Shop credit cards

Credit cards can be a useful tool. Cards can be helpful for building credit because they can report your usage to the three main credit bureaus, which is why it’s so important to use your card responsibly (like paying your card in full and on time every month). Your credit can affect whether you’re approved for a loan and how much the loan will cost you. It can even affect your ability to get an apartment.

On top of that, many cards offer rewards like cash back or points that you can redeem all sorts of ways. But rewards could tempt you into spending more than you would otherwise, and there’s no guarantee they’ll provide more value than the cost of maintaining the card.

Credit cards can also give you some wiggle-room in emergency situations when you don’t have cash on hand. You have to be careful, though, because interest rates (the amount you pay for borrowing money) on credit cards can be expensive and land you in debt.

There are three things you should probably consider when looking for a new credit card.

First, how’s your credit? If you have little or bad credit, your options may be limited to secured cards or credit-building cards. If your credit is sparkling, you’ll likely have access to more options that can come with better rewards or lower APRs.

Second, how would you use your credit? Will you pay off the card on time and in full each month? If not, consider a card with low interest rates. If you’re trying to pay down existing credit card debt, a card with a 0% introductory balance transfer APR offer might be your best bet.

Third, what do you spend on? If you’re footloose, a travel credit card could help subsidize your trips. There’re also cash back cards, if you’d rather get moolah instead of miles. No matter your preference, try to match your card’s rewards to your spending habits to get the most bang for your buck.

If you have bad or little credit, your choices for credit cards tend to be more limited. But there are probably still options to fit your situation.

Secured cards offer you a credit line in exchange for a security deposit. The card issuer holds the deposit in a separate account as collateral in case you don’t pay your bill. That means issuers already have some protection against not getting paid back, so these cards tend to be easier to qualify for. Plus, many secured cards report to all three major credit bureaus. That can help you build credit if you’re careful about how you use the card, which includes paying on time and keeping your expenses low. If things go well, you may eventually be able to get approved for an unsecured card.

There are also unsecured cards created specifically for students, people who are new to credit, or folks who have maybe made some mistakes in the past. These cards tend to have higher interest rates and are less likely to have rewards, but you won’t have to put down a security deposit while working on your credit.

There’s no right number of credit cards for every person — it all depends on your needs.

For one thing, you don’t have to get a credit card at all if you don’t want one. Some people know that a card will be too big of a temptation to overspend, so they forgo credit cards entirely and choose to build credit in other ways.

Other people like to maximize rewards from cards, so they get a few that allow them to reap the benefits from every type of spending they do. However, it can be hard to keep track of your finances with a lot of cards. If you’re likely to miss payments or rack up debt, then maybe having multiple cards isn’t for you.

Having more cards could also affect your credit in a lot of different ways (e.g. changing your credit utilization rate or your average account age) beyond missing payments, so it’s important to consider the full impact of a card before go wild with applications. Plus, you should consider that each application could trigger a hard inquiry, which may affect your credit. The immediate benefit of a card should only be part of what you consider.