Pros - Helps build credit (Revolving credit that won't fall off either), Get Cash Back or Points for Travel, Much Better Fraud Protection than Debit

Cons - None if you pay it(them) off the FULL statement balance EVERY MONTH, Big ones if you don't.

Tips - Keep your Utilization Low (under 10%) to keep your credit up. You can request credit limit increases every six months without a hard inquiry and that will help raise your overall limit so you can charge more and keep your utilization low. You can also add more cards over time that will boost your limit. Your utilization is based on overall limit. If you don't understand what all affects your credit score and how (Payments, Utilization, History, Inquires, New Accounts, etc), you should learn this first before ever getting a card anyway.

For example: Say you have 5 cards with a 20K limit each, your overall limit is 100K. You can charge 10K to one card or spread across all 5 and still only be at 10% utilization.'

quote:
Which cards are most beneficial?

Really depends on you.

Chase offers good ones for travel points if you fly a good bit and like to stay in hotels. Some cards have annual fees that you have to pay, so you have to justify that cost by the benefits it provides.

Personally, we don't fly that much. Once every other year typically. And we do more VRBOs and camping than hotels. So we go for more straight up cash back cards. Good percentage back is 2-5%

Some of the ones I have.
Citi Double Cash - 2% cash back on anything you use it for.

Citi Custom Cash - 5% cash back on whatever category you spend the most in up to $500 a month. This is my gas card.

Cap One Walmart - 5% cash back on Walmart pickup orders or online orders. - Our main shopping card.

Chase Amazon - 3% back on Amazon, 5% if you have prime I think.

Wells Fargo Autograph - 3% back on cell bill, travel, rental, streaming services, and some other stuff. Also offers free cell phone insurance. -Use this one to pay my cell bill, netflix, vrbo/arbnb, rental cars, and flights I do book.

Redstone Visa signature - 5% Restaurants and Gas, 3% at Wholesale Clubs, Discount stores, Groceries (Not Walmart or target), Utilities, and Phone. I let my wife use this one as her gas card, Sam's shopping, and grocery shopping other than Walmart. And for restaurants

Lowes - 5% off on lowes purchases.

So... it really just depends on you. If you travel a good bit with flights, hotels, and car rentals I would look into chase. If you want something super simple and don't travel a ton just get a 2% cash back card. Or you could do something like me.

Most of those cards require 700+ credit scores to get. So be aware of what yours is before applying. The cap one Walmart probably requires the lowest and could probably get it with a 670 if you are building credit for the first time or rebuilding.

This post was edited on 5/9/24 at 7:39 am