How to choose a credit card from Capital One
Capital One offers credit cards for many different credit levels and spending habits, from secured cards for building credit with responsible use to travel cards with elevated rewards and benefits.
Use this guide to learn more about what to look for in a credit card—and how to choose the Capital One credit card that works best for you.
What you’ll learn:
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The right credit card for you is one that aligns with your spending habits and financial goals.
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You can narrow down your credit card options by reviewing your credit scores, researching credit card interest rates and fees, and seeing if you’re pre-approved.
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Comparing Capital One credit cards online can help you find the card that works best for you.
How to choose a credit card: 4 tips
If you’re in the market for a new credit card, these tips for picking a credit card that’s right for you may help.
1. Review your credit
Understanding your credit scores can give you a better idea of which credit cards you might be eligible for. For example, some cards are geared toward those with excellent credit. Other cards might be better suited for people who are still building their credit.
One way to monitor your credit is with CreditWise from Capital One. CreditWise can help you better understand your credit score and keep up with changes to your credit report. Using CreditWise won’t hurt your credit scores. And it’s free for everyone, whether or not you’re a Capital One cardholder.
You can also request free copies of your credit reports from AnnualCreditReport.com.
2. Understand your reasons for getting a new credit card
Thinking about why you want a new card can help you narrow down your options. Here are a few examples of why you might want a new credit card:
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To build your credit: Using a credit card responsibly can help you improve your credit scores and build good credit. If this is your goal, a secured credit card or a card for people with fair credit may be a good option.
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To pay off high-interest debt: You may be able to use a balance transfer credit card to transfer debt from a high-interest credit account to a low or 0% annual percentage rate (APR) credit card. Keep in mind that issuers may charge a balance transfer fee. And the low or 0% APR may be temporary. So it’s important to make sure you understand the card’s terms and conditions before you apply.
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To earn rewards: The right card can help you earn rewards for spending you would be doing anyway. Depending on your spending habits, you might apply for a card with cash back rewards. Or you might consider a card that rewards you with travel miles.
- To finance a large purchase: A new credit card might offer an introductory APR, which could help you save on interest. Just be sure you understand when the introductory period ends and how it might affect your finances if you haven’t paid off your balance by then.
3. Research interest rates and fees
Looking at a credit card’s terms and conditions can help you be aware of any charges once you become a cardholder. Plus, learning more about the card’s interest rates and fees could help you decide which card is right for you.
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Credit card interest: Interest is the cost you pay to borrow money. A credit card’s interest rate and APR are typically the same. If you carry a balance, the interest rate can make a difference. But you can avoid interest on new purchases by paying off your statement each month. It’s also important to note that there may be different interest rates for certain transactions, such as balance transfers and cash advances. And a late payment may trigger a penalty APR.
- Credit card fees: Depending on the card, you may be charged different credit card fees. These might include balance transfer fees, annual fees, late payment fees and more.
4. See if you’re pre-approved
Getting pre-approved can give you a better understanding of the credit cards you might be eligible for. Pre-approval doesn’t guarantee you’ll be approved for a credit card. But it could help you understand your potential options.
You see which Capital One credit card offers might match your financial profile. Seeing if you’re pre-approved is easy and straightforward, and it won’t affect your credit scores.
Comparing Capital One credit cards
Capital One offers a variety of credit cards. You can compare Capital One cards to learn about the different options and filter cards based on what you’re looking for. Here are some different ways to sort through your credit card options.
Credit cards based on credit level
You can narrow down your credit card search in many ways. One is by credit level. Comparing credit cards by credit level or credit score range can help you choose a card that you’re more likely to qualify for.
Credit cards based on personal needs and priorities
Another way to narrow down your search is to focus on cards that align with your lifestyle, spending habits and personal preferences. Here are a few categories of credit cards it may help to know about.
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Student credit cards: The Capital One Savor Student card and the Capital One Quicksilver Student card are designed with students in mind to help them build credit when used responsibly. Plus, both of these cards let students earn cash back rewards.
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Secured credit cards: With responsible use, you could use a secured credit card to improve or build credit. Like many secured credit cards, Capital One’s secured cards are backed by a refundable security deposit.
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Credit cards with no annual fee: Capital One offers several cards with no annual fee. View important rates and disclosures.
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Cards with a 0% introductory APR: Explore the Capital One cards that offer a 0% introductory rate for 15 months on purchases and balance transfers. View important rates and disclosures.
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Cash back credit cards: Cash back cards, such as the Capital One Quicksilver card, offer cash back on every purchase, every day.
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Travel rewards credit cards: Travel rewards credit cards, such as the Capital One Venture card, are designed with travel in mind, offering elevated rewards on things like hotels, flights and rental cars.
- Dining rewards credit cards: The Capital One Savor card offers elevated rewards at grocery stores, on dining, entertainment and popular streaming services. Plus, cardholders can enjoy exclusive benefits, including access to prime-time tables at top-tier restaurants and extraordinary culinary experiences with Capital One Dining.
Choosing a credit card FAQ
Keep reading to learn more about choosing a credit card.
What are some things to avoid when choosing a credit card?
Credit cards can be helpful tools, but a card that works for one person might not be the best option for everyone. Here are some things you may want to avoid when making your decision:
- Applying for too many credit cards at the same time
- Not understanding the interest rates and fees
- Not comparing credit card terms
- Not checking for pre-approved card offers before you apply
What should you look for in a credit card?
As you start exploring your options, consider how each card could benefit you. You may want to look for cards with things like competitive APRs, rewards that align with your spending habits or opportunities to build credit.
How many credit cards should you have?
There’s no one-size-fits-all answer to how many credit cards you should have. The right number can vary from person to person. If credit cards are used responsibly, they can have a positive effect on credit. But if having multiple cards makes it a struggle to keep up with payments or avoid high balances, it can negatively impact your credit.
What is considered a good credit score to get a credit card?
According to credit-scoring company FICO®, a good credit score falls between 670 and 739. The better your credit scores, the more credit card options and favorable terms might be available to you.
But even if your credit score isn’t considered good, that doesn’t mean you can’t qualify for a credit card. Options like secured credit cards and cards for fair credit can help people who are building their credit.
Key takeaways: How to choose a credit card
There are so many different kinds of credit cards out there. Taking the time to check your credit scores, research card options and compare card terms can help you home in on the right card for you.
You can start by comparing Capital One credit cards and checking for pre-approved card offers before you apply. Pre-approval is quick and easy, and it won’t harm your credit scores.
