Getting a credit card is an important decision because credit cards can help or hurt your credit rating. Using them responsibly is a good way to build a positive credit history although it is easy to misuse them and end up thousands of dollars in debt. If you are applying for credit for the first time or you are looking for an additional credit card, one of the biggest questions you may have is should I get a MasterCard or VISA credit card?

The truth is that both companies report the same way to the credit bureaus and have the same type of impact on your credit score. Both VISA credit cards and MasterCard are very popular and are accepted at virtually all of the same merchants and ATM’s. Because they are pretty much the same in these respects when it comes to choosing between the two the choice usually comes down to which company will give you a better interest rate, credit limit, and the rewards you want.

VISA and MasterCard compete to attract consumers which means they both have good deals for people with good credit. You can find zero interest balance transfer cards, rewards cards, cards with zero interest introductory rates, high credit limits, and other perks from both companies. If you are applying for your first credit card it really does not matter which company you go with. Find the best credit card deal you can and go with it no matter which company it is from.

If you are applying for an additional card to separate business and persona spending, get more credit, or because you want a specific type of reward you may be better off going with the company whose card you don’t already have. This way you can eliminate the possibility that your card will not be accepted. When you have two accounts in good standing you also cause each credit card company to compete even more for your business and you will be offered even better incentives and terms.

Both VISA and MasterCard are good choices and you can’t go wrong with either. When choosing your first card go with the one that has the lowest interest rate and fees. When you are choosing a second credit card go with the brand you don’t have to diversify and drive competition.

By Lakshmi Ramachandran