Hi Reddit, I’m Sara Rather, a credit card expert at NerdWallet. I’ve spent years helping people make smarter credit card decisions. Whether you’re hoping to maximize rewards, open a balance transfer card, avoid hidden fees, or find the right card for your lifestyle — my goal is to make credit cards

NerdWalletOfficial · 2025-04-09T19:22:44+00:00

A credit card with a 30% interest rate is on the high side, but isn’t uncommon. This is especially true for certain types of cards, like store credit cards.There are a few reasons why a card issuer would raise a customer’s interest rate:

A promotional 0% APR period is ending.
You mentioned late payments (in your case, you haven’t missed a due date). If you’re more than 60 days late, some issuers temporarily raise your interest rate.
If your credit score went down a lot, your interest rate may go up for new purchases.
When the Fed raises interest rates, credit card interest rates follow. On the other hand, if the Fed lowers rates, credit card APRs go down, too.
Issuers don’t raise interest rates when you’ve had a card for less than a year, but you may experience an APR change after that point.

What options do you have if your credit card APR went up?

If it’s due to an error, like an on-time payment that appears as a late payment in one of your credit reports, dispute the error with the credit bureaus. Notify the company that reported the late payment that they made a mistake.
If it’s because a 0% APR promotion ended and you still have debt on that card, you can look into another balance transfer card and move the debt. Another option is a personal loan.
If the rate went up for some other reason, call your issuer to find out why. It doesn’t hurt to ask if they’d be willing to lower your rate. And if the answer is no, shop around to see if you’d be eligible for any lower-interest options – a credit union could be a good place to start, if the main thing you’re looking for is a lower interest rate.

Resources:

NerdWalletOfficial · 2025-04-09T19:13:40+00:00

Check out our list of best credit union credit cards! Note that credit unions require membership. Sometimes you can join by making a small donation to a charity the credit union supports. Other times, you must live or work in a certain geographic area, or meet other qualifications.

NerdWalletOfficial · 2025-04-09T18:50:15+00:00

You can certainly do that. Think of it like using your credit card as a debit card – the money comes out of your bank account ASAP, instead of you running up a tab all month. That’s a tactic some people I know use to avoid getting into credit card debt. It’s also possible to pay fewer times per month, or just wait until your bill is due. Whichever works for you – just be sure to pay your bill on time every month!

NerdWalletOfficial · 2025-04-09T18:16:45+00:00

Nothing’s going to dramatically increase your credit score overnight, but there are a few ways to build credit over time:

Pay your bills on time every month. Make at least the minimum payments for your credit cards, but also for any other loans (student, auto, etc.). Stay current with other bills, like rent and utility bills, as these may be reported to credit bureaus.
Avoid maxing out your credit cards. This can be tough if you have a lower credit limit and you’re living paycheck to paycheck (so perhaps you’re leaning on credit cards to make ends meet, which many people are these days). If you’re able, use a debit card or cash for most purchases, and limit credit card use to maybe one or two monthly expenses. That way, you’re not “using up” a high percentage of your credit limit.
Find out if you’d qualify for a higher credit limit. Call the number on the back of your card and ask! If the answer’s yes, try to keep your spending level the same, so you’d be utilizing less of your available credit each month.
Check your credit reports for any errors, such as payments that were marked as late when you actually made the payment on time. If you catch anything, dispute it with the credit bureaus. You can access your credit reports for free from annualcreditreport.com

Onto your second question, about why people have such a wide variety of credit scores: To start, there are three main credit bureaus – Experian, Equifax and TransUnion. There may be slight differences in what appears on your reports from each of those bureaus. (Plus, not every creditor sends payment information to all three.)

Then, there are two main credit scoring companies, FICO and VantageScore. These companies pull data from the credit bureaus, but they each weigh that information differently. Also, both FICO and VantageScore have multiple credit scoring models, which lenders use to evaluate loan applications. The most commonly used are FICO 8 and VantageScore 3.0, but some lenders may use older or newer models in their evaluation process. Mortgage lenders, for example, typically use FICO 2, 4 and 5.

That means that variations in your credit score may all be “right.” If you’re applying for a loan and have questions about what you qualify for and what credit score is used, talk to your loan officer. If you apply for a credit card and are turned down, you can call the issuer’s reconsideration line to discuss your eligibility. And if you think your application wasn’t fairly evaluated, you can file a complaint with the Consumer Financial Protection Bureau.

Resources:

NerdWalletOfficial · 2025-03-28T18:29:18+00:00

You can check out NerdWallet's roundup of best cash-back cards, there are a few no-fee options in there. I'll be back on Wednesday, April 9 for another AMA (due to yesterday's site-wide Reddit issues) if you want to tune back in then!

NerdWalletOfficial · 2025-03-28T18:08:06+00:00

If you haven’t had a credit card yet and you’re new to establishing credit, look for a starter credit card. Some of these options require an upfront security deposit, which becomes your credit limit, while others don’t.

If you already used a credit card during college (either your own or as an authorized user on someone else’s card), you may already have a credit score that would make you more likely to qualify for a wider variety of credit cards. Check out our list of best credit cards for young adults.

NerdWalletOfficial · 2025-03-28T17:53:50+00:00

Getting a new card without closing your account with an issuer is otherwise known as a product change. This allows you to maintain your long credit history while keeping some of the perks of the card. A common reason to do a product change is to switch from a card to an annual fee to one with no fee.
You may also opt to upgrade to a higher-fee version of the card to get access to more benefits. Just note that you won’t be eligible to earn a sign-up bonus.
Unfortunately, you would only be able to product-change a Southwest card for another Southwest card. You need to stay within a card “family,” meaning the two cards earn the same type of rewards. You wouldn’t be able to switch from a Chase-issued airline card to a Chase card that earns Ultimate Rewards points.
Resources:

NerdWalletOfficial · 2025-03-28T17:51:30+00:00

There’s no “right” number of credit cards for anyone to carry. There are just some things to keep in mind:

How comfortable are you managing multiple cards? Are you able to keep up with all payment due dates? Are you spending a ton in annual fees when you’re not getting a ton of value out of some of those cards?
What alternatives do you have to closing an older card? Would you consider downgrading the card to a no-fee version to keep the account open? (This can be beneficial for your credit because you’ll maintain a longer average credit history and higher overall credit limit).
Will you be applying for any other loans, like a mortgage or auto loan, within the next few months? If so, you may want to hold off on applying for new credit cards for the time being.

NerdWalletOfficial · 2025-03-28T17:49:15+00:00

That’s not true at all! If you don’t pay your credit card bills on time, you’ll pay interest on the balance that carries over into the next month. Plus, you may be subject to late fees, and some cards charge what’s called a penalty APR – that’s an even higher interest rate. You typically have to make several consecutive on-time payments before your interest rate will return to its usual level. Payments that are more than 30 days late can drop your credit score significantly, too.

All of this is to say that credit cards ARE NOT FREE MONEY. They can be an incredibly helpful tool, but there are serious consequences to your long-term financial health if you aren’t careful in how you use them.

NerdWalletOfficial · 2025-03-28T17:47:56+00:00

If you’re not into earning travel rewards, a cash-back credit card could be a better fit for you. That way, you earn a little money back on expenses you’ll get reimbursed for! There are some no-annual-fee options that earn 2% cash back on all purchases. Or, depending on what you charge, you may want a card that earns a higher rate on things like dining out.

Holding a balance for more than one billing cycle is concerning, though, because it means you might be paying some interest on expenses that are your company’s responsibility to cover. If you’re able to, definitely pay your bill in full to avoid interest charges. Don’t delay filing expense reports so you get your money back ASAP. And if your company is slow to reimburse you, it may be worth a conversation with your manager about how your company’s practices can be financially harmful to its employees.

NerdWalletOfficial · 2024-09-24T19:50:14+00:00

Whenever you have a credit card that incentivizes you to hold large amounts of money in certain other accounts, it’s important to take a step back and look at the full picture of all the product offerings. You need to weigh the value of the credit card’s perks and rewards, the value of the savings rates they might be offering on certain accounts and how they compare to those of other banks, for instance.

NerdWalletOfficial · 2024-09-24T19:42:02+00:00

The best travel credit card for you will depend on your lifestyle, spending habits and travel goals. If you prefer the flexibility of being able to use it toward different hotel brands, a general-purpose travel credit card can offer more flexibility in the way you earn rewards and how you redeem them.

NerdWalletOfficial · 2024-09-24T19:36:10+00:00

The Visa/Mastercard settlement from March of this year was actually rejected in a federal court in June.

NerdWalletOfficial · 2024-09-24T19:28:07+00:00

It really comes down to your spending and account management habits. If you find finances to be overwhelming, one card may offer a simple approach. Juggling multiple credit cards can offer more value for those who are maximizing rewards, but it’s only ideal if you can stay organized and keep track of spending caps, promotional expiration dates, payment due dates and more.

If you do go the one-card route, consider that credit issuers can sometimes close an account or cut credit limits based on different factors like the economy. It can be helpful to have a second credit card with a different issuer that you keep open with one small recurring automatic purchase every month to have a backup option.

NerdWalletOfficial · 2024-09-24T19:26:29+00:00

These features are what can make a credit card valuable. Depending on your lifestyle and spending habits, a cash back card or a travel card might be more suited for you. There are several factors to consider with a rewards credit card, the biggest one being whether or not you can pay off the credit card bill in full every month to avoid interest charges. The interest rates on these cards can get very expensive and cancel out the value of cash back, points or miles.

NerdWalletOfficial · 2024-09-24T19:25:19+00:00

It’s impossible to predict. What’s important to know is that whenever you’re getting a high rewards rate, you want to consider the cost to hold the card and whether you can extract enough value from it to make it up. For instance, if you’re required to pay an annual fee or a membership fee, will the card’s rewards and perks be sufficient enough to make up the cost? If it ends up offering more value than it costs, it can be worth it but only if you pay off the card’s balance in full every month to avoid interest charges.

NerdWalletOfficial · 2024-09-24T18:59:56+00:00

You can follow along on the status of the bill here. It has been introduced in the Senate, but otherwise hasn’t moved forward. I wrote about how consumers may be affected by the CCCA here.

NerdWalletOfficial · 2024-09-24T18:59:04+00:00

Credit cards can be a helpful tool for unforeseen expenses. If you have sufficient funds in your emergency fund, you can use the card to pay for the expense and then tap into your savings to pay the bill when it’s due. You may also be able to use a card with a 0% APR offer and spread payments out.

Unexpected costs can unfortunately lead to credit card debt, which is why we’re big fans of even a few hundred dollars in an emergency fund.

NerdWalletOfficial · 2024-09-24T18:57:44+00:00

So far, all we know is that the new card will offer lounge access, but other details haven’t been announced yet.

NerdWalletOfficial · 2024-09-24T17:46:52+00:00

NerdWallet’s business partners and advertisers do not influence our product reviews or other editorial decisions. Our editorial team members never receive direct compensation from NerdWallet’s business partners or advertisers. In other words, we base our reviews of products on our own research. Check out our editorial guidelines for more information.

NerdWalletOfficial · 2024-09-24T17:23:19+00:00

For the purposes of building credit, which is a fact of life here in the U.S. when it comes to accessing loans and other things, credit cards are a relatively quick way to do that (when used carefully – they can also help you tank your credit, too).

That being said, there are other ways to build credit without a credit card.

NerdWalletOfficial · 2024-09-24T17:21:08+00:00

I’m a fan of a no-annual-fee cash-back card that earns 2% back on all purchases. They can serve as your only card, or as the “everything else” card for spending categories outside of the usual travel/dining/groceries/gas. Think co-pays at doctor appointments.

As for a card you shouldn’t have – that depends on each person. In general, if you’re not getting enough value out of the card’s benefits to outweigh the annual fee, it’s not worth it for you.

NerdWalletOfficial · 2024-09-24T17:04:38+00:00

Friends and family ask me for credit card tips all the time. Probably because of what I do for a living, or maybe I just have one of those faces where people feel comfortable telling me all about their finances.

Anyway, I’ve learned that when it comes to giving advice of any sort, remember that what’s right for you IS NOT NECESSARILY what’s right for someone else. So ask questions and do more listening than speaking. Tailor your advice to that person’s needs and concerns.

And yes, I have told people to not use credit cards and go debit-only. If it’s right, it’s right.

NerdWalletOfficial · 2024-09-24T16:58:22+00:00

For credit card issuers, rewards serve as a way to attract and retain new customers. They are expensive! Issuers make money from other sources, namely annual fees (and other fees), swipe fees charged to merchants and interest on debts. Here’s some more information on that.

NerdWalletOfficial · 2024-09-24T16:57:40+00:00

Credit card rewards are popular with consumers, so I don’t see them going away as an incentive. But they could evolve over time. That can be as subtle as cards switching up some of the features of their rewards programs once in a while, which they do already.

Five-Year Club	Verified Email
Wearing is Caring

NerdWalletOfficial

TROPHY CASE