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3.0

Forbes Advisor

Our ratings take into account the
card’s rewards, fees, rates along with the card’s category. All ratings
are determined solely by our editorial team.

WHY WE PICKED IT

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Best Credit Cards Of 2022: Reviews, Rewards & Offers

Editorial Note: We earn a commission from partner links on
Forbes Advisor. Commissions do not affect our editors’ opinions or
evaluations.

No single credit card is the best option for every family,
every purchase or every budget. For this reason, Forbes Advisor has
chosen the best credit cards in a way designed to be the most helpful to
the widest variety of readers. Rather than selecting the “best credit
card” and ranking the next nine options, we highlighted the best cards
for a variety of situations. The star ratings highlighted below
show the card’s rating for its specific category. The global star rating
can be found on the card review.

This list contains only personal credit cards. If you’re looking for a credit card for your business, consider our list of the best business credit cards.

Read more

Show Summary

The Best Credit Cards of 2022

  • Chase Freedom Flex℠: Best Cash Back, Best No Annual Fee Card
  • Chase Sapphire Preferred® Card: Best Entry Level Travel Card
  • The Platinum Card® from American Express: Best for Luxury Travel and Lifestyle Benefits
  • Capital One Venture X Rewards Credit Card: Best Flexible Rewards Card
  • Bank of America® Customized Cash Rewards credit card: Best for Choosing Your Rewards Category
  • Wells Fargo Reflect℠ Card: Best Balance Transfer for Long Payment Window
  • Wells Fargo Active Cash℠ Card: Best 0% APR 5.0 and Best Flat Rate Cash Back
  • Blue Cash Preferred® Card from American Express: Best for U.S. Supermarkets
  • U.S. Bank Altitude® Go Visa Signature® Card *: Best for Dining
  • Chase Sapphire Reserve®: Best Card for Travel Insurance
  • The World of Hyatt Credit Card: Best Mid-Tier Hotel Card
  • Hilton Honors Aspire Card from American Express *: Best Hotel Card
  • United Club℠ Infinite Card: Best Airline Card
  • Aeroplan® Credit Card: Best Mid-Tier Airline Card
  • Discover it® Student Cash Back: Best Student Card
  • Petal® 1 “No Annual Fee” Visa® Credit Card: Best for Bad Credit
  • Discover it® Secured Credit Card: Best Secured Card
  • Amazon Prime Rewards Visa Signature Card *: Best for Amazon

Best Credit Cards of 2022

Best Cash Back, Best No Annual Fee Card

Chase Freedom Flex℠



Apply Now

On Chase’s Secure Website


Chase Freedom Flex℠

Click Here To
Apply Now

5.0

Forbes Advisor

Forbes Advisor created additional star
ratings so that you can see the best card for specific needs. This card
shines for this use, but overall the star ratings may differ when
compared to other cards.



Apply Now

On Chase’s Secure Website

Up to 5X Reward Rate

Earn 5% cash back in categories that rotate quarterly on up to $1,500 when enrolled, 5% on travel purchased throughRead More

Welcome Bonus

$200 bonus

Annual Fee

$0

Regular APR

14.99% – 23.74% Variable

Credit Score

Excellent, Good (700 – 749)

Why We Picked It

This card has the brawn to handle just about all of your credit
card spending needs without an over-inflated price tag. The card has an
annual fee of $0, yet comes with a pumped-up earnings structure that
covers a wide swath of expenses including travel, drugstores and dining
plus rotating quarterly bonus categories in areas many households are
likely to find appealing.

Pros & Cons
  • No annual fee
  • Rotating quarterly categories earn 5% rewards when activated, up to a combined quarterly $1,500 maximum
  • Travel rewards rate rivals some of the best premium travel cards
  • Generous rewards rate in several other categories
  • Travel bookings must be made through Chase Ultimate Rewards® to earn 5% cash back

Card Details
  • Earn a $200 Bonus after you spend $500 on purchases in your first 3 months from account opening.
  • 5% cash back on up to $1,500 in combined purchases in bonus
    categories each quarter you activate. Enjoy new 5% categories each
    quarter!
  • 5% cash back on travel purchased through Chase Ultimate Rewards®,
    our premier rewards program that lets you redeem rewards for cash back,
    travel, gift cards and more
  • 3% cash back on drugstore purchases and dining at restaurants,
    including takeout and eligible delivery service, and unlimited 1% cash
    back on all other purchases.
  • No minimum to redeem for cash back. You can choose to receive a
    statement credit or direct deposit into most U.S. checking and savings
    accounts. Cash Back rewards do not expire as long as your account is
    open!
  • 0% Intro APR for 15 months from account opening on purchases and balance transfers, then a variable APR of 14.99% – 23.74%.
  • No annual fee – You won’t have to pay an annual fee for all the great features that come with your Freedom Flex℠ card
  • Keep tabs on your credit health – Chase Credit Journey helps you
    monitor your credit with free access to your latest score, real-time
    alerts, and more.

Earn a $200 Bonus after you spend $500 on purchases in your first 3 months from account opening.
Credit Score ranges are based on FICO®
credit scoring. This is just one scoring method and a credit card issuer
may use another method when considering your application. These are
provided as guidelines only and approval is not guaranteed.

Best Entry Level Travel Card

Chase Sapphire Preferred® Card



Apply Now

On Chase’s Secure Website


Chase Sapphire Preferred® Card

Click Here To
Apply Now

5.0

Forbes Advisor

Forbes Advisor created additional star
ratings so that you can see the best card for specific needs. This card
shines for this use, but overall the star ratings may differ when
compared to other cards.



Apply Now

On Chase’s Secure Website

Up to 5x Reward Rate

Earn 5x on travel purchased through Chase Ultimate Rewards®, 3x on dining and 2x on all other travel purchases, plusRead More

Welcome Bonus

60,000 points

Annual Fee

$95

Regular APR

15.99%-22.99% Variable

Credit Score

Excellent/Good (700 – 749)

Why We Picked It

Offering a rare mix of high rewards rates and redemption
flexibility, this card is a dream for frequent spenders on travel &
dining – while charging a modest annual fee.

Pros & Cons
  • Earn high rewards on several areas of spending
  • Transfer points to travel partners at 1:1 rate
  • Many travel and shopping protections
  • Annual fee
  • No intro APR offer
  • Best travel rewards are only for bookings through Chase

Card Details
  • 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®.
  • Enjoy benefits such as a $50 annual Ultimate Rewards Hotel Credit,
    5x on travel purchased through Chase Ultimate Rewards®, 3x on dining and
    2x on all other travel purchases, plus more.
  • Get 25% more value when you redeem for airfare, hotels, car rentals
    and cruises through Chase Ultimate Rewards®. For example, 60,000 points
    are worth $750 toward travel.
  • With Pay Yourself Back℠, your points are worth 25% more during the
    current offer when you redeem them for statement credits against
    existing purchases in select, rotating categories.
  • Get unlimited deliveries with a $0 delivery fee and reduced service
    fees on eligible orders over $12 for a minimum of one year with
    DashPass, DoorDash’s subscription service. Activate by 03/31/22.
  • Count on Trip Cancellation/Interruption Insurance, Auto Rental Collision Damage Waiver, Lost Luggage Insurance and more.

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®.
Credit Score ranges are based on FICO®
credit scoring. This is just one scoring method and a credit card issuer
may use another method when considering your application. These are
provided as guidelines only and approval is not guaranteed.

Best for Luxury Travel and Lifestyle Benefits

The Platinum Card® from American Express



Apply Now

On American Express’s Secure Website

Partner Offer

The Platinum Card® from American Express

Click Here To
Apply Now


Rates & Fees 

/ Terms Apply

5.0

Forbes Advisor

Forbes Advisor created additional star
ratings so that you can see the best card for specific needs. This card
shines for this use, but overall the star ratings may differ when
compared to other cards.



Apply Now

On American Express’s Secure Website

5X Reward Rate

Earn 5 Membership Rewards points per dollar on prepaid hotels booked with American Express Travel; earn 5 Membership Rewards perRead More

Welcome Bonus

Earn 100,000 points

Annual Fee

$695

Regular APR

See Pay Over Time APR

Credit Score

Excellent/Good (700 – 749)

Why We Picked It

The Platinum Card is destined for frequent travelers who intend
to fully leverage the rich set of luxury travel benefits and Platinum
Concierge service. In the right hands, the classic status card’s
staggering annual fee is well justified.

Pros & Cons
  • High reward potential on flights and hotels booked through American Express Travel
  • Multiple credits can help justify the fee
  • Comprehensive airport lounge access
  • Luxury travel benefits and elite status with Hilton and Marriott with enrollment
  • High annual fee
  • Maximizing the statement credits takes some work and could be unworkable for many
  • Reward rate outside of travel is sub-par for a premium card

Card Details
  • Earn 100,000 Membership Rewards® points after you spend $6,000 on
    purchases on your new Card in your first 6 months of Card Membership.
    Apply and select your preferred metal Card design: classic Platinum
    Card®, Platinum x Kehinde Wiley, or Platinum x Julie Mehretu.
  • 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 and earn 5X Membership Rewards® Points on
    prepaid hotels booked with American Express Travel.
  • $200 Hotel Credit: Get $200 back in statement credits each year on
    prepaid Fine Hotels + Resorts® or The Hotel Collection bookings with
    American Express Travel when you pay with your Platinum Card®.
  • $240 Digital Entertainment Credit: Get up to $20 in statement
    credits each month when you pay for eligible purchases with the Platinum
    Card® at your choice of one or more of the following providers:
    Peacock, Audible, SiriusXM, and The New York Times. Enrollment required.
  • $155 Walmart+ Credit: Cover the cost of a $12.95 monthly Walmart+
    membership with a statement credit after you pay for Walmart+ each month
    with your Platinum Card. Cost includes $12.95 plus applicable local
    sales tax.
  • American Express has expanded The Centurion® Network to include 40+
    Centurion Lounge and Studio locations worldwide. There are even more
    places your Platinum Card® can get you complimentary entry and exclusive
    perks.
  • $200 Airline Fee Credit: Get up to $200 in statement credits per
    calendar year in baggage fees and more at one select qualifying airline.
  • $200 Uber Cash: Enjoy Uber VIP status and up to $200 in Uber savings
    on rides or eats orders in the US annually. Uber Cash and Uber VIP
    status is available to Basic Card Member only.
  • $300 Equinox Credit: Get up to $25 back each month on eligible
    Equinox memberships when you pay with your Platinum Card®. Enrollment
    required.
  • $179 CLEAR® Credit: Use your Card and get up to $179 back per year on your CLEAR® membership.
  • $695 annual fee.
  • Terms Apply.
  • See Rates & Fees

Earn 100,000 Membership Rewards® Points after you spend $6,000 on
purchases on the Card in your first 6 months of Card Membership. Terms
Apply.
Credit Score ranges are based on FICO®
credit scoring. This is just one scoring method and a credit card issuer
may use another method when considering your application. These are
provided as guidelines only and approval is not guaranteed.

Best Flexible Rewards Card

Capital One Venture X Rewards Credit Card



Apply Now

On Capital One’s Secure Website


Capital One Venture X Rewards Credit Card

Click Here To
Apply Now

5.0

Forbes Advisor

Forbes Advisor created additional star
ratings so that you can see the best card for specific needs. This card
shines for this use, but overall the star ratings may differ when
compared to other cards.



Apply Now

On Capital One’s Secure Website

Up to 10X Reward Rate

Earn 2 miles per dollar on all eligible purchases and 5 miles per dollar on flights and 10 miles perRead More

Welcome Bonus

100,000 miles

Annual Fee

$395

Regular APR

16.99% – 23.99% (Variable)

Credit Score

Excellent (750 – 850)

Pros & Cons
  • Annual fee lower than others in its category
  • Annual travel credit and anniversary points alone could justify the annual fee
  • Points are easy to earn and easy to use
  • Lack of domestic airline and upscale hotel travel partners
  • Capital One lounge network in its infancy
  • Lack of hotel status benefits

Card Details
  • Earn 100,000 bonus miles when you spend $10,000 on purchases in the
    first 6 months from account opening, equal to $1,000 in travel
  • Limited-time Offer: Receive up to $200 back in statement credits for
    vacation rentals charged to your account within your first year
  • Receive up to $300 back annually as statement credits for bookings
    through Capital One Travel, where you’ll get Capital One’s best prices
    on thousands of options
  • Get 10,000 bonus miles (equal to $100 towards travel) every year, starting on your first anniversary
  • Earn unlimited 10X miles on hotels and rental cars booked through
    Capital One Travel and 5X miles on flights booked through Capital One
    Travel, plus unlimited 2X miles on all other purchases
  • Escape the airport crowd and recharge before your flight with
    unlimited access to all-inclusive amenities at the Capital One Lounge
    and at 1,300+ Priority Pass lounges worldwide
  • Receive up to a $100 credit for Global Entry or TSA PreCheck®
  • Use your Venture X miles to easily cover travel expenses, including
    flights, hotels, rental cars and more—you can even transfer your miles
    to your choice of 15+ travel loyalty programs

Earn 100,000 bonus miles when you spend $10,000 on purchases in the
first 6 months from account opening, equal to $1,000 in travel.
Limited-time Offer: Receive up to $200 back in statement credits for
vacation rentals charged to your account within your first year
Credit Score ranges are based on FICO®
credit scoring. This is just one scoring method and a credit card issuer
may use another method when considering your application. These are
provided as guidelines only and approval is not guaranteed.

Best for Choosing Your Rewards Category

Bank of America® Customized Cash Rewards credit card



Apply Now

On Bank of America – Consumer’s Secure Website


Bank of America® Customized Cash Rewards credit card

Click Here To
Apply Now

5.0

Forbes Advisor

Forbes Advisor created additional star
ratings so that you can see the best card for specific needs. This card
shines for this use, but overall the star ratings may differ when
compared to other cards.



Apply Now

On Bank of America – Consumer’s Secure Website

Up to 3%

Earn 3% cash back in the category of your choice, 2% at grocery stores and wholesale clubs (up to $2,500Read More

Welcome Bonus

$200

Annual Fee

$0

Regular APR

13.99% – 23.99% Variable APR on purchases and balance transfers

Credit Score

Excellent/Good (700 – 749)

Why We Picked It

While offering solid rewards for moderate spenders, the card
really shines for Bank of America Preferred Rewards clients, who get a
25%-75% boost in cashback earnings.

Pros & Cons
  • Bank of America Preferred Rewards clients earn 25%-75% more cashback
  • Good rewards earning potential
  • Option to change 3% bonus category monthly
  • Bonus 3% and 2% rates are limited to $2,500 spent in those categories per quarter
  • High balance transfer fee
  • 3% foreign transaction fee

Card Details
  • $200 online cash rewards bonus after you make at least $1,000 in purchases in the first 90 days of account opening.
  • Earn 3% cash back in the category of your choice, automatic 2% at
    grocery stores and wholesale clubs (up to $2,500 in combined choice
    category/grocery store/wholesale club quarterly purchases) and unlimited
    1% on all other purchases.
  • If you’re a Preferred Rewards member, you can earn 25% – 75% more
    cash back on every purchase. That means you could earn up to 5.25% cash
    back on purchases in your choice category.
  • No annual fee and no expiration on rewards.
  • 0% Introductory APR for 15 billing cycles for purchases, and for any
    balance transfers made in the first 60 days. After the intro APR offer
    ends, 13.99% – 23.99% Variable APR will apply. A 3% fee (min $10)
    applies to all balance transfers.
  • Contactless Cards – The security of a chip card, with the convenience of a tap.
  • This online only offer may not be available if you leave this page
    or if you visit a Bank of America financial center. You can take
    advantage of this offer when you apply now.

$200 online cash rewards bonus after you make at least $1,000 in purchases in the first 90 days of account opening
Credit Score ranges are based on FICO®
credit scoring. This is just one scoring method and a credit card issuer
may use another method when considering your application. These are
provided as guidelines only and approval is not guaranteed.

Best Balance Transfer for Long Payment Window

Wells Fargo Reflect℠ Card



Apply Now

On Wells Fargo’s Secure Website


Wells Fargo Reflect℠ Card

Click Here To
Apply Now


Rates & Fees 

5.0

Forbes Advisor

Forbes Advisor created additional star
ratings so that you can see the best card for specific needs. This card
shines for this use, but overall the star ratings may differ when
compared to other cards.



Apply Now

On Wells Fargo’s Secure Website

Welcome Bonus

N/A

Annual Fee

$0

Regular APR

12.99%-24.99% Variable APR

Credit Score

Excellent, Good (700 – 749)

Why We Picked It

Those seeking a balance transfer card will likely appreciate
that the Wells Fargo Reflect Card offers a generous introductory APR
period on purchases and qualifying balance transfers. However, the card
doesn’t offer rewards or other notable benefits, so give it a pass if
you don’t need a long introductory APR period.

Pros & Cons
  • Generous introductory APR period for purchases and qualifying balance transfers
  • $0 Annual Fee
  • No rewards program or welcome bonus
  • Balance transfer fee
  • Foreign transaction fee

Card Details
  • 0% intro APR for 18 months from account opening on purchases and
    qualifying balance transfers. Intro APR extension of up to 3 months with
    on-time minimum payments during the intro and extension periods. 12.99%
    to 24.99% variable APR thereafter; balance transfers made within 120
    days qualify for the intro rate and fee of 3% then a BT fee of up to 5%,
    min $5
  • $0 Annual Fee
  • Get up to $600 of cell phone protection when you pay your monthly
    cell phone bill with your eligible Wells Fargo card (subject to a $25
    deductible).
  • Through My Wells Fargo Deals, you can earn cash back in the form of a
    statement credit while you shop, dine, or enjoy an experience simply by
    using your eligible Wells Fargo Credit Card
  • Select “Apply Now” to learn more about the product features, terms and conditions

N/A
Credit Score ranges are based on FICO®
credit scoring. This is just one scoring method and a credit card issuer
may use another method when considering your application. These are
provided as guidelines only and approval is not guaranteed.

Best 0% APR 5.0 and Best Flat Rate Cash Back

Wells Fargo Active Cash℠ Card



Apply Now

On Wells Fargo’s Secure Website


Wells Fargo Active Cash℠ Card

Click Here To
Apply Now


Rates & Fees 

5.0

Forbes Advisor

Forbes Advisor created additional star
ratings so that you can see the best card for specific needs. This card
shines for this use, but overall the star ratings may differ when
compared to other cards.



Apply Now

On Wells Fargo’s Secure Website

Unlimited 2% Rewards Rate

Earn unlimited 2% cash rewards on purchases

Welcome Bonus

$200 Cash Rewards

Annual Fee

$0

Regular APR

14.99%-24.99% Variable APR

Credit Score

Excellent, Good (700 – 749)

Why We Picked It

The Wells Fargo Active Cash offers an unlimited 2% cash rewards
rate on purchases and charges no annual fee. This puts it in competition
with the best flat-rate cash back cards on the market.

Pros & Cons
  • Unlimited 2% cash rewards on purchases
  • No annual fee
  • Introductory APR
  • Welcome bonus
  • Cell phone protection benefit
  • Foreign transaction fee
  • Balance transfer fee

Card Details
  • Earn a $200 cash rewards bonus after spending $1,000 in purchases in the first 3 months
  • Earn unlimited 2% cash rewards on purchases
  • 0% intro APR for 15 months from account opening on purchases and
    qualifying balance transfers, then a 14.99% to 24.99% variable APR;
    balance transfers made within 120 days qualify for the intro rate and
    fee of 3% then a BT fee of up to 5%, min: $5
  • $0 annual fee
  • No category restrictions or sign ups and cash rewards don’t expire as long as your account remains open
  • Enjoy a premium collection of benefits at a selection of the world’s
    most intriguing and prestigious hotel properties with Visa Signature
    Concierge
  • Get up to $600 protection on your cell phone (subject to $25
    deductible) against covered damage or theft when you pay your monthly
    cellular telephone bill with your Wells Fargo Active Cash℠ Card
  • Select “Apply Now” to learn more about the product features, terms and conditions

Earn a $200 cash rewards bonus after spending $1,000 in purchases in the first 3 months
Credit Score ranges are based on FICO®
credit scoring. This is just one scoring method and a credit card issuer
may use another method when considering your application. These are
provided as guidelines only and approval is not guaranteed.

Best for U.S. Supermarkets

Blue Cash Preferred® Card from American Express



Apply Now

On American Express’s Secure Website

Partner Offer

Blue Cash Preferred® Card from American Express

Click Here To
Apply Now


Rates & Fees 

/ Terms Apply

5.0

Forbes Advisor

Forbes Advisor created additional star
ratings so that you can see the best card for specific needs. This card
shines for this use, but overall the star ratings may differ when
compared to other cards.



Apply Now

On American Express’s Secure Website

Up to 6% Reward Rate

Earn 6% cash back at U.S. supermarkets, on up to $6,000 per year in purchases (then 1%); Earn 6% cashRead More

Welcome Bonus

Earn $300

Annual Fee

$0 introductory annual fee for the first year, then $95.

Regular APR

13.99%-23.99% Variable

Credit Score

Excellent, Good (700 – 749)

Why We Picked It

Big spenders at US supermarkets and road warriors who frequently
spend at US gas stations or transit like taxis, rideshares or transit
can rack up impressive cash back rewards.

Pros & Cons
  • High cash back rewards in some categories
  • No enrollment is required, cash back is automatic
  • 6% cash back at US supermarkets is capped at $6,000 in annual spending
  • 2.7% foreign transaction fee
  • Very high cash advance fee

Card Details
  • Earn a $300 statement credit after you spend $3,000 in purchases on your new Card within the first 6 months.
  • $0 intro annual fee for the first year, then $95.
  • Buy Now, Pay Later: Enjoy $0 intro plan fees when you use Plan It®
    to split up large purchases into monthly installments. Pay $0 plan fees
    on plans created during the first 12 months after account opening. Plans
    created after that will have a monthly plan fee up to 1.33% of each
    purchase amount moved into a plan based on the plan duration, the APR
    that would otherwise apply to the purchase, and other factors.
  • Low intro APR: 0% for 12 months on purchases from the date of account opening, then a variable rate, 13.99% to 23.99%
  • 6% Cash Back at U.S. supermarkets on up to $6,000 per year in purchases (then 1%).
  • 6% Cash Back on select U.S. streaming subscriptions.
  • 3% Cash Back at U.S. gas stations and on transit (including taxis/rideshare, parking, tolls, trains, buses and more).
  • 1% Cash Back on other purchases.
  • Cash Back is received in the form of Reward Dollars that can be redeemed as a statement credit.
  • Terms Apply.
  • See Rates & Fees

Earn a $300 statement credit after you spend $3,000 in purchases on your new Card within the first 6 months
Credit Score ranges are based on FICO®
credit scoring. This is just one scoring method and a credit card issuer
may use another method when considering your application. These are
provided as guidelines only and approval is not guaranteed.

Best for Dining

U.S. Bank Altitude® Go Visa Signature® Card *



Apply Now

On U.S. Bank’s Secure Website


U.S. Bank Altitude® Go Visa Signature® Card

Click Here To
Apply Now


Rates & Fees 

5.0

Forbes Advisor

Forbes Advisor created additional star
ratings so that you can see the best card for specific needs. This card
shines for this use, but overall the star ratings may differ when
compared to other cards.



Apply Now

On U.S. Bank’s Secure Website

Up to 4X Reward Rate

Earn 4 points per dollar on takeout, food delivery and dining and 2 points per dollar at grocery stores, groceryRead More

Welcome Bonus

20,000 bonus points

Annual Fee

$0

Regular APR

14.99% – 23.99% (Variable)

Credit Score

Good/Excellent (700 – 749)

Why We Picked It

With no transaction fee and industry-leading earnings on dining, the Altitude Go could get you up into the air quickly.

Pros & Cons
  • No foreign transaction fee
  • No penalty APR
  • For a no-annual-fee card, the rewards rates are very generous
  • Annual credit toward eligible streaming services
  • Has balance transfer fee
  • No bonus reward tier for entertainment spending

Card Details
  • Intro Offer: Earn 20,000 bonus points when you spend $1,000 in
    eligible purchases within the first 90 days of account opening. That’s a
    $200 value redeemable towards merchandise, gift cards, cash back,
    travel and more.
  • 4X points on dining, takeout, and restaurant delivery.
  • 2X points on streaming services. Plus, a $15 credit for annual
    streaming purchases like Netflix, Hulu, Spotify®, Apple Music, Disney+,
    HBO Max and more!
  • 2X points at grocery stores, grocery delivery, gas stations, and EV charging stations
  • 1X point on all other eligible purchases.
  • 0% Intro APR on purchases and balance transfers for the first 12
    billing cycles. After that, a variable APR applies, currently 14.99% –
    23.99%.
  • No Annual Fee
  • Points never expire
  • Terms and conditions apply.

Earn 20,000 bonus points when you spend $1,000 in eligible purchases
within the first 90 days of account opening. That’s a $200 value
redeemable towards merchandise, gift cards, cash back, travel and more
Credit Score ranges are based on FICO®
credit scoring. This is just one scoring method and a credit card issuer
may use another method when considering your application. These are
provided as guidelines only and approval is not guaranteed.

Best Card for Travel Insurance

Chase Sapphire Reserve®


Apply Now

On Chase’s Secure Website


Chase Sapphire Reserve®

Click Here To
Apply Now

5.0

Forbes Advisor

Forbes Advisor created additional star
ratings so that you can see the best card for specific needs. This card
shines for this use, but overall the star ratings may differ when
compared to other cards.



Apply Now

On Chase’s Secure Website

Up to 10x Reward Rate

Earn 5x total points on air travel and 10x total points on hotels and car rentals when you purchase travelRead More

Welcome Bonus

50,000 points

Annual Fee

$550

Regular APR

16.99%-23.99% Variable

Credit Score

Excellent (750 – 850)

Why We Picked It

This card offers superior points earning rates if you spend
frequently on travel and dining out. The $300 travel credit justifies
much of the annual fee, and redeeming points for travel on Chase
Ultimate Rewards or when using the Pay Yourself Back feature nets you a
50% bonus.

Pros & Cons
  • $300 annual travel credit is incredibly flexible
  • Generous welcome bonus
  • Get 50% more value when you redeem points for travel through Chase,
    or for select purchases through Pay Yourself Back℠  program
  • Points transfer to valuable airline and hotel partners
  • High annual fee
  • High variable APR on purchases
  • Excellent credit recommended

Card Details
  • Earn 50,000 bonus points after you spend $4,000 on purchases in the
    first 3 months from account opening. That’s $750 toward travel when you
    redeem through Chase Ultimate Rewards®
  • $300 Annual Travel Credit as reimbursement for travel purchases charged to your card each account anniversary year.
  • Earn 5x total points on air travel and 10x total points on hotels
    and car rentals when you purchase travel through Chase Ultimate Rewards®
    immediately after the first $300 is spent on travel purchases annually.
    Earn 3x points on other travel and dining & 1 point per $1 spent on
    all other purchases
  • Get 50% more value when you redeem your points for travel through
    Chase Ultimate Rewards®. For example, 50,000 points are worth $750
    toward travel
  • With Pay Yourself Back℠, your points are worth 50% more during the
    current offer when you redeem them for statement credits against
    existing purchases in select, rotating categories
  • 1:1 point transfer to leading airline and hotel loyalty programs
  • Access to 1,300+ airport lounges worldwide after an easy, one-time
    enrollment in Priority Pass™ Select and up to $100 application fee
    credit for Global Entry or TSA PreCheck®
  • Count on Trip Cancellation/Interruption Insurance, Auto Rental Collision Damage Waiver, Lost Luggage Insurance and more

Earn 50,000 bonus points after you spend $4,000 on purchases in the
first 3 months from account opening. That’s $750 toward travel when you
redeem through Chase Ultimate Rewards®
Credit Score ranges are based on FICO®
credit scoring. This is just one scoring method and a credit card issuer
may use another method when considering your application. These are
provided as guidelines only and approval is not guaranteed.

Best Mid-Tier Hotel Card

The World of Hyatt Credit Card



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The World of Hyatt Credit Card

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5.0

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ratings so that you can see the best card for specific needs. This card
shines for this use, but overall the star ratings may differ when
compared to other cards.



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Up to 9X Reward Rate

Earn up to 9 points total per $1 spent at Hyatt – 4 bonus points per $1 when you useRead More

Welcome Bonus

Up to 60,000 points

Annual Fee

$95

Regular APR

15.99% – 22.99% Variable

Credit Score

Excellent/Good (700 – 749)

Why We Picked It

While Hyatt doesn’t have an extensive network of properties
compared to other chains, the value offered by The World of Hyatt Credit
Card is outstanding. If you are a regular at Hyatt, a combination of
high point redemption values, sweet perks and one free night stay per
year will easily cover the annual fee and then some.

Pros & Cons
  • Annual free night certificate on cardmember anniversary
  • Complimentary World of Hyatt Discoverist status
  • High points redemption values
  • Generous welcome bonus
  • Limited number of properties
  • No worthwhile redemption options aside from Hyatt properties
  • High regular APR
  • No intro APR offer

Card Details
  • Earn 30,000 Bonus Points after you spend $3,000 on purchases in your
    first 3 months from account opening. Plus, up to 30,000 More Bonus
    Points by earning 2 Bonus Points total per $1 spent in the first 6
    months from account opening on purchases that normally earn 1 Bonus
    Point, on up to $15,000 spent
  • Enjoy complimentary World of Hyatt Discoverist status for as long as your account is open.
  • Get 1 free night each year after your Cardmember anniversary at any Category 1-4 Hyatt hotel or resort
  • Receive 5 tier qualifying night credits towards status after account
    opening, and each year after that for as long as your account is open
  • Earn an extra free night at any Category 1-4 Hyatt hotel if you spend $15,000 in a calendar year
  • Earn 2 qualifying night credits towards tier status every time you spend $5,000 on your card
  • Earn up to 9 points total for Hyatt stays – 4 Bonus Points per $1
    spent at Hyatt hotels & 5 Base Points per $1 from Hyatt as a World
    of Hyatt member
  • Earn 2 Bonus Points per $1 spent at restaurants, on airline tickets
    purchased directly from the airlines, on local transit and commuting and
    on fitness club and gym memberships

Earn 30,000 Bonus Points after you spend $3,000 on purchases in your
first 3 months from account opening. Plus, up to 30,000 More Bonus
Points by earning 2 Bonus Points total per $1 spent in the first 6
months from account opening on purchases that normally earn 1 Bonus
Point, on up to $15,000 spent.
Credit Score ranges are based on FICO®
credit scoring. This is just one scoring method and a credit card issuer
may use another method when considering your application. These are
provided as guidelines only and approval is not guaranteed.

Best Hotel Card

Hilton Honors Aspire Card from American Express *


Hilton Honors Aspire Card from American Express

Click Here To
Learn More

5.0

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Forbes Advisor created additional star
ratings so that you can see the best card for specific needs. This card
shines for this use, but overall the star ratings may differ when
compared to other cards.

Up to 14X Reward Rate

Earn 14X Hilton Honors bonus points on eligible purchases
at participating hotels or resorts within the Hilton portfolio; Earn 7X
Read More

Welcome Bonus

Earn 150,000 points

Annual Fee

$450

Regular APR

15.74% – 24.74% variable

Credit Score

Good/Excellent (700 – 749)

Why We Picked It

The flagship card from Hilton, the Hilton Honors Aspire Card
from American Express comes with a price tag to match its top-tier
status and perks. It’s a perfect fit for big spenders who haunt Hilton
properties enough to leverage the rich suite of benefits that come with
the complimentary Diamond status.

Pros & Cons
  • Complimentary Priority Pass Select membership with enrollment
  • Up to $600 in statement credits
  • Instant Hilton Diamond status with rich set of benefits
  • High annual fee with no first-year waiver
  • High regular APR and penalty APR
  • No intro APR offer
  • Points have a lower value than most rewards programs

Card Details
  • Earn 150,000 Hilton Honors bonus points after you spend $4,000 in
    purchases on the card within your first 3 months of card membership.
  • Earn 14X Hilton Honors bonus points when you make eligible purchases
    on your card at participating hotels or resorts within the Hilton
    Portfolio.
  • Earn 7X Hilton Honors bonus points on eligible purchases on your
    card for: Flights booked directly with airlines or amextravel.com, car
    rentals booked directly from select car rental companies and U.S.
    restaurants.
  • Earn 3X Hilton Honors bonus points on all other eligible purchases.
  • $250 Hilton Resort credit: With your Hilton Honors American Express
    Aspire Card, enjoy up to $250 in statement credits each year of card
    membership for eligible purchases at participating Hilton Resorts.
  • Hilton Honors Diamond status. With your Hilton Honors Aspire Card,
    you can enjoy complimentary Diamond status which includes even more
    perks from Hilton, such as 100% extra bonus points on all base points
    you earn, room upgrades, and more.
  • Weekend night reward. Enjoy night one weekend reward with your new
    Hilton Honors American Express Aspire card and every year after renewal.
    Plus, earn an additional night after you spend $60,000 on purchases on
    your card in a calendar year.
  • $100 Hilton on-property credit
  • Return Protection. If you try to return an eligible item within 90
    days from the date of purchase and the merchant won’t take it back,
    American Express may refund the full purchase price excluding shipping
    and handling, up to $300 per item, up to a maximum of $1,000 per
    calendar year per card account, if you purchased it entirely with your
    eligible American Express® Card. Purchases must be made in the U.S. or
    its territories.
  • Concierge is a complimentary service, available day or night.
    Whether you need expert advice to make arrangements and reservations for
    a special anniversary dinner, tickets for a Broadway show, or the
    perfect gift, you can rely on Concierge to help take care of your
    requests, large and small.
  • Priority Pass™ Select. Relax with unlimited lounge visits for you
    and up to 2 guests per visit once enrolled in complimentary Priority
    Pass™ Select membership, which offers access to over 1,000 airport
    lounges around the world
  • $250 airline fee credit. With the Hilton Honors Aspire Card you can
    also take advantage of the $250 airline fee credit for incidental
    charges that are charged by the airline to your card account.
  • Car rental loss and damage insurance
  • Premium Global Assist® Hotline. You can rely on 24-7 medical, legal,
    financial, and other select emergency coordination and assistance
    services while traveling more than 100 miles from home. Premium Global
    Assist® hotline.
  • Baggage insurance plan. Coverage can be in effect for eligible
    persons for eligible lost, damaged, or stolen baggage during their
    travel on a common carrier (e.g. plane, train, ship, or bus) when the
    entire fare for a ticket for the trip (one-way or round-trip) is charged
    to an eligible card account. Coverage can be provided for up to $1,250
    for carry-on baggage and up to $500 for checked baggage, in excess of
    coverage provided by the common carrier (e.g. plane, train, ship, or
    bus). For New York State residents, there is a $10,000 aggregate maximum
    limit for all covered persons per covered trip. Please read important
    exclusions and restrictions.

Earn 150,000 Hilton Honors bonus points after you spend $4,000 in
purchases on the card within your first 3 months of card membership
Credit Score ranges are based on FICO®
credit scoring. This is just one scoring method and a credit card issuer
may use another method when considering your application. These are
provided as guidelines only and approval is not guaranteed.

Best Airline Card

United Club℠ Infinite Card



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United Club℠ Infinite Card

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Apply Now

5.0

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ratings so that you can see the best card for specific needs. This card
shines for this use, but overall the star ratings may differ when
compared to other cards.



Apply Now

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Up to 4X Reward Rate

Earn 4 miles per $1 spent on United® purchases, 2 miles per $1 spent on all other travel and diningRead More

Welcome Bonus

80,000 bonus miles

Annual Fee

$525

Regular APR

16.49% – 23.49% Variable

Credit Score

Excellent (750 – 850)

Why We Picked It

United’s top-tier card offering ups its game with 4 miles per
dollar earnings on United purchases. A suite of travel perks makes the
card an even better value, with the United Club membership alone worth
more than the annual fee.

Pros & Cons
  • No foreign transaction fee
  • United Club membership is worth more than the annual fee
  • First and second checked bag free when you pay for your flight with your card
  • Very high annual fee
  • No intro APR offer
  • High regular APR

Card Details
  • Earn 80,000 bonus miles.
  • Earn 4 miles per $1 spent on United® purchases including tickets,
    Economy Plus, inflight food, beverages and Wi-Fi, and other United
    charges.
  • Earn 2 miles per $1 spent on all other travel
  • Earn 2 miles per $1 spent on dining including eligible delivery services
  • Earn 1 mile per $1 spent on all other purchases
  • Up to $100 Global Entry or TSA PreCheck® fee credit
  • Free first and second checked bags – a savings of up to $320 per roundtrip. Terms Apply
  • 25% back as a statement credit on purchases of food, beverages and
    Wi-Fi on board United-operated flights when you pay with your Club
    Infinite Card.

Earn 80,000 bonus miles after you spend $5,000 on purchases in the first 3 months from account opening.
Credit Score ranges are based on FICO®
credit scoring. This is just one scoring method and a credit card issuer
may use another method when considering your application. These are
provided as guidelines only and approval is not guaranteed.

Best Mid-Tier Airline Card

Aeroplan® Credit Card


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Aeroplan® Credit Card

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Apply Now

5.0

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ratings so that you can see the best card for specific needs. This card
shines for this use, but overall the star ratings may differ when
compared to other cards.



Apply Now

On Chase’s Secure Website

Welcome Bonus

2 Welcome Flight Rewards

Annual Fee

$95

Regular APR

16.49% to 23.49% Variable

Credit Score

Excellent/Good Credit (700 – 749)

Pros & Cons
  • Excellent rewards earning
  • No foreign transaction fees
  • Travel benefits including perks for Air Canada flyers
  • $95 annual fee
  • Lacks non-travel related benefits

Card Details
  • Earn 2 Welcome Flight Rewards (worth up to 100,000 total points)
    after you spend $4,000 in the first 3 months from account opening.
  • $95 Annual Fee
  • Earn 3x points for each dollar spent on grocery stores, dining at restaurants, and Air Canada directly.
  • No foreign transaction fees.
  • Free first checked bags.
  • 500 bonus points for every $2,000 you spend in a calendar month.
  • Earn 1x points for each dollar spent on all other purchases.

Earn 2 Welcome Flight Rewards (worth up to 100,000 total points) after
you spend $4,000 in the first 3 months from account opening.
Credit Score ranges are based on FICO®
credit scoring. This is just one scoring method and a credit card issuer
may use another method when considering your application. These are
provided as guidelines only and approval is not guaranteed.

Best Student Card

Discover it® Student Cash Back



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On Discover’s Secure Website


Discover it® Student Cash Back

Click Here To
Apply Now


Rates & Fees 

5.0

Forbes Advisor created additional star
ratings so that you can see the best card for specific needs. This card
shines for this use, but overall the star ratings may differ when
compared to other cards.



Apply Now

On Discover’s Secure Website

Up to 5% Reward Rate

Earn 5% cash back on everyday purchases at different places
each quarter like Amazon.com, grocery stores, restaurants, gas stations
and
Read More

Welcome Bonus

Cashback Match™

Annual Fee

$0

Regular APR

12.99% – 21.99% Variable

Credit Score

Fair/New to Credit

Why We Picked It

Here’s an excellent way for students with average or limited
credit scores to gain experience managing credit. No annual fee, no
penalty APR, plus up to 5% cashback rewards in rotating categories(up to
a quarterly cap with enrollment, 1% back on other purchases) earn this
card an “A” in our book.

Pros & Cons
  • 5% cashback on rotating bonus categories
  • First-year Cashback match
  • 5% bonus cashback rate is limited to $1,500 per quarter in spending
  • Bonus categories must be activated quarterly
  • Low 1% base reward rate

Card Details
  • 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.
  • Earn 5% cash back on everyday purchases at different places each
    quarter like Amazon.com, grocery stores, restaurants, gas stations and
    when you pay using PayPal, up to the quarterly maximum when you
    activate. Plus, earn unlimited 1% cash back on all other purchases –
    automatically.
  • Earn rewards while building your credit history that can help you
    after graduation. And, get your free Credit Scorecard that includes your
    FICO® Credit Score and important details that help make up your score.
  • No annual fee. No late fee on first late payment. No APR change for paying late.
  • Refer-a-Friend: Once you become a Discover it® Student cardmember,
    you can earn a statement credit each time you refer a friend and they’re
    approved. Over half a million students got Discover Cards from their
    friends’ recommendations.
  • Freeze It® on/off switch for your account that prevents new purchases, cash advances & balance transfers in seconds.
  • Get an alert if we find your Social Security number on any of thousands of Dark Web sites.* Activate for free.
  • Discover is accepted nationwide by 99% of the places that take credit cards.
  • 0% intro APR on purchases for 6 months, then the standard variable purchase APR of 12.99% – 21.99% applies.
  • Click “Apply Now” to see rewards, FICO® Credit Score terms, Cashback Match™ details & other information.

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.
Credit Score ranges are based on FICO®
credit scoring. This is just one scoring method and a credit card issuer
may use another method when considering your application. These are
provided as guidelines only and approval is not guaranteed.

Best for Bad Credit

Petal® 1 “No Annual Fee” Visa® Credit Card



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On WebBank’s Secure Website


Petal® 1 “No Annual Fee” Visa® Credit Card

Click Here To
Apply Now

5.0

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ratings so that you can see the best card for specific needs. This card
shines for this use, but overall the star ratings may differ when
compared to other cards.



Apply Now

On WebBank’s Secure Website

Up to 10% Cash Back

2%-10% cash back at select merchants

Welcome Bonus

N/A

Annual Fee

$0

Regular APR

19.99% – 29.49% (Variable)

Credit Score

Fair/Bad

Why We Picked It

For those whose credit score is less than perfect, the Petal® 1
Visa® Credit Card may be able to help you build a stronger credit
profile. It’s one of a tiny batch of credit cards aimed at those without
great credit that don’t require an upfront security deposit.

Pros & Cons
  • No security deposit required
  • No annual fee
  • Limited rewards program
  • Rewards only available at select merchants
  • No balance transfer option available

Card Details
  • $0 Annual Fee
  • $300 – $5,000 credit limits
  • Earn a credit limit increase in as little as 6 months. Terms and conditions apply.
  • No credit score? No problem. If eligible, we’ll create your Cash Score instead.
  • 2% – 10% cash back at select merchants
  • Variable APRs range from 19.99% – 29.49%
  • See if you’re pre-approved within minutes without impacting your credit score.
  • No annual or foreign transaction fees.
  • Build credit alongside hundreds of thousands of Petal Card members.
  • Petal’s mobile app makes it easy to manage your money, track your spending, and automate payments.
  • Petal reports to all 3 major credit bureaus
  • No deposits required
  • Card issued by WebBank, Member FDIC

N/A
Credit Score ranges are based on FICO®
credit scoring. This is just one scoring method and a credit card issuer
may use another method when considering your application. These are
provided as guidelines only and approval is not guaranteed.

Best Secured Card

Discover it® Secured Credit Card



Apply Now

On Discover’s Secure Website


Discover it® Secured Credit Card

Click Here To
Apply Now


Rates & Fees 

5.0

Forbes Advisor

Forbes Advisor created additional star
ratings so that you can see the best card for specific needs. This card
shines for this use, but overall the star ratings may differ when
compared to other cards.



Apply Now

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Up to 2% Reward Rate

Earn 2% cash back at Gas Stations and Restaurants on up to $1,000 in combined purchases each quarter. Plus, earnRead More

Welcome Bonus

Cashback Match™

Annual Fee

$0

Regular APR

22.99% Variable

Credit Score

New/Rebuilding Credit

Why We Picked It

In the secured credit world, the Discover it® Secured Credit
Card stands above the competition. With an unlimited 1% cash back rate
on all purchases, plus 2% cash back at gas stations and restaurants on
up to $1,000 in combined purchases each quarter, no penalty APR and no
annual fee, we love this card for those who need to rebuild their
credit. The matching cash back reward at the end of your first year is a
sweet bonus.

Pros & Cons
  • No annual fee
  • Cash back rewards earning is uncommon for a secured card
  • Free FICO score access each month
  • Cashback Match doubles cash back rewards earning at the end of the first year
  • Rewards are capped
  • Secured cards don’t provide many of the perks unsecured cards do
  • Secured cards require refundable deposits

Card Details
  • No Annual Fee, earn cash back, and build your credit with responsible use.
  • Using your secured credit card helps build a credit history with the
    three major credit bureaus. Generally, prepaid and debit cards can’t do
    that.
  • Establish your credit line with your tax return by providing a
    refundable security deposit of at least $200. Bank information must be
    provided when submitting your deposit.
  • Automatic reviews starting at 7 months to see if we can transition you to an unsecured line of credit and return your deposit.*
  • Earn 2% cash back at Gas Stations and Restaurants on up to $1,000 in
    combined purchases each quarter. Plus, earn unlimited 1% cash back on
    all other purchases – automatically.
  • Discover is accepted nationwide by 99% of the places that take credit cards.
  • Get 100% U.S. based customer service & get your free Credit Scorecard with your FICO® Credit Score.
  • Intro Offer: Unlimited Cashback Match – only from Discover. Discover
    will automatically match all the cash back you’ve earned at the end of
    your first year! There’s no minimum spending or maximum rewards. Just a
    dollar-for-dollar match.
  • Get an alert if we find your Social Security number on any of thousands of Dark Web sites.* Activate for free.
  • Click “Apply Now” to see rewards, FICO® Credit Score terms, Cashback Match™ details & other information.

Intro Offer: Unlimited Cashback Match – only from Discover. Discover
will automatically match all the cash back you’ve earned at the end of
your first year! There’s no minimum spending or maximum rewards. Just a
dollar-for-dollar match.
Credit Score ranges are based on FICO®
credit scoring. This is just one scoring method and a credit card issuer
may use another method when considering your application. These are
provided as guidelines only and approval is not guaranteed.

Best for Amazon

Amazon Prime Rewards Visa Signature Card *


Amazon Prime Rewards Visa Signature Card

Click Here To
Learn More

5.0

Forbes Advisor

Forbes Advisor created additional star
ratings so that you can see the best card for specific needs. This card
shines for this use, but overall the star ratings may differ when
compared to other cards.

Up to 5X Reward Rate

Earn 5% Back at Amazon.com and Whole Foods Market; Earn 2% Back at restaurants, gas stations, and drugstores; Earn 1%Read More

Welcome Bonus

Amazon gift card

Annual Fee

$0 with Prime membership

Regular APR

14.24% – 22.24% variable

Credit Score

Good/Excellent (700 – 749)

Why We Picked It

For existing Prime members who frequently shop at Amazon and
Whole Foods, the 5% rewards rate is stellar. To further sweeten the
deal, the Amazon Prime Rewards Visa Signature Card offers a 2%
rewards category plus Visa Signature benefits.

Pros & Cons
  • Earn an Amazon Gift Card Bonus without a spending requirement
  • No foreign transaction fee
  • Unlimited 5% back at Amazon and Whole Foods
  • Visa Signature benefits
  • 5% back excludes non-US Amazon sites
  • APR can be high, depending on your creditworthiness
  • High balance transfer fee

Card Details
  • Get an Amazon gift card instantly upon approval
  • Earn 5% back at Amazon.com and Whole Foods Market with an eligible
    Prime membership, 2% back at restaurants, gas stations, and drugstores
    and earn 1% back on all other purchases
  • No minimum rewards balance required to redeem
  • Use Amazon Rewards to pay for all or part of your purchase
  • Visa Signature Concierge service

Get an Amazon gift card instantly upon approval
Credit Score ranges are based on FICO®
credit scoring. This is just one scoring method and a credit card issuer
may use another method when considering your application. These are
provided as guidelines only and approval is not guaranteed.

Methodology

In order to determine the best credit cards for each
category, we considered the costs and benefits of each credit card.
Costs of each credit card include: the annual fee, foreign transaction
fee and the required spending to qualify for the welcome offer. Benefits
include the welcome offer, cash rewards or other rewards, bonus
category offers, balance transfer offers, status benefits and other
perks.

In addition, each category of credit card has its own criteria. For
travel rewards cards we also considered how much value you can expect to
get out of your points and miles when you redeem them.
For cards meant for those who are trying to build credit or improve
their credit score, we focused on credit card offers that offer the most
opportunities to improve your credit for the lowest net cost.

For balance transfer cards we looked at the length of 0% APR and the variable APR after the bonus period ended.


The Best Credit Cards of 2022

Chase Freedom Flex℠


[ jump to details ]

The
Chase Freedom Flex℠, launched with a splash in late 2020. When paired
with a premium Chase Ultimate Rewards-earning card like the Chase
Sapphire Preferred® Card, Chase Sapphire Reserve® or Ink Business
Preferred® Credit Card, it can earn powerful Chase Ultimate Rewards
points.

Even as a standalone cash back card, it’s tough to beat considering it also has no annual fee.

Rewards: 5% cash back on up to $1,500 in categories
that rotate quarterly (requires activation), 5% on travel purchased
through Chase Ultimate Rewards®, 3% on dining and drugstores and 1% on
all other purchases

Welcome Offer: $200 bonus after spending $500 on purchases in the first 3 months from account opening

Annual Fee: $0

Other Benefits and Drawbacks: The Chase Freedom Flex
packs a huge punch for a card without an annual fee. The biggest
downside to this card? You’ll have to remember to activate the quarterly
bonus categories and track how much you’ve spent because the rotating
categories have a $1,500 cap—at least if you’re planning to optimize
your spending.

You can also benefit from complementary cell phone insurance
protection when you pay your monthly cell phone bill with your card.
Claims are limited to $800 per claim and $1,000 per year total.

This card does charge a foreign transaction fee so it is not a good choice if you plan to travel abroad.

Read the Chase Freedom Flex℠ review to learn more.

Chase Sapphire Preferred® Card


[ jump to details ]

If
you’re wanting to get into transferable points but the annual fees of
the top-tier cards scare you away, the Chase Sapphire Preferred® Card
may be a good place to start.

Rewards: 5 points per dollar on travel purchased
through Chase Ultimate Rewards®, 3 points per dollar on dining and 2
points per dollar on all other travel purchases and one point per dollar
on all other eligible purchases

Welcome Offer: 60,000 bonus points after spending $4,000 on purchases in the first 3 months from account opening

Annual Fee: $95

Other Benefits and Drawbacks: Ultimate Rewards are
both flexible and valuable, which is why the Sapphire Preferred Card
makes our list if you can’t justify the Sapphire Reserve’s higher annual
fee. You have the ability to transfer Ultimate Rewards to a variety of
airline frequent flyer programs and hotel chains, such as United
Airlines and Hyatt.

An Ultimate Rewards point from your Chase Sapphire Preferred® Card is
worth 1.25 cents per point when redeemed through the Chase travel
portal or when using Pay Yourself Back, but if you are going to use the
travel portal we would recommend considering the higher annual fee Chase
Sapphire Reserve® instead because your points will be worth 1.5 cents
each in the same instances. The Chase Sapphire Preferred also offers
best-in-class travel protections, though they’re not quite as good as
the Sapphire Reserve’s coverage.

The Chase Ultimate Rewards cards are best taken as a family:
partnering a Chase Sapphire Preferred® Card with a Chase Freedom Flex℠
and an eligible Chase Ink business card allows you to earn Ultimate
Rewards quickly. Rewards can also be combined between family members to
really speed up the pace.

Read our Chase Sapphire Preferred® Card review to learn more.

The Platinum Card® from American Express


[ jump to details ]

If
you’re after a luxury travel experience, especially if you want access
to a variety of airport lounges, The Platinum Card® from American
Express (terms apply, see rates and fees) is a good choice. It’s packed full of other benefits and perks, too.

Rewards: 5 membership rewards points per dollar for
flights booked directly with airlines or with American Express Travel on
up to $500,000 per calendar year, 5 points per dollar on prepaid hotels
booked with American Express Travel and 1 point per dollar on all other
eligible purchases

Welcome Offer: 100,000 membership rewards points after spending $6,000 on purchases on the card in the first 6 months of card membership

Annual Fee: $695

Other Benefits and Drawbacks: The Platinum Card from
American Express is packed full of additional benefits. For starters,
you’ll benefit from access to a number of different airline lounges:
Amex Centurion Lounges, over 1,200 Priority Pass airport lounges
(excluding restaurant locations, enrollment required), and Delta
SkyClubs when flying Delta same-day.

Cardholders will also receive up to $200 in airline incidental
credits with the eligible airline they select each year (enrollment
required), valid for purchases such as seat selection and checked bags.
Additionally, cardholders will receive a credit to cover the TSA
PreCheck or Global Entry application fee and annual CLEAR membership,
plus up to $200 annually in Uber credits ($15 per month plus a $20 bonus
in December when your eligible card is linked to your Uber account,
good for U.S. Uber Eats and rides). The Platinum Card also offers Gold
status with both Hilton Honors and Marriott Bonvoy with enrollment.

In 2021, the Platinum Card added additional lifestyle benefits to the
card including up to $300 in annual Equinox credits in $25-per-month
statement credits, up to a $300 bike credit when you purchase a
SoulCycle at-home bike, monthly Walmart+ membership fee credit and up to
$240 (doled out monthly in $20 increments) in digital entertainment
credit for subscriptions to eligible services which include Audible and
the New York Times.

Read our The Platinum Card® from American Express review to learn more.

Capital One Venture X Rewards Credit Card


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The
Capital One Venture X Rewards Credit Card, launched in November 2021,
was a big shake-up to the travel card market. It offers benefits similar
to other premium travel rewards cards with a lower annual fee—making
this card a great option for even the occasional traveler.

Rewards: 2 miles per dollar on all eligible
purchases and 5 miles per dollar on flights and 10 miles per dollar on
hotels and rental cars when booking via Capital One Travel

Welcome Offer: 100,000 bonus miles after spending
$10,000 on purchases within the first six months of account opening.
Plus, for a limited time, receive up to $200 back in statement credits
for vacation rentals charged to the account within the first year

Annual Fee: $395

Other Benefits and Drawbacks: In addition to the ability to earn solid rewards, the Capital One

Venture X card offers up to $300 back annually as statement credits
for bookings through Capital One Travel and 10,000 bonus miles on each
card anniversary.

Cardholders receive a Priority Pass lounge membership, access to
Capital One lounges and a Global Entry or TSA PreCheck application fee
credit after paying for the application fee with the card.
Read our full review of the Capital One Venture X Rewards Credit Card to learn more.

Bank of America® Customized Cash Rewards credit card


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If
you have a balance on another credit card and would like the chance to
pay it down with an introductory APR, the Bank of America® Customized
Cash Rewards credit card is a logical choice.

Rewards: 3% cash back in the eligible category of
your choice, 2% at grocery stores and wholesale clubs (up to $2,500 in
combined choice category/grocery store/wholesale club quarterly
purchases) and unlimited 1% on all other purchases

Intro APR Offer: 0% introductory APR for 15 billing
cycles for purchases, and for any balance transfers made in the first 60
days. After the intro APR offer ends, a 13.99% – 23.99% variable APR
will apply. A 3% fee (min $10) applies to all balance transfers

Welcome Offer: $200 online cash rewards bonus after you make at least $1,000 in purchases in the first 90 days of account opening

Annual Fee: $0

Other Benefits and Drawbacks: Bank of America Preferred Rewards
clients can earn a 25% to 75% bonus on all rewards earned. This card
charges a foreign transaction fee so it is not a good choice for use
abroad.

Read our Bank of America® Customized Cash Rewards credit card review to learn more.

Wells Fargo Reflect℠ Card


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The
Wells Fargo Reflect℠ Card has no annual fee and new cardholders get a
best-in-class introductory period to pay down balances. Just remember
that you only have 120 days to make the transfer before a higher balance
transfer fee kicks in.

Annual Fee: $0

Balance Transfer Offer: Get a 0% intro APR for 18
months from account opening on purchases and qualifying balance
transfers. An extension of up to 3 months of additional introductory APR
will apply with on-time minimum payments during the introductory and
extension periods. An introductory balance transfer fee of either $5 or
3% of the amount of each balance transfer, whichever is greater, for
120 days from account opening applies. After that, up to 5% for each
balance transfer, with a minimum of $5.

Balance Transfer Fee: The fee for a balance transfer is up to 5%; min: $5.

Other Benefits and Drawbacks: To get the absolute
longest balance transfer window, make sure not to make a late payment.
If you do you may lose the three month extension offered for good
payment behavior. The card also comes with up to $600 in cell phone
protection when you pay your monthly bill with the card (subject to a
$25 deductible) and access to roadside dispatch.

Read our full review of the Wells Fargo Reflect℠ Card.

Wells Fargo Active Cash℠ Card


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In
a crowded market of 2% cash back cards, the Wells Fargo Active Cash℠
Card stands out because of its introductory APR offer and Visa Signature
benefits.

Rewards: 2% cash rewards on purchases

Intro APR Offer: 0% intro APR for 15 months from
account opening on purchases and qualifying balance transfers, then a
14.99% to 24.99% variable APR applies. Balance transfers made within
120 days qualify for the intro rate and fee of 3%. Balance transfers
made after that time are charged a fee of up to 5%, min: $5

Welcome Offer: $200 cash rewards bonus after spending $1,000 in purchases in the first 3 months

Annual Fee: $0

Other Benefits and Drawbacks: The Wells Fargo Active
Cash offers cell phone protection when you pay your cell phone bill
with the card each month. It charges a foreign transaction fee so it is
not a good choice for use abroad.

To learn more about the Wells Fargo Active Cash℠ Card, read our full review.

Blue Cash Preferred® Card from American Express


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If you have a large grocery bill, the Blue Cash Preferred® Card from American Express (terms apply, see rates and fees)
is the most rewarding card out there—as long as you don’t go over the
spending cap. The card is also rewarding for carpoolers and road
trippers, offering elevated cash back at gas stations.

Rewards: 6% cash back at U.S. supermarkets on up to
$6,000 per year in purchases (then 1%), 6% cash back on select U.S.
streaming subscriptions, 3% cash back at U.S. gas stations and on
transit (including taxis/rideshare, parking, tolls, trains, buses and
more) and 1% cash back on other eligible purchases. Cash back is
received in the form of Reward Dollars that can be redeemed as a
statement credit

Welcome Offer: $300 statement credit after making $3,000 in purchases within the first 6 months

Annual Fee: $0 introductory annual fee for the first year, then $95.

Other Benefits and Drawbacks: In addition to
amped-up earnings on groceries, you get access to Amex Offers. The offer
savings could add up quickly as long as you remember to activate and
use them. The card also offers return protection and car rental loss and
damage insurance.

Read our Blue Cash Preferred® Card from American Express review to learn more.

U.S. Bank Altitude® Go Visa Signature® Card *


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Those
who regularly dine out can easily up their rewards by picking up the
no-annual-fee U.S. Bank Altitude® Go Visa Signature® Card. You’ll also
earn elevated rewards on groceries so basically anyone who likes to eat
will benefit from the Altitude Go.

Rewards: 4 points per dollar on takeout, food
delivery and dining, 2 points per dollar at grocery stores, grocery
delivery, gas stations and on streaming services and 1 point per dollar
on all other eligible purchases

Welcome Offer: 20,000 bonus points after spending $1,000 in eligible purchases within the first 90 days of account opening

Annual Fee: $0

Other Benefits and Drawbacks: The U.S. Bank Altitude
Go card also offers 0% intro APR on purchases and balance transfers for
the first 12 billing cycles, followed by a regular variable APR of
14.99% – 23.99%. Cardholders also receive a $15 annual streaming credit
and are not charged foreign transaction fees.

Read our U.S. Bank Altitude® Go Visa Signature® Card review to learn more.

Chase Sapphire Reserve®


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Many
trips have non-refundable elements that are tied to specific dates such
as hotel or prepaid tour reservations. If you are interrupted or have
to cancel your trip, you could be out a tremendous amount of money.

In addition to offering the ability to earn valuable points on
purchases, the Chase Sapphire Reserve® offers trip cancellation and
interruption insurance for covered situations, trip delay insurance,
lost baggage and baggage delay insurance, primary rental car insurance
and more. All of these best-in-class protections helped this card top
the list for the best travel rewards credit card.

Rewards: 5 points per dollar on air travel and 10
points per dollar on hotels and car rentals when purchasing travel
through Chase Ultimate Rewards® immediately after the first $300 is
spent on travel purchases annually. Earn 3 points per dollar on other
travel and dining and 1 point per dollar spent on all other purchases

Welcome Offer: 50,000 bonus points after spending $4,000 on purchases in the first 3 months from account opening

Annual Fee: $550

Other Benefits and Drawbacks: The high annual fee of
this premium rewards card comes with $300 in travel credits that are
applied automatically when you make qualifying purchases.

The Chase Sapphire Reserve benefits include Priority Pass airport
lounge membership that includes airport restaurant locations, which the
American Express versions of Priority Pass do not include. This means
that when you fly, you’ll be able to eat and drink at Priority Pass
restaurants in addition to the over 1,200 airport lounge locations
worldwide as long as you enroll, which could save your family a nice
chunk of change.

Chase Ultimate Rewards points are transferable to a large number of
travel partners including United Airline MileagePlus and World of Hyatt.
Points are redeemable on Chase’s travel portal or using the Pay
Yourself Back feature where they’re worth 1.5 cents each.

Read the Forbes Advisor Chase Sapphire Reserve® review to learn more.

The World of Hyatt Credit Card


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If
you’re looking for some increased benefits at hotels but aren’t ready
to shell out the big bucks for the Hilton Honors Aspire Card from
American Express*, the World of Hyatt Credit Card*
is a good place to look. This card doesn’t have a high annual fee and
still offers a free night certificate each year for a Category 1 to 4
hotel and a base level of status with Hyatt.

Rewards: 9 points total per $1 spent at Hyatt – 4
bonus points per $1 when you use your card at Hyatt hotels & 5 bonus
points per $1 from Hyatt as a World of Hyatt member. Earn 4 points per
dollar spent at Hyatt hotels and 2 points per dollar spent at
restaurants, on airline tickets purchased directly from the airlines, on
local transit and commuting and on fitness club and gym memberships.
All other eligible purchases earn 1 point per dollar

Welcome Offer: 30,000 bonus points after spending
$3,000 on purchases in the first 3 months from account opening. Plus, up
to 30,000 more bonus points by earning 2 bonus points total per dollar
spent in the first 6 months from account opening on purchases that
normally earn 1 bonus point, on up to $15,000 spent

Annual Fee: $95

Other Benefits and Drawbacks: Each year when you
renew your card, you’ll get a free night valid at Category 1 to 4 Hyatt
properties. This benefit alone can easily offset the annual fee of the
card.

A second Category 1 to 4 free night certificate can be earned after spending $15,000 or more on the card each year.

This card comes with base-level Hyatt Discoverist status and will
give you five nights of credit toward earning higher tiers of credit.
You can earn two nights of elite credit for every $5,000 you spend on
the card each year. It’s possible to earn top-tier Hyatt Globalist
status through spending alone, but the majority of users will not spend
the hefty sum required to do so.

Additionally, you’ll receive some purchase protections and basic travel protections.

Read the World of Hyatt Credit Card* review to learn more.

Hilton Honors Aspire Card from American Express *


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The Hilton Honors Aspire Card from American Express*
offers top-tier Diamond elite status in the Hilton program which offers
upgrades, breakfast at participating hotels, late checkout and other
benefits.

Rewards: 14 Hilton Honors bonus points at
participating hotels or resorts within the Hilton Portfolio, 7 points
per dollar on eligible purchases for flights booked directly with
airlines or American Express Travel, car rentals booked directly from
select car rental companies and U.S. restaurants and 3 points per dollar
on all other eligible purchases

Welcome Offer: 150,000 Hilton Honors bonus points after spending $4,000 in purchases within the first 3 months of opening an account

Annual Fee: $450

Other Benefits and Drawbacks: The hefty annual fee can easily be
worth it for those who make use of the $250 Hilton resort credit and the
$250 airline incidental credit for an eligible airline you choose each
year. Cardholders will also receive a free weekend night certificate
each year when they renew the card.

The Aspire confers automatic top-tier status, which makes it worth
holding for that reason alone if you stay at Hilton hotels often but not
enough to earn status.

You’ll also receive a Priority Pass Select membership with access to
over 1,200 airport lounges worldwide after you enroll in the program,
however, your membership will not include access to Priority Pass
restaurant locations.

This card also has some travel and purchase protections including
baggage insurance for lost, damaged or stolen baggage and return
protection.

Read the Hilton Honors Aspire Card from American Express* review to learn more.

United Club℠ Infinite Card


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If
you’re a regular United flyer, especially if you value having access to
United Club lounges, the United Club℠ Infinite Card could be your
go-to. Even if you value none of the card’s other benefits, this card is
a smart way to gain access to United Club lounges.

Rewards: 4 miles per dollar on United® purchases, 2
miles per dollar on all other travel, on dining including eligible
delivery services and 1 mile per dollar on all other purchases

Welcome Offer: 80,000 bonus miles after spending $5,000 on purchases in the first 3 months from account opening

Annual Fee: $525

Other Benefits and Drawbacks: The show-stopping
benefit on the Chase United Club Infinite Card is a full United Club
lounge membership. This lounge membership also includes access to Star
Alliance lounges when you are flying a Star Alliance member airline
same-day. You can bring in up to two guests. Getting access to a United
Club lounge membership through this credit card is less expensive than
buying just a lounge membership directly.

Additionally, you’ll benefit from Premier Access which includes
priority check-in and boarding, your first and second checked bags for
free when flying United, a TSA PreCheck or Global Entry application fee
credit.

This card also comes with travel and purchase protections including
trip delay and cancellation insurance, lost and damaged baggage
insurance, delayed baggage insurance, primary rental car insurance
coverage, purchase protection, extended warranty and more.

Read the full United Club℠ Infinite Card review to learn more.

Aeroplan® Credit Card


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Another
newcomer to the market in 2021, the Aeroplan® Credit Card offers a good
way to earn miles if you’re willing to get a bit outside of your
comfort zone and learn about a program not based in the U.S.

Rewards: 3 points per dollar spent on dining,
takeout and eligible delivery services, grocery stores and each dollar
spent directly with Air Canada including vacations and cruises and 1
point per dollar for all other eligible purchases

Welcome Offer: 2 flight reward certificates valid
for up to 50,000 points each (up to 100,000 total points) after spending
$4,000 on the card in the first three months

Annual Fee: $95

Other Benefits and Drawbacks: The Aeroplan Card also
offers up to a $100 statement credit to reimburse your Global Entry,
TSA PreCheck or NEXUS application fee every four years. This is the only
U.S. card that currently extends an application fee reimbursement for
NEXUS.

Cardholders will get their first and second checked bag for free for
themselves and up to eight companions when traveling on Air Canada. The
card does not charge foreign transaction fees and offers insurance for
trip delay, trip cancellation and interruption, baggage delay, lost and
damaged baggage, and an auto rental collision damage waiver.

While this card does offer good mileage earning and solid additional
benefits, potential cardholders should be prepared to spend some extra
time learning about Air Canada Aeroplan before applying.

To learn more about the Aeroplan® Credit Card, read our review.

Discover it® Student Cash Back


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The
Discover it® Student Cash Back offers a unique combination of strong
earning rates and a welcome bonus not typically seen in student cards.
If leveraged properly, cardholders can earn some serious cash back.

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

Welcome Offer: Earn an unlimited cashback match –
Discover will automatically match all the cash back earned at the end of
the first year. There’s no minimum spending or maximum rewards

Annual Fee: $0

Other Benefits and Drawbacks: Discover is not as
widely accepted as Mastercard, Visa or even American Express if you plan
to use it overseas. This is a drawback for students who travel or study
abroad. The quarterly bonus categories may or may not fit how you
spend, meaning you might not maximize your earning potential every
single quarter and you need to remember to activate the bonus each
quarter.

Read our full Discover it® Student Cash Back review to learn more.

Petal® 1 “No Annual Fee” Visa® Credit Card


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Those
who have bad credit but can still qualify for an unsecured card should
consider the Petal® 1 “No Annual Fee” Visa® Credit Card, issued by
WebBank, Member FDIC. When you apply, more than just a credit profile
may be used when determining who qualifies for a card, potentially
allowing more people to be approved for Petal than with other cards.

Rewards: 2%-10% cash back at select merchants

Welcome Offer: This card does not offer a welcome bonus

Annual Fee: $0

Other Benefits and Drawbacks: The Petal 1 card does
not charge foreign transaction fees and cardholders have access to
secondary auto rental collision damage waiver when renting cars.

To learn more about the Petal® 1 “No Annual Fee” Visa® Credit Card, read our full review.

Discover it® Secured Credit Card


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If
you’re new to credit or have made credit mistakes in the past, you may
need a secured card to help build or rebuild your credit. In exchange
for a security deposit, Discover will provide you with an equal credit
line if you are approved. Most secured credit cards do this, but the
Discover it® Secured Credit Card adds rewards to the mix.

Rewards: 2% cash back at gas stations and
restaurants on up to $1,000 in combined purchases each quarter. Plus,
earn unlimited 1% cash back on all other purchases

Welcome Offer: Unlimited Cashback Match – Discover will automatically match all the cash back earned at the end of the first year

Annual Fee: $0

Other Benefits and Drawbacks: The Discover it®
Secured Credit Card is one of only a few secured cards that earn cash
back on purchases, so it’s a great option to build credit and earn
rewards. You can have a maximum of a $2,500 credit limit by putting down
a $2,500 deposit. Discover will review your account for graduation to
an unsecured card and the refund of your security deposit starting at
seven months.

Like any good secured card, the Discover it® Secured Credit Card reports to all three major credit bureaus.

Read our Discover it® Secured Credit Card review to learn more.

Amazon Prime Rewards Visa Signature Card *


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The Amazon Prime Rewards Visa Signature Card*
has always been a good card. The recent increase in our reliance on
Amazon for daily needs makes it a great one. If you’re spending most of
your shopping budget with Amazon or other companies in the Amazon
ecosystem, you might as well get rewarded for it.

Rewards: 5% cash back in rewards at Amazon.com and
Whole Foods Market with an eligible Prime membership, 2% cash back at
restaurants, gas stations and drugstores and 1% on all other purchases

Welcome Offer: Amazon.com gift card instantly on card approval

Annual Fee: $0 with Prime membership

Other Benefits and Drawbacks: If you’re not a
regular Amazon or Whole Foods shopper, this card probably doesn’t make
sense for you. The $119 cost of Prime membership effectively acts as an
annual fee. If you’re already spending it, then the card has no
additional cost to carry.

You can redeem rewards as an Amazon credit with no minimum. However,
you can also redeem your cash back as a statement credit or direct
deposit to a checking or savings account once your rewards balance
reaches $20 or more.

The Amazon Prime Rewards Visa Signature Card has a number of benefits
making it great for travel including no foreign transaction fees,
travel accident insurance and baggage delay insurance. It also has perks
like Visa Signature’s Luxury Hotel Collection and Concierge Service.

Read our Amazon Prime Rewards Visa Signature Card* review to learn more.


How Does a Credit Card Work?

A credit card can be used to make a purchase of goods or
services in-person or online. When you apply for and are approved for a
credit card, you’re given a line of credit based on your credit score
and other factors like your income.

A potential advantage to using a credit card over paying cash or a
debit card is that a credit card can function like a short-term loan. By
using a credit card, you’ll have until the end of the credit card
billing period to pay back from your bank account what you charged to
the card. You can also earn rewards like cash back or travel rewards
with some types of cards, along with extras like purchase and travel
protections. The downside is that if you don’t pay the entire amount
that you charged to your card, you’ll accrue interest on your purchases
which can be expensive over time.

How Do Credit Card Rewards Work?

When you make a purchase on a rewards credit card, you’ll earn a
percentage back on your spending as either cash back, points or miles
depending on the type of card and what type of rewards it’s offering.
Airline credit cards, for example, will typically earn miles, cash back
cards will earn you cash back and general purpose rewards cards may earn
points that can be used for things like a statement credit or to redeem
for travel, merchandise or other options.

Some rewards credit cards will earn the same flat rate back on all
spending, like a card that earns 2% back on every purchase. Others will
have tiered rewards where a certain type of purchase, like gas or
groceries, may earn at a higher reward rate than other types of
purchases. Before choosing a rewards card it’s important to consider
your spending habits and the type of rewards you think you’ll get the
most benefit from and then compare that to the various options available
to you.


How Does Credit Card Interest Work?

Most credit cards calculate interest
using the average daily balance method, which means your interest is
compounded and accumulates every day, based on your daily rate of
interest. In other words, every day your finance charges are based on
the balance from the day before.

The daily rate of interest is determined by dividing your card’s APR
by 365 to find the daily rate of interest and then multiplying that
number by your balance. For example, to determine the average daily
balance on a card with a $10,000 balance on the first day of the billing
cycle and an APR of 17%, you’d divide 17 by 365, which equals a daily
rate of 0.0466%. This means the next day, your card would have a balance
of $10,004.66, which is what you get when you multiply the balance of
$10,000 by 0.000466.

Since the average daily balance is compounded, every day the calculation is based on the day before.

APR vs. APY vs. Interest

APR is a card’s annual percentage rate over the course of a year. A
balance of $10,000 with an APR of 17% would accumulate $1,700 in
interest. But since most credit cards use an average daily balance
method to calculate interest, it can be an incomplete view to look at a
card’s APR and try to estimate how much you’d pay in interest.

APY is not a term typically applied to credit cards as it refers to
the amount of interest you’d earn over the course of a year on things
like deposit accounts such as savings accounts and certificates of
deposit (CDs).

In other words, APR refers to the amount of interest you’d pay on a
credit card balance or other line of credit and APY refers to the amount
of interest you can earn on a deposit account.


How to Improve Your Credit Score

There are several steps you can take to try to improve your credit score.
First, check your credit report to make sure there aren’t any errors
that could be having an adverse effect. Paying your bills on time, every
time will have the single biggest impact on your score. After payment
history, the next biggest factor in your credit score is the amount of
debt you have. Since credit reporting agencies don’t have your income
information, they use something called “credit utilization” instead of a
debt-to-income ratio.

Credit utilization is the amount of debt you owe relative to the
amount of credit you have. So if you have a balance of $3,000 on a card
with a $10,000 limit, you’re using 30% of your credit. Total credit
utilization is based on the aggregate amount across all your lines of
credit, both what you owe and how much you have available. It’s
typically suggested that utilization of 30% or below should be the goal.

Credit Cards for Good Credit

What is considered a good credit score
can vary among lenders, and you typically aren’t told what a particular
lender’s exact cutoff point is between a good credit score and a bad
one. However FICO, the most widely known credit scoring model, shares
some helpful information you can use as a guide. The most common FICO
scores feature a scale of 300 to 850. On that scale, a credit score
between 670 and 739 is generally considered “good.”

You can check out Forbes Advisor’s list of best cards for good credit to see what might work for your particular circumstances.

Credit Cards for Fair Credit

The definition of a fair credit score varies among lenders, and you
typically aren’t told what a particular lender’s exact cutoff point is
between a good credit score and a fair one. However FICO, the most
widely known credit scoring model, shares some helpful information you
can use as a guide. The most common FICO scores feature a scale of 300
to 850. On that scale, a credit score between 580 and 669 is generally
considered fair.

You can check out Forbes Advisor’s list of best cards for fair credit to see what might be a fit for your particular circumstances.

Credit Cards for Bad Credit

While there’s no exact number that counts as the threshold between
“bad” and “good” credit, generally a FICO score below 580 is considered
very poor and between 580 and 669 is generally considered fair.

The lower your credit score, the more limited your options when it
comes to credit cards. Someone with bad credit will typically only be
able to get approved for a secured card or a card with
higher-than-average interest rates and other additional fees. See Forbes
Advisor’s list of best credit cards for bad credit to see what some of the options are if your credit isn’t stellar.

What Are the Three Credit Bureaus?

There are three credit reporting agencies in the U.S.:

  • Experian
  • Equifax
  • TransUnion

Each of these agencies may use a slightly different method of
reporting your credit behavior so it’s not uncommon to have a slightly
different credit score with each agency. All three companies serve the
same function: to analyze your credit behavior to generate a three-digit
credit score used to determine your creditworthiness and in turn, the
rates you’ll be offered on loans like a credit card or a mortgage.


Types of Credit Cards

Although all credit cards can be used to make purchases, there
are several different types of credit cards, each designed for a
different goal.

Rewards Credit Cards

A rewards credit card
is one that earns a percentage back on your spending, in the form of
cash back, points or miles. The exact amount you’ll earn back can vary
greatly by card with some earning the same flat rate back on all of your
spending and others offering tiered rewards with certain purchase
categories earning elevated rates over other categories.

Balance Transfer Credit Cards

A balance transfer card
is one that offers a low or 0% APR for transfers made to the card for
an introductory period of time. After that introductory period, the
card’s standard variable APR will typically apply. There may be a
balance transfer fee to shift debt to a balance transfer card, usually
3% to 5% of the amount being transferred.

Low Interest Credit Cards

A low interest credit card is one that has a low ongoing interest
rate, typically far lower than the industry average APR on other cards.
For those who typically carry a balance on their cards, this may be a
more beneficial option since over time, the interest charges will be
less than on a card with a higher interest rate.

This is different from a card with a 0% APR in that a low interest
card’s rate is ongoing and doesn’t expire after a promotional period.

0% APR Credit Cards

A 0% APR credit card
is one that offers an introductory 0% interest period on either
purchases, balance transfers or both. Think of a 0% APR offer like an
interest-free loan with an expiration date. If used responsibly, it can
give you a cushion of time to pay off what you owe, without accumulating
additional finance charges. But also be aware that the zero-interest
period of time doesn’t last forever and when it expires your balance
will accrue interest at the card’s standard variable rate.

Student Credit Cards

College student credit cards aren’t actually different from other
credit cards, they’re just marketed towards college students or others
with thin credit files who may otherwise have a challenging time being
approved for a credit card.

A student credit card,
which is a first credit card for many, will typically have more
forgiving underwriting standards than a card designed for those with
good credit. This means you’re likely to qualify with a lower credit
score than the standard version of the card would require. Some college
credit cards even offer some perks like rewards and cash bonuses for
good grades.

Credit Cards to Build Credit

When you’re just starting out with credit or you’re seeking to move
past credit missteps, there are credit cards aimed at helping you prove
responsible payment behavior, and in turn boost your credit profile. The
best starter credit card
for you will provide a balance between benefits, such as reporting to
the credit bureaus and helping to raise your credit score, and costs to
carry, including annual fees or any other maintenance costs.

Business Credit Cards

A business credit card
can be a great way to separate your personal expenses from your work
ones, even if it’s just a part-time gig. When you apply for a business
credit card, your approval will be based on your personal credit score.
It also means you’ll be personally liable for any debts accrued on the
card even if they’re from your business and that business fails. The
issuer will also take other factors into consideration when reviewing
your application, including your business income and credit history.


How to Choose a Credit Card

Choosing the right credit card for your particular circumstances
should be based on a combination of factors including your credit
score, your tolerance for annual fees, what perks you might be seeking
and how any rewards fit with your spending habits.

Annual Fee

Not all credit cards charge an annual fee but many of those that do will offer rich rewards and other perks in return.

Other Fees

Depending on your goals in acquiring a new credit card, be aware of
any other fees associated with owning a particular card. For example, if
you’re looking for a card to shift a balance to, be sure to factor in
any balance transfer fees. Those with not-so-great credit may find that
some options available to them charge account opening fees or credit
limit request fees in addition to any annual fees. Steer clear of those,
if possible.

Interest Rates

For those who think they might carry a balance, even if it’s just
occasionally, be aware of the APR on any card you’re considering.
Carrying a balance for any length of time on a credit card is expensive
and you don’t want to be socked with a ballooning balance over time.

Rewards

If a card offers rewards on your spending, make sure that the areas
where it offers the best rewards are a match for your spending habits.
Someone without a car is unlikely to benefit from high rewards on gas,
for example.

While those who rarely dine out or get take-out will likely fare
better with a card that offers elevated rewards on groceries rather than
dining.

Perks

Many credit cards offer perks and benefits beyond the ability to earn
rewards. Premium travel cards may offer exclusive airport lounge
access, free checked baggage and airline incidental credits. Many cards
on the market offer other perks like extended warranty protections and
other travel protections and insurances. Even cards without an annual
fee may offer several money-saving benefits.

Credit-Building Help

Cards aimed at helping you shore up your credit profile, like secured
cards, work by reporting your on-time payment behavior to the credit
bureaus so that over time, your score can improve with a record of
positive payment history. There are many cards on the market aimed at
those seeking to boost their profile. The best ones charge little to no
annual fee and don’t carry account opening or other unnecessary fees.
There are some unsecured cards available too, although these tend to be
unavailable to those with a recent bankruptcy.

What Credit Card Should I Get?

Different types of credit card users will benefit most from different
types of credit cards. Here are some tips to help you decide what’s
best for you.

Value Shoppers

Value Shoppers will likely benefit most from cash back cards that
provide rewards on everyday purchases. These cardholders will want to
minimize annual fees and aren’t concerned about travel rewards or high
end perks. Check out the best cards for shopping and best cards for
groceries to learn more.

Travelers

The best credit card for travelers will vary based on the kind of
traveler you are. If you like to play license plate ABC, check out our
best cards for road trips. If you prefer your travels at 35,000 feet,
check out the best airline credit cards.

Credit Builders

When you’re just starting out it can feel like a Catch-22. You need
good credit to get a credit card, but you need a credit card to build
good credit. Fortunately there are some cards out there that are good
for both those starting out and those needing to get back on track. Check our best first credit cards and best cards for rebuilding credit lists to learn more.

Students

College students have a plethora of credit card options because the
banks understand the value of a lifetime customer. Many of these cards
act as little siblings to their rewards card brothers, giving students a
chance to earn rewards without needing as much of a credit history.
Check out these best credit cards for students.

Business Owners

Whether it’s a roadside stand or a shop on Etsy, small businesses
have unique credit needs. Business credit cards offer benefits tailored
to commerce and offer a way to keep personal and business expenses
separate. If you are just starting out, one of our best cards for new
businesses may do the trick. If you operate an established business,
even if it’s a side hustle, check out our best business credit cards
list to learn about your options.

Brand Loyalists

If you only stay at Hyatt or only shop at Pottery Barn, it may make
sense for you to pick up a co-branded credit card for that store,
airline or hotel chain. By doing so you’ll earn points and perks within
their ecosystem, which you can then use to further your love of the
brand.

Credit Card Application

In general, there are several steps to applying for a credit card:
First, check your credit score through a credit card issuer or by
ordering it from one of the three main credit agencies. Once you know
where you stand with your credit score, decide which type of card will
be the best for you based on what you’re planning to use it for. Credit
cards typically fall into one of three categories: rewards, low APR or
credit-building.

Next, check to see if you’re pre-qualified. Many issuers, including
American Express, Bank of America, Capital One, Chase, Citibank, Deserve
and Discover will let you check to see if you’re pre-qualified for any
of their cards. Keep in mind that pre-qualification doesn’t ensure
approval.

Choosing the right card may be difficult, but applying for the card
you’ve chosen is easy. Most cards can be applied for online, although
you can go to the issuing bank and apply in person or call them on the
phone. If you’re approved, the next step is to make sure you understand
the card’s terms and conditions, listed in the fine print of the
cardmember agreement.


How Many Credit Cards Should I Have?

There’s no one right number of credit cards to have. That’s
because everyone’s financial profile and goals are unique to their
particular circumstances. Having multiple credit cards can either be a
boon or a bust depending on how you acquire and use the cards.

Advantages to Having Multiple Credit Cards

Having more than one or two credit cards can be a good fit for most
people as a credit card allows you to establish credit history. A good
credit history over time will save you money as it can help you qualify
for lower rates on other types of loans, like mortgages, auto loans or
student loans. Since many rewards cards offer tiered rewards in
different areas of spending, for someone with a careful strategy of pairing rewards cards, it can be more beneficial than just one card.

Disadvantages to Having Multiple Credit Cards

Too many credit cards can entice you to overspend and take on more
debt than you can handle. And if you’re considering adding more credit
cards to your portfolio, keep in mind that every time you apply for a
credit card, the issuer will run a credit check to determine whether or
not to approve you. This can ding your score.

And, some issuers will turn you down if you apply for too many cards in too short a period of time.
But for someone who can pay their bills in full and on time, and doesn’t
mind the effort of juggling multiple cards, owning several cards can be
part of a plan that works for them.

Credit Card Companies

Credit Card Issuer

A credit card issuer is the bank that issues, or approves you for,
the card you’re applying for. Some credit cards have the issuing bank as
part of their name, like Chase or Citibank. Others work behind the
scenes as the issuing bank for credit cards that may not be part of a
traditional financial institution, like Chime or Upgrade.

Credit Card Networks

Card networks process the payments between the buyer and the
merchant. There are four major credit card networks: Mastercard, Visa,
American Express and Discover. American Express and Discover are unique
in that they are also card issuing companies in addition to owning a
card network.

Co-branded Credit Cards

A credit card that’s co-branded is one that’s issued in partnership
with a certain retailer or service provider. Popular brands like
JetBlue, Hyatt and Disney have all partnered with credit card companies
to offer cards that earn rewards in their loyalty programs and offer
brand specific perks. Typically a co-branded credit card will offer
rewards and or other perks within the brand.

Visa vs. Mastercard

Both Visa and Mastercard are payment processing networks and it
shouldn’t matter to you as a consumer which one your card is on when it
comes to making a payment. But both cards offer perks and benefits
specific to their brand and type of card within the brand. For example, a
traditional Visa or Visa Platinum card may offer roadside dispatch
services and lost card replacement assistance. A Visa Signature card may
offer these benefits plus travel insurances and protections. Each
individual Visa card will come with different benefits based on the type of Visa and the perks selected by the issuing bank to include.

The same holds true for Mastercard: There are different types of Mastercards
with varying perks and benefits depending on the type of Mastercard.
The most notable feature some Mastercards offer that some Visas don’t is
cell phone coverage. You shouldn’t choose a card based on the issuing
network however. Instead think of any extras offered by the payment
networks as a bonus, with the focus on the main features of the card
itself.

To view rates and fees for Blue Cash Preferred® Card from American Express please visit this page.

To view rates and fees for The Platinum Card® from American Express please visit this page.


Frequently Asked Questions (FAQs)


How old do you have to be to get a credit card?

You have to be at least 18 years old to get a credit card in the
U.S. The law requires those who apply to have a source of income to
demonstrate that they can pay back any amount they might charge to a
card. But, sometimes those younger than that can be added as an
authorized user on a parent or trusted adult’s credit card. Some issuers
have a minimum age requirement to be an authorized user, others do not.


How to Cancel a Credit Card

To cancel a credit card, you can contact the issuer and ask them
to close the account. You’ll have to pay off any outstanding balance in
full before the account can be closed. Keep in mind that closing a
credit card can have an adverse impact on overall credit score. If
you’re thinking about closing a card that you’ve held for a long time,
your credit history makes up a portion of your score so closing it can
ding your credit.

You may want to consider asking the issuer if you can do a product change to a card without an annual fee or to one that’s a better fit for your spending patterns.


How to Pay Off Credit Card Debt

There are multiple ways to get a handle on your credit card debt.
The right one for you will depend on your budget and goals. The debt snowball and debt avalanche
methods are two commonly used ways to pay down debt. With the debt
snowball method you make the minimum payment on each card. Then you put
any additional money you have toward the card with the smallest balance.
Instead of looking at each card’s interest rate, you focus just on the
outstanding balance. The theory is that by focusing on the smallest
balance first, you’ll pay it off quickly.

The debt avalanche method the focus shifts from the smallest balance
to the highest interest rate. All extra funds above the minimum payment
go to the card with the highest interest rate. Once paid in full, money
is then directed to the card with the next highest interest rate.

Other options to help pay down credit card debt include shifting the
balance to a card with an introductory 0% APR balance transfer offer,
taking out a personal loan or in more challenging circumstances, asking
your issuer for help with a debt repayment plan.


How long does it take to get a credit card?

When you apply for a credit card online or in person, you’ll
typically find out within minutes if you’re approved. Some issuers will
provide you with an instant card number so you can begin to use your new account ASAP. But getting the physical card in the mail can take a few days.


What is APR on a credit card?

APR is a credit card’s annual percentage rate over the course of a
year. But since most credit cards use an average daily balance method
to calculate interest, it can be somewhat misleading to see your card’s
APR and figure out what you might owe easily. Most credit cards
calculate interest using the average daily balance method, which means
your interest is compounded and accumulates every day, based on your
daily rate of interest. In other words, every day your finance charges
are based on the balance from the day before.


How much of my credit card should I use?

The balance you carry on a credit card should be no more than 30
percent of your credit limit if you want to avoid a drop in your credit
score.  The percent you carry of an open balance, called utilization,
gives your credit card company an easy way to track your credit
health.  For instance, if you have a $10,000 credit limit, it’s a
good idea not to put more than a $3,000 monthly balance on the card. Of
course the best idea is to pay the card off every month to avoid
interest fees.


How do I increase my credit limit?

If you want a credit limit increase,
the easiest way to request it is to call the number on the back of your
credit card.  As a general rule, banks want you to have the card
open for six months or more with a stable repayment record before they
consider a credit limit increase.


How do I get cash from a credit card?

Depending on the card you have, you can get a cash advance from either a bank branch or an ATM.  Some balance transfer offers will also allow you to get cash deposited directly into your checking account.


How do I buy bitcoin with a Credit Card?

It is possible to buy bitcoin or other cryptocurrencies with some types of credit cards,
but the stipulations vary greatly depending on the card issuer and are
subject to change at any time. Even when you are allowed to buy crypto
on a credit card, it may not be a good idea because you might be charged
cash advance fees from your bank in addition to being charged a fee
from the crypto exchange.  A better option might be a card that
offers rewards in cryptocurrency such as the Crypto.com Rewards Visa.


Information provided on Low Cost Advisor is for educational purposes only. Your financial situation is unique and the products and services we review may not be right for your circumstances. We do not offer financial advice, advisory or brokerage services, nor do we recommend or advise individuals or to buy or sell particular stocks or securities. Performance information may have changed since the time of publication. Past performance is not indicative of future results. Low Cost Advisor adheres to strict editorial integrity standards. To the best of our knowledge, all content is accurate as of the date posted, though offers contained herein may no longer be available. The opinions expressed are the author’s alone and have not been provided, approved, or otherwise endorsed by our partners.





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