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How Much Cheaper Are Store-Brand Groceries Than Name Brands?


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How Much Cheaper Are Store-Brand Groceries Than Name Brands?


How Much Cheaper Are Store-Brand Groceries Than Name Brands?

This story is part of Home Tips, CNET's collection of practical advice for getting the most out of your home, inside and out.

Store-brand groceries might not have all the flashy packaging and advertising oomph of your favorite cereal, seltzer and snacks. If you can grin and bear a cheesy knockoff in place of those name-brand products, though, you can save a bunch on your monthly food spending.

In a summerlong series on saving money to combat inflation, we've calculated whether it's cheaper to buy groceries online or in person and laid out some strategies for saving at Whole Foods. But it turns out one of the most surefire ways to save at the supermarket is by letting some of that brand loyalty go by the wayside. 

If you're curious about exactly how much you can save buying store-brand groceries, I've done the math and the final figures are pretty shocking. On average, it's about 40% in total savings across various grocery categories. I compared the cost difference for buying name brands versus store-brand products at two popular grocery stores. Read on for a full savings breakdown in case you decide to make the switch. 

Read more: Is Grocery Shopping Online Cheaper Than at the Store? I Did the Math

Who makes store-brand products?

First things first, it's well documented that most major food manufacturers label their products under a number of different brands, including generic or store brands. According to recent statistics captured by the Private Label Manufacturing Association, one in five store-brand products is manufactured by a private label manufacturer. It makes sense: Those manufacturers can then appeal to people who are paying at either price. But they want you to go for the brand name price, rather than the store brand. That's why advertising exists; to make you believe that brand name products are somehow better, when the truth is that identical products are often going down parallel conveyor belts, getting two different labels at the end of the production line. 

toasted o's next to cheerios box

This store-brand toasted cereal retails for around $2. A box of General Mills Cheerios is more like $5.

David Watsky/CNET

Now, this doesn't necessarily mean that all store-brand, O-shaped, toasted oat cereals are actually General Mills Cheerios in disguise, but it stands to reason that for a lot of store-brand products, the quality or flavor is potentially equal to their name- counterpart. And considering the opportunity for savings, they're certainly worth a taste test. While some brand-name products are unlikely to have a generic equivalent, (like, is anyone really seeking off-brand Cool Ranch Doritos?) commodity items like canned beans or rice would seem especially safe bets in the store-brand category.

pepita salsa

Trader Joe's beloved pepita salsa is just one example of a store-brand item that's gained fandom and loyalty all its own.

Trader Joe's

Here's how much you can save buying store brand: Wegmans vs. Stop & Shop

I chose both Wegmans and Stop & Shop to represent high-end and average grocery store chains, using Instacart to generate current prices. 

Discount grocery stores such as Trader Joe's and Aldi keep their costs low because they deal primarily in their own brands. Wegmans is an interesting example since it has a lot of its own brand loyalty, not only as a grocery store chain, but also for its Wegmans label. (Seriously, I know people who would cross state lines to stock up on its flavored seltzers. Take that, LaCroix.) Stop & Shop is generally perceived as a midrange grocery chain, with good selection and good quality, and not considered expensive, but neither is it revered for its generic brand, which is simply called SB or Store Brand. 

Despite perceptions, however, both Wegmans and Stop & Shop are relatively aligned on prices, for both national and store-brand products. Wegmans came out a little ahead in price for name-brand products, in fact: The whole order was about $2 less than Stop & Shop's. Store-brand prices were within 20 cents of each other for the full list at both stores.

Cost of store brand versus name brand


Wegmans Wegmans store brand Stop & Shop Stop & Shop store brand
Goya chick peas, 16 ounces $1.49 $1.09 $1.19 $1.09
Barilla thin spaghetti, 16 ounces $2.29 $1.19 $2.49 $1.49
Arnold whole wheat bread, 24 ounces $4.99 $3.49 $5.69 $2.69
Bird's Eye frozen broccoli florets, 12 ounces $3.29 $1.79 $3.39 $3.29
Skippy creamy peanut butter, 16 ounces $4.29 $2.69 $3.49 $2.89
Honey Nut Cheerios, 10 ounces* $4.39 $2.29 $6.49 $2.79
Organic Valley/Horizon reduced fat organic milk, half-gallon $6.39 $5.09 $6.29 $5.19
FAGE nonfat Greek yogurt, plain, 32 ounces $7.49 $4.99 $7.89 $5.79
Bonne Maman strawberry preserves, 13 ounces* $6.39 $4.09 $6.99 $4.19
Mission flour tortillas, soft taco size, 10-pack $3.49 $1.79 $4.49 $2.59
Rao's homemade marinara, 24 ounces $9.19 $1.19 $9.79 $1.99
Finlandia/Sargento sliced swiss cheese, 7 ounces* $6.89 $3.09 $5.79 $3.69
Starbucks Breakfast Blend ground coffee, 12 ounces $12.69 $7.49 $12.69 $5.19
Smithfield thick cut bacon, 16 ounces $9.79 $7.89 $9.49 $7.99
Heinz Original tomato ketchup, 20 ounces $3.49 $2.09 $3.19 $2.89
Lay's Classic potato chips, 8 ounces $4.59 $2.69 $5.29 $2.39
LaCroix sparkling water, 12-pack $6.89 $4.09 $7.39 $4.69
Swanson chicken broth, 32 ounces $4.59 $3.79 $3.49 $2.79
Colavita extra virgin olive oil, 17 ounces $13.79 $8.09 $12.49 $5.79
Hellman's mayonnaise, 30 ounces $6.89 $4.89 $6.99 $4.19

$123.30 $73.80 $125.00 $73.60
*Indicates store-brand item whose quantity was greater for listed price



Buying store brand can mean huge savings

For both Wegmans and Stop & Shop, the huge savings in buying generic products can't be denied. The original shopping list of 20 staple items amounted to about $125 in both locations, with the store-brand version of the list coming to just under $75. That's an average of 40% savings over the whole list

Granted, this doesn't represent a complete shopping list, since certain grocery categories were excluded intentionally. Some of these items, such as condiments, are products that you might shop for once in a while, rather than weekly. Regardless, the math is clear: Store-brand products are significant potential savings in your grocery shopping experience.

various wegman's branded groceries

Certain grocery stores including Trader Joe's and Wegmans have managed to cultivate cult-like fandom for their own brands.

Wegmans

How I evaluated name brands vs. store brands

Using grocery shopping list templates available online, I generated a list of 20 common staple ingredients from the pantry, bakery, dairy, deli and freezer sections, covering a variety of prices. Items such as whole fruits and vegetables and butchered meats aren't typically subject to brand (or they're rarely revealed) and I discluded them for the purposes of this investigation. For each of the items I selected, I compared prices between national, well-known brands and the store brand of the same item, at roughly the same size, using Instacart. If there's a discrepancy in size, I've noted that with an asterisk, but did not adjust the price accordingly, since I wanted to reflect an accurate total of what you'd pay for a grocery list's worth of either name-brand or store-brand products. 

In most cases, the store-brand model was the larger size of the two items anyway, meaning even more savings if you factor in its relative value. For example, at Wegmans, Bonne Maman Strawberry Preserves are $6.39 for 13 ounces, whereas Wegmans brand Strawberry Preserves are only $4.09 for a full 18 ounces, nearly 50% more product. The savings on your grocery receipt will amount to $2.30, but if you scale up the Bonne Maman price to match the same amount of store-brand product, its price would become $8.85, representing a savings of $4.76, or over 50%, for the Wegmans brand.

Read more:  Hungryroot Review: Meal Kits and Grocery Delivery Together as One

bonne maman cherry preserves jar

Certain upscale and imported goods like Bonne Maman preserves will cost you significantly more than store brand. 

Bonne Maman

Where are the biggest savings on store-brand items?

Between both Wegmans and Stop & Shop, the more the brand-name item cost, the more savings were typically available, not only in terms of pure dollars and cents but also as percentage savings between the brand name and store brand. Brand-name items above $5 tended to result in the largest percentage discount, with bigger-ticket items such as olive oil, coffee and spaghetti sauce pushing 50% off or more for their generic or store-brand counterparts. 

olive oil being poured

Pricier items such as olive oil and marinara sauce are where you're likely to see bigger savings if you opt for store brand.

Colavita

Less expensive items, especially those under $2 to begin with, may offer only 10% to 30% savings overall. For example, approximately 17 ounces of Colavita Extra virgin olive oil costs $12.79 at Stop & Shop, whereas the equivalent store-brand olive oil costs only $5.79, which amounts to over 55% off the name-brand price. 

On the other hand, 16 ounces of Goya chickpeas are only $1.19 to begin with. With the store brand being only 10 cents less, the savings only amount to 8%. Olive oil, however, is more likely to be subject to quality and flavor nuance, so while the savings can be much larger, it may be a matter of personal preference if the savings are worth it. Chickpeas are generally less subject to flavor or texture scrutiny.

kirkland sign

Costco's Kirkland is another budget store brand that has garnered its own customer loyalty. 

Costco

Does every grocery store have its own brand?

While store brands are growing, not every grocery store has its own brand, and many just carry no-name or generic brands in addition to name-brand products. Among store brands, there are those that carry the name of the store in its proprietary label, such as Wegmans, Publix, Kroger and others that have a separate label for store-brand products, such as Stop & Shop's SB, Walmart's Great Value and Costco's Kirkland Signature. Whichever the case, it's worth getting to know your local grocer's store-brand products, to see where you may be able to generate huge savings in your grocery bill.

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I Visited Samsung's Galaxy S22 Metaverse Event, But It Felt Rushed And Incomplete


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I visited Samsung's Galaxy S22 metaverse event, but it felt rushed and incomplete


I visited Samsung's Galaxy S22 metaverse event, but it felt rushed and incomplete

Samsung's Galaxy S22 reveal event wasn't just a standard livestream this year: It also took place inside a metaverse -- and I was genuinely excited to check it out. I've attended previous Samsung events in VR and found them to be more enjoyable than most other branded virtual experiences. The infamous 2016 photo of Mark Zuckerberg walking down an aisle while everyone around him is wearing a Gear VR headset is undeniably silly, but the demonstration of what could be possible from home was actually compelling.

By comparison, this 2022 Unpacked event had surprisingly little to do with Samsung and served more as an example of what not to do when using the metaverse to host a product launch.

If you saw Samsung announce an event in the metaverse and thought it meant putting on a VR headset and sitting in an audience, you're not alone. Instead, Samsung built a version of its New York event space in Decentraland, a cryptocurrency-focused virtual playground. It's technically possible to enter Decentraland with a VR headset, but the experience is barely functional and requires a lot of technical knowledge. Using your web browser alongside your mouse and keyboard, as intended by the creators, you enter Decentraland as an animated avatar you can modify, and move yourself to the Samsung 837X space to participate. 

Arriving at this space the day before the event revealed a brightly lit building and a faux pizza shop. The doors were all closed and there wasn't much to see, but there were already people lined up to see what Samsung had to offer. When I checked in again, 30 minutes before the event was to start, a handful of people waiting outside had climbed to nearly 100 that I could see. Decentraland runs 10 servers and you can only see the people on your server, but as I moved around before the event each server seemed similarly full. Roughly 1,000 people were waiting for Samsung to open the doors and show us the Galaxy S22 Ultra

Unfortunately for a lot of those servers, the doors didn't open on time. Many people were unable to actually enter Samsung 837X before the event started. Everyone outside the metaverse was enjoying a strange crossover with the popular TV series Bridgerton at the start of this event, while I and dozens of my fellow metazens were changing servers to find one that worked. Once a server with open doors had been located, the next challenge was finding the room inside this virtual building where the announcement event was actually streaming.

Samsung Metaverse

The three unlockable clothing packs you could use to equip your metaverse avatar if you completed the minigame inside Samsung's event.

Russell Holly/CNET

Inside Samsung 837X, you are presented with three rooms and a host of smaller activities to enjoy. Samsung had made special clothing for your Decentraland avatar you could only get by completing a quest in this space. Most of the space was dedicated to this quest, but in the back you could find a theater with the Unpacked event streaming. The room was a fairly generic virtual theater with a big curved screen showing the event already in progress outside of the metaverse. I was nearly 10 minutes late, and now watching a smaller version of the livestream with animated characters dancing around inside of a web browser on my laptop.

A few minutes into watching this presentation, it became clear the real reason most people were here was to unlock the virtual clothes tied to the Samsung quest. The app told me there were 96 people in the space, but the room only held 37. The novelty of the Samsung-made space was much more important than the unveiling of a new phone and tablet for a majority of those who regularly visit Decentraland.

It's difficult to feel like this approach to an event is anything other than a step backward. Back in 2016, Samsung offered the ability to watch a Galaxy Unpacked event from inside its VR headset. You put the headset on, opened the app and picked one of several positions to watch the stage from a 360-degree streaming camera. Being able to turn your head and see the audience made you feel like you were actually sitting in the audience. Not a lot of people owned those headsets at the time, but it felt like you were in a packed room and could enjoy the show.

Samsung Metaverse

The Samsung Theater, where I could watch the Galaxy S22 Ultra unveiling.

Russell Holly/CNET

In fairness, this 2022 event was fully virtual, so there was no live space to warp into as there was during pre-pandemic product launches. But Samsung could have made it possible to walk through a virtual store, get a closer look at the phone from every angle, or maybe even preorder the next phone using cryptocurrency. There could have been Samsung staff on hand in the space to answer questions or talk to people about what they're upgrading from and how the cameras on this new phone might have been better.

Samsung had an opportunity to make this space actually feel like a virtual version of its 837 store, but instead built a terribly rendered virtual forest to showcase its intent to plant 2 million trees as part of its sustainability efforts. For comparison's sake, the real Samsung 837 store not only sells Samsung devices but opened with a cafe on site and, at least pre-pandemic, held a running club that promoted its fitness trackers.

This could have been a lot of fun, but instead felt rushed and incomplete. It was a halfhearted attempt in a long line of cultural zeitgeist moments from Samsung, and felt more like an online version of the Yo! Noid game from Pizza Hut in 1990 than it does a glimpse at an often-promised metaversal future.


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You Need To Try These New Apple Watch 7 Features


You need to try these new Apple Watch 7 features


You need to try these new Apple Watch 7 features

After setting up your new Apple Watch Series 7 that you got this holiday season and pairing it with your iPhone, it's time to check out all the new features and tweak a few settings to make the most of your new Watch. The Apple Watch Series 7 comes with a larger screen, faster charging and a more durable design. That might not sound as exciting as the blood oxygen sensor that debuted in last year's Series 6. (Here's how the Apple Watch 7 compares to the Apple Watch 6.) But the Series 7's new features have the potential to add more convenience to a lot of everyday tasks, from checking the time to resp onding to texts and tracking your sleep. 

cnet-12-days-of-tech-tips-logo-badge-square-2021.png

Apple unveiled the $399 Apple Watch Series 7 during its product launch event on Sept. 14 alongside the iPhone 13 family, a refreshed iPad Mini, and a new entry-level iPad. The new Apple Watch is a light update to the Series 6 that's ideal for people looking to replace a watch that's several years old.

Read more: Apple Watch 7 review: A slight upgrade compared to last year's smartwatch

If you're considering the Apple Watch Series 7 or already bought one, here's a breakdown of what's new and why it matters. You can also check out all the Apple Watch Series 8 rumors we've heard so far.

Apple Watch Series 7 has a QWERTY keyboard

apple watch series 7 keyboard

The Apple Watch Series 7 should be easier to type on. 

Apple

The Apple Watch has a new QWERTY keyboard that takes advantage of its larger screen, which is about 20% bigger than the Series 6, allowing you to type similarly to how you would on a phone.

What's new: A full-size keyboard means that you aren't limited to sending a canned response to a text, scribbling a quick note or dictating a message, as is the case with the Apple Watch Series 6.

How you'll use it: The Apple Watch Series 7's QWERTY keyboard lets you tap each key to type, or use Apple's QuickPath feature to swipe between letters without lifting your finger. You'll still want to use your phone for messages longer than a short sentence, but it still generally makes it easier to text using the watch.

The bottom line: The Series 7's QWERTY keyboard makes it easier to send longer and more complex messages that are uncomfortable to scribble or too private to dictate. It's another example of how the Apple Watch has evolved to become better at working independently of your phone in the years since its launch. 

Third-party Apple Watch apps like FlickType already allow you to type on your Apple Watch, but having it as a native option on the watch results in a smoother experience. It also means watch owners won't have to rely on third parties for this potentially vital tool, which is important considering some keyboard apps have been accused of participating in App Store rating scams.

Read more: Apple Watch 7 upgrade: How to trade in your old watch to get the best deals

Larger screen on the Apple Watch Series 7 amps up reading

Apple Watch Series 7 compared to Apple Watch Series 6 with text on screen

The Apple Watch Series 7's larger screen can fit more text.

Apple/Screenshot by Sarah Tew/CNET

The Series 7 is Apple's first major redesign since the Series 4 launched in 2018. The new watch comes in 41-millimeter and 45mm sizes for the first time, representing a shift away from the 40mm and 44mm sizes that were available on the Series 4 through Series 6. 

What's new: The Apple Watch Series 7's screen is about 20% larger than the Series 6's and more than 50% bigger than the Series 3's. The borders that frame the screen are also 40% smaller than those of the Series 6, allowing Apple to expand the screen size without making the device much larger. But don't worry, older watch bands are still compatible with the Series 7. 

How you'll use it: The Series 7's larger screen makes it better at its most important job: showing information that's easy to see at a glance so that you don't have to grab your phone. The larger screen means the Series 7 is capable of displaying 50% more text without having to scroll, making reading text messages, emails and notifications more convenient. 

There's more: Apple also updated the user interface in its apps to make better use of that larger screen. Apps like the stopwatch, activity and timer now have larger buttons, meaning it's easier to hit snooze even when you're still half asleep. You also get specific watch faces that are optimized for the Series 7's bigger display, such as a new version of the Modular face that can fit complications with more information. I've been using this new watch face to see my activity progress, the time and weather forecast at a glance.

And don't forget, WatchOS 8 introduces the ability to set Portrait mode photos as your watch face, and the Series 7's larger screen is better able to show them off.

Read more: Apple Watch Series 7 vs. Series 6: The biggest changes coming in Apple's new smartwatch

A brighter screen in always-on mode

Apple Watch Series 7 screen
Apple/Screenshot by Sarah Tew/CNET

Apple also updated the Apple Watch's display in a different way by making the screen more visible in always-on mode. It's another addition that makes it even faster to get quick bits of information from your watch. 

What's new: The Apple Watch Series 7's screen is up to 70% brighter in always-on mode when your wrist is down, according to Apple. However, Apple specifically says this applies to indoor usage.

How you'll use it: The Series 7's improved brightness means it is even easier to see information like the time, your activity rings and your next meeting without having to wake the watch's screen. It feels like a step toward making the Apple Watch's screen appear the same whether it's asleep or in use, and doing so creates a more seamless look that doesn't feel jarring when switching between awake and idle mode. 

To use this feature, you'll want to make sure the always-on display setting is turned on in the Apple Watch's settings menu. On your Apple Watch's app screen, press the settings icon, scroll down to Display & Brightness and tap Always On. From there, make sure the switch next to Always On is toggled on. 

What about battery life? You could also choose to keep this feature turned off if you want to maximize battery life, and Apple hasn't said whether the brighter always-on screen will affect the watch's power consumption. I've been wearing the Apple Watch Series 7 daily with the always-on display setting turned on, and it typically lasts for about a day and a half. But battery life will always vary depending on your usage, and activities like using GPS connectivity while running will cause it to drain faster. 

Read more: Best Apple Watch accessories

Apple Watch Series 7 charges faster than Series 6 

An Apple Watch Series 7 charging

The Apple Watch Series 7 should charge 33% faster than the Series 6.

Apple/Screenshot by Sarah Tew/CNET

The Apple Watch Series 7's battery lasts as long as the Series 6, but the amount of time it takes to charge your watch has dipped. 

What's new: The Apple Watch Series 7 can charge up to 33% faster than the Apple Watch Series 6, according to Apple. It takes 45 minutes to charge from zero to 80%, and 8 minutes of charging should enable 8 hours of sleep tracking. In CNET's testing of the new Apple Watch, reviewers found this to be true. Charging the Watch for at least 30 minutes made the battery jump from zero to 54%. In comparison, the Series 6 only replenished 37% in the same amount of time. 

How you'll use it: We've been asking for more battery life out of the Apple Watch for years, but that's especially relevant now that Apple has added native sleep tracking to its smartwatches. Rather than extending the watch's battery life, Apple makes it easier to quickly charge the watch during short windows throughout the day, presumably so that you don't have to charge it overnight. The idea is that you'll be able to top off the watch's battery whenever you have a few spare minutes.

The bottom line: The Apple Watch Series 7's faster charging speed is another way in which Apple is trying to make its smartwatch a more capable sleep tracker. In addition to making the Series 7 easier to charge in a pinch, Apple also added the ability to measure respiratory rate during sleep with its WatchOS 8 update. Taken together, these improvements could help Apple catch up to Fitbit, which offers multiday battery life on its watches and more in-depth sleep metrics. 

Read more: Best Apple Watch bands for 2021

The Apple Watch Series 7 has a brawnier build

Apple Watch Series 7 side view of crown

The Apple Watch Series 7 comes with tougher crystal and is dust resistant. 

Apple/Screenshot by Sarah Tew/CNET

Exercise tracking has become one of Apple's biggest areas of focus for the Apple Watch. The Series 7 is more suitable for outdoor activity since Apple claims it has a more durable build. 

What's new: The Apple Watch Series 7 is rated for IP6X dust resistance (a first) and is coated in a crystal cover that Apple says is 50% thicker than that of the Apple Watch Series 6. That means you'll feel at ease wearing it to the beach or during a hike. 

How you'll use it: The Series 7's increased durability pairs nicely with the new cycling features in WatchOS 8. The new software brings an updated version of fall detection that Apple says can tell the difference between falling off a bicycle and a different type of accident. Apple also says WatchOS 8 can automatically detect outdoor cycling workouts. (See Lexy Savvides' test of the new Apple Watch cycling features here.)

The bottom line: We put Apple Watch Series 7's durability to the test. Those who want a truly rugged watch have military-grade options from Garmin and Casio to choose from, or could opt for a rugged Apple Watch case. But these updates suggest Apple is trying to push the Apple Watch beyond basic workouts and appeal to those who might need a more durable watch for activities like rock climbing. That's the premise behind the rumored Explorer Edition, which Bloomberg reports will come with greater impact resistance and could launch in 2022.


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How To Pick Your First Credit Card To Start Building Credit


How to Pick Your First Credit Card to Start Building Credit


How to Pick Your First Credit Card to Start Building Credit

Applying for your first credit card can involve a considerable learning curve. With hundreds of card options, lots of jargon and navigating the complexity of the US credit system, there's a lot to learn at once. And once you understand it, it can seem counterintuitive. For example, how are you supposed to build credit to get a credit card if nobody will issue you a card without credit history? It can be dizzying, to say the least.

Still, there are many reasons to want a credit card, chief among them is the ability to build credit history and improve your credit score. Your credit score, a three digit-number that represents your creditworthiness, can affect everything from whether you are approved for an apartment, your interest rates for auto loans and a mortgage and how many financial options you will have in the future.

Below, we review everything you need to know before applying for a credit card: the basics of how credit cards work, how to pick the right card for you, how to apply and how to use your card to build credit.

Read more: Best Debit Cards for College Students

The basics: How credit cards work

First, credit cards are not free money, sadly. What they are is a financial tool that, when used responsibly, lets you space out payments for purchases, build credit history and, in some cases, earn rewards like cash-back or airline miles. But credit cards can be extremely easy to misuse if you accidentally charge more than you can afford to pay back by the end of your billing statement. And if you miss payments, you risk crashing your credit and racking up interest charges.

The best way to avoid these pitfalls is to understand how credit cards work. Credit card issuers, typically a bank or credit union, will lend you a certain amount of money called credit, which you agree to repay. Payment processing networks, like Mastercard or Visa, act as the middleman and help facilitate payments and benefits.

Every card has a credit limit, which is the highest amount of money you can borrow in total. Your credit limit is usually determined by your credit score, income and the credit card issuer. So if you're applying for your first card and don't have a long credit history, you will probably be given a lower credit limit. Once you show responsible card use (paying balances on time and/or in full), you can request a credit limit increase.

At the end of the billing cycle -- which usually lasts about a month -- the credit card company will send you a bill that lists all your purchases made with the card. You can pay either the minimum payment that's due or pay off the bill in full. While paying the minimum payment will keep your account in good standing, the remaining unpaid balance will carry over to the next month, and you'll likely start accruing interest charges on any unpaid balance. Every card has its own annual percentage rate (APR), which is the total amount of interest and fees it charges on unpaid balances.

If you miss the payment due date, you may incur late fees, adding even more dollars to your debt. It's in your best interest to avoid this scenario by only charging what you can afford and paying your bill in full each month. Fees and interest charges can add up quickly and prevent you from paying off your debt as quickly.

How to pick the right credit card

With hundreds of credit cards available, picking the right credit card for you will depend on your current financial status, your future financial goals and your lifestyle. Many credit cards come with rewards like welcome bonuses, cash-back offers, discounts on certain purchases and travel points or airline miles. Cards with rewards typically come along with annual fees -- a yearly expense you pay to own the card -- though some do not.

The right card for you depends on your financial situation and goals. If you're just starting out, building credit with a student or secured credit card -- one that requires a security deposit that acts as your credit limit -- can help you build credit. If you're looking to earn rewards, look for a card with the most relevant perks for your spending habits and an annual fee you can recoup from your rewards. 

Some credit card companies will solicit you directly or allow you to see if you are preapproved for a card. Since card companies run a hard check on your credit when you apply for a card, a move that can temporarily cause your credit score to dip, preapproval lets you see if you're likely to be approved before you apply. Preapproval doesn't guarantee you'll be approved -- it just means the credit card company thinks you're a good applicant for a particular card.

For those currently in school, there are specific credit cards made for students. These cards usually have a smaller credit limit, and may have a scaled-down combination of benefits and fees compared to traditional credit cards. Student cards usually have relaxed credit requirements, since many students don't have a significant credit history, thus making it easier to get approved.

A secured card is another option for those with no or low credit, looking to boost their credit score. Secured credit cards require a security deposit that acts as your credit limit. It is also a form of collateral, ensuring that the card balance will be paid even if you miss payments.

How to apply for your first credit card

Once you determine which card is best for you, you can begin the application process. While every credit card company has its own application, you will probably be asked to provide similar personal and financial information, like your name, age, employer, annual income and housing payment. With this information, the credit card issuer will run a credit check on you to decide if you fit the criteria for card approval.

After you apply, you will either be approved and granted a card or denied. CNET outlines steps to take to figure out why you're denied for a credit card in the worst case scenario.

How to build credit with your card

Your credit score reflects how good or bad you are at managing debt. It shows lenders your creditworthiness, or how much risk is involved when lending you money. Your credit score is determined by a few factors, including your payment history, amount of debt owed, the length of credit history, how much new credit you've taken on, and your credit utilization ratio, which we'll explain below.

Here are some common blunders to avoid to keep your credit score healthy: 

  • Not paying your minimum payment on time. In addition to being penalized with late fees and interest charges, late payments reported to credit bureaus indicate to future lenders that you are an unreliable borrower. Over time, consistently paying on time will build a strong credit history that will boost your score, making you eligible for better credit cards and interest rates.
  • Using too much of your credit limit. Using more than 30% of your total credit line can affect your credit score negatively. This percentage is called your credit utilization ratio. So if your credit limit is $1,000, you would want to keep all your credit card purchases under $300 as a best practice. Using more of your credit lines indicates to lenders that you are a risky borrower.
  • Closing credit card accounts. While it may seem reasonable to close an account for a card you don't use, it can actually lower your total available credit, lowering your credit utilization ratio and shorten your length of credit history. Depending on your situation, it may be better to keep the card open and use it occasionally. But, there are ways to cancel a credit card without destroying your credit.

Best picks for your first credit card

Intro Offer Intro Offer: Unlimited Cashback Match - only from Discover. Discover will automatically match all the cash back you've earned at the end of your first year! So you could turn $50 cash back into $100. Or turn $100 into $200. There's no minimum spending or maximum rewards. Just a dollar-for-dollar match.

APR14.49% - 23.49% Variable

Intro Purchase APR0% for 6 months

Recommended Credit Fair/New to Credit

Reward Rates
  • Earn 5% cash back on everyday purchases at different places each quarter like Amazon.com, grocery stores, restaurants, gas stations and when you pay using PayPal, up to the quarterly maximum when you activate.
  • Earn 1% unlimited cash back on all other purchases – automatically.

Annual Fee$0

Intro Balance Transfer APR10.99% for 6 months

Balance Transfer APR14.49% - 23.49% Variable

Balance Transfer Fee 3% intro balance transfer fee, up to 5% fee on future balance transfers (see terms)*

Late Payment Fee None the first time you pay late. After that, up to $41.

Foreign Transaction Fees None

  • Earn 5% cash back on everyday purchases at different places each quarter like Amazon.com, grocery stores, restaurants, gas stations and when you pay using PayPal, up to the quarterly maximum when you activate.
  • Earn 1% unlimited cash back on all other purchases – automatically.

Our Take

The Discover it® Student Cash Back* card offers the best rewards spread of student credit cards. You'll earn the 1% flat rate on all purchases, but you can also earn 5% cash back with the bonus quarterly rotating category, on up to $1,500 in combined spending per quarter (then 1%). From now through September, the bonus category includes restaurants and PayPal purchases. For October through December, it includes Amazon.com purchases and purchases made through digital wallet apps. You do have to manually activate these bonus categories through your account to earn this higher rate, though.

We also like that this card offers an Unlimited Cashback Match welcome bonus -- Discover will match your cash back earned for your whole first year, essentially doubling your cash back at the end of your first year.

For more details, see our full review of the Discover it Student Cash Back.

Intro Offer N/A

APR15.24% - 29.24% (Variable)

Intro Purchase APRN/A

Recommended Credit Limited/Fair/Good/Excellent

Reward Rates
  • Up to 1.5% cash back on eligible purchases after making 12 on-time monthly payments.
  • 1% cash back on eligible purchases right away.

Annual Fee$0

Foreign Transaction Fees $0

  • Up to 1.5% cash back on eligible purchases after making 12 on-time monthly payments.
  • 1% cash back on eligible purchases right away.

Our Take

The Petal 2 Visa Credit Card, issued by WebBank, is designed for applicants of various credit types -- whether it's fair, excellent or you're just getting started. It offers a credit line between $300 and $10,000 and 1% back on all eligible purchases. 

To incentivize good credit-building behavior, your cash-back rate can increase to up to 1.5% on eligible purchases after 12 on-time monthly payments. There are no annual fees, security deposits, late fees or foreign transaction fees, making this a flexible option for anyone's first credit card.

Intro Offer N/A

APR26.99% (Variable)

Intro Purchase APRN/A

Recommended Credit Average, Fair, Limited

Reward RatesN/A

Annual Fee$0

Intro Balance Transfer APRN/A

Balance Transfer APR26.99% (Variable)

Balance Transfer Fee $0 at this Transfer APR

Late Payment Fee Up to $40

Foreign Transaction Fees None

Penalty APR None

Our Take

The Capital One Platinum Credit Card doesn't offer many perks, but it could be a good backup option for your first credit card if you don't want to put down a security deposit and aren't a student. This card is designed for people with fair, average or limited credit -- typically a credit score between 580 and 669. Though you won't earn rewards or a welcome bonus, you can build up your credit score with responsible use and there are no foreign transaction fees -- meaning you can use it abroad without facing additional costs.

For more details, check out our full review of the Capital One Platinum Credit Card.

Intro Offer Intro Offer: Unlimited Cashback Match - only from Discover. Discover will automatically match all the cash back you've earned at the end of your first year! There's no minimum spending or maximum rewards. Just a dollar-for-dollar match.

APR24.49% Variable

Intro Purchase APRN/A

Recommended Credit New/Rebuilding Credit

Reward Rates
  • Earn 2% cash back at Gas Stations and Restaurants on up to $1,000 in combined purchases each quarter.
  • Earn unlimited 1% cash back on all other purchases – automatically.

Annual Fee$0

Intro Balance Transfer APR10.99% for 6 months

Balance Transfer APR24.49% Variable

Balance Transfer Fee 3% intro balance transfer fee, up to 5% fee on future balance transfers (see terms)*

Late Payment Fee None the first time you pay late. After that, up to $41.

Foreign Transaction Fees None

  • Earn 2% cash back at Gas Stations and Restaurants on up to $1,000 in combined purchases each quarter.
  • Earn unlimited 1% cash back on all other purchases – automatically.

Our Take

All secured credit cards require a security deposit -- but not all of them enable you to earn rewards on your purchases. With a credit limit range of $200 to $2,500, you can earn 2% cash back at gas stations and restaurants with the Discover it® Secured Credit Card*, on up to a combined $1,000 in spending per calendar quarter (then 1%). You'll earn 1% cash back on other purchases, and you'll still get the Unlimited Cashback Match as with the other Discover credit cards. This card will also let you see if you're preapproved before you apply if you so choose.

For more information, see our full review of the Discover it Secured Credit Card.

Intro Offer Limited Time Offer: Earn $100 when you spend $100 in the first three months

APR16.49% - 26.49% (Variable)

Intro Purchase APRN/A

Recommended Credit Average, Fair, Limited

Reward Rates
  • Earn 8% cash back on entertainment purchases when you book through the Capital One Entertainment portal
  • Earn unlimited 5% cash back on hotels and rental cars booked through Capital One Travel, where you'll get Capital One's best prices on thousands of trip options. Terms apply
  • Earn unlimited 3% cash back on dining, entertainment, popular streaming services and at grocery stores (excluding superstores like Walmart® and Target®)
  • Earn 1% on all other purchases.

Annual Fee$0

Intro Balance Transfer APRN/A

Balance Transfer APR16.49% - 26.49% (Variable)

Balance Transfer Fee $0 at this Transfer APR

Late Payment Fee Up to $40

Foreign Transaction Fees None

Penalty APR None

  • Earn 8% cash back on entertainment purchases when you book through the Capital One Entertainment portal
  • Earn unlimited 5% cash back on hotels and rental cars booked through Capital One Travel, where you'll get Capital One's best prices on thousands of trip options. Terms apply
  • Earn unlimited 3% cash back on dining, entertainment, popular streaming services and at grocery stores (excluding superstores like Walmart® and Target®)
  • Earn 1% on all other purchases.

Our Take

If you eat a lot of takeout or go to restaurants often, the Capital One SavorOne Student Cash Rewards Credit Card can maximize cash back on your meals and entertainment. You may be able to get preapproved for this credit card to test the waters, though as a student credit card, it has more relaxed credit requirements than its traditional counterparts.

You'll earn 3% cash back on dining, entertainment, popular streaming services and at grocery stores (excluding superstores like Target and Walmart). Entertainment covers movie theaters, sports promoters (professional and semiprofessional live events), amusement parks, tourist attractions, aquariums, zoos, dance halls, record stores, pool halls and bowling alleys. Streaming services include Netflix, Hulu and Disney+. For other purchases, you'll earn a standard 1% cash back.

*All information about the Discover it Student Cash Back and the Discover it Secured Credit Card has been collected independently by CNET and has not been reviewed by the issuer.

The editorial content on this page is based solely on objective, independent assessments by our writers and is not influenced by advertising or partnerships. It has not been provided or commissioned by any third party. However, we may receive compensation when you click on links to products or services offered by our partners.


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