Credit Card: Learn How to Apply

Cash-Back

• Flat-rate earnings (e.g., 1%–2%) or tiered/rotating categories (often with quarterly caps).
• Simple redemptions: statement credit or deposit; some allow transfers to partners (varies).
• Typical annual fees: $0–$95 (varies by issuer).

Travel Rewards (Airline/Hotel or Flexible)

• Earn points/miles; flexible programs let you transfer to multiple partners.
• Perks may include trip delay/cancellation, baggage, rental car CDW, lounge access (issuer/network dependent).
• Typical annual fees: $95–$195+; premium $250–$695+ (offset by credits if used).

0% Intro APR / Balance Transfer

• Intro purchase APR and/or balance transfer APR at 0% for a set period; after that, variable APR applies (see Schumer Box).
• Transfers typically charge a fee (commonly 3%–5% of amount transferred; varies by issuer).
• Useful for structured payoff plans; interest starts on remaining balances after promo ends.

Low-Interest / Ongoing APR Focus

• Designed for carrying balances at lower ongoing APRs (credit-dependent).
• Fewer rewards; value is in lower financing cost vs. typical market APRs (~21%+ recently across all accounts).

Secured (Build/Rebuild Credit)

• Requires refundable security deposit; issuer reports activity to credit bureaus (varies by product).
• Responsible use can lead to graduation to unsecured lines over time.
• Annual fee commonly $0–$49, but terms vary by issuer.

Student & Starter

• Built for thin credit files; modest limits and simple rewards.
• Tools for budgeting, alerts, and credit education.

Retail/Store & Co-Branded

• Rewards tied to a brand or retailer; may be “closed-loop” (store-only) or networked (Visa/MC/AmEx/Discover).
• Promotional financing often includes deferred interest—review terms carefully in the Schumer Box.

Small-Business Cards

• Track business expenses, issue employee cards with limits, earn category bonuses aligned to business spend.
• Personal guarantee usually required; activity may report to business or personal bureaus depending on issuer.

APR (Interest)

APR varies by product and credit profile. The Federal Reserve’s G.19 series shows the average APR across all accounts in the low-20% range recently (e.g., ~21%+ in 2025). Compare intro vs. ongoing APRs and how they apply to purchases, transfers, and cash advances.

Fees

• Annual fee: $0 on entry cards; $95–$195 common mid-tier; $250–$695+ premium (benefits must offset).
• Balance transfer: often 3%–5% (check promo windows).
• Foreign transaction: 0%–3% depending on card.
• Late/returned payment: see issuer fee schedule; policies scrutinized in CFPB reporting.

Grace Period & Interest Avoidance

Paying the statement balance by the due date generally avoids purchase interest thanks to the grace period. Balance transfers/cash advances may not have a grace period—check the Schumer Box.

Disputes & Fraud Liability

The Fair Credit Billing Act (FCBA) sets rules for billing error disputes and caps liability for unauthorized use (up to $50; many issuers offer $0 policies). You typically have 60 days from statement to dispute in writing.