If you’re trying to build a solid credit history that will last a lifetime, a credit card can be a valuable tool. Used often and wisely, credit cards can help you establish a credit profile, improve your credit score, and earn rewards in the process.
However, it’s important to note how your FICO credit score can change over time. Your credit score can fluctuate based on how many cards you apply for and how long you keep them. Here are the key factors that determine your FICO credit score:
- Payment history: 35%
- Amount owed: 30%
- Length of credit history: 15%
- Credit mix: ten%
- New credit: ten%
As you can see, the number of new accounts and the length of your credit history play a role in the health of your credit score. If you sign up for too many new accounts in a short period of time, your score may suffer. Likewise, canceling your oldest cards will shorten your credit history and lower your score.
Because of the way your FICO score is calculated, one of the best moves you can make is to get a credit card that you can keep for a long time – maybe even forever. While you may want to get other credit cards over the years, this one “forever card” can serve as an anchor for your credit history.
A card like this won’t have an annual fee but has enough perks to make it worth using. Here are five cards that can definitely be the “forever cards” in your wallet:
Internal balance transfer APR0% Referral APR on balance transfer for 15 months
Balance transfer fee $5 or 5% of the amount of each transfer, whichever is greater.
APR balance transfer15.24% to 23.99% variable
Foreign transaction fees 3% of each transaction in US dollars
Penalty APR Up to 29.99%
- 5% cashback on combined purchases up to $1,500 in bonus categories each quarter you activate. Enjoy new 5% categories every quarter!
- 5% cashback on travel purchased through Chase Ultimate Rewards®, our premier rewards program that lets you redeem rewards for cash back, travel, gift cards and more
- 3% cashback on pharmacy purchases and restaurant dining, including eligible takeout and delivery services
- Unlimited 1% Cashback on all other purchases.
The Chase Freedom Flex card has consistently been named one of the top free bonus cards on the market, and with good reason. Not only do you earn 3% cashback on static bonus categories, but you also earn 5% cashback (up to $1,500 on combined purchases each quarter) in quarterly rotating categories.
Since this card has no annual fee, you can use it as often or as infrequently as you like without worrying about ongoing costs. You can even convert your Freedom Flex rewards into Ultimate Rewards points if you also have a Chase Sapphire Preferred or Reserve card.
Internal balance transfer APR0% for 15 months
Balance transfer fee 3% balance transfer fee, up to 5% fee on future balance transfers (see terms) *
APR balance transfer12.24% – 23.24% change
Late payment fee There is no first time you late payment. Then up to $40.
Foreign transaction fees Not available
- Earn 5% cash back on daily purchases at different locations each quarter like Amazon.com, grocery stores, restaurants, gas stations and when you pay with PayPal, up to a quarterly maximum when you activated.
- Earn 1% cashback unlimited on all other purchases – automatic.
Because it doesn’t charge an annual fee, the Discover it® Cash Back card can also be a permanent fixture in your wallet. Like Freedom Flex, it offers 5% cashback (up to $1,500 in annual spend, then 1%) in quarterly rotating bonus categories. This card also lets you track your recent FICO credit score for free, and you’ll never have to pay over-the-counter fees or foreign transaction fees for purchases overseas.
Internal balance transfer APR0% Referral APR in 15 billing cycles for any BT made in the first 60 days. A 3% fee (minimum $10) applies.
Balance transfer fee $10 or 3% of the amount of each transaction, whichever is greater.
APR balance transfer14.24% – 24.24% APR change on purchases and balance transfers
Late payment fee View terms
Foreign transaction fees 3%
Penalty APR up to 29.99% APR
- Earn 3% cash back in a category of your choice (up to $2,500 in a combined select/grocery/wholesale club purchase quarterly)
- Earn 2% automatically at grocery stores and wholesale clubs (up to $2,500 in combined select/grocery/wholesale club purchases quarterly)
- Earn 1% Unlimited on all other purchases.
Bank of America’s custom cash rewards credit cards give cardholders more control over their rewards than most cards, allowing you to choose a 3% cashback to earn, as well as earn Get 2% cash back at grocery stores and wholesale clubs (rewards are capped at the first $2,500 in combined purchases each quarter for 3% and 2% categories) .
This credit card is perfect for the long haul as it never charges an annual fee and offers quite a bit of earning potential. You can earn unlimited rewards all year if you want, or simply keep this card for emergencies. But you will never pay a dime for the privilege and your rewards will never expire.
Balance transfer fee N / A
Late payment fee Up to $40
Foreign transaction fees 2.7% of each transaction after converting to US dollars.
Penalty APR 29.99% variable
- 3% cashback in US supermarkets (on purchases up to $6,000 per year, then 1%)
- 2% cashback at gas stations in the US.
- 1% cashback on other purchases
The American Express Blue Cash Everyday Card is perfect for moderate spenders who want a “forever card” that helps them earn rewards. With this card, you’ll get 3% cashback on your first $6,000 on spending in a US supermarket each year (then 1%), plus 2% at US gas stations and select US department stores and 1% cashback on all other purchases.
What makes this offer good in the long run is that the card has no annual fees and rewards cardholders for purchases they’ll make for years to come.
Terms apply to American Express benefits and offers. Registration may be required to enjoy some American Express benefits and offers. Visit americanexpress.com to find more about.
Internal balance transfer APR0% referral on balance transfer for 15 months
Balance transfer fee 3%
APR balance transfer15.24% – 25.24% (Variable)
Late payment fee Up to $40
Foreign transaction fees Not available
Penalty APR Not available
- Earn unlimited 1.5% cashback on every purchase, every day
The Capital One Quicksilver Cash Rewards credit card offers unlimited 1.5% cashback for every dollar you spend. Your cashback will never expire and you can redeem it in any increment of your choice as often as you wish. This is a simple, useful card with no annual fee. If you’re looking for an uncomplicated but rewarding card experience, you’ve found it.
[This article was first published on The Simple Dollar in 2020. It was updated in March 2022.]
