The answer to that question depends primarily on your lifestyle. If you travel extensively, then consider a card that offers airline miles. If you have a large family, then consider a card that offers cash back on all your purchases including groceries, gasoline, and utilities. Other credit cards target students, small businesses, balance transfers, and so forth.
However, no matter the monetary benefits of a card, they will be negated if you carry a balance. Be prepared to pay your statement balance in full each month in order to reap the benefits of your credit card.
The top 10 cards that may help you build your credit while reaping their reward benefits are:
1. Barclaycard Rewards Mastercard
This is an excellent card for everyday usage. It offers points that are redeemable as cash back on all purchases and free access to your FICO score. Unfortunately, if you carry a balance, you’re subject to a high interest rate; if you use the card in another country you will incur foreign transactions fees. There is currently no annual fee.
2. Chase Slate Card
This is one of the best cards for balance transfers. For the first 60 days, any balances transferred incur no transfer fees; for 15 months, there is a 0 percent APR, or annual percentage rate, on balance transfers and purchases. There is no annual fee. The Chase Slate card offers free access to your FICO score but there are no rewards offered with this card other than the 0 percent interest rate.
3. Capital One Spark
The Spark is great for a small business. There are no foreign transaction fees and you’ll earn 1 percent cash back on every purchase you make. Cards for your employees are free and you’ll receive a year end summary. However, the APR is high, so if you carry a balance, you’ll easily offset your cash back benefits.
4. Capital One Journey
Targeted for students, the Journey card from Capital One offers a generous 1.25 percent cash back for all purchases. The Journey also offers free access to your FICO score and charges no foreign transaction fees. Again, the APR is high so if you carry a balance, you can incur substantial interest charges each month.
5. Discover it
This new card from Discover Card doubles your annual cash back. It also offers 5 percent cash back on selected categories, which change monthly. New purchases and balance transfers receive a 12-month, 0 percent APR but there is a balance transfer fee. Freeze It also allows you to instantly freeze your account, which is helpful in case of a lost or stolen card. Access to your FICO score is free and there is no annual fee.
6. Capital One Platinum
Many of the cards on this list are from Capital One, and for good reason. This is an excellent card to help build credit. There is no annual fee and no balance transfer fee. Your credit limit can be increased when you make your first five monthly payments timely. However, the APR is high so you should pay your balance in full each month.
7. Chase Freedom Card
The Freedom Card offers a $150 bonus after spending $500 on purchases in three months. There is no annual fee but there are foreign transaction fees and balance transfer fees. This card requires good credit but also offers good rewards.
8. Capital One Venture Miles
If you travel extensively, the Venture Miles can help you save on your airfare while building your credit. The $59 annual fee is waived the first year and after you spend $3,000 in the first three months, you’ll receive 40,000 miles. For more information, click here.
9. Capital One QuicksilverOne
The QuicksilverOne offers 1.5 percent cash back on every purchase with no limit. Your credit limit may increase after you make the first five payments on time.
10. Shell Drive For Five
The Drive For Five card is great for families because it can be used for any purchase. When used to purchase gasoline at a Shell station, 5 cents per gallon will automatically be deducted.
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