How many credit cards do I need to build credit?
You only need one credit card to build up your credit. It's a myth that you cannot build up credit by paying off your credit cards. Creditors look at whether you have ever been late or completely missed your credit card payments. Making payments on time shows creditors that you are trustworthy and less of a risk. Late payments hurt you in several different ways including late fees and marks against your credit report.
How do I know which credit card to get?
You know what credit card to get by determining what you want your credit card for. A credit card which offers incentive programs, such as miles, points, or other rewards, might have higher interest rates and an annual fee. A credit card with no annual fee could possibly have a very stiff penalty if you miss a payment.
Key costs and terms to consider are the annual percentage rate (APR) for goods and services as well as for cash advances, the annual fee, and the grace period. Also compare cash-advance fees, late-payment charges, and over-the-limit fees.
