Best Credit Cards in May 2025

Credit cards work in two main ways:

• As a payment method, credit cards work as a type of currency between the cardholder and the merchant. When you use your credit card, a credit card network (Visa, Mastercard, Discover or American Express) confirms with the issuing bank that you have funds available and communicates that to the merchant.
• Credit cards work to build credit. Credit card issuers report your account activity to the major credit bureaus. Using your credit card regularly and paying the balance on time is essential to building an excellent credit score, as long as you aren’t using too much of your credit limit.

How many credit cards should I have?

The number of credit cards you should have will depend on your lifestyle and financial goals. Having at least two or three cards is a good idea for several reasons. Having more cards increases the amount of credit you have available, which can have a positive impact on your credit score. Some businesses don’t accept Discover or American Express, so if they won’t take your Discover credit card, you can most likely use your Visa or Mastercard. Finally, it’s good to have an alternate credit card in case your primary card gets lost or stolen or your account is frozen.

You may use one credit card for cash back on your weekly grocery trips and another to finance a large purchase over an extended time, interest-free.

Still, some people find it difficult to juggle several cards with different due dates and interest rates. If you struggle with credit card debt or managing payments, keep the number of credit cards in your wallet to a minimum.

The best credit card to apply for will depend on a lot of different factors. You can narrow down your choices by taking inventory of your spending habits, credit history and rewards preferences.

1. Determine what you spend the most on and what you want to buy with the card.
   You can either get multiple credit cards you can use across several spending categories, or get one card for all your spending. Tiered rewards cards might be more valuable but require more juggling, while flat-rate rewards cards are simpler but may not be as valuable.
2. Look at your credit report and credit score.
   Your credit score can help you decide whether you need a credit card to build credit before you apply for higher-earning credit cards. You should also look at your credit report and look for errors — fixing them can help boost your chances of getting approved for more valuable cards.
3. Determine whether you want to earn cash back or travel rewards.
   If you travel often, then a travel credit card is likely better for you. Points and miles are valuable, but redeeming them can be less straightforward than cash back. If you don’t travel often or don’t want to deal with confusing points or miles systems, then a cash back credit card is likely a better fit.
4. Ask yourself how much you’re willing to spend on an annual fee.
   Some cards have annual fees but come with benefits to offset the costs. However, if you won’t use benefits like dining credits, travel insurance or TSA PreCheck, then a no-annual-fee credit card could be right for you.
5. Review what kind of credit card benefits you use or would be willing to use.
   Look for a card with benefits that match your spending habits. For example, if you spend a lot on dining, a card that offers dining credits could align with your goals. Or if you travel often, a credit card with good travel insurance could also save you money.

To get a credit card, follow these steps:

1. Check your credit score to know which cards you’re likely to get approved for.
2. Learn credit card terms to know the common credit card fees you may have to pay with your card. The best credit cards have low, or no, fees and offer useful rewards.
3. Determine what type of card best fits your needs.
4. Compare credit card offers and see if you’re preapproved or prequalified.
5. Gather personal information, like your full legal name, address, Social Security number, annual gross income and employment status.
6. Prepare for an impact on your credit score.
7. Choose where you’ll apply for the card. This is typically done online.
8. Fill out and submit your application.
9. Wait for a response. This usually takes three to five minutes. If your application is denied, you’ll receive a letter.
10. If you’re denied, you can call the credit card reconsideration line for another chance at approval.

Learn more about how to get instant approval on credit cards.

1. Use your credit card often.
   Whether you’re using your card to earn rewards or build your credit, you should use it regularly. You won’t get rewards if your cards stay in your wallet, and your issuer may close your accounts if you don’t use them.
2. Don’t spend more than you can afford.
   Aim to pay off your credit card each month. Even if you have a high credit limit, you shouldn’t use more than 30% of it at a time. How much credit you use — also known as your credit utilization ratio — factors into your credit score. Keeping your credit utilization low will help improve your credit score.
3. Pay off your balance in full and on time.
   This is the most important factor in maintaining a good credit score. When you pay off your balance every month, you’ll boost your credit and avoid paying interest.
4. Don’t cancel your credit cards unless you have to.
   Canceling a credit card can temporarily hurt your credit score. Keep your credit cards — even the ones you don’t use — if they don’t cost you anything. Instead of canceling a card with an annual fee, call the credit card company and ask to waive the fee or downgrade to a card that doesn’t charge an annual fee.