Credit cards enable you to borrow money from a financial institution (usually called the issuer). When you make a purchase using a credit card, you agree to pay the borrowed money back to the issuer either in full or over a period of time. Different types of credit cards have features that make them more appropriate for certain types of usage.
Millennials have an average of 2.5 cards each, while baby boomers average 3.5. The answer varies from person to person and may change over time according to your finances, your needs and the offers that become available to you.
Also known as your debt-to-credit ratio, it’s the ratio of your overall outstanding balance of credit card and other revolving debt, to your overall credit card limit.
Which credit card is best for you depends on a number of factors including your credit history, how and where you use credit cards, what you purchase and which rewards you care about. Forbes has compiled a list of the 10 Best Credit Cards of 2020.
You should get a credit card that fits your financial situation, credit profile, lifestyle and goals. There are many types of credit cards including balance transfer, prepaid, student, travel, business, secured and more. To help you pick the right card, check out the Forbes Guide to Credit Cards.