Our editorial team and expert review board provide an unbiased analysis of the products we feature. Our comparison service is compensated by our credit card company partners, and may influence where or how products are featured on the site. This site does not include all credit card companies or all available credit card offers. 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.Learn more about our partners and how we make money.
Credit cards are a secure payment method that give you access to a limited line of credit. You can borrow from this credit limit and pay it 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.
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 will depend on a number of factors, your spending habits and financial goals. It may come with generous rewards rates, lengthy promotional APRs on purchases or balance transfers, generous welcome offers or favorable terms and conditions like low ongoing interest rates. 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 you access to a limited line of credit. You can borrow from this credit limit and pay it 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.
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 will depend on a number of factors, your spending habits and financial goals. It may come with generous rewards rates, lengthy promotional APRs on purchases or balance transfers, generous welcome offers or favorable terms and conditions like low ongoing interest rates. 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.
$200 cash rewards
Earn a $200 cash rewards bonus after spending $500 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.
Earn 5% cash back on everyday purchases at different places you shop each quarter like grocery stores, restaurants, gas stations, and more, up to the quarterly maximum when you activate.
1%
Plus, earn unlimited 1% cash back on all other purchases.
At A Glance
Intro offer
Cashback Match
Intro Offer: Unlimited Cashback Match for all new cardmembers – 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
18.49% - 27.49% 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:4.8
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.
3x on dining, select streaming services and online groceries.
2x
2x on all other travel purchases.
1x
1x on all other purchases.
At A Glance
Intro offer
60,000 bonus points
Earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening.
Annual fee
$95
Regular APR
20.74% - 27.74% 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:4.9
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.
8% Cash Back on Capital One Entertainment purchases
5%
5% Cash Back on hotels and rental cars booked through Capital One Travel (terms apply)
3%
3% Cash Back at grocery stores (excluding superstores like Walmart® and Target®), on dining, entertainment and popular streaming services
1%
1% Cash Back on all other purchases
At A Glance
Intro offer
$250 Cash Back
$250 Cash Back after you spend $500 on purchases within 3 months from account opening
Annual fee
$0
Regular APR
19.74% - 29.74% 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:4.8
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.
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, then 1%.
1%
1% Cash Back on other purchases.
At A Glance
Intro offer
Earn $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: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.
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
19.74% - 29.74% 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: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.
10 Miles per dollar on hotels and rental cars booked through Capital One Travel
5 Miles
5 Miles per dollar on flights and vacation rentals booked through Capital One Travel
2 Miles
2 Miles per dollar on every purchase, every day
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
19.99% - 29.74% 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:4.9
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.
5 Miles per dollar on hotels, vacation rentals and rental cars booked through Capital One Travel
2 Miles
2 Miles per dollar on every purchase, every day
At A Glance
Intro offer
75,000 miles
75,000 miles once you spend $4,000 on purchases within 3 months from account opening
Annual fee
$95
Regular APR
19.99% - 29.74% 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:4.5
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.
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.
4%
Special Travel Offer: Earn an additional 4% cash back on hotels, car rentals, and attractions booked on Citi Travel℠ portal through 6/30/2026.
1%
Earn unlimited 1% cash back on all other purchases.
At A Glance
Intro offer
$200
Earn $200 in cash back after you spend $1500 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.
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
Earn $250
Earn a $250 statement credit after you spend $3,000 in eligible 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:4.8
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.
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 $8,000 on eligible 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: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.
Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
4X
Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
3X
Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
2X
Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
1X
Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
At A Glance
Intro offer
60,000 points
Earn 60,000 Membership Rewards® points after you spend $6,000 on eligible purchases on your new Card in your first 6 months of Card Membership.
Annual fee
$325
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: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.
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 statement credit
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: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.
Earn 5% cash back on everyday purchases at different places you shop each quarter like grocery stores, restaurants, gas stations, and more, 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 for all new cardmembers – 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 cash back into $200. There’s no minimum spending or maximum rewards. Just a dollar-for-dollar match.
Annual fee
$0
Regular APR
17.49% - 26.49% 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.
This card doesn't offer cash back, miles, or points
At A Glance
Annual fee
$0
Balance transfer intro APR
N/A
Regular APR
29.99% 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.
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 benefits may be provided by Visa® or Mastercard® and may vary by product. See the respective Guide to Benefits for details, as terms and exclusions apply.
5X points on Chase Travel and Lyft rides (Lyft offer through March 31, 2025), 3X points on several popular non-travel categories and 2X points on general travel
25% increased redemption value toward travel through Chase Travel, high-caliber travel insurance along with annual hotel credits and account anniversary points
Unlimited 3% cash back on dining, entertainment, select streaming services and grocery store purchases (excluding superstores like Walmart® and Target®).
Plus, 8% cash back on Capital One Entertainment purchases
10X miles on hotel and rental car bookings through Capital One Travel, 5X miles on flights and vacation rentals through Capital One Travel and 2X miles on all other purchases
$300 annual statement credit for bookings through Capital One Travel, 10,000 account anniversary bonus miles, along with excellent travel insurance and airport lounge access
6% cash back at U.S. supermarkets (up to $6,000 per year in purchases, then 1%) and on select U.S. streaming subscriptions, 3% cash back on transit and at U.S. gas stations
5X points on directly-booked airfare, and on flights and prepaid hotels through American Express Travel (up to $500,000 per calendar year, then 1X points)
Up to more than $2,000 of perks per year, including airline fee credits, comprehensive airport lounge access, hotel privileges and more
4X Membership Rewards points at restaurants worldwide (on up to $50,000 in purchases per year, then 1X points) and at U.S. supermarkets (on up to $25,000 in purchases per year, then 1X points)
Editor’s picks: A closer look at top-rated credit cards
Best for flat-rate cash rewards: 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 welcome 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) when you pay with your eligible Wells Fargo card.
Biggest drawbacks: A credit card that earns rewards at a higher rate in your biggest spending categories could prove more valuable overall. You also can’t pool rewards across multiple Wells Fargo cards the way you can with other issuers’ cards, limiting your redemption options and value.
Alternatives: The Chase Freedom Unlimited® has a slightly lower base cash back rewards rate than the Active Cash Card (just 1.5% back on general purchases), but it comes with additional bonus categories that could easily make up the difference if you spend more on travel and dining. The Citi Double Cash® Card is also a solid alternative to the Active Cash if you want a slightly longer balance transfer offer or the ability to transfer your points (in this case, to the Citi Premier card).
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: Most cards earn rewards in only a handful of fixed categories, but this card earns a stellar cash back rate on a wide variety of popular rotating categories – often ten or more categories per year. Discover’s rotating rewards program is especially valuable for new cardholders since the issuer matches all the cash back you’ve earned at the end of your first year.
Biggest drawbacks: Enrollment is required for bonus categories so you’ll need to keep an eye on Discover’s quarterly category schedule. If you’re not up for planning in advance, you may miss out on the potential value of the card. Discover also lacks a dedicated rewards program similar to Amex or Chase, so you won’t have the opportunity to transfer your rewards to travel partners.
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. The Capital One Savor Cash Rewards Credit Card may also be more lucrative since it earns rewards year-round on staples like groceries, dining and entertainment.
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 travel value: Chase Sapphire Preferred® Card
Best features: The Sapphire Preferred card’s travel perks, transfer partners and rewards are exceptional for its relatively low annual fee. Along with high rewards rates on travel and everyday purchases, you’ll get a 25% boost in point value when you redeem for travel with Chase. This makes the card a terrific pairing option with no-annual-fee Chase rewards cards.
Biggest drawbacks: You’ll get the best value from this card if you redeem rewards for travel and take advantage of its perks. If you only travel occasionally, the card’s annual fee may be harder to justify.
Alternatives: If you want premium perks like annual travel credits and complimentary lounge access, consider upgrading to the Chase Sapphire Reserve® Card or Capital One Venture X.
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 making it a worthy choice for most wallets.
Best for food and entertainment: Capital One Savor Cash Rewards Credit Card
Best features: Few cards cover the combination of food and entertainment like the Savor. You’ll have an easy time earning an unlimited 3% cash back when grocery shopping (excluding superstores like Walmart® and Target®), 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.
Biggest drawbacks: The Savor 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, you may reap more value from the Blue Cash Preferred® Card from American Express since it boasts a much higher cash back rate on U.S. supermarket purchases. Meanwhile, the American Express® Gold Card may be a better fit for foodies thanks to its dining-centric categories and perks.
Bottom line: Almost any cardholder can benefit from this no-annual-fee (See rates and Fees) card’s unlimited 3% rewards in popular spending categories. However, entertainment fans will find the Savor card’s comprehensive category coverage and 8% back on Capital One Entertainment purchases provide a unique value.
Best for household shopping: Blue Cash Everyday® Card from American Express
Best features: This no-annual-fee card carries solid cash back rates on everyday spending at U.S. supermarkets and gas stations, and its comprehensive online shopping category can fill in the gaps for the rest of your shopping staples.
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 expenses. The Bank of America® Customized Cash Rewards credit card* is also excellent for groceries, and it offers a similar choice category for online shopping.
Bottom line: Families with a smaller grocery budget can enjoy the Blue Cash Everyday’s rewards without worrying about recouping an annual fee. But whether the card is worth it depends on where you prefer to buy your groceries.
Best starter 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 (See rates and Fees), a sign-up bonus with a low spending threshold and additional benefits like free credit monitoring and 24/7 concierge service, and a simplicity which makes it easy to maximize your card value. You can also choose to redeem cash back automatically if you want to streamline the rewards process.
Biggest drawbacks: A 1.5% cash back rate isn’t the best you can find on a flat-rate cash back card. In fact, some flat-rate cards offer the same cash back rate without requiring a good credit score.
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 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, so you’ll want to review your travel and spending habits to understand whether the Venture X is worth it.
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. If you’d rather avoid a high annual fee, consider the Chase Sapphire Preferred® Card, which offers stellar value for just a $95 annual fee.
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 (See rates and Fees). 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 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 (See rates and Fees) 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 $120 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.
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 features: Few cards adapt to your spending habits like the Custom Cash card, since it automatically earns 5% cash back in your top eligible spending category (on up to $500 in spending each billing cycle). The card’s eligible categories also include a number of options that don’t typically earn such a high cash back rate like gas stations, transit and home improvement stores. This makes the Custom Cash an excellent secondary rewards card if your primary card covers your largest expenses.
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: Though it comes with an annual fee after the first year, the Blue Cash Preferred card 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 that fee and still rake in plenty of cash back.
Bottom line: The Custom Cash 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 substantial rewards in far more household categories than the typical cash back card. In fact, it includes one of the highest rewards rates for U.S. supermarkets and select U.S. streaming services. It also comes with an intro APR offer on purchases and balance transfers, annual streaming credits and outstanding rewards on transit and U.S. gas station purchases.
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: If you spend less than $3,200 on groceries each year, you might squeeze more value out of the Blue Cash Everyday® Card from American Express. It earns rewards at a slightly lower rate but charges no annual fee and includes a lucrative U.S. online retail category.
Bottom line: If you spend at least $3,200 per year at U.S. supermarkets, this will be one of the most lucrative grocery rewards cards out there, despite its ongoing annual fee.
Best for luxury travel: The Platinum Card® from American Express
Best features: The Amex Platinum card’s benefits include perhaps the most generous airport lounge access available, as well as credits for expedited security screening, Uber, airline fees and more – all of which could add up to more than $2,000 of value each year. 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 don’t plan on using many of the Platinum Card’s niche features.
Bottom line: This card could be either more than worth the cost 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 boasts one of the highest rewards rates out there for dining, including eligible takeout and delivery services like Uber Eats. It also carries an impressive welcome offer, dining credits and other perks that make it one of the top rewards cards for dining and travel.
Biggest drawbacks: The credits are doled out on a monthly basis, in up to $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, and Five Guys locations (Enrollment Required). These limitations may decrease the card’s value and make it harder to offset the $325 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: The Amex Gold can easily be worth the annual fee if you’re looking for a best-in-class travel card for dining worldwide, U.S. supermarket and airfare purchases.
Best business credit card: The 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: Big spenders may get more value out of a card that offers unlimited flat-rate rewards. Consider the Ink Business Unlimited® Credit Card, which offers unlimited 1.5% back on all purchases for no annual fee. The Capital One Spark Cash Plus is another great option: It carries no preset credit limit, earns a flat 2% cash back and includes a $150 cash bonus every year you charge $150,000 or more to the card.
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 for their wallet.
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 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: The Discover it® Secured Credit Card is another leading secured card thanks to its cash rewards, low fees and similar review process for an unsecured credit line. Although you’ll need a $200 minimum security deposit, its higher $2,500 maximum credit limit could make it easier to keep your credit utilization ratio low.
Bottom line: This card is a top option for people with bad credit who aren’t likely to qualify for an unsecured credit card. Just take care to review the card’s benefits guide to make sure you avoid fees and other financial missteps.
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 lower than the average credit card interest rate, which hovers around 20%. They can be a handy option if you need to carry a balance in an emergency. Cards with low rates usually require you to have at least a good credit score.
If you want the absolute lowest ongoing APRs available, or if you have a lower credit score, a credit union credit card may be your best bet. You have plenty of options if you have a good credit score, which means making a decision may take more work. A great place to start your research would be comparing cards like the Discover it Balance Transfer and the Wells Fargo Reflect® Card, one of the best low-interest cards. Both cards prioritize low-interest rates and intro APR offers. The Discover it Balance Transfer also doubles as a cash back card.
Zero-interest credit cards come with introductory periods that let you avoid interest on purchases, balance transfers or both for a limited time. These intro APR periods usually give you 12 to 21 months to pay off your balance. When your 0% introductory period ends, the card’s regular APR will apply, and you’ll begin accruing interest on any remaining balance.
To determine which zero-interest credit card is the best pick, you must evaluate your current debt and the amount of money you plan to spend in the coming months. Zero-interest cards typically have introductory APR offers for both balance transfers and purchases. However, some cards offer an extended intro APR period for one at the loss of the other. Others may include generous rewards programs alongside zero-interest offers.
Comparing two options, like the Capital One Savor card and the Citi Simplicity® Card, can give you a better idea of available intro APR cards. Although the Savor card offers high rewards rates with an intro APR offer, the Citi Simplicity has a much longer intro APR period.
Balance transfer credit cards provide lengthy 0% intro APR offers on balance transfers so that you can transfer your current balance from one or more cards – or sometimes eligible loans – and pay off the consolidated balance without the burden of incoming interest.
Many specialized balance transfer cards cut rewards in favor of 18-month to 21-month intro APRs, but some offer rewards. People who carry high-interest debt on one or more credit cards could save hundreds of dollars by doing a balance transfer. When choosing the most cost-effective card, make sure you account for the card’s balance transfer fee (typically 3% to 5% of your transferred total).
The right balance transfer card for you may come down to how much debt you have on other cards. The more debt you have, the longer intro APR offer you’ll want. For high debt, you should look at cards like the Citi Simplicity Card, which has one of the longest intro APR offers available. If you have moderate debt and still want an all-around great card, consider comparing the Capital One Savor Cash Rewards Credit Card and the Bank of America® Customized Cash Rewards credit card. Both cards have boosted cash back rates in several categories and generous balance transfer offers.
A rewards credit card earns cash back, points or miles on eligible purchases, depending on the type of rewards card. Reward rates may apply to all purchases or only to purchases in a specific category like gas or groceries. The best rewards credit cards also often include lucrative sign-up bonuses, intro APR offers, purchase protections or other useful perks. In exchange for an annual fee, some cards also offer especially valuable rewards rates and benefits like annual credits.
There are several rewards cards to choose from, and the right one for you will depend on your unique expenses. If you aren’t sure where to start, consider comparing the American Express Gold Card and the Capital One Quicksilver Cash Rewards credit card to better understand which type of rewards card aligns with your needs.
Cash back credit cards let you earn and redeem cash, usually in the form of statement credits, gift cards, checks or direct deposits into your bank account. They generally fall into three categories:
Flat-rate cash back cards: These cards offer a high rewards rate on general purchases — usually between 1.5% and 2% cash back. They’re a good fit for people who want a simple way to earn generous rewards.
Tiered bonus category cash back cards: These cards offer a high rewards rate — usually between 2% and 6% cash back — in specific spending categories, like dining, gas or groceries. They’re best suited to people who spend a lot in particular bonus categories.
Rotating bonus category cash back cards: These cards often offer 5% cash back up to a certain spending limit in a variety of bonus categories that rotate each quarter. They’re a bit more high maintenance than flat-rate or tired bonus category cash back cards, but these cards can be great for maximizing rewards.
There’s no shortage of choice regarding cash back cards, and they won’t all be right for you. If you aren’t sure where to start, consider comparing the Wells Fargo Active Cash card and the Blue Cash Everyday card from American Express. The Active Cash is an excellent example of a solid flat-rate card, while the Blue Cash Everyday is a rewarding tiered cash back card. If you can decide between the two, you may be able to determine which cash back program works best for you and whether you should consider a rotating category cash back card to fill in any gaps.
Travel credit cards let you earn points or miles to redeem for future travel bookings. They often tout additional travel benefits, like annual credits, 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: Top travel cards earn points or miles that aren’t tied to specific airlines or hotels – usually 1.5X to 2X rewards on general purchases or 2X to 10X rewards in specific bonus categories. You can redeem these rewards for various travel purchases, including airfare, hotel stays, car rentals, travel experiences or vacation packages. They’re best for travelers who want the flexibility to earn rewards with various airline and hotel brands, and don’t mind transferring rewards between travel partners to get the most value for their points.
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 fly with the same carrier several times a year.
Hotel credit cards: These cards let you earn points and special perks at a specific hotel brand. Cardholders can earn 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.
Choosing a travel card can be overwhelming, but a good place to begin your search will be comparing a general travel rewards card with a branded travel card partnered with the airline or the hotel you travel most frequently with. The branded card will vary by user, but if you look at how a card like the Chase Sapphire Preferred card compares to your preferred airline or hotel card, you might find you value flexibility more than niche extras — or vice versa.
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: These 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.
Student credit cards: These 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. Student cards also usually feature the best rewards rates and lowest APRs and fees compared to other credit-building cards, so they’re a great first credit card option.
Starter credit cards: These are beginner-friendly cards geared toward 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 APR may be somewhat high, and a 0% intro APR is unlikely. However, these cards typically offer the best reward rates and benefits if you’re building credit and aren’t a student.
Business credit cards are designed for entrepreneurs, small-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. However, business cards set themselves apart with rewards in popular business purchases, potentially higher credit limits (or no pre-set spending limits), expense tracking tools and other features that could be valuable for managing your business.
You’ll want to find a business card with rewards rates that align with your business expenses. Sometimes, the best choice may be a flat-rate rewards card like the American Express Blue Business Cash Card. To explore tiered category rewards in specific categories, look at a card like the Chase Ink Business Cash® Credit Card.
How do credit cards work?
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 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. However, there are ways to avoid paying any interest and ways to make credit cards benefit your whole financial picture.
How do credit card rewards work?
Credit card rewards come in many forms but generally fall into one of three categories: cash back, points or miles. Cash back is the most straightforward since you earn a percentage of your total spending back based on your card’s rewards rate. For example, a card that earns 5% cash back on groceries would earn $5 back on $100 in grocery purchases. You’ll typically be able to redeem cash rewards as statement credits, direct deposits, mailed checks or gift cards.
Points and miles usually work the same way, but your redemption options and the value of your rewards may differ depending on the rewards program. For example, if a card offers 5X points on dining, you’ll earn 500 points or miles on a $100 purchase, but you may get the best value for your points when you redeem them in a specific way, such as for travel (a card may earn points worth 1.5 cents per dollar when you redeem for travel, but only 0.5 cents per point when you opt for cash back).
Although every rewards program works differently, you should generally choose a card that earns:
Cash back to keep things simple and save on your everyday expenses.
Travel miles if you fly or stay in hotels frequently.
Reward points for flexibility to redeem rewards as either cash back or travel.
How do credit scores work?
Issuers will evaluate your credit application by reviewing 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. These factors include 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 credit issuer 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, you will qualify for a lower interest rate compared to people with fair or bad credit.
Interest is added 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 racking up interest if you can’t pay off your balance before your payment due date. The first is to take advantage of the grace period found with most credit cards. These periods give you a certain amount of time (typically at least 21 days) to make purchases with your card and pay them off without dealing 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
When used responsibly, a credit card gives you substantial advantages, such as the ability to earn rewards, handle emergencies and build credit. Here are some of the most useful benefits of using a credit card, as well as some potential drawbacks of having a credit card.
Pros
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.
Earning rewards. You can earn cash back, points or miles for your spending, potentially earning hundreds of dollars on purchases you would have made anyway.
Access to card membership perks. Certain credit cards come with discounts, purchase protections, 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, it’s wise to pay off your purchases before the end of your billing cycle since accruing interest can snowball into a costly problem.
Cons
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 balance over 30% of 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 you can manage.
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 annual fees. 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.
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.
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. However, store credit cards usually aren’t the best option for your primary credit card due to their limited flexibility.
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 three months, but six-month time frames are somewhat common). 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 a unique set of 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:
While avoiding credit card fees altogether is unlikely, you could keep them to a minimum with certain cards. Annual fees and foreign transaction fees are two fees that may be hard to avoid entirely, depending on the features you need and where you’ll use your card.
You may want to consider a card with no foreign transaction fees if you often travel abroad. Capital One and Discover cards usually don’t charge foreign transaction fees, and Discover cards waive several other common card fees. However, penalty APRs and late payment fees are avoidable on other cards if you use them responsibly.
There are plenty of high-quality credit cards with no annual fee. However, cards with annual fees (which usually range from around $30 to close to $700) typically offer stronger rewards rates and more valuable perks. Whether annual fees are worth it depends on how much use you’ll get from your card’s benefits based on your lifestyle and spending habits.
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.
The current average credit card APR is quite high – around 20 percent variable – but your card’s APR could run much higher or lower based on your credit history. A good interest rate is often at least three to four percentage points below average.
You should prioritize your card decision based on your habits. Regarding interest rates, you should look at how reliably you’ll pay your bill each billing cycle. If you frequently pay late or miss payments, you might want to prioritize a low-interest card in your search.
Credit cards often come with handy benefits for cardmembers, such as extended purchase warranties, airport lounge access, travel insurance and discounts on services or at retailers. Premium rewards cards generally offer higher-value benefits.
Cash back cards typically don’t carry as many extra perks as travel cards, but some may offer annual credits or partner perks for domestic expenses like streaming services or food delivery. You’ll need to ask yourself which perks you’ll likely use and how their value compares to the cost of holding a card.
Premium cards also offer a better rewards rate on purchases. When comparing credit card rewards programs, you’ll want to weigh which bonus categories and types of rewards suit your spending habits, your redemption options and how much your rewards will be worth.
Multiply your annual spending in a given category by a card’s rewards rate in that category (for example, $5,000 in annual grocery spending x 5 points per dollar = 25,000 points).
Multiply that total by the card’s rewards redemption value (for example, 15,000 points x 1 cent per point in redemption value = $250 value).
Subtract the annual fee (for example, $250 value – $95 annual fee = $155 total earnings).
If you’re not sure what your points are worth, check out Bankrate’s latest point and mile valuations.
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.
Understanding a typical bonus value and spending requirement is helpful when measuring welcome offers. No-annual-fee rewards cards usually offer around a $200 to $250 value after you spend $500 to $1,000 within your first three months. Premium card welcome offers often deliver $500 to $800 in value after you spend $4,000 to $6,000, and business cards sometimes feature even bigger bonus values and spending requirements.
Choosing a card based on its welcome offer isn’t always wise because this is only short-term value. But if the sign-up bonus is your deciding factor, choose the card with the welcome offer you will most likely obtain with normal spending.
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, is there a chance you may need to carry a balance from time to time? 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?
Card issuers raised the bar for credit card approval during the pandemic and have kept the approval requirements tight as many Americans continue to struggle financially due to inflation. This has resulted 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. Meanwhile, 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.
*All information about the Bank of America® Customized Cash Rewards credit card has been collected independently by CreditCards.com and has not been reviewed by the issuer.
More information on credit cards
Check out our expert guides below for more information to help you find the best credit credit cards for your needs. Plus, we’ve included a few extra CreditCards.com resources so you can effectively evaluate your options and make the most informed choice.
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 2023 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
Garrett Yarbrough
Garrett Yarbrough is a staff writer for CreditCards.com, specializing in product news and recommendations. He strives to make navigating credit cards, earning rewards and credit building smooth sailing for his readers.
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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CreditCards.com is an independent, advertising-supported comparison service. The offers that appear on this site are from companies from which CreditCards.com receives compensation. This compensation may impact how and where products appear on this site, including, for example, the order in which they may appear within listing categories. Other factors, such as our own proprietary website rules and the likelihood of applicants' credit approval also impact how and where products appear on this site. CreditCards.com does not include the entire universe of available financial or credit offers. CCDC has partnerships with issuers including, but not limited to, American Express, Bank of America, Capital One, Chase, Citi and Discover.
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Since 2004, CreditCards.com has worked to break down the barriers that stand between you and your perfect credit card. Our team is made up of diverse individuals with a wide range of expertise and complementary backgrounds. From industry experts to data analysts and, of course, credit card users, we’re well-positioned to give you the best advice and up-to-date information about the credit card universe.
Let’s face it — there’s a lot of jargon and high-level talk in the credit card industry. Our experts have learned the ins and outs of credit card applications and policies so you don’t have to. With tools like CardMatch™ and in-depth advice from our editors, we present you with digestible information so you can make informed financial decisions.
Our top goal is simple: We want to help you narrow down your search so you don’t have to stress about finding your next credit card. Every day, we strive to bring you peace-of-mind as you work toward your financial goals.
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A dedicated team of CreditCards.com editors oversees the automated content production process — from ideation to publication. These editors thoroughly edit and fact-check the content, ensuring that the information is accurate, authoritative and helpful to our audience.
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