Our editorial team and our expert review board provide an unbiased analysis of the products we feature. Our comparison service is compensated by our partners, and may influence where or how products are featured on the site. Learn more about our partners and how we make money. Please note: The star-rating system on this page is based on our independent card scoring methodology and is not influenced by advertisers or card issuers.
Credit cards are a secure payment method that give cardholders access to a line of credit they can borrow from and pay back over time. When used responsibly, they’re a great credit-building tool that can help establish credit, build a positive credit history and help you save money down the road if you need a loan for something like a car or home.
The best credit cards are particularly worth it because they provide long-term value with rewards and perks that aren’t found with other payment methods.
The right credit card for you may come with lengthy promotional APRs on purchases or balance transfers, generous welcome offers or favorable terms and conditions like a low interest rate.
Choosing the best credit card for you will vary based on your spending habits and financial goals. Below you’ll find the top cards from our partners, followed by a detailed list of our editors’ picks and tips on how to find the right card for you.
Credit cards are a secure payment method that give cardholders access to a line of credit they can borrow from and pay back over time. When used responsibly, they’re a great credit-building tool that can help establish credit, build a positive credit history and help you save money down the road if you need a loan for something like a car or home.
The best credit cards are particularly worth it because they provide long-term value with rewards and perks that aren’t found with other payment methods.
The right credit card for you may come with lengthy promotional APRs on purchases or balance transfers, generous welcome offers or favorable terms and conditions like a low interest rate.
Choosing the best credit card for you will vary based on your spending habits and financial goals. Below you’ll find the top cards from our partners, followed by a detailed list of our editors’ picks and tips on how to find the right card for you.
Our rating:4.1
Our writers, editors and industry experts score credit cards based on a variety of factors including card features, bonus offers and independent research. Credit card issuers have no say or influence on how we rate cards. The score seen here reflects the card's primary category rating. For more information, you can read about how we rate our cards.
670-850 (Good to Excellent)
CreditCards.com credit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.
$200 cash rewards
Earn a $200 cash rewards bonus after spending $1,000 in purchases in the first 3 months
Annual fee
$0
Regular APR
19.49%, 24.49%, or 29.49% variable APR
Recommended credit
670-850 (Good to Excellent)
CreditCards.com credit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.
Our rating:4.6
Our writers, editors and industry experts score credit cards based on a variety of factors including card features, bonus offers and independent research. Credit card issuers have no say or influence on how we rate cards. The score seen here reflects the card's primary category rating. For more information, you can read about how we rate our cards.
670-850 (Good to Excellent)
CreditCards.com credit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.
Earn 5% cash back on everyday purchases at different places each quarter like Amazon.com, grocery stores, restaurants, and gas stations, up to the quarterly maximum when you activate.
1%
Plus, earn unlimited 1% cash back on all other purchases – automatically.
At A Glance
Intro offer
Cashback Match™
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. You could turn $150 cash back into $300.
Annual fee
$0
Regular APR
16.24% - 27.24% variable
Recommended credit
670-850 (Good to Excellent)
CreditCards.com credit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.
Our rating:4.9
Our writers, editors and industry experts score credit cards based on a variety of factors including card features, bonus offers and independent research. Credit card issuers have no say or influence on how we rate cards. The score seen here reflects the card's primary category rating. For more information, you can read about how we rate our cards.
Recommended credit
670-850 (Good to Excellent)
CreditCards.com credit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.
Earn 10% cash back on purchases made through Uber & Uber Eats, plus complimentary Uber One membership statement credits through 11/14/2024
8%
Earn 8% cash back on Capital One Entertainment purchases
5%
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
3%
Earn unlimited 3% cash back on dining, entertainment, popular streaming services and at grocery stores (excluding superstores like Walmart® and Target®).
1%
Earn 1% on all other purchases.
At A Glance
Intro offer
$200
Earn a one-time $200 cash bonus after you spend $500 on purchases within the first 3 months from account opening
Annual fee
$0
Regular APR
19.24% - 29.24% variable
Recommended credit
670-850 (Good to Excellent)
CreditCards.com credit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.
Our rating:5.0
Our writers, editors and industry experts score credit cards based on a variety of factors including card features, bonus offers and independent research. Credit card issuers have no say or influence on how we rate cards. The score seen here reflects the card's primary category rating. For more information, you can read about how we rate our cards.
Recommended credit
740-850 (Excellent)
CreditCards.com credit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.
Earn unlimited 10X miles on hotels and rental cars booked through Capital One Travel
5X
5X miles on flights booked through Capital One Travel.
2X
Earn unlimited 2X miles on all other purchases
At A Glance
Intro offer
75,000 miles
Earn 75,000 bonus miles when you spend $4,000 on purchases in the first 3 months from account opening, equal to $750 in travel
Annual fee
$395
Regular APR
21.24% - 28.24% variable
Recommended credit
740-850 (Excellent)
CreditCards.com credit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.
Our rating:4.8
Our writers, editors and industry experts score credit cards based on a variety of factors including card features, bonus offers and independent research. Credit card issuers have no say or influence on how we rate cards. The score seen here reflects the card's primary category rating. For more information, you can read about how we rate our cards.
670-850 (Good to Excellent)
CreditCards.com credit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.
Earn 5X Membership Rewards® Points for flights booked directly with airlines or with American Express Travel up to $500,000 on these purchases per calendar year.
5X
Earn 5X Membership Rewards® Points on prepaid hotels booked with American Express Travel.
At A Glance
Intro offer
Earn 80,000 points
Earn 80,000 Membership Rewards® points after you spend $6,000 on purchases on your new Card in your first 6 months of Card Membership.
Annual fee
$695
Regular APR
See Pay Over Time APR
Recommended credit
670-850 (Good to Excellent)
CreditCards.com credit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.
See if you’re pre-approved for this card using our CardMatch tool.
Our rating:5.0
Our writers, editors and industry experts score credit cards based on a variety of factors including card features, bonus offers and independent research. Credit card issuers have no say or influence on how we rate cards. The score seen here reflects the card's primary category rating. For more information, you can read about how we rate our cards.
670-850 (Good to Excellent)
CreditCards.com credit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.
Earn 4X Membership Rewards® Points at Restaurants, plus takeout and delivery in the U.S.
4X
Earn 4X Membership Rewards® points at U.S. supermarkets (on up to $25,000 per calendar year in purchases, then 1X).
3X
Earn 3X Membership Rewards® points on flights booked directly with airlines or on amextravel.com.
At A Glance
Intro offer
60,000 points
Earn 60,000 Membership Rewards® points after you spend $4,000 on eligible purchases with your new Card within the first 6 months of Card Membership.
Annual fee
$250
Regular APR
See Pay Over Time APR
Recommended credit
670-850 (Good to Excellent)
CreditCards.com credit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.
See if you’re pre-approved for this card using our CardMatch tool.
Our rating:5.0
Our writers, editors and industry experts score credit cards based on a variety of factors including card features, bonus offers and independent research. Credit card issuers have no say or influence on how we rate cards. The score seen here reflects the card's primary category rating. For more information, you can read about how we rate our cards.
Recommended credit
670-850 (Good to Excellent)
CreditCards.com credit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.
5x on travel purchased through Chase Ultimate Rewards®
3x
3x on dining.
2x
2x on all other travel purchases, plus more.
At A Glance
Intro offer
60,000 points
Earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $750 when you redeem through Chase Ultimate Rewards®.
Annual fee
$95
Regular APR
20.24% - 27.24% variable
Recommended credit
670-850 (Good to Excellent)
CreditCards.com credit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.
Our rating:4.5
Our writers, editors and industry experts score credit cards based on a variety of factors including card features, bonus offers and independent research. Credit card issuers have no say or influence on how we rate cards. The score seen here reflects the card's primary category rating. For more information, you can read about how we rate our cards.
Recommended credit
670-850 (Good to Excellent)
CreditCards.com credit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.
Earn 5% cash back on purchases in your top eligible spend category each billing cycle, up to the first $500 spent, 1% cash back thereafter.
1%
Earn unlimited 1% cash back on all other purchases.
At A Glance
Intro offer
$200
Earn $200 cash back after you spend $1,500 on purchases in the first 6 months of account opening. This bonus offer will be fulfilled as 20,000 ThankYou® Points, which can be redeemed for $200 cash back.
Annual fee
$0
Regular APR
18.49% - 28.49% variable
Recommended credit
670-850 (Good to Excellent)
CreditCards.com credit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.
Our rating:4.6
Our writers, editors and industry experts score credit cards based on a variety of factors including card features, bonus offers and independent research. Credit card issuers have no say or influence on how we rate cards. The score seen here reflects the card's primary category rating. For more information, you can read about how we rate our cards.
670-850 (Good to Excellent)
CreditCards.com credit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.
6% Cash Back at U.S. supermarkets on up to $6,000 per year in purchases (then 1%).
6%
6% Cash Back on select U.S. streaming subscriptions.
3%
3% Cash Back on transit including taxis/rideshare, parking, tolls, trains, buses and more.
3%
3% Cash Back at U.S. gas stations
1%
1% Cash Back on other purchases
At A Glance
Intro offer
$250
Earn a $250 statement credit after you spend $3,000 in purchases on your new Card within the first 6 months.
Annual fee
$0 intro annual fee for the first year, then $95.
Regular APR
18.49% - 29.49% variable
Recommended credit
670-850 (Good to Excellent)
CreditCards.com credit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.
See if you’re pre-approved for this card using our CardMatch tool.
Our rating:4.9
Our writers, editors and industry experts score credit cards based on a variety of factors including card features, bonus offers and independent research. Credit card issuers have no say or influence on how we rate cards. The score seen here reflects the card's primary category rating. For more information, you can read about how we rate our cards.
Recommended credit
670-850 (Good to Excellent)
CreditCards.com credit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.
Earn 5X miles on hotels and rental cars booked through Capital One Travel, where you'll get Capital One's best prices on thousands of trip options
2X
Earn unlimited 2X miles on every purchase, every day.
At A Glance
Intro offer
75,000 miles
New Venture cardholders can earn 75,000 miles once they spend $4,000 on purchases within 3 months from account opening
Annual fee
$95
Regular APR
20.24% - 28.24% variable
Recommended credit
670-850 (Good to Excellent)
CreditCards.com credit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.
Our rating:3.7
Our writers, editors and industry experts score credit cards based on a variety of factors including card features, bonus offers and independent research. Credit card issuers have no say or influence on how we rate cards. The score seen here reflects the card's primary category rating. For more information, you can read about how we rate our cards.
Recommended credit
670-850 (Good to Excellent)
CreditCards.com credit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.
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
1.5%
Earn unlimited 1.5% cash back on every purchase, every day
At A Glance
Annual fee
$0
Balance transfer intro APR
0% intro on balance transfers for 15 months
Regular APR
19.24% - 29.24% variable
Recommended credit
670-850 (Good to Excellent)
CreditCards.com credit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.
Our rating:4.8
Our writers, editors and industry experts score credit cards based on a variety of factors including card features, bonus offers and independent research. Credit card issuers have no say or influence on how we rate cards. The score seen here reflects the card's primary category rating. For more information, you can read about how we rate our cards.
670-850 (Good to Excellent)
CreditCards.com credit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.
3% Cash Back at U.S. supermarkets on up to $6,000 per year in purchases, then 1%.
3%
3% Cash Back on U.S. online retail purchases, on up to $6,000 per year, then 1%.
3%
3% Cash Back at U.S. gas stations, on up to $6,000 per year in purchases, then 1%.
1%
1% Cash Back on other purchases.
At A Glance
Intro offer
$200
Earn a $200 statement credit after you spend $2,000 in purchases on your new Card within the first 6 months.
Annual fee
$0
Regular APR
18.49% - 29.49% variable
Recommended credit
670-850 (Good to Excellent)
CreditCards.com credit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.
See if you’re pre-approved for this card using our CardMatch tool.
Our rating:5.0
Our writers, editors and industry experts score credit cards based on a variety of factors including card features, bonus offers and independent research. Credit card issuers have no say or influence on how we rate cards. The score seen here reflects the card's primary category rating. For more information, you can read about how we rate our cards.
670-850 (Good to Excellent)
CreditCards.com credit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.
Earn 5% cash back on everyday purchases at different places each quarter like Amazon.com, grocery stores, restaurants, and gas stations, up to the quarterly maximum when you activate.
1%
Earn 1% unlimited cash back on all other purchases – automatically.
At A Glance
Intro offer
Cashback Match™
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. You could turn $150 cash back into $300.
Annual fee
$0
Regular APR
16.24% - 27.24% variable
Recommended credit
670-850 (Good to Excellent)
CreditCards.com credit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.
Our rating:4.4
Our writers, editors and industry experts score credit cards based on a variety of factors including card features, bonus offers and independent research. Credit card issuers have no say or influence on how we rate cards. The score seen here reflects the card's primary category rating. For more information, you can read about how we rate our cards.
670-850 (Good to Excellent)
CreditCards.com credit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.
Earn 2% cash back on all eligible purchases on up to $50,000 per calendar year, then 1%.
1%
1% cash back on all eligible purchases after spending $50,000 per calendar year.
At A Glance
Intro offer
$250
Earn a $250 statement credit after you make $3,000 in purchases on your Card in your first 3 months.
Annual fee
No annual fee
Regular APR
17.74% - 25.74% variable
Recommended credit
670-850 (Good to Excellent)
CreditCards.com credit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.
Our rating:4.3
Our writers, editors and industry experts score credit cards based on a variety of factors including card features, bonus offers and independent research. Credit card issuers have no say or influence on how we rate cards. The score seen here reflects the card's primary category rating. For more information, you can read about how we rate our cards.
(No Credit History)
CreditCards.com credit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.
Earn 5% cash back on everyday purchases at different places each quarter like Amazon.com, grocery stores, restaurants, and gas stations, up to the quarterly maximum when you activate.
1%
Earn unlimited 1% cash back on all other purchases - automatically.
At A Glance
Intro offer
Cashback Match™
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.
Annual fee
$0
Regular APR
17.24% - 26.24% variable
Recommended credit
(No Credit History)
CreditCards.com credit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.
Our rating:4.2
Our writers, editors and industry experts score credit cards based on a variety of factors including card features, bonus offers and independent research. Credit card issuers have no say or influence on how we rate cards. The score seen here reflects the card's primary category rating. For more information, you can read about how we rate our cards.
Recommended credit
(No Credit History)
CreditCards.com credit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.
This card doesn't offer cash back, miles, or points
At A Glance
Annual fee
$0
Balance transfer intro APR
N/A
Regular APR
29.74% variable
Recommended credit
(No Credit History)
CreditCards.com credit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.
Our methodology and research
3,476Credit Cards Analyzed
600Banks Analyzed
Criteria Used
Rates and fees, rewards rates, sign-up bonuses, redemption options, credit needed, miscellaneous benefits, customer service, security, ease of application.
All information about the Capital One Savor Cash Rewards Credit Card has been collected independently by CreditCards.com and has not been reviewed by the issuer.
Eligibility and Benefit level varies by Card. Terms, Conditions and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by Amex Assurance Company.
For Capital One products listed on this page, some of the above benefits are provided by Visa® or Mastercard® and may vary by product. See the respective Guide to Benefits for details, as terms and exclusions apply.
Editor’s picks: A closer look at top-rated credit cards
Best for flat-rate cash back: Wells Fargo Active Cash® Card
Best features: The Active Cash card goes further than other flat-rate credit cards that earn a high 2% cash rewards on purchases, offering a sign-up bonus and additional perks like concierge service, hotel benefits at Visa Signature Hotel collection properties worldwide and up to $600 in cellphone protection ($25 deductible applies).
Biggest drawbacks: A credit card with high bonus categories that fit your spending habits could help you earn maximum rewards faster. And while the additional perks are nice, the Active Cash card doesn’t offer the longest intro APR period or the highest cellphone protection compared to other rewards cards.
Alternatives: The Chase Freedom Unlimited has a slightly lower flat rate compared to the Active Cash Card but comes with bonus categories that could easily make up the difference if you spend more on travel and dining.
Bottom line: This is one of the best credit cards for anyone looking for a straightforward way to earn cash rewards on purchases.
Best features: At the end of your first year of card membership, Discover will match the cash back you’ve earned, which can be incredibly valuable even for those who tend to spend conservatively. Rewards rates are high on bonus categories and the intro APR on balance transfers is ideal for tackling existing card debt.
Biggest drawbacks: Enrollment is required for bonus categories. If you’re not up for planning in advance, you may miss out on the potential value of the card.
Alternatives: If bonus categories aren’t your bag, the Citi® Double Cash Card is an excellent flat-rate cash back card that charges no annual fee.
Bottom line: This card’s high rewards rate is sure to please anyone willing to plot out rotating categories in advance, and big spenders will certainly get the most out of this card’s opportunity to have all your earnings matched at the end of your first year.
Best for food and entertainment: Capital One SavorOne Cash Rewards Credit Card
Best features: Few cards cover the combination of food and entertainment like the SavorOne. You’ll have an easy time earning an unlimited 3% cash back when grocery shopping, eating in or out, binge watching your favorite shows via popular streaming services or visiting popular destinations like zoos, concerts, sporting events and movie theaters. Plus, it’s hard to beat the 8% cash back on Capital One Entertainment purchases and 10% back on Uber rides and Uber Eats orders (Uber offer through Nov. 14, 2024).
Biggest drawbacks: The SavorOne doesn’t provide the highest rewards rates for groceries or dining, or annual credits for food or entertainment. Other cards may be a better fit if you’re looking for rich bonus features and best-in-class rewards rates on those purchases.
Alternatives: If you spend heavily on groceries or dining, you may reap more value from the Blue Cash Preferred® Card from American Express and its U.S. supermarket cash back or the American Express Gold card and its dining rewards and perks.
Bottom line: Almost any cardholder can benefit from this no-annual-fee card’s unlimited 3% rewards in popular spending categories. However, entertainment fans will find the SavorOne card’s comprehensive category coverage and 8% back on Capital One Entertainment purchases provide a unique value.
Best for travel perks: Capital One Venture X Rewards Credit Card
Best features: This premium card has one of the lowest annual fees for a top-of-the-line rewards card with luxury benefits like complimentary lounge access. On top of valuable annual credits and bonus anniversary miles that easily justify the annual fee, the card also offers an impressive flat rate of 2X miles and a stellar sign-up bonus.
Biggest drawbacks: Other luxury travel cards offer more perks and privileges with partner brands, including rideshare credits and complimentary hotel elite status. Competing cards may also earn more rewards on general travel, dining and other travel-related purchases.
Alternatives: If you’re not deterred by the $695 annual fee (see rates and fees), you may prefer The Platinum Card® from American Express, which offers broader airport lounge access, more luxury travel benefits and a larger network of transfer partners.
Bottom line: The Venture X is a great option for anyone looking for a taste of luxury perks without paying over $500 for an annual fee. Frequent travelers will be able to easily offset the card’s annual fee with the card’s practical features, including annual travel credits, yearly bonus miles and generous reward opportunities.
Best for luxury travel: The Platinum Card® from American Express
Best features: This card offers some of the most generous lounge access privileges available with a credit card, as well as valuable, practical credits for expedited security screening, Uber and more. Plus, your points could be extremely valuable if you take advantage of Amex’s airline and hotel transfer partners.
Biggest drawbacks: The card carries an extremely high annual fee, many of its perks may be impractical for the average cardholder, and the card’s ongoing rewards rate on non-travel spending is low. If you only travel occasionally or aren’t sure you’ll use the card’s perks, the Amex Platinum probably isn’t the best fit.
Alternatives: The Capital One Venture X offers a much more practical set of travel perks at a lower cost, making it a better option if you’re a frequent traveler but prefer to keep things simple.
Bottom line: This card could be either an amazing value or a money pit, depending on how frequently you travel and how appealing you find its sometimes niche perks.
Best features: On top of earning generous Amex Membership Rewards points for airfare and purchases made at U.S. supermarkets, this card has one of the highest cash back rates for dining, including takeout and delivery. But there’s more to the Amex Gold besides rewards. The impressive welcome offer, credits, multiple travel insurance benefits and numerous other perks help make this one of the top travel-and-dining rewards cards.
Biggest drawbacks: The credits are doled out on a monthly basis, in $10 increments, which may feel limiting if you were hoping for a larger payout. Plus, the dining credit only covers a small list of options: Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, Milk Bar and select Shake Shack locations. These limitations may decrease the card’s value and make it harder to offset the $250 annual fee.
Alternatives: At $95 a year, the Citi Premier® Card has a much lower annual fee. But you could end up earning more rewards if your spending habits line up with the card’s multiple 3X bonus categories, which cover restaurants, supermarkets, gas stations, air travel, and hotels.
Bottom line: People looking for a best-in-class card for food purchases will find themselves richly rewarded by the Amex Gold.
Best for generous sign-up bonus: Chase Sapphire Preferred® Card
Best features: Travelers will find a lot to love about Chase’s mid-tier travel card. On top of a generous sign-up bonus and high rewards rate on travel and everyday purchases, you’ll get a 25% boost in point value when you redeem for travel with Chase. The Sapphire Preferred card’s travel perks and protections are also exceptional for its annual fee.
Biggest drawbacks: Like other top travel rewards cards, you’ll have to spend a lot in a short period of time to earn the sign-up bonus.
Bottom line: Frequent travelers who aren’t loyal to one airline or hotel brand can get a lot of value out of this general-purpose travel card. It offers stellar rewards value, flexibility, perks and card combination opportunities for a low annual fee.
Best for customizable bonus categories: Citi Custom Cash℠ Card
Best features: Few cards adapt to your spending habits like the Custom Cash card, which automatically earns 5% cash back in your top eligible spending category (on up to $500 in spending each billing cycle). Eligible categories include a number of options that don’t typically earn such a high rate of cash back all year long with other cash back cards, like restaurants, gas stations, grocery stores and home improvement stores.
Biggest drawbacks: Since you only earn bonus cash back in one eligible spend category and all other purchases earn 1% cash back, you could lose out on a lot of cash back rewards if you put all of your spending on this card.
Alternatives: Even though it comes with a $95 annual fee ($0 intro annual fee for the first year), the Blue Cash Preferred® Card from American Express earns more rewards in multiple everyday categories, including purchases made at U.S. gas stations and U.S. supermarkets. If you take full advantage of the card’s rewards earning potential, you could offset the ongoing $95 annual fee after the first year and still rake in plenty of cash back.
Bottom line: This card is a good option for anyone looking for a well-rounded, no-annual-fee rewards card, given it also includes a sign-up bonus and promotional APR on balance transfers and purchases. To make sure you’re getting the best value, pair it with a flat-rate card or another bonus-category rewards card.
Best for groceries: Blue Cash Preferred® Card from American Express
Best features: This card packs a lot of everyday value, offering high rewards in far more household categories than the typical cash back rewards card. This includes one of the highest cash back rates around for U.S. supermarkets and select U.S. streaming services. This versatile card also comes with an intro APR offer on purchases and balance transfers, a generous welcome offer and a number of shopping protections.
Biggest drawbacks: There are a few caveats attached to the bonus rewards – namely the $6,000 cap on U.S. supermarket purchases per year (then 1%) and the fact that the 3% and 6% rewards are only available stateside.
Alternatives: Families who spend less than $3,200 at U.S. supermarkets annually might prefer the Blue Cash Everyday, which offers lower rewards on similar bonus categories for no-annual-fee, plus a versatile U.S. online retail category.
Bottom line: Families who spend $3,200 or more at U.S. supermarkets yearly will recoup the $95 annual fee ($0 intro annual fee for the first year), plus some – and likely come out ahead in the long term, given the card’s additional rewards categories.
Best for flat-rate travel rewards: Capital One Venture Rewards Credit Card
Best features: This is one of the best general-purpose travel cards for people who want a straightforward travel rewards card with flexible redemption options. A decent sign-up bonus, travel benefits, flat-rate rewards and boosted miles on eligible Capital One Travel bookings combine to make this an especially well-rounded travel card. For many travelers, the $95 annual fee will be well worth the cost.
Biggest drawbacks: The Venture card doesn’t carry any perks with a clear monetary value other than the up to $100 fee credit for a Global Entry or TSA PreCheck application you can receive every four years. That means you’ll have to rely on your rewards to make up for the $95 annual fee instead of the annual credits and perks competing cards provide.
Alternatives: The Chase Sapphire Preferred is another mid-level travel rewards card that focuses on earning high rewards. It racks up rewards at an impressive rate in everyday purchase categories like dining and online grocery stores (excluding superstores like Walmart and Target) and throws in remarkable travel benefits for its price tag. Or, if you prefer complimentary luxury benefits like complimentary lounge access and travel credits, consider upgrading to a card with a higher annual fee, like the Capital One Venture X or the Chase Sapphire Reserve.
Bottom line: Frequent travelers looking for a streamlined travel rewards card without complicated redemption options or fluff features may enjoy the Capital One Venture.
Best first rewards card: Capital One Quicksilver Cash Rewards Credit Card
Best features: This popular Capital One credit card has all the features you should look for in a first rewards credit card: no annual fee, a sign-up bonus with a low spending threshold and additional benefits like free credit monitoring and 24/7 concierge service, which help increase the card’s value. You can also choose to redeem cash back automatically if you want to streamline the rewards process.
Biggest drawbacks: The 1.5% cash back rate on all purchases isn’t the best rate on the market for flat-rate cash back credit cards. In fact, several flat-rate cards that don’t require a good to excellent credit score offer the same cash back rates.
Alternatives: You can earn more with the Wells Fargo Active Cash card, which offers a full 2% cash rewards on purchases. Or, if you have average credit, you might have to settle for the Capital One QuicksilverOne Cash Rewards Credit Card, which lacks the sign-up bonus and comes with an annual fee, but earns 1.5% cash back on all purchases.
Bottom line: The Quicksilver is an excellent choice for your first rewards credit card thanks to its low cost and the ease with which you can earn and redeem rewards.
Best for frugal families: Blue Cash Everyday® Card from American Express
Best features: One of the best fixed-bonus category credit cards, this Blue Cash Preferred alternative lets you skip the annual fee while you earn bonus rewards on purchases made at U.S. supermarkets, U.S. gas stations and at U.S.-based online retailers.
Biggest drawbacks: The bonus rewards are less generous than the Blue Cash Preferred but have the same spending cap on U.S. supermarket spending (along with a cap on the other bonus categories). Similarly, this card isn’t a great fit if you’re a fan of bargain shopping since its supermarket category excludes superstores and warehouse clubs (though you may earn rewards by shopping online at these stores).
Alternatives: If you spend $270 or more each month on groceries, the Blue Cash Preferred should rake in enough cash back on U.S. supermarket purchases to make it the more rewarding card, even with its annual fee. Plus, you’ll also enjoy a slew of other bonus categories that cover common spending categories.
Bottom line: Families with a smaller grocery budget can enjoy the Blue Cash Everyday’s rewards without worrying about recouping an annual fee.
Best for balance transfers: Discover it® Balance Transfer
Best features: This card has great short- and long-term value. Most balance transfer credit cards that offer a long intro APR for balance transfers don’t have much value beyond a lengthy introductory period. But this card stands out from the crowd, thanks to its impressive Cashback Match welcome offer that automatically matches all the cash back you earn in your first year, as well as the card’s rotating bonus category rewards program.
Biggest drawbacks: The card’s intro APR offer for purchases is far shorter than the typical 12 to 15 months you’ll find with other rewards cards.
Alternatives: If you don’t like the hassle of enrolling in quarterly categories to earn the card’s maximum rewards value, try a flat-rate cash back credit card. The Wells Fargo Active Cash Card comes with a welcome bonus, straightforward cash rewards and a generous intro APR offer on both qualifying balance transfers and purchases.
Bottom line: If you have high-interest debt, this credit card could give you the time you need to come out ahead.
Best business credit card: American Express Blue Business Cash™ Card
Best features: This is a great card for business owners who want an easy-to-use business card packed with features that can help you manage operations. Along with a nice flat rate on all eligible purchases, you also get plenty of expense management tools like free employee cards and access to business software to help you track your spending. Plus, the card comes with Expanded Buying Power, which can offer some peace of mind if you get stuck with unforeseen expenses.
Biggest drawbacks: You won’t earn maximum rewards for your business with a flat-rate credit card. And you’ll need to be careful not to exceed the spending cap: If you spend more than $50,000 per year, your flat rate drops to 1% for all purchases.
Alternatives: If you routinely spend over $50,000 a year, you could come out ahead with a different business credit card, like the Ink Business Unlimited® Credit Card, which offers 1.5% on every purchase for no annual fee, along with a $900 cash back bonus after you spend $6,000 on purchases in the first three months from account opening.
Bottom line: Business owners looking for cash flow solutions, along with business owners who spend less than $50,000 each year, should consider this card a top option.
Best student credit card: Discover it® Student Cash Back
Best features: Students will be hard-pressed to find a starter credit card that offers more value than the Discover it Student Cash Back. Not only do you get an unsecured card to help build credit, but you’ll also get the same first-year welcome offer and high rewards rate as the full-fledged Discover it Cash Back card.
Biggest drawbacks: You’ll have to keep track and enroll in quarterly rotating bonus categories, which might be more maintenance than you’re looking for.
Best secured credit card: Capital One Platinum Secured Credit Card
Best features: This is perhaps the most accessible secured card available. You can put down a deposit of just $49 or $99 (if you qualify) and still get a minimum $200 credit limit. Capital One may also refund your security deposit after only six months of responsible card use — the shortest automatic account review period you’ll find.
Biggest drawbacks: You’ll need to pay your balance in full each billing cycle to avoid the card’s high 29.74% variable APR. It also doesn’t earn rewards or offer a clear path to a higher credit limit like some competing secured cards. The $1,000 maximum security deposit may make it harder to improve your credit score since keeping your credit utilization ratio low could be challenging.
Alternatives: If you think you’ll need to carry a balance from time to time, a low-interest credit card like the OpenSky® Secured Visa® Credit Card may be a better fit. If you’re focused on earning rewards, consider the Discover it® Secured Credit Card, which earns cash back and carries fewer fees.
Bottom line: This card is a top option for people with bad credit who aren’t likely to qualify for a non-secured credit card.
In simple terms, credit cards are financial products that allow you to borrow money (usually) without collateral. Essentially, this is how credit cards work:
When you want to make a purchase, you present your credit card or account number to the merchant who will then run the transaction.
You’ll receive a bill each month, by email or online, for all of your purchase charges and any interest charges.
If you don’t carry a balance month to month, then you don’t pay interest. Carry a balance, and the interest starts accumulating.
Credit cards are designed for short-term borrowing. If you plan on borrowing long term, a personal loan would be a better fit. A credit card APR is much steeper and may lead to hundreds — or even thousands — of dollars in interest charges if you carry a balance long term, especially if you only pay the minimum each month. There are ways to avoid paying any interest, however, and ways to make credit cards benefit your whole financial picture.
How do credit card rewards work?
Credit card rewards and their programs come in many forms but generally fall into one of three categories: cash back, points and miles. Cash back is often the most straightforward to use and allows you to earn and redeem cash, frequently in the form of statement credits, gift cards, checks or direct deposits into your bank account.
The amount of points you’ll earn is based on your spending habits and whether your credit card offers a boosted rewards rate on your preferred spending categories. When you’re ready to redeem, your issuer may offer gift cards, cash, travel or other discounts in exchange. Travel rewards cards offer miles to be used towards discounted travel purchases and offer other helpful perks like free checked baggage and lounge access. The amount of miles you’ll earn are determined by your credit card and while programs may allow for miles to be converted, you may lose some in the process.
How do credit scores work?
When being considered for a credit card, the issuer will review your credit score to determine your creditworthiness and assess risk based on your previous credit history. Your credit score is shaped by a wide range of factors such as your on-time payment history, credit utilization ratio, the age of your oldest line of credit, and number of open accounts. More recently, some credit scores even factor in your rental payment history, which can be a huge boon to your overall credit profile.
The most commonly used credit score is the FICO score. This three-digit number is based on your credit history and ranges from 300 to 850. VantageScore, created by Equifax, Experian and TransUnion, is another widely used indicator of creditworthiness and uses a similar range to FICO. In both cases, the lender operates under the assumption that those with a higher credit score pose less risk.
FICO and VantageScore group credit scores within the following ranges:
FICO Score ranges
VantageScore ranges
800 to 850 Exceptional
781 to 850 Excellent
740 to 799 Very good
661 to 780 Good
670 to 739 Good
601 to 660 Fair
580 to 669 Fair
500 to 600 Poor
300 to 579 Very poor
300 to 499 Very poor
Naturally, a ”good” credit score or higher will net you the best credit card approval odds, interest rates and credit limit.
Under the Fair Credit Reporting Act, you can request your credit score for free once every year. It’s a good idea to know your score and review your credit report to look for mistakes, which happen more than you might think. An error on your credit report can drag down your score and prevent you from being approved for credit cards, loans, apartments, and more. If you do find a mistake, you can dispute it and possibly have the error removed from your credit report.
How does credit card interest work?
Credit card interest is the fee financial institutions charge you to borrow money. It’s listed as an annual percentage rate (APR) on your credit card statement or in your card’s terms and conditions. There are various credit card interest charges, such as purchase APR, cash advance or penalty APR, but it’s purchase APR you typically encounter the most.
Your issuer determines your interest rate. You will often see a range of interest rates listed with a credit card based on the prime rate, which is set by the Federal Reserve, but your exact rate is determined by the card issuer. Your creditworthiness is the main determining factor, and if you fall into a good or excellent credit rating, then you will qualify for a lower interest rate compared to people with fair or bad credit.
Interest gets added on to any unpaid balance. Interest is calculated by what you owe at the end of your billing cycle, including your unpaid balance from the previous cycle. Issuers typically calculate the credit card interest owed using a daily periodic rate, which is multiplied by your average daily balance and the number of days in your billing period.
You can avoid paying interest. There are two ways to avoid paying costly interest. The first is to take advantage of the grace period found with most credit cards. This gives you a certain amount of time (typically at least 21 days) to make purchases with your card and pay them off without having to deal with interest charges. Another way to avoid paying interest is to take advantage of cards offering a 0% introductory APR on purchases or balance transfers.
Pros and cons of credit cards
Benefits of having a credit card
When used responsibly, a credit card has endless advantages, such as the ability to earn rewards, handle emergencies and build credit. The five most useful benefits of using a credit card are:
Credit building. Using a credit card responsibly can help you build credit since your card issuer will report your transaction activity to the three credit bureaus. This is especially helpful if you have no credit history or wish to improve your credit score.
Earning rewards. You can earn cash back, points or miles earned on your spending, potentially saving hundreds of dollars on purchases you would have made anyway. Rewards are one of the main appeals of credit cards and can make a big difference in the long run, as long as you pay on time and in full.
Access to card membership perks. Certain credit cards come with a variety of discounts, purchase protections or complimentary services or memberships. Plus, your credit card may provide more peace of mind next time you travel with benefits such as baggage delay insurance, rental car collision coverage or trip cancellation and interruption insurance.
Protection against fraud. Credit cards are far more secure than debit cards since they are not tied to your bank account. Many credit cards include some form of fraud protection, so if your card is stolen and someone makes large transactions with it, you will not be held liable. Cardholders are covered under the Fair Credit Building Act (FCBA) in the case of fraudulent credit card transactions, so if you fear your card has been lost or stolen, or if you notice strange charges, your credit card issuer will most likely cancel your card and cover the fraudulent charges.
Pay off purchases over time. Credit cards also allow you to make a purchase and repay the balance at a later date, which could come in handy if you have any unexpected expenses arise. However, accruing interest can snowball into a costly problem. Be sure to pay off your purchases before the end of your billing cycle, or before your grace period expires at the latest. If you need a bit more time, you may want to find a card with a lengthy 0% intro APR on purchases.
Possible drawbacks of having a credit card
Misusing your credit card can lead to financial issues like damaged credit, revolving debt and accumulating fees and interest. The biggest potential problems you should be wary of include:
Damaging your credit. Although properly using a credit card is one of the best ways to improve your credit score, you can seriously hurt your score with missteps like missing credit card payments and keeping a high balance close to your credit limit.
Taking on credit card debt. Being able to make purchases you don’t have to pay off immediately may tempt you to spend more than your normally would. However, it’s important to always spend within your means and pay off your balance in full each month whenever possible or you’ll accumulate credit card interest. Accruing interest can easily eat through any rewards value you earn and snowball into growing debt if you aren’t careful.
Paying fees. Depending on what you want out of a credit card, paying fees may be an unavoidable part of the cardholder experience. Luxury travel cards and high-caliber rewards cards typically pose an annual fee. Luckily, they usually also come with more than enough reward opportunities and valuable perks to make up for the fee. However, make sure you’ve read your card terms carefully to dodge late and returned payment fees, foreign transaction fees, cash advance fees and other avoidable costs.
Types of credit cards
There are numerous types of credit cards available to consumers, ranging from straightforward, no-frills cards, to options that are packed full of features. You’ll need to compare credit cards based on your spending habits, credit history and any desired benefits. To help you narrow it all down, we’ll detail a few credit card types and their top features.
Low-interest credit cards feature APRs that are lower than the average credit card interest rate, which hovers around a high 20%. They are a great option for people who carry a balance instead of paying their credit card bill in full each month. Some rewards credit cards offer low interest rates but are reserved for people with good-to-excellent credit. A number of credit union credit cards come with the lowest rates around and may even be accessible to people with lower credit scores.
Zero-interest credit cards come with introductory periods that allow you to make interest-free payments on your balances, typically 12 months or longer. This gives you time to carry a balance on a credit card without having to worry about finance charges, which can add a significant chunk of debt onto what you owe. When your 0% introductory period ends, the card’s regular APR will apply, and you’ll begin accruing interest on any remaining balance.
Balance transfer credit cards let you transfer an existing balance over to a new credit card that carries a 0% introductory APR for a set period of time, typically 12 months or longer, before the regular variable APR kicks in. Rewards cards often provide a 15-month 0% APR on purchases and/or balance transfers, but many specialized balance transfer cards cut rewards in favor of 18-month to 21-month intro APRs. People who carry high-interest debt on one or more credit cards could save hundreds of dollars by doing a balance transfer. However, make sure you account for the card’s balance transfer fee (typically 3% to 5% of your transferred total) when you’re choosing the most cost-effective card.
A rewards credit card gives you back a small percentage of what you spend on your purchases. Depending on the type of rewards card, you’ll earn cash back, points or miles, which you can use in a number of ways, such as paying down your balances or paying for travel. The best rewards credit cards also come with additional features like a sign-up bonus, intro APR offer or purchase and travel protections. Here’s a closer look at the two main types of rewards credit cards: Cash back cards and travel rewards cards.
Cash back credit cards let you earn and redeem cash, usually in the form of statement credits, gift cards, checks or, even, direct deposits into your bank account. They generally fall into three categories:
Flat-rate cash back cards: These cards offer a competitive rate of return (usually between 1% and 2% cash back) on general purchases. They’re best-suited to people who don’t want to spend time strategizing ways to earn as much cash back as possible.
Tiered bonus category cash back cards: These cards offer a competitive rate of return (usually between 2% and 6% cash back) in a specific spending category or a few specific spending categories, like dining, gas or groceries. They’re best-suited to people who spend a lot in their particular bonus category or as a supplement to a flat-rate cash back card.
Rotating bonus category cash back cards: The cards offer a higher rate of return (usually 2% to 5% cash back) on rotating quarterly spending categories up to a set amount (usually $1,000 to $1,500). They’re generally a bit more high maintenance than flat-rate or tired bonus category cash back cards, given you need to enroll in the bonus categories each quarter. However, these cards are a good fit if you’re trying to maximize your rewards by carrying more than one card in your wallet.
Travel credit cards let you earn points or miles that can be used to book future trips. They often tout additional travel benefits, like complimentary lounge access, no foreign transaction fees, airline or hotel upgrades, and supplemental travel insurance. As with cash back cards, there are several types of travel rewards credit cards.
General-purpose travel credit cards: Many of the top travel cards are general-purpose cards that earn points or miles on general purchases (usually at a rate of 1X to 2X rewards). These rewards can be redeemed for a variety of travel purchases, including airfare, lounge access, hotel stays or even car rentals. They’re best-suited to the traveler who craves flexibility and doesn’t want to be tied to one particular airline or hotel brand.
Airline credit cards: These cards let you earn miles and airline-specific perks you won’t find with general-purpose travel cards, including free checked bags, priority boarding and seat upgrades. Airline credit cards are a good fit for people who frequently fly the same carrier, at least several times a year.
Hotel credit cards: These cards let you earn points and special perks at a specific hotel brand. These perks can include free nights, free amenities (like in-room Wi-Fi) and room upgrades. Hotel credit cards are a good fit for people who frequently travel and stay at the same hotel chain several times a year.
You may have heard that getting a credit card is one of the best ways to build credit. That’s because there are credit cards designed specifically to help people with no, fair or even bad credit do just that.
Secured credit cards: Secured credit cards require applicants to put down an upfront refundable deposit (typically between $200 to $2,500), which serves as the card’s credit limit. They’re a good option for people with bad credit or no credit who can’t qualify for a traditional, unsecured credit card. After a short period of responsible use, some secured credit cards let you graduate to an unsecured credit card.
Student credit cards: Student credit cards are geared toward students and recent graduates. They’re more accessible than traditional credit cards and are typically unsecured, so applicants don’t need a long credit history or security deposit to obtain one. This makes them a great option for a number of people looking for their first credit card.
Starter credit cards: Starter credit cards are beginner-friendly cards geared toward a number of different types of credit users who would have trouble qualifying for traditional credit cards. Student cards and secured cards fall under this umbrella, but they can also include unsecured cards for people with:
No credit: These cards are a good choice if you have no credit history. Some of these cards offer rewards, but watch out for fees and high purchase APRs.
Bad credit: You can find a card that accepts bad credit with no annual fee, but many of these cards have one-off fees that you need to watch out for. The regular APR will almost certainly be high, although some offer rewards.
Fair credit: If you are trying to improve your credit into the good or excellent category, a card that accepts fair or average credit is a good choice. There may be an annual fee, the purchase APR may be higher, and a 0% intro APR is unlikely.
Business credit cards are designed for entrepreneurs, business owners, gig workers and freelancers. When it comes to business credit cards versus personal cards, business cards aren’t required to offer the same legal protections found with consumer cards but may come with higher credit limits and feature a different set of perks like rewards geared toward business purchases and expense management and other budgeting tools to make it easier to manage your day-to-day business finances.
How to choose a credit card
Finding your ideal card isn’t always an easy process. Your choice of credit card should be one that fits not only your credit score but also your spending habits and financial goals.
As you narrow down your choices, we recommend asking yourself the following questions:
What’s your credit score? Card issuers primarily look at your credit score and income to determine approvals, so a big first step in choosing a credit card involves checking your credit. Typically, the higher the score, the better the benefits and rewards.
Do you tend to carry a balance? If so, a low-interest or non-rewards zero interest credit card is a better choice than a rewards credit card, given you’re likely to lose any points, miles or cash back you earn to interest.
Are you currently carrying high-interest credit card debt? If so, opt for a balance transfer credit card with a long 0% introductory APR window or a waived balance transfer fee.
Are you a transactor? That means you charge most purchases to a credit card, but pay them off in full each month. If so, a rewards credit card is the best way to get a return on your spending.
Can you recoup an annual fee? If you charge a lot (and pay your balances in full each month), don’t necessarily forego a card with an annual fee. A premium card may be worth it since these cards tend to carry the most lucrative benefits. Big spenders are more likely to offset the cost of the annual fee with these perks and potentially pocket more value than a no-annual-fee rewards card may offer.
Are you looking to earn cash back or miles? Travel credit cards offering points or miles can be quite lucrative, but cash back cards are generally very easy to leverage, particularly when it comes time to redeem.
Do you favor a certain airline, hotel or retailer? Co-branded cards tend to carry a good return on those specific purchases, plus extra perks that make them a worthwhile addition to your wallet.
Are you looking for a sign-up bonus? These offers let you earn bonus rewards in your first year if you spend a certain amount of money in a set time frame (usually within your first 90 days). The best credit card sign-up bonuses have a spending requirement that you can reasonably reach based on your normal spending habits.
Do you already have a credit card? It’s common to carry more than one credit card, given your financial profile and goals change over time. In fact, a common way to maximize your credit card rewards is by pairing a flat-rate card with bonus category or travel-specific credit cards in order to cover a wide range of spending. That way, you’ll earn the most rewards possible.
How to compare credit card features
There’s no such thing as a one-size-fits-all credit card. Each cardholder will have their own unique set of wants and needs and it’s unlikely that one credit card will tick off every box. When determining which credit card offers the best set of features to fit your must-haves, compromise is the name of the game. If you’re hoping to land a card that comes loaded with premium frills but doesn’t charge an annual fee, you may have to choose one or the other.
When narrowing down the type of card that’s right for you, ask yourself which of the following features you hope to avoid and which you absolutely can’t do without:
Fees
While avoiding credit card fees altogether is unlikely, you could keep them to a minimum with certain cards. However, this may mean losing out on extra perks and benefits. For example, if you’re looking to skip annual fees, there are $0 annual fee credit cards to choose from, but cards with annual fees (ranging from $35 to as much as $699) typically offer better perks and consumer protections.
Whether annual fees are worth it or not depends on how much use you’ll get out of your card’s benefits based on your lifestyle and spending habits.
Interest rates
A card’s interest rate is one of the most critical aspects to be aware of when choosing a card. This is the rate your card issuer will charge you for borrowing from your line of credit, and that rate can vary quite a bit based on your credit score and other factors.
Issuers will typically offer a lower introductory interest rate when you first join, lasting anywhere from six to 21 months. This intro rate can be as low as 0 percent during this period, while some cards may just reduce the ongoing rate for a time (typically cards for less-than-perfect credit). After this time, the regular interest rate kicks in. If you tend to carry a balance month-to-month, a high interest rate can be financially risky.
Benefits and rewards
Credit cards often come loaded with handy benefits for cardmembers, such as extended purchase warranties, airport lounge access, travel insurance and discounts on services or at retailers. Generally, the higher your annual fees the more premium your benefits will be.
Premium cards also offer a better rewards rate on purchases. When looking at a card’s rewards program, you’ll want to consider not only the reward rate per dollar but also the value of those rewards and ease of redemption.
Introductory bonus
Credit cards offer hefty introductory bonuses, also known as welcome or sign-up bonuses, to new cardholders. These bonuses are often given in the form of points or cash after the new cardholder spends a certain dollar amount within a given period of time in order to entice them to spend.
Such offers can be extremely lucrative depending on the card, but bigger isn’t always better. In the event of inflated points, a 100,000-point bonus may not get you as much as you think when it comes time to redeem. For some, spending to meet the bonus threshold could leave them with a debt that is difficult to repay, especially when the regular APR period begins.
Tip: To help make your decision, check out our compare credit cards tool to find the card that is best for you.
How to apply for a credit card
Check your credit score
Before you apply for a credit card, you need to know where your credit stands and which credit cards you qualify for. A quick glance over your credit report will also help you spot any errors or potential hurdles and give you an opportunity to correct them before you apply.
Once you have a sense of the type of cards available to you based on your credit score, it becomes easier to narrow down the search. The card you choose should match your spending habits, budget, and financial goals. For example, will you carry a balance month to month? Will you use rewards primarily for travel or would a more flexible rewards card suit you best?
Once you’ve determined exactly what it is you’re looking for in a credit card, it’s time to apply.
Apply
There are a number of ways to apply for a credit card. The application process is fairly standard, as you can apply by mail or online directly through the issuer’s site. You can also apply through your financial institution if you like the card’s offerings. Chances are you’ll receive more favorable terms as an existing client. Assuming your account history has remained relatively unblemished, your bank may be willing to approve you for cards you may not be able to get elsewhere.
When applying, you’ll be asked to provide basic personal information such as name, address, SSN and annual income as well as a list of current financial obligations such as your monthly housing costs or auto loan payments. When calculating your income, you may include money earned outside of work such as any government benefits or passive income.
Receive a decision
In many cases, your online application is processed right then and there, giving you an answer in a matter of seconds. Once approved, your new card will typically be mailed out to you within a week or two. Other times, the process may take a bit longer and you may receive a later decision by email, snail mail, or telephone.
What happens if your credit card application is denied?
As many Americans continue to struggle financially as a result of the pandemic and inflation, card issuers have been quick to tighten requirements for approval, resulting in a decline in overall credit card ownership. If your credit card application has been rejected, the issuer must provide you with an explanation for its decision, which is usually sent by email or sometimes snail mail.
There are a number of reasons why an issuer might choose to reject an application, here are a few:
Your credit score is too low. Credit cards come with an estimated minimum credit score. If your credit score falls below the required minimum, then it’s likely that you will be denied. You can sometimes check if you’re pre-approved for certain cards on the issuer’s website or you can use Creditcards.com’s CardMatch™ tool which helps match you with personalized card offers based on your credit profile.
Unreliable proof of income. If you fail to report stable or regular income in your application, the credit card issuer may ask for proof of income or deny your application. You can get a credit card without a job, but issuers will look to see that you have a reliable way to pay back the money you borrow.
You have errors on your credit report. Errors on your credit report, like unauthorized accounts, duplicate accounts, incorrect balances or the wrong personal information like an address or misspelling can hurt your chances of approval.
You’re carrying too much debt. If you already hold a credit card that you carry a balance on month-to-month or have loan accounts open which you have not made frequent payments on, then you may be denied when you apply for a new credit card because of excessive debt. Issuers will approve applications from potential borrowers who they are confident will pay their credit card bill on time.
Multiple credit applications. If you have applied for several credit cards in a short period of time then an issuer will likely deny your application because they view this as risky behavior.
If a rejection takes you by surprise, you can appeal the decision by calling the issuer’s reconsideration line. There you can make your case to an agent and address any concerns they may have about your credit profile. There’s no guarantee that they’ll reverse the decision but it’s worth a shot for those who feel they are a good candidate for the card. If you do plan to reach out to the issuer, it’s best to call within a few days of the rejection and have a copy of your credit report handy for quick reference.
Applying for a credit card results in what is known as a hard pull on your credit, which temporarily dings your score each time. For that reason, you don’t want to apply for another card immediately after you’ve been denied. Issuers will interpret this as risky behavior.
How we picked the best credit cards
Different types of credit cards are designed to help you achieve different financial goals. As a result, comparing cards across categories can be difficult. The best rewards credit card, for instance, will be characterized by a solid base rewards program, generous sign-up bonus and additional benefits, while the best balance transfer credit card would depend on the length of its balance transfer offer, its balance transfer fee and what its APR might be once the balance transfer expires. Having said that, we picked the best credit cards in our database by considering the following criteria.
Standout terms in the card’s category: We assessed whether a card’s terms and conditions were competitive when stacked against other cards in its respective category. For instance, for a rewards card, we looked at its rate of return on spending and evaluated whether that return was competitive, compared to other cards in the rewards category.
Reasonable costs: We looked at the major costs associated with most credit cards (purchase APR, balance transfer APR, penalty APR, annual fee, foreign transaction fees, etc.) to determine if a card’s offer was competitive in its category.
Overall value: If a card does carry certain fees, could those fees be justified by its other benefits? For instance, could you recoup an annual fee via the card’s rewards program? Could you still save on a balance transfer offer paying the balance transfer fee if you paid your balance off in the introductory 0% interest period?
Remember, the right credit card for you will vary, depending on your spending profile and financial goals.
More information on credit cards
For more information on all things credit cards, continue reading content from our credit card experts:
There is no single best credit card, but the best credit card for you depends on factors like your spending habits, financial needs and your credit profile. Our “How to choose a credit card” guide above can help narrow down your search, but you can save some time by starting with our CardMatch tool for a personalized list of credit card recommendations and exclusive offers.
However, credit cards aren’t created equally – some cards can certainly be stronger than others in their category. You can learn more about these exceptional credit cards in our “Editor’s picks” above. The best credit cards on the market come and go as new cards debut and factors like welcome offers and card features change, but our partners at Bankrate bestow many of our consistently top-rated cards with a Bankrate Award. You can check out the 2022 Bankrate Award winners to help you find the right card for your wallet.
The number of credit cards you should have depends on your personal needs and spending habits. You may want to stick to one credit card if you’re new to credit, rebuilding your credit score or you just prefer a standalone card to reward all your expenses. Consolidating your balances to a single balance transfer card may also be helpful if you’re trying to pay off your credit card debt.
On the other hand, you’ll likely want multiple credit cards if you want to maximize your value with access to a variety of bonus reward categories, additional features and redemption options. For example, one of the most common card combinations is a card with bonus categories that rewards your biggest expenses and a flat-rate rewards card to earn rewards on all your other spending. If you prefer cash back, stacking up several cards for a range of categories is one of the best ways to maximize your credit cards’ value.
However, frequent travelers may want multiple cards to shore up their travel perks and leverage the most valuable redemption options for their travel plans. For instance, pairing Chase cash back cards with the Sapphire Preferred – or another Chase Ultimate Rewards card – allows you to receive more rewards value toward Chase travel redemptions and the right Chase transfer partner.
Similarly, traveling often with your favorite airline or hotel may justify adding a co-branded rewards card to your current roster. A brand-specific hotel or airline card could sprinkle additional reward and loyalty perk value onto your rewards card strategy, and smooth out kinks in your travel with features like airport lounge access, complimentary hotel elite status and more.
There are a range of credit cards built for each credit score level. Balance transfer credit cards and popular rewards cards often require good to excellent credit – a FICO score of 670 or higher, or a VantageScore of 660 or higher. However, there are plenty of quality credit cards you can get with a fair credit score or lower. In fact, you could even qualify for some credit cards if you have no credit history, such as secured credit cards or student credit cards (if you’re enrolled in college)
The easiest credit cards to get are starter credit cards like secured and student cards, which don’t require a particular credit score to be eligible. To make the application process even easier, there are several instant approval cards available at each credit level that will let you know whether you’re likely to be approved immediately after applying.
Credit card companies consist of credit card networks and credit card issuers. Credit card networks support their branded cards with partner merchants and process transactions made with them. There are four major credit card networks: Visa, Mastercard, American Express and Discover. Visa and Mastercard are the two largest networks and have the highest acceptance rates worldwide, although cards on all four networks are accepted by a majority of U.S. merchants. Discover and American Express are smaller networks but they issue credit cards as well. Based on the latest J.D. Power Credit Card satisfaction survey, American Express is the best credit card company for customer service, but Discover usually ranks in first or second place as well.
Credit card issuers provide the actual credit cards and manage your credit card account. Popular credit card issuers (besides Amex and Discover) include Chase, Capital One, Citi, Wells Fargo and Bank of America, for example. The best card issuer is the issuer that provides the cards that best support your spending habits with the rewards and features you’re interested in. For instance, Chase credit cards are some of the best for earning rewards and pairing multiple cards, Capital One focuses on streamlined rewards programs and Discover is known for cards with low rates and fees.
In terms of credit card satisfaction, J.D. Power’s 2022 survey ranked Amex, Discover and Bank of America as above average (in that respective order). Chase and Capital One earned almost identical scores and round out the survey’s top five issuers.
About the Author
Jeanine Skowronski
Jeanine Skowronski is a credit card expert, analyst, and multimedia journalist with over 10 years of experience covering business and personal finance. She has previously served as the Head of Content at Policygenius, Executive Editor of Credit.com, Deputy Editor at American Banker, Staff Reporter at TheStreet and a columnist for Inc. Magazine.
About the Editor
Tracy Stewart
Tracy Stewart is a personal finance writer specializing in credit card loyalty programs, travel benefits, and consumer protections. He previously covered travel rewards credit cards, budget travel, and aviation news at SmarterTravel Media. His money-saving tips have appeared in the Washington Post, the Wall Street Journal, Consumer Reports, MarketWatch, Vice, People, the Zoe Report and elsewhere.
About the Reviewer
Jason Steele
Jason Steele is a professional journalist and credit card expert who has been contributing to online publications since 2008. He was one of the original contributors to The Points Guy, and his work has been appearing there since 2011. He has also contributed to over 100 of the leading personal finance and travel outlets. He’s frequently interviewed and quoted by mainstream outlets on the subjects of credit cards and travel. Jason is passionate about travel rewards credit cards, which he uses to earn rewards that he can redeem for him and his family to travel around the world. Jason is also the founder and producer of CardCon, a conference for credit and credit card journalists that’s held annually.
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