hotels booked through American Express Travel (on up to $500,000 spent on flights per calendar year) 2X points on prepaid car rentals, vacation packages and cruise reservations through American Express Travel Offers one of the most valuable lists of travel perks available, including around $1,700 of recurring monthly and annual credits plus comprehensive airport lounge access $695 annual fee	4.8 / 5 Our writers, editors and industry experts score credit cards based on a variety of factors including card features, bonus offers and independent research. Credit card issuers have no say or influence on how we rate cards. (Read card review) Apply now on American Express's secure site See Rates & Fees , Terms Apply
Ink Business Cash® Credit Card	Business card with no annual fee	5% cash back at office supply stores, internet, cable and phone services (on the first $25,000 in combined purchases each year, then 1%) 2% cash back at gas stations and restaurants (on the first $25,000 in combined purchases each year, then 1%) No annual fee	4.3 / 5 Our writers, editors and industry experts score credit cards based on a variety of factors including card features, bonus offers and independent research. Credit card issuers have no say or influence on how we rate cards. (Read card review) Apply now on Chase's secure site
Capital One Spark Cash Plus	Flat-rate cash back business card	Unlimited 5% cash back on hotels and rental cars booked through Capital One Travel Unlimited 2% cash back on every purchase $150 annual fee (refunded every year you spend $150,000 with the card)	4.7 / 5 Our writers, editors and industry experts score credit cards based on a variety of factors including card features, bonus offers and independent research. Credit card issuers have no say or influence on how we rate cards. (Read card review) Apply now on Capital One's secure site See Rates & Fees
Capital One Platinum Credit Card	Upgrading	Could be available with fair credit without a security deposit Considered for a credit limit increase after an account review starting after six months No annual fee	4.2 / 5 Our writers, editors and industry experts score credit cards based on a variety of factors including card features, bonus offers and independent research. Credit card issuers have no say or influence on how we rate cards. (Read card review) Apply now on Capital One's secure site See Rates & Fees
Chime Credit Builder Secured Visa® Credit Card	Low-cost credit building	No credit check required Low rates and fees, including no foreign cash advance fees or late payment fees Potential $10,000 secured credit limit, and no minimum credit limit. No annual fee	4.2 / 5 Our writers, editors and industry experts score credit cards based on a variety of factors including card features, bonus offers and independent research. Credit card issuers have no say or influence on how we rate cards. (Read card review) Apply now on Chime's secure site
Capital One Platinum Secured Credit Card	Credit limit policy	A security deposit as low as $49 ($49, $99 or $200, based on creditworthiness) that provides at least a $200 credit limit Considered for a credit limit increase after an account review starting after six months No annual fee	4.1 / 5 Our writers, editors and industry experts score credit cards based on a variety of factors including card features, bonus offers and independent research. Credit card issuers have no say or influence on how we rate cards. (Read card review) Apply now on Capital One's secure site See Rates & Fees

How do credit cards work?

A credit card is a financial product similar to a personal line of credit: Credit cards allow you to borrow money from a bank to make purchases. You're then expected to pay back what you owe, either in full by a set due date or in partial payments over time. When you’re approved for a credit card, you're assigned a credit limit that determines the maximum dollar amount you can charge to your card. As you make purchases, your available credit decreases; when you pay your bill, your available credit increases.

With a credit card, you can carry a balance (in other words, debt) from month to month. This means you can make partial or minimum payments rather than paying off your balance in full. The downside to carrying a balance is that you'll face interest charges based on your credit card’s APR, or annual percentage rate. Your credit card’s APR is effectively the cost of borrowing money. But remember: Credit card interest is only relevant if you carry credit card debt from month to month, and it’s best to pay your balance on time and in full whenever possible.

Learn more: Should you get a credit card?

Credit card rewards programs are another major advantage of credit cards. Cards typically earn one of three types of rewards: cash back, travel miles or points.

Cash back is the simplest form of rewards. With a cash back card, you earn back a percentage of your purchase cost, so if your card earns 3 percent back in a certain spending category, spending $100 in that category would net you $3 in cash back.
Credit card points and miles work similarly, but the value of points and miles varies based on how they’re redeemed. Miles are generally best used to book travel (typically airfare) while points may offer more flexibility, allowing you to redeem for different types of travel as well as cash back, gift cards and more.

Learn more: How to maximize your rewards' value

Your understanding of certain credit card terms is essential when choosing a credit card. The terms and phrases listed below should be top of mind when you begin shopping:
- Interest rate: Interest is the daily-compounding fee a card issuer charges for carrying a credit card balance from month to month, one of the main ways that credit card companies make money. Rates are influenced by your credit score and the prime rate set by the Federal Reserve.
- Annual Percentage Rate (APR): In the world of credit cards, your interest rate and your APR are interchangeable. Your credit card’s annual percentage rate is the interest you’re charged for carrying a balance on the credit card in a billing cycle. The potential APR range is listed in your card’s terms (17.99 percent to 29.99 percent, for example).
- Credit limit: This is your credit card’s spending limit and will vary based on your credit score. You’ll likely have different credit limits for different transactions. For example, your cash advance limit (if your credit card offers cash advances) will be lower than your credit limit for purchases. If you go over your credit limit, the drawbacks can be severe, so it's important to know your limit and keep your balance beneath it, if you plan to carry a balance.
- Credit card balance: Your credit card’s statement balance is the amount owed at the end of a billing cycle. This amount will include all unpaid transactions made on your credit card and any unpaid fees.
- Credit card issuer: Often confused with credit card networks — like Visa or Mastercard that facilitate transactions between merchants and card issuers — credit card issuers provide credit cards directly to consumers. Cardholders can receive credit cards from financial institutions like credit unions or banks.
- Co-branded: Co-branded cards typically earn rewards and offer perks with a particular merchant or brand they’re partnered with, such as an airline, hotel or retail store. However, these cards are also part of a major credit card network, so they can be used wherever that network is accepted.
- Private-label: “Private-label” (or “closed loop”) cards aren’t branded with a credit card network at all, so they can only be used with the partnered merchant. Many of these products are store credit cards and gas station credit cards. Private label cards usually aren’t recommended since they carry weak features and high APRs and fees.

Weigh whether getting a credit card is right for you

Pros and cons of credit cards

Expert insights: What is the best credit card of 2024?

No one card will be “the best” for everyone, but certain cards will likely stand out based on your goals, spending habits, credit score and more.

The 2024 Bankrate Award winners are a great place to start if you want to see which cards we've highlighted as among the best on the market for different types of cardholders. Every year, Bankrate’s credit card experts research, rate and compare hundreds of cards and crown the best in each major category as Bankrate Award winners based on their outstanding features, rewards value and more.

Several of the cards on this month's "Best of" list were winners in 2024 year, including:

American Express Gold Card — Best credit card for foodies (three-time winner*)
Capital One Venture X Rewards Credit Card — Best credit card for jet-setters (three-time winner*)
Capital One SavorOne Cash Rewards Credit Card — Best credit card for entertainment, Best credit card for families (two-time winner*)

Best credit cards of September 2024

+ Show Summary

Capital One SavorOne Cash Rewards Credit Card

Discover it® Cash Back

Wells Fargo Reflect® Card

Citi® Diamond Preferred® Card

Wells Fargo Active Cash® Card

Capital One Venture Rewards Credit Card

Chase Sapphire Preferred® Card

Chase Freedom Unlimited®

Capital One Venture X Rewards Credit Card

Discover it® Student Cash Back

Capital One VentureOne Rewards Credit Card

American Express® Gold Card

The Platinum Card® from American Express

Ink Business Cash® Credit Card

Capital One Spark Cash Plus

Capital One Platinum Credit Card

Chime Credit Builder Secured Visa® Credit Card

Capital One Platinum Secured Credit Card

Compare Bankrate's best credit cards of 2024

How do credit cards work?

Important credit card terms

Pros and cons of credit cards

Expert insights: What is the best credit card of 2024?