Best Credit Cards
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What Are Credit Cards?
Credit cards, also sometimes called “charge cards” allow users to spend money before they actually have it. This is the main difference between credit cards and debit cards.
For example, if you need to make a $250 purchase today, and you don’t have the $250 in cash to make the purchase, a credit card will allow you to make the purchase and pay the $250 later. For those of us that depend on receiving our paychecks every two weeks, credit cards can be a lifesaver.
We spent 200+ hours searching for the best credit cards of 2019, because not all credit cards are made equal. Many shady online credit issuers have high variable rates and lots of hidden fees. None of the issuers on this page have hidden fees, and virtually all are highly rated and respected.
What Can I use Credit Cards For?
Credit cards can be used for everyday purchases, or just about anything! Some of the most popular uses include:
- Everyday expenses, i.e. groceries, gas, coffee, etc.
- Large, unplanned expenses
- Pay for a wedding
- Automobile expenses
- Medical bills
According to research by Finder, roughly 70.02% of all Americans have credit cards. Typically, the better your credit score, the more perks you’ll get with a credit card.
Many Americans would rather pay 7% annually to borrow money, and use this borrowed money to pay off their higher interest debts, like credit cards.
Credit Card Myths
One of the most common misconceptions about credit cards is that they somehow negatively effect your credit score.
For most cases, this is not true. There’s often no impact on your personal credit score to see if you qualify for a credit card. If applying for a specific card will negatively impact your credit, we’ll be sure to make a note on our page.
The only way a credit card can hurt your credit score is if you fail to make your minimum/full monthly payments. Ideally, you’ll want to pay off your credit card in full each month to avoid interest charges. However, even if you only make the minimum statement balance payment, your credit score will actually not take a hit; in many cases, it could improve due to regularly, timely payments. Issuers view timely payments very positively, so you should always aim to pay off your credit card on time every month.
The only way a loan can harm your credit score is if you fail to make your payments.
What is OptionsBro?
OptionsBro.com is an online financial information site dedicated to providing simple tutorials, reviews, and comparisons on all things finance.
Collectively, we’ve spent thousands of hours examining the most popular financial products and tools. Bottom line, we simplify and explain the myriad of consumer financial options available today, so you can make decisions with ease.
Updated: Dec 2, 2019