{"id":4459,"date":"2025-06-10T21:16:04","date_gmt":"2025-06-11T00:16:04","guid":{"rendered":"https:\/\/finance.familiaeabiblia.com.br\/credit-cards\/?p=4459"},"modified":"2025-06-10T21:16:04","modified_gmt":"2025-06-11T00:16:04","slug":"how-to-choose-the-best-rewards-card","status":"publish","type":"post","link":"https:\/\/finance.familiaeabiblia.com.br\/credit-cards\/glossary-credit-cards\/4459\/","title":{"rendered":"How to choose the best rewards card?"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_74 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Content<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/finance.familiaeabiblia.com.br\/credit-cards\/glossary-credit-cards\/4459\/#Understanding_Credit_Scores_A_Comprehensive_Glossary_for_American_Consumers\" >Understanding Credit Scores: A Comprehensive Glossary for American Consumers<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/finance.familiaeabiblia.com.br\/credit-cards\/glossary-credit-cards\/4459\/#What_Is_a_Credit_Score\" >What Is a Credit Score?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/finance.familiaeabiblia.com.br\/credit-cards\/glossary-credit-cards\/4459\/#Key_Terms_Related_to_Credit_Scores\" >Key Terms Related to Credit Scores<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/finance.familiaeabiblia.com.br\/credit-cards\/glossary-credit-cards\/4459\/#Credit_Report\" >Credit Report<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/finance.familiaeabiblia.com.br\/credit-cards\/glossary-credit-cards\/4459\/#Credit_Bureau\" >Credit Bureau<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/finance.familiaeabiblia.com.br\/credit-cards\/glossary-credit-cards\/4459\/#FICO_Score\" >FICO Score<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/finance.familiaeabiblia.com.br\/credit-cards\/glossary-credit-cards\/4459\/#VantageScore\" >VantageScore<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/finance.familiaeabiblia.com.br\/credit-cards\/glossary-credit-cards\/4459\/#How_Is_a_Credit_Score_Calculated\" >How Is a Credit Score Calculated?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/finance.familiaeabiblia.com.br\/credit-cards\/glossary-credit-cards\/4459\/#Common_Credit_Score_Ranges_and_What_They_Mean\" >Common Credit Score Ranges and What They Mean<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/finance.familiaeabiblia.com.br\/credit-cards\/glossary-credit-cards\/4459\/#Why_Does_Your_Credit_Score_Matter\" >Why Does Your Credit Score Matter?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/finance.familiaeabiblia.com.br\/credit-cards\/glossary-credit-cards\/4459\/#Improving_Your_Credit_Score_Practical_Steps\" >Improving Your Credit Score: Practical Steps<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/finance.familiaeabiblia.com.br\/credit-cards\/glossary-credit-cards\/4459\/#Understanding_Credit_Report_Errors_and_How_to_Fix_Them\" >Understanding Credit Report Errors and How to Fix Them<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/finance.familiaeabiblia.com.br\/credit-cards\/glossary-credit-cards\/4459\/#The_Difference_Between_Hard_and_Soft_Inquiries\" >The Difference Between Hard and Soft Inquiries<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/finance.familiaeabiblia.com.br\/credit-cards\/glossary-credit-cards\/4459\/#Building_Credit_from_Scratch\" >Building Credit from Scratch<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/finance.familiaeabiblia.com.br\/credit-cards\/glossary-credit-cards\/4459\/#Impact_of_Debt_on_Your_Credit_Score\" >Impact of Debt on Your Credit Score<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/finance.familiaeabiblia.com.br\/credit-cards\/glossary-credit-cards\/4459\/#Understanding_Credit_Freeze_and_Fraud_Alerts\" >Understanding Credit Freeze and Fraud Alerts<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/finance.familiaeabiblia.com.br\/credit-cards\/glossary-credit-cards\/4459\/#How_Often_Should_You_Check_Your_Credit_Score\" >How Often Should You Check Your Credit Score?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/finance.familiaeabiblia.com.br\/credit-cards\/glossary-credit-cards\/4459\/#Final_Notes_on_Credit_Scores\" >Final Notes on Credit Scores<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/finance.familiaeabiblia.com.br\/credit-cards\/glossary-credit-cards\/4459\/#Related_Articles\" >Related Articles<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/finance.familiaeabiblia.com.br\/credit-cards\/glossary-credit-cards\/4459\/#Our_Categories\" >Our Categories:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-21\" href=\"https:\/\/finance.familiaeabiblia.com.br\/credit-cards\/glossary-credit-cards\/4459\/#How_to_Choose_the_Best_Rewards_Card\" >How to Choose the Best Rewards Card?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-22\" href=\"https:\/\/finance.familiaeabiblia.com.br\/credit-cards\/glossary-credit-cards\/4459\/#Frequently_Asked_Questions_About_Choosing_the_Best_Rewards_Card\" >Frequently Asked Questions About Choosing the Best Rewards Card<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-23\" href=\"https:\/\/finance.familiaeabiblia.com.br\/credit-cards\/glossary-credit-cards\/4459\/#What_types_of_rewards_cards_are_available\" >What types of rewards cards are available?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-24\" href=\"https:\/\/finance.familiaeabiblia.com.br\/credit-cards\/glossary-credit-cards\/4459\/#How_important_is_the_annual_fee_for_a_rewards_card\" >How important is the annual fee for a rewards card?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-25\" href=\"https:\/\/finance.familiaeabiblia.com.br\/credit-cards\/glossary-credit-cards\/4459\/#What_is_a_good_rewards_rate\" >What is a good rewards rate?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-26\" href=\"https:\/\/finance.familiaeabiblia.com.br\/credit-cards\/glossary-credit-cards\/4459\/#Can_I_earn_rewards_on_all_purchases\" >Can I earn rewards on all purchases?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-27\" href=\"https:\/\/finance.familiaeabiblia.com.br\/credit-cards\/glossary-credit-cards\/4459\/#Are_sign-up_bonuses_important\" >Are sign-up bonuses important?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-28\" href=\"https:\/\/finance.familiaeabiblia.com.br\/credit-cards\/glossary-credit-cards\/4459\/#How_do_I_know_if_a_card_is_good_for_travel_rewards\" >How do I know if a card is good for travel rewards?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-29\" href=\"https:\/\/finance.familiaeabiblia.com.br\/credit-cards\/glossary-credit-cards\/4459\/#Is_credit_score_important_when_applying\" >Is credit score important when applying?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-30\" href=\"https:\/\/finance.familiaeabiblia.com.br\/credit-cards\/glossary-credit-cards\/4459\/#Can_I_use_rewards_for_anything_other_than_purchases\" >Can I use rewards for anything other than purchases?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-31\" href=\"https:\/\/finance.familiaeabiblia.com.br\/credit-cards\/glossary-credit-cards\/4459\/#Whats_the_difference_between_points_and_miles\" >What\u2019s the difference between points and miles?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-32\" href=\"https:\/\/finance.familiaeabiblia.com.br\/credit-cards\/glossary-credit-cards\/4459\/#How_do_I_avoid_paying_interest_on_my_rewards_card\" >How do I avoid paying interest on my rewards card?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-33\" href=\"https:\/\/finance.familiaeabiblia.com.br\/credit-cards\/glossary-credit-cards\/4459\/#Are_there_any_hidden_fees_I_should_watch_for\" >Are there any hidden fees I should watch for?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-34\" href=\"https:\/\/finance.familiaeabiblia.com.br\/credit-cards\/glossary-credit-cards\/4459\/#Can_I_combine_rewards_from_multiple_cards\" >Can I combine rewards from multiple cards?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-35\" href=\"https:\/\/finance.familiaeabiblia.com.br\/credit-cards\/glossary-credit-cards\/4459\/#How_do_I_track_and_redeem_my_rewards\" >How do I track and redeem my rewards?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-36\" href=\"https:\/\/finance.familiaeabiblia.com.br\/credit-cards\/glossary-credit-cards\/4459\/#Are_rewards_cards_safe_to_use\" >Are rewards cards safe to use?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-37\" href=\"https:\/\/finance.familiaeabiblia.com.br\/credit-cards\/glossary-credit-cards\/4459\/#What_should_I_do_if_I_have_bad_credit_but_want_rewards\" >What should I do if I have bad credit but want rewards?<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-38\" href=\"https:\/\/finance.familiaeabiblia.com.br\/credit-cards\/glossary-credit-cards\/4459\/#Conclusion\" >Conclusion<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-39\" href=\"https:\/\/finance.familiaeabiblia.com.br\/credit-cards\/glossary-credit-cards\/4459\/#Also_discover\" >Also discover<\/a><\/li><\/ul><\/nav><\/div>\n<p><strong>How to choose the best rewards card?<\/strong><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Understanding_Credit_Scores_A_Comprehensive_Glossary_for_American_Consumers\"><\/span>Understanding Credit Scores: A Comprehensive Glossary for American Consumers<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>In today\u2019s financial world, your <strong>credit score<\/strong> plays a pivotal role in determining the opportunities available to you. Whether you\u2019re applying for a mortgage, renting an apartment, or even seeking a new job, lenders and organizations often review your creditworthiness to assess risk. This detailed glossary article is designed to clarify the essential terms connected to credit scores and credit reporting, helping you navigate this complex landscape with confidence and understanding.<\/p>\n<p>From what a credit score actually is to how it\u2019s calculated and why it matters, this article breaks down key concepts in simple, clear language. Whether you&#8217;re building credit for the first time, aiming to improve a poor score, or simply want to understand the jargon you encounter on credit reports and loan offers, this resource is tailored for you.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"What_Is_a_Credit_Score\"><\/span>What Is a Credit Score?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>A <strong>credit score<\/strong> is a numerical representation of your creditworthiness based on your credit history. Lenders use it to determine how likely you are to repay debts on time. In the United States, credit scores generally range from 300 to 850, with higher scores indicating better credit risk.<\/p>\n<p>The most commonly used credit score models are FICO and VantageScore, each providing slightly different calculations, but both factors rely heavily on the information found in your credit reports.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Key_Terms_Related_to_Credit_Scores\"><\/span>Key Terms Related to Credit Scores<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"Credit_Report\"><\/span>Credit Report<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Your <strong>credit report<\/strong> is a detailed record of your borrowing history, including credit cards, loans, payment history, and public records like bankruptcies. It is compiled by credit bureaus and used to generate your credit score.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Credit_Bureau\"><\/span>Credit Bureau<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>In the U.S., there are three primary <strong>credit bureaus<\/strong>: Equifax, Experian, and TransUnion. These companies collect and maintain your credit information from creditors and report it to lenders when requested.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"FICO_Score\"><\/span>FICO Score<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The <strong>FICO Score<\/strong> is the most widely used credit score model created by the Fair Isaac Corporation. It ranges from 300 to 850 and is used by over 90% of top lenders to decide on credit applications.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"VantageScore\"><\/span>VantageScore<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Developed jointly by the three major credit bureaus, <strong>VantageScore<\/strong> is another popular scoring model that also ranges from 300 to 850 but applies slightly different criteria and weighting than FICO.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"How_Is_a_Credit_Score_Calculated\"><\/span>How Is a Credit Score Calculated?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Your credit score is based on several important factors derived from your credit reports. Understanding these components helps you identify where to focus your efforts to improve your score:<\/p>\n<ul>\n<li><strong>Payment History (35%)<\/strong>: Timely payments on loans and credit cards are the most significant factor. Late payments, defaults, and collections negatively impact your score.<\/li>\n<li><strong>Amounts Owed (30%)<\/strong>: This reflects your credit utilization ratio \u2014 the amount of credit you\u2019re using compared to your total available credit. Lower utilization generally means a higher score.<\/li>\n<li><strong>Length of Credit History (15%)<\/strong>: The longer your accounts have been open and active, the better it is for your credit score.<\/li>\n<li><strong>New Credit (10%)<\/strong>: Opening several new credit accounts within a short period can lower your score as it suggests higher risk.<\/li>\n<li><strong>Credit Mix (10%)<\/strong>: A diverse mix of credit types, such as credit cards, installment loans, and mortgages, may positively influence your score.<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Common_Credit_Score_Ranges_and_What_They_Mean\"><\/span>Common Credit Score Ranges and What They Mean<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Credit scores fall into ranges that lenders interpret to classify risk levels. Here\u2019s a broad overview of these ranges for FICO and how they generally affect your ability to secure credit:<\/p>\n<ul>\n<li><strong>Excellent (800 \u2013 850)<\/strong>: You have a stellar credit history and are likely to receive the best interest rates and loan terms.<\/li>\n<li><strong>Very Good (740 \u2013 799)<\/strong>: Your credit is strong, and you\u2019re likely to get favorable terms for loans and credit cards.<\/li>\n<li><strong>Good (670 \u2013 739)<\/strong>: Most lenders consider you a reliable borrower, but your terms may not be the lowest available.<\/li>\n<li><strong>Fair (580 \u2013 669)<\/strong>: You may face difficulty qualifying for certain loans, and interest rates could be higher.<\/li>\n<li><strong>Poor (300 \u2013 579)<\/strong>: You\u2019re considered high risk, and many lenders may deny applications or offer unfavorable terms.<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Why_Does_Your_Credit_Score_Matter\"><\/span>Why Does Your Credit Score Matter?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Your credit score impacts many areas of your financial life beyond loan approvals:<\/p>\n<ul>\n<li><strong>Interest Rates:<\/strong> Higher credit scores typically qualify for lower interest rates on credit cards, mortgages, and auto loans, saving you thousands of dollars over time.<\/li>\n<li><strong>Loan Approval:<\/strong> Lenders use your score to decide if they want to lend you money and under which terms.<\/li>\n<li><strong>Insurance Premiums:<\/strong> Some insurers use credit scores to help determine premiums on homeowners and auto insurance.<\/li>\n<li><strong>Rental Applications:<\/strong> Landlords may check your credit report to assess your reliability as a tenant.<\/li>\n<li><strong>Employment:<\/strong> Certain employers perform credit checks as part of their hiring process, especially for financial positions.<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Improving_Your_Credit_Score_Practical_Steps\"><\/span>Improving Your Credit Score: Practical Steps<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>While repairing credit takes time, these strategies will help improve your credit health:<\/p>\n<ul>\n<li><strong>Pay Bills on Time:<\/strong> Consistent, on-time payments positively influence your score.<\/li>\n<li><strong>Reduce Credit Card Balances:<\/strong> Aim to keep utilization below 30% of your available credit.<\/li>\n<li><strong>Don\u2019t Close Old Accounts:<\/strong> Keeping older accounts open can lengthen your credit history, which benefits your score.<\/li>\n<li><strong>Limit New Credit Applications:<\/strong> Too many hard inquiries can lower your score.<\/li>\n<li><strong>Check Your Credit Reports:<\/strong> Regularly review reports for errors or fraudulent activity and dispute inaccuracies promptly.<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Understanding_Credit_Report_Errors_and_How_to_Fix_Them\"><\/span>Understanding Credit Report Errors and How to Fix Them<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Errors on your credit report can unfairly lower your credit score. Common errors include:<\/p>\n<ul>\n<li><strong>Incorrect Personal Information:<\/strong> Misspelled name, wrong address, or incorrect Social Security number.<\/li>\n<li><strong>Accounts That Don\u2019t Belong To You:<\/strong> Fraudulent accounts opened in your name.<\/li>\n<li><strong>Outdated Negative Information:<\/strong> Closed accounts or debts that should no longer appear.<\/li>\n<li><strong>Incorrect Payment Status:<\/strong> Late payments marked inaccurately.<\/li>\n<\/ul>\n<p>If you notice mistakes, you can file a dispute with the credit bureau reporting the error. The bureau is required by law to investigate and correct any inaccuracies, usually within 30 days.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"The_Difference_Between_Hard_and_Soft_Inquiries\"><\/span>The Difference Between Hard and Soft Inquiries<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Understanding <strong>credit inquiries<\/strong> is important since they can affect your credit score differently:<\/p>\n<ul>\n<li><strong>Hard Inquiry:<\/strong> Occurs when a lender or creditor checks your credit for lending decisions. Hard inquiries can temporarily lower your score.<\/li>\n<li><strong>Soft Inquiry:<\/strong> Occurs when you check your own credit or when a company reviews your credit for promotional reasons. Soft inquiries do not affect your score.<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Building_Credit_from_Scratch\"><\/span>Building Credit from Scratch<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>If you\u2019re new to credit, here are some ways to start building a solid credit profile:<\/p>\n<ul>\n<li><strong>Secured Credit Card:<\/strong> Requires a refundable deposit and is an excellent way to establish credit history.<\/li>\n<li><strong>Become an Authorized User:<\/strong> Being added to a trusted family member\u2019s credit card account can help boost your credit if they have good credit habits.<\/li>\n<li><strong>Credit Builder Loans:<\/strong> Specifically sized loans where your payments are held in a bank account and reported to credit bureaus while you pay them off.<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Impact_of_Debt_on_Your_Credit_Score\"><\/span>Impact of Debt on Your Credit Score<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>High levels of debt relative to your income and credit limits can signal financial distress to lenders. Managing debt wisely is key to maintaining or improving your credit score:<\/p>\n<ul>\n<li><strong>Keep Balances Manageable:<\/strong> Avoid maxing out credit cards;<\/li>\n<li><strong>Consolidate Debt:<\/strong> If possible, combine high-interest debts into a lower-interest loan;<\/li>\n<li><strong>Avoid Missing Payments:<\/strong> Even one late payment can substantially harm your credit.<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Understanding_Credit_Freeze_and_Fraud_Alerts\"><\/span>Understanding Credit Freeze and Fraud Alerts<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Protecting yourself from identity theft is critical when it comes to credit:<\/p>\n<ul>\n<li><strong>Credit Freeze:<\/strong> Temporarily restricts access to your credit report, preventing new accounts from being opened without your permission.<\/li>\n<li><strong>Fraud Alert:<\/strong> Requires creditors to take extra steps to verify your identity before opening new credit in your name.<\/li>\n<\/ul>\n<p>Both tools are free and can be placed via the major credit bureaus.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"How_Often_Should_You_Check_Your_Credit_Score\"><\/span>How Often Should You Check Your Credit Score?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Experts recommend checking your credit score and report at least once a year, though many consumers benefit from quarterly reviews to spot inaccuracies early and track their credit progress. Thanks to laws such as the <em>Fair Credit Reporting Act<\/em>, you are entitled to a free credit report from each of the three credit bureaus annually through AnnualCreditReport.com.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Final_Notes_on_Credit_Scores\"><\/span>Final Notes on Credit Scores<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Your credit score is more than just a number \u2014 it\u2019s a key financial tool that influences your ability to borrow, rent, and even obtain employment. By learning the terminology and practices that affect your score, you empower yourself to take control of your financial health. Use this glossary as a reference as you manage your credit, and remember that consistent positive habits ultimately pave the way toward a strong credit profile.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-236\" src=\"https:\/\/finance.familiaeabiblia.com.br\/credit-cards\/wp-content\/uploads\/2025\/04\/Thumbnail-Smart-Finance-30.webp\" alt=\"Thumbnail Smart Finance (30)\" width=\"800\" height=\"540\" srcset=\"https:\/\/finance.familiaeabiblia.com.br\/credit-cards\/wp-content\/uploads\/2025\/04\/Thumbnail-Smart-Finance-30.webp 800w, https:\/\/finance.familiaeabiblia.com.br\/credit-cards\/wp-content\/uploads\/2025\/04\/Thumbnail-Smart-Finance-30-300x203.webp 300w, https:\/\/finance.familiaeabiblia.com.br\/credit-cards\/wp-content\/uploads\/2025\/04\/Thumbnail-Smart-Finance-30-768x518.webp 768w, https:\/\/finance.familiaeabiblia.com.br\/credit-cards\/wp-content\/uploads\/2025\/04\/Thumbnail-Smart-Finance-30-220x150.webp 220w\" sizes=\"auto, (max-width: 800px) 100vw, 800px\" \/><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Related_Articles\"><\/span>Related Articles<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul class=\"page-generator-pro-related-links page-generator-pro-related-links-columns-1 page-generator-pro-related-links-prev-next page-generator-pro-related-links-vertical\"><li class=\"prev\">\n                            <a href=\"https:\/\/finance.familiaeabiblia.com.br\/credit-cards\/glossary-credit-cards\/4410\/\" title=\"How to choose between personal and business cards?\">How to choose between personal and business cards?\n                            <\/a>\n                        <\/li><li class=\"next\">\n                            <a href=\"https:\/\/finance.familiaeabiblia.com.br\/credit-cards\/glossary-credit-cards\/5135\/\" title=\"How to choose the best starter card for young adults?\">How to choose the best starter card for young adults?\n                            <\/a>\n                        <\/li><\/ul>\n<p>Our HOME in English: <a href=\"https:\/\/finance.familiaeabiblia.com.br\/\" target=\"_blank\" rel=\"noopener\">Smart Finance: Learn, Invest, and Grow<\/a><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-233\" src=\"https:\/\/finance.familiaeabiblia.com.br\/credit-cards\/wp-content\/uploads\/2025\/04\/Thumbnail-Smart-Finance-27.webp\" alt=\"Thumbnail Smart Finance (27)\" width=\"800\" height=\"540\" srcset=\"https:\/\/finance.familiaeabiblia.com.br\/credit-cards\/wp-content\/uploads\/2025\/04\/Thumbnail-Smart-Finance-27.webp 800w, https:\/\/finance.familiaeabiblia.com.br\/credit-cards\/wp-content\/uploads\/2025\/04\/Thumbnail-Smart-Finance-27-300x203.webp 300w, https:\/\/finance.familiaeabiblia.com.br\/credit-cards\/wp-content\/uploads\/2025\/04\/Thumbnail-Smart-Finance-27-768x518.webp 768w, https:\/\/finance.familiaeabiblia.com.br\/credit-cards\/wp-content\/uploads\/2025\/04\/Thumbnail-Smart-Finance-27-220x150.webp 220w\" sizes=\"auto, (max-width: 800px) 100vw, 800px\" \/><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Our_Categories\"><\/span>Our Categories:<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul class=\"wp-block-list\">\n<li>\ud83d\udcb3 <a href=\"https:\/\/finance.familiaeabiblia.com.br\/credit-cards\/\">Credit Cards<\/a>: Comparisons, reviews, and tips to choose the best card for your profile \u2014 cashback, travel rewards, no annual fee, and more.<\/li>\n<li>\ud83c\udfe6 <a href=\"https:\/\/finance.familiaeabiblia.com.br\/digital-banks\/\">Digital Banks<\/a>: Practical guides and evaluations of digital bank accounts, fees, benefits, and services.<\/li>\n<li>\ud83d\udcc8 <a href=\"https:\/\/finance.familiaeabiblia.com.br\/investing\/\">Investments<\/a>: Beginner guides, fixed income and variable income options, real estate investment trusts (REITs), and more.<\/li>\n<li>\ud83e\uddee <a href=\"https:\/\/finance.familiaeabiblia.com.br\/financial-education\/\">Financial Education<\/a>: Learn to manage your budget, build an emergency fund, and get out of debt.<\/li>\n<li>\ud83d\ude97 <a href=\"https:\/\/finance.familiaeabiblia.com.br\/loans-financing\/\">Loans and Financing<\/a>: Explanations about mortgage, auto, and student loans, with smart money-saving tips.<\/li>\n<li>\ud83d\udee1\ufe0f <a href=\"https:\/\/finance.familiaeabiblia.com.br\/insurance\/\">Insurance<\/a>: Information about the most important types of insurance to protect your family and assets.<\/li>\n<li>\ud83d\udcca <a href=\"https:\/\/finance.familiaeabiblia.com.br\/taxes-income\/\">Taxes and Income<\/a>: Guidance on tax filing, investment taxation, and fiscal responsibilities.<\/li>\n<li>\ud83c\udfd6\ufe0f <a href=\"https:\/\/finance.familiaeabiblia.com.br\/retirement-planning\/\">Retirement Planning<\/a>: Tips to plan your retirement with private retirement plans, Social Security benefits, and passive income strategies.<\/li>\n<\/ul>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-240\" src=\"https:\/\/finance.familiaeabiblia.com.br\/credit-cards\/wp-content\/uploads\/2025\/04\/Thumbnail-Smart-Finance-34.webp\" alt=\"Thumbnail Smart Finance (34)\" width=\"800\" height=\"540\" srcset=\"https:\/\/finance.familiaeabiblia.com.br\/credit-cards\/wp-content\/uploads\/2025\/04\/Thumbnail-Smart-Finance-34.webp 800w, https:\/\/finance.familiaeabiblia.com.br\/credit-cards\/wp-content\/uploads\/2025\/04\/Thumbnail-Smart-Finance-34-300x203.webp 300w, https:\/\/finance.familiaeabiblia.com.br\/credit-cards\/wp-content\/uploads\/2025\/04\/Thumbnail-Smart-Finance-34-768x518.webp 768w, https:\/\/finance.familiaeabiblia.com.br\/credit-cards\/wp-content\/uploads\/2025\/04\/Thumbnail-Smart-Finance-34-220x150.webp 220w\" sizes=\"auto, (max-width: 800px) 100vw, 800px\" \/><\/p>\n<h2><span class=\"ez-toc-section\" id=\"How_to_Choose_the_Best_Rewards_Card\"><\/span>How to Choose the Best Rewards Card?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Finding the perfect rewards card can feel overwhelming with so many options available. If you&#8217;re looking to get the most value from your everyday spending, it\u2019s important to pick a card that aligns with your lifestyle and financial goals. Whether you want cash back, travel points, or exclusive perks, understanding key features like reward rates, annual fees, and redemption options will help you make the right choice. By carefully comparing cards and focusing on what benefits matter most to you, you can turn your purchases into meaningful rewards and save money effectively.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Frequently_Asked_Questions_About_Choosing_the_Best_Rewards_Card\"><\/span>Frequently Asked Questions About Choosing the Best Rewards Card<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"What_types_of_rewards_cards_are_available\"><\/span>What types of rewards cards are available?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Rewards cards generally fall into three categories: cash back, travel points, and store-specific rewards. Choose one based on how you typically spend and what benefits you want.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"How_important_is_the_annual_fee_for_a_rewards_card\"><\/span>How important is the annual fee for a rewards card?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Annual fees matter if you don\u2019t plan to use the card enough to justify the cost. Sometimes cards with fees offer better rewards that outweigh the fee.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"What_is_a_good_rewards_rate\"><\/span>What is a good rewards rate?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>A good rewards rate is typically around 1.5% to 2% cash back or equivalent points value. Some cards offer higher rates on specific categories.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Can_I_earn_rewards_on_all_purchases\"><\/span>Can I earn rewards on all purchases?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Many cards offer a flat rate on all purchases, but some have higher rewards in categories like groceries, gas, or dining.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Are_sign-up_bonuses_important\"><\/span>Are sign-up bonuses important?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Yes, sign-up bonuses can provide a significant boost to your rewards in the first few months, making them valuable if you meet spending requirements.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"How_do_I_know_if_a_card_is_good_for_travel_rewards\"><\/span>How do I know if a card is good for travel rewards?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Look for cards with flexible point redemption, airline partnerships, and travel perks like lounge access or no foreign transaction fees.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Is_credit_score_important_when_applying\"><\/span>Is credit score important when applying?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Yes, most rewards cards require a good to excellent credit score, typically 670 or higher, to qualify for the best offers.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Can_I_use_rewards_for_anything_other_than_purchases\"><\/span>Can I use rewards for anything other than purchases?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Many cards allow you to redeem points for gift cards, statement credits, travel, and sometimes even charitable donations.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Whats_the_difference_between_points_and_miles\"><\/span>What\u2019s the difference between points and miles?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Points are a general rewards currency that can often be transferred to partners, while miles usually refer to airline travel rewards.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"How_do_I_avoid_paying_interest_on_my_rewards_card\"><\/span>How do I avoid paying interest on my rewards card?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Pay your balance in full every month to avoid interest charges and maximize your rewards benefits.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Are_there_any_hidden_fees_I_should_watch_for\"><\/span>Are there any hidden fees I should watch for?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Look out for foreign transaction fees, late payment fees, and balance transfer fees that can reduce your rewards\u2019 value.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Can_I_combine_rewards_from_multiple_cards\"><\/span>Can I combine rewards from multiple cards?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Some issuers allow combining points within their rewards programs, but combining across different card companies is usually not possible.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"How_do_I_track_and_redeem_my_rewards\"><\/span>How do I track and redeem my rewards?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Most cards have online portals or apps where you can track your balance and redeem rewards easily.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Are_rewards_cards_safe_to_use\"><\/span>Are rewards cards safe to use?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Yes, rewards cards offer fraud protection, but always monitor your statements for unauthorized activity.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"What_should_I_do_if_I_have_bad_credit_but_want_rewards\"><\/span>What should I do if I have bad credit but want rewards?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Consider secured cards or cards designed for rebuilding credit that offer basic rewards as your score improves.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Choosing the best rewards card requires understanding your spending habits and what types of rewards appeal most to you. Prioritize cards that offer strong rewards in your frequent spending categories, reasonable fees, and flexible redemption options. Sign-up bonuses can give your rewards a great start but don\u2019t overlook the card\u2019s everyday benefits. Always consider your credit score before applying, and commit to paying your balance in full each month to avoid interest and fully profit from your rewards. By doing your research and comparing key features, you can select a rewards card that turns your purchases into valuable benefits, helping you save money, travel smarter, or enjoy exclusive perks effortlessly.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-235\" src=\"https:\/\/finance.familiaeabiblia.com.br\/credit-cards\/wp-content\/uploads\/2025\/04\/Thumbnail-Smart-Finance-29.webp\" alt=\"Thumbnail Smart Finance (29)\" width=\"800\" height=\"540\" srcset=\"https:\/\/finance.familiaeabiblia.com.br\/credit-cards\/wp-content\/uploads\/2025\/04\/Thumbnail-Smart-Finance-29.webp 800w, https:\/\/finance.familiaeabiblia.com.br\/credit-cards\/wp-content\/uploads\/2025\/04\/Thumbnail-Smart-Finance-29-300x203.webp 300w, https:\/\/finance.familiaeabiblia.com.br\/credit-cards\/wp-content\/uploads\/2025\/04\/Thumbnail-Smart-Finance-29-768x518.webp 768w, https:\/\/finance.familiaeabiblia.com.br\/credit-cards\/wp-content\/uploads\/2025\/04\/Thumbnail-Smart-Finance-29-220x150.webp 220w\" sizes=\"auto, (max-width: 800px) 100vw, 800px\" \/><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Also_discover\"><\/span>Also discover<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li><strong><a href=\"https:\/\/finance.familiaeabiblia.com.br\/glossary\/\" target=\"_blank\" rel=\"noopener\">Glossary Finance<\/a><\/strong><\/li>\n<li><strong><a class=\"row-title\" href=\"https:\/\/finance.familiaeabiblia.com.br\/faq-finance\" target=\"_blank\" rel=\"noopener\" aria-label=\"\u201cFAQ \u2013 Frequently Asked Questions\u201d (Edit)\">FAQ \u2013 Frequently Asked Questions<\/a><\/strong><\/li>\n<li><a href=\"https:\/\/finance.familiaeabiblia.com.br\/credit-cards\/glossary-credit-cards\/\">Credit Cards &#8211; GLOSSARY<\/a><\/li>\n<li><a href=\"https:\/\/finance.familiaeabiblia.com.br\/credit-cards\/faq-credit-cards\">Credit Cards &#8211; FAQ<\/a><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>How to choose the best rewards card? Understanding Credit Scores: A Comprehensive Glossary for American Consumers In today\u2019s financial world, your credit score plays a pivotal role in determining the opportunities available to you. Whether you\u2019re applying for a mortgage, renting an apartment, or even seeking a new job, lenders and organizations often review your &hellip;<\/p>\n","protected":false},"author":3,"featured_media":230,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[54],"tags":[],"class_list":["post-4459","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-glossary-credit-cards"],"_links":{"self":[{"href":"https:\/\/finance.familiaeabiblia.com.br\/credit-cards\/wp-json\/wp\/v2\/posts\/4459","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/finance.familiaeabiblia.com.br\/credit-cards\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/finance.familiaeabiblia.com.br\/credit-cards\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/finance.familiaeabiblia.com.br\/credit-cards\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/finance.familiaeabiblia.com.br\/credit-cards\/wp-json\/wp\/v2\/comments?post=4459"}],"version-history":[{"count":0,"href":"https:\/\/finance.familiaeabiblia.com.br\/credit-cards\/wp-json\/wp\/v2\/posts\/4459\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/finance.familiaeabiblia.com.br\/credit-cards\/wp-json\/wp\/v2\/media\/230"}],"wp:attachment":[{"href":"https:\/\/finance.familiaeabiblia.com.br\/credit-cards\/wp-json\/wp\/v2\/media?parent=4459"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/finance.familiaeabiblia.com.br\/credit-cards\/wp-json\/wp\/v2\/categories?post=4459"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/finance.familiaeabiblia.com.br\/credit-cards\/wp-json\/wp\/v2\/tags?post=4459"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}