Choosing a credit card for good credit will depend on a number of factors, including your financial needs. Here are some questions to consider when shopping for a credit card for good credit.
What's your credit score?
Even though you know you have good credit, you’ll still want to know your credit score, as it can give you an indication of how likely you are to get approved for a credit card. The closer you are to having excellent credit, the easier it will be to qualify for most credit cards that require good-to-excellent credit. Plus, the higher your credit score, the more likely you are to qualify for a lower APR, higher credit limit and other potential perks.
If your credit score only recently jumped from fair to good, you may have some negative marks that have yet to fall off your credit report. Some credit card issuers may think you need more time building credit to show you’re a responsible credit user.
To help you find the right card for you, it’s a good idea to see if you’re prequalified for a credit card, which could help save you from applying for a card you’re not likely to get approved for.
What type of credit card do you want?
There are different types of credit cards that are available to people with good credit. If you’re looking for a rewards card, you’ll have to decide if you want to earn cash back, points or miles. Depending on what matters most to you, you may want a hassle-free rewards card that doesn’t earn the most rewards, but is far easier to deal with compared to cards that focus on maximizing credit card rewards. Or, you may be on the lookout for a low-interest credit card, which can help you save money if you tend to carry a balance.
Whatever you’re looking for, make sure you choose a credit card that best fits your needs.
What benefits matter most to you?
Top perks include sign-up bonuses that give you the chance to quickly earn cash back, points or miles worth hundreds of dollars and intro APR offers that can help you save on interest charges for a limited amount of time. The best travel rewards cards may even come with complimentary benefits like travel credits and airport lounge access. There are also under-the-radar-perks that get overlooked, but can still add a lot of value to your wallet like travel insurance coverage, roadside assistance or even purchase protection.
However, some features are less common — or aren’t as important — depending on the type of card you’re in the market for. For example, sign-up bonuses and rich rewards rates are harder to find on a balance transfer card, but they ultimately matter less than a long 0 percent intro APR offer. Similarly, no foreign transaction fees and strong travel perks are key for a good travel card, but it’s probably not a deal-breaker if that travel card doesn’t have a rewards category for groceries.
What are the rates and fees?
Depending on the features that matter most to you, you may not be able to avoid an annual fee. Plenty of credit cards with no annual fee are available for people who don’t need all the bells and whistles that premium cards offer. However, a high-end rewards card could be worth the annual fee based on how much you spend or travel.
Other rates and fees to watch out for include the annual percentage rate (APR), foreign transaction fee, late payment fee and balance transfer fee. Checking whether there’s a foreign transaction fee (often 3 percent) or a low balance transfer fee (typically 3 percent or 5 percent) are most important since a good credit score may net you a decent APR. However, we suggest you avoid carrying a balance if you can help it since current APRs are high — and more than enough to eat through your hard-earned rewards.
