What essential credit cards should you have?

As an expert in credit cards, I am often asked about theessential credit cardsthat one should have. Credit cards are a powerful financial tool that can help you build credit, earn rewards, and manage your finances. However, with so many options available, it can be challenging to determine which credit cards are right for you. In this article, I will discuss the essential credit cards that you should have and why they are important.

The first essential credit card that you should have is a rewards credit card. Rewards credit cards allow you to earn points, miles, or cash back for every dollar you spend. These rewards can be redeemed for travel, merchandise, or statement credits. A good rewards credit card should offer a generous sign-up bonus, a high earning rate on purchases, and flexible redemption options. Some popularrewards credit cardsinclude the Chase Sapphire Preferred, the American Express Gold Card, and the Citi Double Cash Card.

Another essential credit card that you should have is a 0% APR credit card. These cards offer a 0% introductory APR on purchases and balance transfers for a limited time, typically 12-18 months. This can be a valuable tool to help you finance large purchases or pay off high-interest credit card debt without accruing additional interest charges. Just make sure to pay off your balance before the introductory period ends, as the interest rate will increase significantly. Some popular 0% APR credit cards include the Chase Freedom Unlimited, the Discover it Cash Back, and the Citi Simplicity Card.

A third essential credit card that you should have is a secured credit card. Secured credit cards require a security deposit to be placed upfront, which serves as collateral for your credit limit. These cards are a great option for those with no credit or bad credit, as they can help you establish or rebuild your credit score. A good secured credit card should report to all three credit bureaus, have low fees, and offer a path to upgrade to an unsecured card. Some popularsecured credit cardsinclude the Discover it Secured, the Capital One Secured Mastercard, and the Citi Secured Mastercard.

When applying for credit cards, there are a few things to keep in mind to ensure that you get the best deal possible. First, make sure to apply for credit cards that match your credit score. Most credit card issuers offer a range of credit cards for different credit scores, so look for cards that are specifically designed for your credit level. Second, pay attention to the fees associated with each credit card, including annual fees, balance transfer fees, foreign transaction fees, and late payment fees. Lastly, be sure to read the fine print of each credit card offer, including the terms and conditions, rewards program details, and APR.

In conclusion, having these essential credit cards in your wallet can help you build credit, earn rewards, and manage your finances more effectively. Make sure to choose credit cards that match your credit score, have low fees, and offer valuable rewards and benefits. With careful research and responsible use, credit cards can be a valuable financial tool for achieving your financial goals.