What Is a Credit Card?
A credit card is a credit payment card issued by banks, credit unions, and other lenders. Lenders issuing unsecured credit cards rely solely on your creditworthiness to determine your credit card eligibility. However, credit card companies issuing secured credit cards rely on a security deposit or collateral, plus your credit score.
Types of Credit Cards:
- Cash Back Credit Cards
- Travel Rewards Credit Cards
- 0% Balance Credit Cards
- Store Credit Cards
- Travel Rewards Credit Cards
- Low-Interest Credit Cards
- Secured Credit Cards
Improving your credit score and keeping a healthy credit report will make you attractive to lenders and help you get the best credit cards available. Here are our picks for the best credit cards of 2025.
Our Picks for the Best Credit Cards
On Upgrade’s Website
Upgrade Credit Card
Smart Money Rating: 5/5
Cash Back: 1.5%
Best For: Establishing Credit History
Credit Line: $500 – $25,000 (Terms Apply)
On Continental Finance’s Website
Reflex® Platinum Mastercard®
Smart Money Rating: 5/5
Best For: Building Credit
Initial Credit Limit: Up to $1000
On Continental Finance’s Website
FIT™ Platinum Mastercard®
Smart Money Rating: 5/5
Best For: Building Credit
Initial Credit Limit: $400
5 Steps to Get the Credit Card You Want
Getting the best credit sometimes requires planning and preparation. Here are the steps to take to position yourself to get the best credit card possible:
1. Review Credit Report: Personal finance experts consider monitoring your credit report good financial hygiene. You should regularly examine your credit report to ensure everything is accurate, especially before you apply for a new credit card. (Read the 7 Steps to Get Your Free Credit Report).
2. Lower Debt-to-Income (DTI) Ratio: Your debt-to-income ratio is your total debt level divided by your total income. DTI is one of the financial ratios that banks, credit unions, and credit card companies examine before issuing new credit cards. By lowering your DTI, you can improve your chances of getting approved. (Plug and Play with our DTI Calculator).
3. Boost Credit Limits: Another tactic to decrease your credit utilization, or the amount of credit you use, is to boost your credit limits with your existing credit cards. You can formally apply to increase your credit limit via their mobile app or website.
4. Pay Off Credit Cards: Clearing your existing credit card balances is one of the fastest ways to make your credit profile look great in the eyes of lenders. Paying off your credit cards improves your DTI and credit utilization.
5. Earn More Income: Applying for a credit card after receiving a promotion, bump in pay, or earning more money with a side hustle can increase your chances of being approved. (Read more about 29 Side Hustle Ideas).
How to Apply for a Credit Card
Here is a step-by-step guide to walk you through how to apply for your next credit card:
- Check Your Credit Score: Before applying for any credit card, make sure you know your current credit score. Some credit cards will only approve applications that have an excellent credit score. If you have a high credit score, you can get access to a high-reward program, but if you need to improve your credit score, there are credit cards to help you with that, too. (Read if an 800 Credit Score Is High Enough).
- Pre-Qualify for Best Credit Cards: Not all credit card applications require a hard credit inquiry. Many credit card programs offer a soft credit pull or a pre-qualification based on your income, current credit score, or estimated credit profile. It makes sense to apply for credit cards where you know the probability of approval is high.
- Apply for Your Favorite: Once you have determined which credit card makes the most financial sense for you, you need to formally apply. The application process involves filling out personal information, such as your name, income, and address.
- Receive Formal Approval: You might be approved for a credit card immediately. If this happens, you will be mailed a physical credit card within 3 to 5 business days. In the meantime, you might be able to use this revolving credit line with digital credit card numbers.
- Start Using Credit Card: Once you receive your credit card, you can start making purchases. Don’t forget that you can link your credit card to mobile payment apps like Apple Pay or PayPal to make payment even more convenient.
Frequently Asked Questions
There is no “right” number of credit cards to have. However, you must ensure you can manage your credit cards and not overextend yourself with credit card debt. You can manage your debt, so you don’t have to worry about debt consolidation.
Credit scores between 700 and 750 are considered good. You can read our guide as to what makes a great credit score.
Credit age is a critical variable when credit bureaus evaluate your credit report. The longer you have had credit accounts (credit cards, personal loans, mortgages) open, the better for your FICO and VantageScore.
