Personal Finance News, Credit Card Guides and Advice (2026)

Frequently asked questions

Common questions about credit cards

What’s the most important factor to consider when choosing a credit card?

The right credit card for you (Your Best Credit Card!!) depends on your spending habits and goals. If you want rewards, focus on categories where you spend the most (like travel, dining, or groceries). If you’re looking to save money, a 0% intro APR, 0% Intro APR Balance Transfer, or a no-annual-fee card may be best. Luckily, we are here to help you figure this out with a wide variety of tools like our Smart Search and Card Explorer!

Do credit card applications affect my credit score?

Yes and no. Applying for a new card results in a “hard inquiry,” which may temporarily lower your credit score by a few points for a short period of time. However, since you’ll grow your available credit, your total utilization will shrink, possibly increasing your score over time. Of course this depends on responsible use of your credit and 100% on-time payments. We recommend trying to always pay in full as well as revolving balances increase your debt exponentially over time.

What’s the difference between cash back, points, and miles?

• Cash back: Rewards you can redeem for statement credits, checks, or bank deposits.
• Points: Flexible rewards that can often be redeemed for travel, gift cards, or merchandise. (We prefer transferring to airline and hotel programs!). These are, in our opinion, the most flexible types of credit cards.
• Miles: Primarily geared toward travel, usually tied to one specific airline.
  The best option depends on whether you value simplicity (cash back) or maximizing travel rewards (points/miles).

Do I need an excellent credit score to get approved?

Not always. Premium rewards and travel cards often require good to excellent credit (typically 670+). But there are plenty of cards for fair or limited credit, including secured cards and student cards, that help build your score over time.

How do annual fees work, and are they worth it?

Annual fees are charged once per year for keeping the card open. They can be worth it if the card’s rewards, perks, and benefits outweigh the cost. For example, frequent travelers may get hundreds of dollars in value from perks like lounge access or travel credits. You need to do the math on each card with an annual fee to see if the perks and credits outweigh the fee in your particular case since there are generally a range of credits that an individual may or may not value.