Best Credit Cards
Credit cards are a useful financial tool if used responsibly. With a credit card, you can charge items and services that you need and then pay them off at a later date. If chosen wisely, a credit card can even be used to earn rewards or to build credit.
What credit card should I get?
Your current financial situation and credit history will likely determine which is the best credit card for you. There are even credit cards for those with bad credit. Most credit card companies have an application process that requires you to provide background information, such as personal information and income, before being approved for the card. The credit card company also reviews the consumer’s credit report and credit score. Credit companies vary a little when it comes to applying for and using their credit cards.
- 1. Check your credit score
There are lots of ways to check your credit. Your FICO or credit score will help narrow down which credit cards you can qualify for, so it’s smart to know what your credit score is before you start comparing different rates and rewards. Credit is scored from 300–850, and a credit score of 700 is generally considered “good.” People with good scores who use credit cards responsibly can boost their scores into the excellent FICO score range (750+).
Cards available to those with fair credit usually have lower credit limits and higher APRs. Only a few cards in this category offer rewards. But these cards can help people improve their credit scores so they can eventually qualify for cards with better terms.
If your score is too low to get approved for an unsecured card, there are steps you can take to improve your credit score. Credit card issuers will also evaluate your income and already established credit accounts (if applicable) to determine if you are eligible for a credit card.
- 2. Compare the different types of credit cards
First, ask yourself why you want a credit card. For example, there are many good business credit cards available that offer a variety of tools that help with money management, taxes and more. For personal use, you can select from credit cards with cash back, travel and rewards programs or balance transfer options if you want to save on interest and pay down other debts.
There are three main types of credit cards:
- Personal credit cards. If you have good or excellent credit, rewards credit cards can be used to save money on travel, reduce the cost of everyday expenses (such as groceries or gas) and to maintain a healthy FICO score. People with low credit scores can use credit cards to help rebuild their histories and improve their credit scores. Depending on if you will be paying the balance in full each month or if you intend to transfer old balances to the new card, you might consider a rewards credit card or balance transfer credit card.
- Business credit cards. Many credit card companies offer business cards so you can separate your personal and business expenses. It’s important to note that business credit cards — both small business cards and corporate cards — are not covered by the Credit CARD Act of 2009, which protects people from sudden rate increases, universal default, retroactive rate increases on outstanding balances and much more. There are some exceptions when applying the CARD Act rules, but the point is that business cards don’t have any of these protections. Be sure to read any correspondence received from issuers in case there have been significant changes to the terms and conditions of your credit card.
- Secured credit cards. If your score is too low to get approved for an unsecured personal credit card, then using a secured credit card can be a path to rebuilding your credit history. Secured cards require a deposit into a savings account to “secure” the card. Secured credit cards are popular among students but can be helpful to anyone who is rebuilding or establishing credit. Some issuers make the approval process very easy and accept almost everyone who applies.
- 3. Decide which credit card you need
To select the best credit card for your financial situation, consider the following factors for common credit card objectives.
- To earn rewards: Travel, cash back and rewards credit cards
The key is to match your spending patterns to the right kind of rewards since rewards cards are best to use for purchases you have to make anyway. This way, you can earn a profit from your rewards cards. Note that APRs for rewards credit cards tend to be higher than for cards without rewards. So don’t start using rewards cards unless you plan to pay the balance in full by the due date every month. Annual fees range from zero to hundreds of dollars, so pay close attention to the rates and fees as well as the rewards program details.
- To manage business expenses: Business credit cards
Comparing business credit cards is similar to comparing personal credit cards — entrepreneurs can earn rewards and make balance transfers, and business credit card issuers often offer a sign-up bonus if you spend a certain amount within a few months of opening the account. Pick a business card that gives higher rewards when you spend in categories relevant to your business. Some business credit cards also come with extra perks that make running your business easier.
- To save on interest: Balance transfer credit cards
Many credit card issuers offer balance transfer credit cards to save on interest while they are paying off debt. Some issuers will even assist you in setting up a debt repayment plan. The key differentiating factors across balance transfer credit cards are the length of the introductory period, balance transfer policies and rates for ongoing APR.
- Introductory period. A longer introductory period will give you more time to pay off debts without interest. Note whether or not new purchases have the same APR.
- Balance transfer policy. Credit card issuers charge a fee for transferring balances, but some are lower than others. Also, consider restrictions on amounts of types of balances transferred and if there is a specified amount of time you have to complete transfers. Late fees and penalty APR varies by card well.
- Ongoing APR. APR stands for annual percentage rate. The APR includes fees and other costs of the card. Some credit card companies lower the APR over time if the cardholder consistently pays on time. But sometimes you have to be proactive. If you have excellent credit and you think your APR is too high, call your issuer and request a lower rate.
- To build credit: Secured credit cards
If you’re getting a secured credit card to build your credit, be sure that the issuer reports to all three major consumer credit bureaus, Equifax, Experian and TransUnion. Secured credit cards require a deposit, but that amount will vary across issuers, and not all issuers charge interest on the deposit. Some, but not all, issuers will charge an annual fee. Find out if your credit limit will automatically increase as your credit score goes up, and try to pick a secured credit card issuer that can upgrade to your account with more competitive terms.
- To earn rewards: Travel, cash back and rewards credit cards
- 4. Apply for the credit card
Most credit card companies have an application process that requires the consumer to provide background information, such as personal information and income, before being approved for the card. The credit card company also reviews the consumer’s credit report and credit score. Credit companies vary a little when it comes to applying for and using the credit card. They pay attention to credit scores and credit reports, but each issuer looks at additional factors when making a decision. Approved applicants can expect to receive their new card within 7–10 days.
Find the right credit card for you
Balance transfer credit cards
Low-interest or 0% APR credit cards are a good option for people who already have balances on a credit card with high-interest APR. Balance transfer credit card holders can transfer the balance on the high-interest card to a balance transfer card that offers a 0% introductory APR period. This allows you to pay off — or at least pay down — the debt without paying interest during the introductory period, which is usually a year or more.
Travel credit cards
Travel rewards credit cards earn points or miles when you use the card to make purchases and often come with perks like VIP access to airport lounges or free checked luggage. Some cards let you earn extra rewards for specific categories, like dining or entertainment, or come with a sign-up bonus. You can redeem miles or points for travel-related purchases like airfare, lodging, statement credits or other merchandise.
Cash back credit cards
With cash back credit cards, the more you spend, the more cash back you receive. Cash back credit cards let you earn cash rewards for everyday purchases. Some issuers offer cards that give, for example, 1% cash back per dollar spent. Many of these cards then provide “bonus” categories. For instance, the card might offer 3–5% cash back on groceries and 1% on everything else. Not all cash back credit cards charge an annual fee, but cards with highly desirable rewards programs usually cost about $100 or more annually.
Business credit cards
For those who run a small business, there are many good business credit cards available that offer a variety of tools that can help separate your personal and business expenses. If your goal is to build business credit, be sure you ask the issuer if they report payment history to the major consumer bureaus or specialized commercial credit bureaus. Unless you have established credit in your business’s name, your personal credit history is reviewed when you apply for a business card.
Compare Top Credit Card Companies
Read 4700 Reviews
Capital One offers customers a range of cards, including Travel Rewards, Cash Back and Building Credit Cards. As one of America's ten largest banks, the company offers a wide range of financial services to consumers.
Read 1691 Reviews
Merrick Bank was originally founded in 1997 in South Jordan, Utah. The company is FDIC insured, and specializes in settling credit card transactions and clearing payments for consumers looking to improve their credit rating.
|Synchrony Financial||Read 858 Reviews|
Synchrony was formerly known as GE CareCredit, and they have over 80 years of experience in the industry. They provide many different credit options for customers, and offer rewards programs for long-term clients.
|American Express Platinum Card|
Read 1272 Reviews
The American Express Platinum card provides multiple benefits for enrolled users, including several travel perks, a rewards program, exclusive services such as roadside assistance and car rentals.
|Chase Credit Cards|
Read 4998 Reviews
Chase Credit Cards is one of the world's leading financial services firms, ranked number 1 in customer satisfaction. Controlled by JPMorgan Chase, Chase Credit Cards offers consumers MasterCards and Visa Cards.
Read 1352 Reviews
Citi offers four different cards, each of which has different benefits to fit the needs of the user, including extra cash back, no late fees or annual fee, low interest rates, 24-hour concierge service and bonus points.
Read 772 Reviews
Discover is a credit card company headquartered in Riverwoods, IL, that offers a selection of credit cards to consumers. Discover customers can choose from cards including Miles Rewards, Cash Back, and Students cards.
|Credit One Bank|
Read 2561 Reviews
Credit One Bank is one of the leading issuers of VISA cards in America. They are located in Las Vegas, NV and focus on working with people who have been overlooked by other credit companies because of less-than-perfect credit.
|Bank of America Credit Cards|
Read 1757 Reviews
One of America's largest banking service companies, Bank of America offers customers a range of credit cards. These include cash rewards, travel, low interest rate, no annual fee, student and credit rebuilding cards.
Read 733 Reviews
BarclayCard US is part of the BarclayCard family, which introduced the first credit card in Europe. They are partnered with over 60 best-in-class companies and brands, and have over 300 years of experience working with consumers.
Read 562 Reviews
Bill Me Later is an online payee site that now exists under the name of PayPal Credit. Anyone with a Bill Me Later account will find all of their information intact on PayPal's credit site by logging in with the same credentials.
Read 645 Reviews
EPPIcard offers consumers state-issued electronic debit cards as a safe and convenient way to access their deposits. Consumers can use their EPPICards to receive things like child support, unemployment, or welfare payments.
|HSBC Credit Cards|
Read 290 Reviews
HSBC is a multinational company that provides a variety of credit card options. They have cards that offer clients a rich rewards program, and cards with competitive APRs. They also offer great incentives for long-term customers.
|Target Credit Card|
Read 388 Reviews
Target is one of the largest corporations in the United States, and they offer credit cards that provide incentives to their customers such as 5% off every day, free shipping, no annual fee and an extra 30 days for returns.
Read 807 Reviews
First Premier Bank has been in operation since 1989, and focuses on individuals with damaged credit histories to help them obtain credit. Credit lines are kept low in order to help customers improve their financial progress.
|Wells Fargo Credit Cards||Read 164 Reviews|
The Wells Fargo Credit Defense service offers unique customer benefits, including Benefit Payments during periods of disability or unemployment. The low monthly fee is well worth the many benefits this service provides.
|Credit First National Association|
Read 93 Reviews
Credit First National Assoc. offers credit cards for vehicle repairs and maintenance. Brands include popular names like Firestone, Bridgestone, Tires Plus and more. Customers can apply online for an instant approval decision.
|Chase Sapphire Preferred Credit Card|
Read 39 Reviews
This travel rewards card earns points for expenses like airfare, hotel stays and restaurant bills, and points are worth if redeemed on airfare and hotels. It has no foreign transaction fees but there is a $95 annual fee.
|USAA Credit Card|
Read 148 Reviews
USAA is an association that was founded to help and protect members of the military and their families. Their credit cards are available to service members and their families, and offer low APRs and other benefits.
|Sears Credit Card|
Read 329 Reviews
The Sears credit card is offered through Citibank and offers rewards that can be redeemed at any Sears or Kmart store for things like home appliances, consumer electronics and lawn and garden supplies.
|Old Navy Credit Card|
Read 98 Reviews
Old Navy Credit Card customers earn rewards for purchases made at Old Navy, Gap, Banana Republic and Athleta. Customers can participate in specific promotions, including 10% off on Tuesdays at their retailers.
|Capital One Venture|
Read 37 Reviews
This travel reward credit card helps you earn bonus airmiles. You get 2 miles for ever $1 you spend and $10 on every $1 you spend on hotels booked through hotels.com/venture. It requires an annual fee of $95.
|PenFed Credit Cards|
Read 26 Reviews
PenFed Credit Union offers Visa and Mastercard rewards and simple cards. Choose a card that fits your lifestyle, including travel rewards, flexible rewards and more. You can use PenFed’s credit cards with your digital wallet.
|GM Credit Card|
Read 21 Reviews
GM Card is a Capital One credit card that is issued through General Motors. When consumers use it, every purchase compiles points toward a new Chevrolet, Buick, GMC or Cadillac car and offers 5% earnings on the first $5,000.
|Applied Bank Credit Cards|
Read 336 Reviews
Applied Bank is headquartered in Wilmington, Delaware and has been in operation since 1996. They provide secured and unsecured Visa and MasterCard Credit Cards to people with little or no credit history.
|AARP Chase Visa|
Read 39 Reviews
The AARP Chase VISA is a special VISA offered to AARP members. They focus on retired individuals 50 years of age and older, and offer cash back rewards on restaurant and gas station purchases as well as on travel purchases.
|East West Bank Credit Cards|
Read 11 Reviews
East West Bank operates in California, Nevada, Georgia, Texas, Massachusetts, New York, Washington and in China. They offer four Visa and two American Express credit cards, which each offer different features and rewards.
|FIA Card Services|
Read 205 Reviews
FIA Card Services is a credit card that provides an easy way to purchase items and make payments on the card online. They allow customers to use ShopSafe, a free service that protects the card number each time it is used online.
Read 475 Reviews
Aspire Card Services issued credit cards designed for those looking to build or rebuild their credit. Aspire ceased issuing new cards and began closing accounts in 2008. Customers with an existing balance can still make payments.
|American Express Black Card||Read 19 Reviews|
American Express Centurion Bank, based in Salt Lake City, provides prepaid cards and credit cards to individuals, businesses and corporations. It uses customer rewards programs and processes millions of daily transactions.
|New Millennium Bank||Read 189 Reviews|
New Millennium Bank is located in Somerset and New Brunswick, New Jersey and have been banking since 1999. They feature commercial, mortgage and consumer loans, and can receive deposits from customers as well.
|American Express Travelers Cheques|
Read 40 Reviews
American Express Travelers Cheques are basically the original prepaid credit card. They allow users to turn cash into checks that can be used all over the world, but provide the added insurance that cash doesn't give you.
|Citigold||Read 10 Reviews|
CitiGold from Citibank is for premium account holders. CitiGold clients enjoy perks such as a dedicated service team, preferred rates, the option to earn interest on checking accounts and a higher reward level than other accounts.
|Bremer Bank Credit Cards|
Read 9 Reviews
Bremer Bank is a regional institution, serving Minnesota, Wisconsin and North Dakota. The bank offers four different credit cards: two from Visa and two from American Express. All of their cards offer rewards.
|Bank of America Travel Rewards Card|
Read 8 Reviews
This travel credit card is made for people who have a checking or savings account with Bank of America. You earn 1.5 travel points for every dollar you spend, but you can increase these earnings by 10 percent with an account.
|Chase Freedom Credit Card||Read Reviews|
This credit card earns 1–5% cash back depending on the purchase category. Benefits include a 15-month 0% intro APR period for new purchases and balance transfers and free credit score updates. There is no annual fee.
|Chase Freedom Unlimited Credit Card||Read Reviews|
This cash back credit card earns double on purchases made during the first year of opening an account. Other benefits include 0% intro APR and free credit scores through Credit Journey. There’s no annual fee.
Information in this guide is general in nature and is intended for informational purposes only; it is not legal, health, investment or tax advice. ConsumerAffairs.com makes no representation as to the accuracy of the information provided and assumes no liability for any damages or loss arising from its use.