How to Choose the Best Credit Card for Your Needs
Find a card that helps you meet your financial goals.
Published Tuesday, January 21, 2025 to Advice
The information below is for educational purposes.
For many people, credit cards are essential for managing finances.
According to the Federal Reserve Bank of New York’s Household Debt and Credit Report, credit cards are the most common loan type in the U.S. with about 600 million open accounts. This is nearly six times the amount of auto loans, the next most popular loan type.
The reason for this is because they’re flexible. Credit cards can help you:
- Pay for the things you need.
- Finance things you want.
- Provide a safety net in case of an emergency.
But credit cards can be used for a lot more than that these days. You can use them to earn cash back and travel rewards, save money on other debts, as well as build or rebuild your credit.
So, how do you go about choosing the best credit card for you? That will depend on several factors.
Veridian has a variety of credit cards to help you meet any goal or personal preference you may have.
Let’s dive into what you should consider when choosing the best credit card and the types of cards that are out there.
What Types of Credit Cards Are There?
Not all credit cards are alike. Different cards will have different purposes, benefits and requirements. Let’s explore some of the different types.
Standard Credit Cards
A standard credit card will have fewer benefits and special features than other cards. But they also tend to have a lower interest rate than cards with more benefits.
Balance Transfer Credit Cards
If you have high-interest debt on other cards, a balance transfer credit card can help you save money. These cards often offer low or 0% introductory rates for balance transfers, giving you time to pay off debt without accumulating more interest.
For example:
- Introductory Rates: Many balance transfer cards offer 0% APR for the first 6 - 18 months on balances transferred during a promotional period.
- Low or No Fees: Some balance transfer credit cards, like Veridian Credit Union Visa cards, don't charge balance transfer fees.
Pro Tip: Use a balance transfer credit card to consolidate multiple debts into one manageable payment.
Rewards Credit Cards
Rewards credit cards can help pay yourself back for making purchases. Rewards may come in the form of:
- Redeemable points for products, gift cards and more.
- Cash back on everyday things like groceries.
- Travel perks like miles and free checked bags.
Secured Credit Cards
Secured credit cards require a security deposit up front. The amount of your security deposit is usually your credit limit. These cards are recommended if you’re building or rebuilding your credit.
Other Types of Credit Cards
There are many other types of credit cards, including student credit cards, store credit cards and more. Check with your financial institution to learn what types of cards they offer.
Understanding Veridian's Credit Card Options
Veridian offers a variety of credit cards to meet whatever goals you may have:
- Visa® Signature Card: Earn up to 2% cash back◂ on all your purchases. No rotating categories or activations needed.
- Visa® Platinum Rewards Card: Earn points you can redeem for rewards like travel perks, apparel or cash back.
- Visa® Platinum Credit Card: Our lowest credit card rate. Plain and simple. Perfect if you’re building credit or carry a balance from month to month.
What To Consider When Choosing the Best Credit Card
The type of credit card you choose will depend on your goals and personal preference. Whatever your goal may be, Veridian has a credit card that can help you achieve it.
Here are a few considerations to help you choose.
Build A Safety Net
A credit card may come in handy in the event of an emergency. If this is your goal, then a standard credit card with a low rate may be the best option.
Pay Less Interest
If you have high-interest debt elsewhere, or if you carry a balance month-to-month, the right credit card can help you pay less interest. You could go with a standard card or a balance transfer credit card.
Make Everyday Purchases
If you’re using your card to make your day-to-day purchases, you might as well earn rewards for it. This strategy works even better if you pay your balance in full each month. You’ll earn rewards without paying interest.
Depending on the type of rewards you’re looking for, you may choose a card with travel rewards, cash back or rewards points. Just keep in mind that some rewards cards may charge an annual fee or have a higher interest rate than other cards.
Make Big Purchases
If you’re considering making high-price purchases with your card, look for a card that has a high credit limit. Other factors, however, will determine your credit limit. We’ll get more into that below.
Other Card Features
Regardless of any other goals you may have for your credit card, it’s important to consider other card features as well. Consider benefits like:
- Card control: the ability to turn your card on and off instantly online.
- Fraud protection: get your money back if you’re a victim of fraud.
- Digital wallets: enhanced security with Apple Pay, Google Pay and more.
- Travel perks: auto rental insurance, concierge assistance and more.
Build Or Rebuild Your Credit
Opening a credit card account and using it responsibly can also help you improve your credit score. A better credit score qualifies you for other types of loans, like mortgages or auto loans, in the future.
A credit card can help in the following ways:
- Length of open credit: the longer your credit accounts are open, the more of a positive impact they will have on your credit score.
- Available credit: more available credit and lines of credit also improve your score.
- Payment history: opening and using your credit card will help you prove that you make your payments and make them on time.
- Variety: having different types of credit also improves your credit score. Continue credit cards alongside other debts like student loans, auto loans and mortgages.
How Do I Apply for A Credit Card?
Applying for a credit card is quite a bit easier than applying for other types of debt. In most cases, you’ll only need the following:
- Your full name
- Social Security number (SSN) or Individual Tax Identification Number (ITIN)
- Date of birth
- Current address
- Annual income
- Name of your current employer and length of employment
How you submit your application will depend on the type of card and the lender. But, in most cases, you’ll be able to apply easily online.
Will I Get Approved for A Credit Card?
Qualifying for a credit card is similar to qualifying for other types of loans. Here are some of the things financial institutions will consider. Your credit score and history, annual income, and debt-to-income ratio will determine if you qualify and what you may qualify for.
A higher credit score and history, and a steady annual income will help you qualify for:
- Lower interest rates.
- Cards with better benefits.
- Higher credit limits.
Frequently Asked Questions About Credit Cards
Meet Your Credit Card Match with Us!
At Veridian Credit Union, our Visa® credit cards have great benefits, like:
- Great interest rates.
- No balance transfer fee†.
- No annual fee†.
- Rewards and cash back.
- Travel benefits, security features and more!
Explore Veridian Credit Union’s credit card options and find the best one for your financial goals. Apply online today!