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Best Travel Credit Cards January 2021

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It may not have been reviewed, approved or otherwise endorsed by the credit card issuer. This site may be compensated through a credit card issuer partnership.

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Looking over the sheer number of travel credit cards available is enough to overwhelm anyone. With so many cards offering points, miles or cash back, what should you look for in a new travel rewards credit card?

While having options is a good thing, trying to decide which travel rewards credit card to apply for can be a difficult decision. Consider these four factors before you hit that “apply now” button:

  • No foreign transaction fees. While up to 3% in foreign transaction fees may not sound like much, it can add more than 30 cents to every $10 you spend abroad. If you plan on traveling abroad, choose a card that doesn’t charge a foreign transaction fee.
  • Good rewards for spending. For every dollar you spend, you should be able to earn rewards that you can apply directly to your next trip: either flights, hotel rooms or other experiences.
  • Sign-up bonuses. Most cards offer a sign-up bonus after a required minimum spend. The sign-up bonus should offer a substantial award that justifies the spending needed to get it.
  • Annual fee. Although most travel cards come with an annual fee, the perks, along with the points or cash back you could earn, should outweigh the cost.

Instead of getting lost looking for the perfect travel rewards card, start with this guide. We found the best travel cards for every lifestyle, each of which offer you some of the best rewards now and over time. If you want good travel rewards for the money you spend, consider adding these credit cards to your wallet.

Best premium travel cards

Premium travel cards come with the highest annual fees but also offer the highest level of rewards. From flexible points that can be transferred to travel partners, to elite hotel and lounge offers, your annual fee can be recovered through the luxury benefits on these cards. If you travel frequently and want to get the best experiences, these are the cards you’ll want.

Chase Sapphire Reserve®

Chase Sapphire Reserve®

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The information related to Chase Sapphire Reserve® has been independently collected by MagnifyMoney and has not been reviewed or provided by the issuer of this card prior to publication.

Chase Sapphire Reserve®

Regular Purchase APR
16.99%-23.99% Variable
Annual fee
$550
Rewards Rate
3X points on travel immediately after earning your $300 travel credit. 3X points on dining at restaurants including eligible delivery services, takeout and dining out & 1 point per $1 spent on all other purchases.

Why we like it: Because you automatically receive up to $300 in statement credits as reimbursement for travel purchases charged to your card each account anniversary year, the Chase Sapphire Reserve® offers solid rewards for what effectively turns into a $150 annual fee ($550 annual fee minus up to $300 in statement credits for travel purchases). Additionally, if you renew your card membership from July 1 through Dec. 31, 2020, your annual fee will be reduced to $450.

Cardholders also receive up to a $100 application fee credit towards Global Entry or TSA PreCheck. In addition, you will earn three Ultimate Rewards points per dollar spent on travel and dining worldwide, and one point per dollar spent everywhere else. If you make this your primary card, you could earn rewards which value more than the annual fee every year.

Rewards program: Purchases earn points in Chase Ultimate Rewards®, a flexible point program that can be used for travel rewards. One point has a value of 1 cent, but when redeeming for travel through the Chase travel portal, points have a fixed value of 1.5 cents. You can get an even greater value by transferring points to one of Ultimate Rewards® nine airline partners or four hotel partners.

Pros:

  • Flexible points that offer good value. Chase Ultimate Rewards are among the most flexible in the travel space, with nine airline and three hotel rewards transfer partners – giving you many different ways to use your points. You can also use points through the Chase travel portal at a fixed rate of 1.5 cents each towards airfare and hotels of your choice.
  • Exceptional rewards for travel and dining. The Chase Sapphire Reserve® offers a generous amount of points per dollar spent for both travel and dining. If you primarily use this card when you travel, you would earn unlimited triple points on most of your big expenses.
  • Great travel insurance options. In addition to points earning opportunities and flexible points, this card also offers one of the best travel insurance plans available. When you use your card or Ultimate Rewards points to pay for your trip, you are automatically covered with baggage delay insurance, trip delay reimbursement, emergency evacuation insurance and roadside assistance.

Cons:

  • High annual fee. One of the biggest cons of this card is the $550 annual fee, due immediately in the first year. However, if you renew your card membership from July 1 through Dec. 31, 2020, your annual fee will be reduced to $450.
  • Points limit. You won’t earn higher Chase points for travel until you spend the card’s $300 annual travel credit before the end of your cardmember anniversary.
  • Limited travel lounge access. For the high price tag, this card only offers lounge benefits through Priority Pass, a network of lounges around the world. It does not allow entry into any carrier’s lounges and comes with some surprising rules, including limited accommodation during busy times.
  • No elite status with travel partners. Unlike its nearest competitor, the Chase Sapphire Reserve® does not come with any elite status with partner brands. If you get accepted for this card, don’t expect to get to the front of the line at any hotels or car rental locations.

Read our full review of the Chase Sapphire Reserve®

The Platinum Card® from American Express

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The Platinum Card® from American Express

Regular Purchase APR
See Pay Over Time APR
Annual fee
$550
Rewards Rate
5X Membership Rewards® points on flights booked directly with airlines or with American Express Travel and 5X Membership Rewards® points on prepaid hotels booked on amextravel.com.

Why we like it: Considered one of the oldest and most prestigious awards cards, The Platinum Card® from American Express offers the most elite status, luxury experiences and credits for your spending. When you book trips directly with airlines or American Express Travel, you can also earn five Membership Rewards points per dollar spent, allowing your rewards to rack up quickly. All other purchases earn one point per dollar. If you value luxury experiences and airline lounge access, this card could be a better choice.

Rewards program: Your purchases will earn Membership Rewards points, which can be used with American Express or transferred to their travel partners. When using Membership Rewards points at American Express Travel, your points are valued at 1 cent each, so your best use of points is through transferring to their airline or hotel partners. Points transfer to 18 airline and two hotel loyalty programs, offering the most choices for award travel.

Pros:

  • Best lounge access programs. The Platinum Card® from American Express offers you the most ways to get into lounges when you travel around the world. In addition to Priority Pass, you can also enter Centurion Lounges and the International American Express lounges on arrival or departure at select airports, as well as Delta Sky Clubs when you are flying on Delta.
  • Elite status for holding the card. The Platinum Card® from American Express also comes with elite status at three car rental and two hotel loyalty programs: Avis Preferred, Hertz Gold Plus Rewards, National Car Emerald Club, Hilton Honors Gold Elite and Starwood Preferred Guest Gold status.
  • Credits for Boingo Wi-Fi, Global Entry, Shoprunner and Uber. Even with the high annual fee, this premium card also comes with several credits and free services for frequent travelers. Cardholders get free Boingo Preferred Plan membership, free Shoprunner two-day delivery, along with monthly credits for Uber rides and one Global Entry or TSA PreCheck fee waiver every five years.

Cons:

  • High annual fees. While the card may offer the most status and immediate benefits, it also comes with an expensive annual fee. At $550 for the annual fee, you will be pay for all your benefits in the first month, before you can get any value from them.
  • Only one bonus category. Another major downside of this card is that there is only one bonus category: five points per dollar spent directly with airlines or travel booked through Amex Travel. If you do not spend much on prepaid hotel reservations or airfare, you can’t maximize this bonus category effectively.
  • Limited airline fee credit. For years, The Platinum Card® from American Express was the only card to offer an airline fee credit. Today, it is one of the most limited: $200 only usable towards airline fees, available for only one airline you choose at the beginning of the year.

To see rates & fees for The Platinum Card® from American Express, please click here.

Best travel cards for simple rewards

While earning points and miles can be rewarding, some of the best programs are simple and straightforward. When we looked for the best simple rewards credit cards, we looked for those that not only offered cash back, but also bonuses for spending and redeeming, along with a low annual fee. After considering all our options, these are the best travel rewards cards for simple rewards.

Best cashback travel rewards card

Capital One Venture Rewards Credit Card

Why we like it: The Capital One Venture Rewards Credit Card has a simple rewards program earning you the same amount of miles for all your spending. So, no need to worry about bonus categories — simply use your card on all purchases to rack up miles.

Rewards program
The Capital One Venture Rewards Credit Card offers 2 Miles per dollar on every purchase, every day. You can redeem miles in several ways: as a statement credit for travel purchases via Purchase Eraser®, for new travel purchases made with the Rewards Center, for a check, account credit, gift card and more. Travel purchases eligible for Purchase Eraser® include: airlines, hotels, rail lines, car rental agencies, limousine services, bus lines, cruise lines, taxi cabs, travel agents and timeshares. Keep in mind that these redemptions must be made within 90 days from the date your travel purchase posts to your account.

Pros:

  • Easy to use rewards. You can easily redeem your points in a variety of ways and Purchase Eraser® makes is simple to get a statement credit for travel purchases made within the past 90 days.
  • New points transfer. You can now transfer the miles you earn to 15 travel loyalty programs.
  • Visa Signature® benefits. As a Visa Signature® card, you can benefit from travel perks including lost luggage reimbursement, travel accident insurance, the Visa Signature® Luxury Hotel Collection with over 900 properties and more when you use your card. Certain restrictions, limitations, and exclusions apply.

Cons:

  • Annual fee. The card is slightly expensive for earning two miles per dollar toward travel, currently $95. If you don’t travel abroad often, there are other cards that offer the same cash back with no annual fee, though they may lack some of the travel perks this card offers.
  • Fewer points. There are other cards on the market that offer more miles for travel-related spending.

 

Best travel card for millennials

Uber Visa Card

Uber Visa Card

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The information related to Uber Visa Card has been independently collected by MagnifyMoney and has not been reviewed or provided by the issuer of this card prior to publication.

Uber Visa Card

Regular Purchase APR
17.24% - 27.99% Variable
Annual fee
$0
Rewards Rate
5% back in Uber Cash on Uber, Uber Eats, and JUMP, 3% back in Uber Cash on dining, hotels, and airfare and 1% back in Uber Cash on all other purchases

Why we like it: The Uber Visa Card offers high cash back rewards at some of the places millennials spend the most — including restaurants, Uber and UberEATS — along with up to $600 in mobile phone protection and a $0 annual fee.

Rewards program
The card offers 5% back in Uber Cash on Uber, Uber Eats, and JUMP, 3% back in Uber Cash on dining, hotels, and airfare and 1% back in Uber Cash on all other purchases

Cash back can be used as statement credits, credits towards Uber rides, redeemed for gift cards or transferred to a bank account with a limit of $500 in transfers per day. Conditions apply.

Pros:

  • Big cash back categories. The Uber Visa Card offers a generous rewards rate on Uber, UberEats, dining, travel and other purchases. Using this card as your primary option for restaurants and Uber purchases could help your rewards add up quickly.
  • Up to $600 in mobile phone protection. While many cards offer travel insurance, not many offer cellphone insurance. If you pay your cellphone bill with your Uber Visa Card, you could qualify for $600 in protection for accidental damage or theft. Conditions apply.
  • $50 online subscription service credit. Who doesn’t have at least one online subscription service anymore? If you spend at least $5,000 in your cardmembership year, you automatically get a $50 credit for an online subscription you pay with your card.

Cons:

  • Limited transfer options. While the cash back is good, The Uber Visa Card only has one transfer partner for their points right now: Uber. You can’t turn over your points into any other loyalty program, limiting their overall usage.
  • No travel insurance. Although you may get up to $600 in mobile phone protection, you won’t get any travel insurance benefits when paying for your next trip with this card. If your flight gets delayed or your luggage gets lost, your card won’t reimburse any of your expenses.

Read our review of the Uber Visa Card

 

Best travel card with no annual fee

Discover it® Miles

Why we like it: The details make this card a real winner. Discover will match ALL the Miles you’ve earned at the end of your first year, automatically. For example, if you earn 35,000 Miles, you get 70,000 Miles. That’s $700 towards travel! The more you earn, the more you get. The card also comes with strong back-end features, including free Social Security number alerts and FICO® score checks.

Rewards program
The Discover it® Miles offers miles that can be used as cash back to pay for travel experiences. When you book trips using the Discover it® Miles card, you can redeem your miles towards statement credits on the trips, with no blackout dates. Your miles never expire as long as your card is active.

Pros:

  • Good credit security tools and customer service. In addition to having call centers based in the United States, this card also comes with solid credit security tools. These include free FICO® credit scores, Social Security number alerts, Experian® credit report monitoring and the ability to freeze your credit card from the Discover mobile app or website.
  • Wide acceptance in China and Japan. If you travel to Asia often, the Discover it® Miles may be your best bet for secure spending. Discover is accepted by China’s largest credit card network, UnionPay, and one of Japan’s largest payment processors, JCB.
  • Matched miles in the first year. Currently, no other company offers matched points or miles for your first cardholding year, effectively doubling your rewards. If you use this as your primary spending card, you could earn a lot of cash back towards travel.

Cons:

  • No transfer partners. Although doubled miles in the first year and unlimited rewards are great, you may not get to fly first class with them. Miles do not transfer to any airline partners – they can only be applied as cash back for travel expenses.
  • Low miles earning after first year. With no bonus categories, this means you may not earn very many miles after the first year.

Best credit union travel card

Odyssey™ Rewards World Elite MasterCard® from First Tech FCU

First Tech Odyssey Rewards™ World Elite Mastercard®

First Tech Odyssey Rewards™ World Elite Mastercard®

Regular Purchase APR
6.99% to 18.00% Variable
Annual fee
$75
Rewards Rate
Earn 3 Rewards Points for every $1 spent on travel; 2 Rewards Points for every $1 spent on dining; 1 Reward Point for every $1 spent on all other purchases

Why we like it: We searched over 50 credit unions with few membership restrictions for the best travel rewards credit cards, and found it at First Tech Federal Credit Union. The First Tech Odyssey Rewards™ World Elite Mastercard® offers competitive bonus categories (Earn 3 Rewards Points for every $1 spent on travel; 2 Rewards Points for every $1 spent on dining; 1 Reward Point for every $1 spent on all other purchases), but comes with a lower interest rate than its competitors. The annual fee is $75.

How to Qualify: To apply for the card, you must be a member of First Tech Federal Credit Union, which requires you to work for a sponsor company, live in Lane County, Ore., or become a member of the Financial Fitness Association or the Computer History Museum. A membership share in the credit union is $5 (held in a membership savings account), a membership in the Financial Fitness Association is $8, and a membership to the Computer History Museum is $15.

Rewards program
Points earned with the card go towards the Scorecard Rewards program, which fulfills rewards. Your points can be used towards travel experiences including cruises, hotels, or car rental certificates, merchandise available in their catalog, or can be redeemed for cash back. While your points value may vary for awards, cash back rewards are valued at one cent per point.

Pros:

  • Strong bonus categories. The bonus categories offered by the First Tech Odyssey Rewards™ World Elite Mastercard® are comparable to other major rewards cards. Earn 3 Rewards Points for every $1 spent on travel; 2 Rewards Points for every $1 spent on dining; 1 Reward Point for every $1 spent on all other purchases. This gives it strong value with better terms for the cardholder.
  • Flexible rewards options. Like other programs, points earned on the First Tech Odyssey Rewards™ World Elite Mastercard® can be used toward several different awards. Airfare, cruises, hotel certificates and car rental certificates are all available when you use your points and miles.
  • Lower annual fee and APR than other cards. Credit unions often offer better terms to cardholders than banks, and this card is no exception. The APR may be lower on balances held on the card, and the annual fee is at least $20 less than other comparable cards.

Cons:

  • Points vary in value. The two downsides about Odyssey™ Rewards points are that points vary in value, and they can’t be transferred to other airline partners. Because of this, using them for non-travel rewards may value them under one cent per point.
  • Credit union membership required. While the card is a good deal, you must be a member of the credit union to get the card. If you decide to take your money out of the credit union, your card could be canceled as well.
  • Upfront membership fees. This card is subject to membership in the credit union and an associated organization. Before you can apply for this card, you have to pay $13 in fees.

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Best Rewards Credit Cards: Double miles, 5% cash, and more – January 2021

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It may not have been reviewed, approved or otherwise endorsed by the credit card issuer. This site may be compensated through a credit card issuer partnership.

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Rewards Credit Cards Illustration

Looking for a rewards credit card to earn cash or free travel from the spending you’re already doing? Because there are hundreds of rewards cards on the market, we’ve hand-picked the very best ones, most with no annual fee.

If you want a card to earn cashback rewards, your best bet is to use our calculator to get a personalized recommendation based on your spending habits. Otherwise, read our guide, created to help you understand if you’re ready to earn rewards and whether earning cash back or points/miles for travel rewards is your best bet.

Intro 0% for 15 months and rewards

The Amex EveryDay® Credit Card from American Express is a $0 annual fee card that earns 2x points at U.S. supermarkets, on up to $6,000 per year in purchases (then 1x), and 1x points on other purchases

With Membership Rewards Points, you can turn your points into real airline miles with several frequent flier programs, including Delta SkyMiles, JetBlue TrueBlue and British Airways Executive Club. If you fly Delta and use SkyMiles this is a simple way to build on the SkyMiles you already have without a fee (since the Delta-branded cards all have a fee). Check here to see if focusing on convertible points that can turn into real airline miles is a good plan for you.

Even better, if you don’t want to deal with airline miles, you have the flexibility to use your points for travel on almost any airline. Just book your flight via the American Express Travel website and pay for it with points. Other redemption options include gift cards, merchandise, pay with points at checkout and statement credit.

This card also comes with an intro 0% for 15 Months on purchases that allows you to carry a balance without racking up interest (after the intro period, 12.99% - 23.99% variable APR). And, you earn Membership Rewards points on those purchases!

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  • Simple Welcome Offer
  • You need 20 transactions each month to get the 20% bonus

Tip: Make any large purchases or balance transfers as soon as you can so you can benefit from the intro 0% for 15 Months on purchases and intro 0% for 15 Months on balance transfers (after, 12.99% - 23.99% variable APR).

To see rates & fees for The Amex EveryDay® Credit Card from American Express, please click here.

Read our full review of The Amex EveryDay® Credit Card from American Express here.

1. Cash back rewards credit cards

Start here: No annual fee, 2x cash

The most important recommendation we can make is to start with either the Citi® Double Cash Card – 18 month BT offer or Fidelity® Rewards Visa Signature® Card in your wallet.

Both earn double cash on everything you purchase and pay off with no limits, and no annual fee.

If you prefer MasterCard or have less than perfect credit, go with the Citi® Double Cash Card – 18 month BT offer. If you prefer Visa or plan to use the card abroad, go with the Fidelity (it has a low 1% foreign transaction fee).

If your credit is fair or you have no credit history, then consider one of these options with a slightly lower cash back rate.

Once you have one of these base cards, you can look at our other favorite cards to earn 3%, or even 5% on some of your other spending. You can scroll down this page to see our top picks, or go to our full directory of dozens of cards that earn 3% or better cash back in many categories.

Citi® Double Cash Card – 18 month BT offer

Easy double cash rewards

The Citi® Double Cash Card – 18 month BT offer has easy double cash rewards with a $0 annual fee.

You earn 2% on every purchase with unlimited 1% cash back when you buy, plus an additional 1% as you pay for those purchases. So it’s easy to earn double cash on everything you buy with the card.

And since there’s a $0 annual fee, you don’t have to miss out on the seductive 5% cash back you sometimes see on other cards. Just keep the Citi® Double Cash Card – 18 month BT offer in your wallet for most of your spending, and if you have a card that earns 5% in special categories, just use it for that spending, so you can really rack up the cash rewards.

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  • Earning cash back is simple – there are no special categories or limits
  • There is a fee on foreign transactions, so only use this card for purchases in the U.S.

Tip: You need to earn or use rewards at least once every 12 months, or else your rewards will expire.

Alliant Cashback Visa® Signature Card

2.5% cash back with an annual fee

If you’re willing to pay a $99 annual fee, waived the first year, this card offers an unlimited 2.5% cash back on all purchases. Alliant is a credit union anyone can join online and you don’t need to be a member to apply. If you travel abroad there are no foreign transaction fees to worry about. So is the fee worth it? Basically, if you spend more than $1,000 a month on the card, you’ll earn more than the annual fee in cash back compared to the Citi® Double Cash Card – 18 month BT offer.

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  • Good disclosure: they tell you what they need to know
  • Simple introductory bonus
  • Impossible to know your interest rate until you apply

Tip: Be aware this card is only for people who are eligible for high credit limits, so it’s harder to get than the Citi® Double Cash Card – 18 month BT offer. You’ll need excellent credit and a good income to qualify.

Up to 5% rewards with a little effort

Once you have a double cash rewards card in your wallet, you’re ready to start considering cards that earn 5% cash back in special categories. If you’re really serious about earning the most cash from your spending, you can get all of these rotating category cards and leverage the fact they earn 5% in different categories. Then, use your base double cash rewards card for everything else.

All of these cards have a limit on how much cash back you can earn at 5%, so you’ll want to pay attention to that, and some of them require you to enroll each quarter to activate your 5% cash back, so if you miss the deadline you’ll earn just 1%.

Chase Freedom®

Our pick for small spenders & travelers

Earn 5% cash back on up to $1,500 in combined purchases in bonus categories each quarter you activate. Enjoy new 5% categories every 3 months. Unlimited 1% cash back on all other purchases.

If you spend the full $1,500 in bonus categories each quarter all year long, you could earn $300 cash back a year from your bonus category spending.

See the Chase Freedom® 2020 calendar:

  • January – March 2020: Gas stations, select streaming services and internet, cable and phone services
  • April – June 2020 – Gym memberships and fitness clubs, grocery stores and select streaming services
  • July – September 2020 – Amazon.com and Whole Foods Market
  • October – December 2020 – Walmart and PayPal

A good introductory bonus for small spenders. Earn a $200 Bonus after spending $500 on purchases in your first 3 months from account opening. That’s like earning 30% cash back on your first $500 in purchases with the card and gets you off to a fast start.

Boost your travel rewards. If you have a Chase Sapphire Preferred® Card or a Chase Sapphire Reserve® for travel rewards, you can combine your points with those from the Chase Freedom®, letting you turn your Chase Freedom® points into real airline miles with Chase Ultimate Rewards® partners like United MileagePlus® and Southwest Rapid Rewards®, which can make your points worth even more.

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  • There’s a nice, simple sign on bonus
  • You have to enroll every quarter to earn 5% in bonus categories
  • There are late payment and cash advance fees.

Tip: You generally have about two and a half months during the quarter to activate your 5%. For example, for October – December 2020, you can activate by Dec. 14, 2020 and still get the 5% in your bonus category spending for the whole quarter, even if you made purchases in the category before you activated.

Best 5% cash for bigger spenders

The Discover it® Cash Back and Chase Freedom® are pretty similar when it comes to rewards, but if you spend more than about $1,000 a month, the Discover it® Cash Back is your better bet if you’re looking to choose just one.

Double cash back better for big spenders. As an intro offer for new cardmembers, Discover will match ALL the cash back you’ve earned at the end of your first year, automatically. There’s no signing up. And no limit to how much is matched. So big spenders get more out of this than the introductory offer on the Chase Freedom®.

Plenty of 5% categories. Earn 5% cash back on everyday purchases at different places each quarter like grocery stores, restaurants, gas stations, select rideshares and online shopping, up to the quarterly maximum when you activate. The 5% is limited to $1500 spending per quarter, 1% after that. Activation is required. Earn 1% unlimited cash back automatically on all other purchases.

See Discover’s 2020 cashback calendar:

  • January – March 2021: Grocery stores, Walgreens, CVS
  • April – June 2021 – New! The Home Depot (June), Gas stations, Uber, Lyft and Wholesale Clubs
  • July – September 2021 – Restaurants and PayPal
  • October – December 2021 – Amazon.com, Target.com, and Walmart.com

If you spend the full $1,500 in bonus categories each quarter all year long, you could earn $300 cash back a year from your bonus category spending.

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  • There’s a nice, simple sign on bonus
  • You have to enroll every quarter to earn 5% in bonus categories

Tip: One gotcha about the Discover it® Cash Back is that you only get the 5% in bonus categories for spending you do after you activate your bonus each quarter. For example, for the July through September 5% categories, if you activate on Aug. 15, only spending from Aug. 15 to the end of September will qualify, even if you made purchases in a 5% category before then.

Visa® Platinum Rewards Credit Card from Nusenda Credit Union

Best 5% with no enrollment hassle

If you want 5% in rotating categories each quarter without having to enroll each quarter, consider the NUSENDA Credit Union’s Platinum Cash Rewards card.

Automatic 5% categories. You’re automatically eligible for 5% cash rewards each quarter, up to $1,500 worth of spending across the categories each quarter. Currently that’s typically a $1,500 per quarter maximum, like the Chase Freedom®. But the categories where you can earn 5% are a bit broader.

For 2021, the 5% cashback bonus categories include:

  • January – March: Groceries and gas expenses
  • April – June: Restaurants, movies, and home improvement
  • July – September: Gas and education expenses
  • October – December: Restaurants, hotels and airfare

The introductory bonus is the weakest of the bunch, and offers 2% on all your purchases for the first 90 days. You’d have to spend $15,000 in 90 days to beat the Chase Freedom®‘s $150 sign on-bonus (Earn a $200 Bonus after spending $500 on purchases in your first 3 months from account opening.)

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  • No need to enroll every quarter to earn 5% in bonus categories
  • You need to join a credit union, though anyone can join NUSENDA

Tip: When you apply, you’ll be asked where you live or work to determine your eligibility to join NUSENDA Credit Union. If you don’t live in one of the New Mexico counties listed on the application, just enter the company you work for, and they’ll call you to offer you a non profit organization you can join for a small one time fee to be eligible.

Cash back for frequent diners

What’s better than 2% cash rewards? 3%.

While you can get 5% cash back on dining some quarters with the 5% foursome cards above, to get consistently good cash back on dining all the time, read on.

You can also check out our full list of the best cards for dining cash back.

Uber Visa Card

Best unlimited dining cashback rewards

There is a $0 annual fee with this card. The Uber Visa Card offers 5% back in Uber Cash on Uber, Uber Eats, and JUMP, 3% back in Uber Cash on dining, hotels, and airfare and 1% back in Uber Cash on all other purchases You can earn points through UberEATS and web shopping to video and music streaming services.

This rate is great for people who dine out, whether it’s through a restaurant, a bar, a takeout joint on the corner or UberEATS.

There is a great sign-up bonus: Earn $100 in Uber Cash after spending $500 on purchases in the first 90 days. Also, you can earn up to a $50 credit for online subscription services after you spend $5,000 or more on your card per year.

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  • Good disclosure: they tell you what you need to know
  • Simple introductory bonus
  • Impossible to know your interest rate until you apply

Tip: Use this card for all dining, hotel and airfare purchases to maximize your rewards at the higher percentage rate.

Grocery cash rewards

Groceries are one of the most popular spending categories, and you can check out our full list of the best cards for grocery cash back.

But if you’re out to earn the most possible cash back from your grocery shopping, here is our pick:

Blue Cash Preferred® Card from American Express

Best grocery cash back for heavy shoppers

The Blue Cash Preferred® Card from American Express is the card that can earn the most cash from U.S. supermarket purchases at 6% up to $6,000 per year, then 1%, but there are two big hoops to deal with.

  1. There’s a spending limit of $6,000 a year in supermarket spending that earns 6% (then 1%), so you can get a maximum of $360 a year in rewards at the 6% rate.
  2. There’s a $95 annual fee. So, this is really offering 4.4% cash back on supermarket spending if you spend the full $6,000 a year at U.S. supermarkets and take the annual fee out of your rewards.

So the rule is this: if you spend about $300 – $800 a month at supermarkets, consider this card. Otherwise, get 3% back at supermarkets with no annual fee with the Blue Cash Preferred® Card from American Express or Consumers Credit Union Visa Signature Cash Rebate Card (anyone can join their credit union).

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  • The biggest supermarket cash back rate.
  • There is a $95 annual fee and a cap on the supermarket cash rewards you can earn at 6%.

Tip: If you shop at big box stores like Walmart or Target, those aren’t considered supermarkets, even when you’re buying groceries, and spending there won’t earn the grocery cash back bonus.

To see rates & fees for Blue Cash Preferred® Card from American Express, please click here.

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Amazon Prime Rewards Visa® Signature Card

Best grocery cash back for Whole Foods Market

The Amazon Prime Rewards Visa® Signature Card offers cardholders to Earn 5% back at Amazon.com and Whole Foods Market with eligible Prime membership, 2% back at restaurants, gas stations, and drugstores, and 1% back on all other purchases. The rate you earn at Whole Foods Market rivals other grocery cards and is great considering there is no cap on the amount you can spend and no annual fee. However, keep in mind a Prime membership is required — annual plans cost $119 or $59 for students.

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  • Earn a high cash back rate on Amazon.com and Whole Foods Market purchases
  • Prime membership is required to earn the 5% back on Amazon.com and Whole Foods Market purchases

Tip: Remember to tie your Amazon.com account to your card in order to earn the top points per dollar spent at Amazon.com and Whole Foods Market.

Cash rewards for less than perfect credit

If you’re credit’s not perfect, but you’re now able to pay your cards in full each month, you won’t yet qualify for the very best cash rewards, but you can do well with no annual fee.

Best cash rewards for rebuilding credit

If you have little or no credit history, or are rebuilding credit, the Discover it® Secured is the best way to do it while earning rewards.

You can 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 . A security deposit of $200 or more will establish your credit line (up to the amount that Discover can approve). There are automatic monthly reviews starting at 8 months to see if you can be transitioned to an account with no security deposit.

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Tip: You will get your official FICO® credit score for free with this card. Watch it closely, because the goal of a secured card is to graduate to an unsecured card as quickly as possible.

2. Travel Rewards Cards

Real airline miles

If you’re serious about travel, you want points that give you the option to turn them into real airline miles. Yes, there are ‘no hassle’ cards out there that promise to avoid the rules and traps of airline miles, but you’ll often pay more in points if you use those cards, especially if you’re flying on expensive international flights.

 Chase Sapphire Preferred® Card

Best for serious travel rewards

Serious travel rewards are all about being able to earn points you can transfer into real airline miles or hotel points with several travel partners, and the Chase Sapphire Preferred® Card‘s roster of partners is one of the most useful round. It’s why so many travel enthusiasts love this card.

Transfer to airline hotel travel partners. You can transfer your points to 10 airline and three hotel partners: Aer Lingus AerClub, British Airways Executive Club, Emirates Skywards, Flying Blue AIR FRANCE KLM, Iberia Plus, JetBlue TrueBlue, Singapore Airlines KrisFlyer, Southwest Rapid Rewards, United MileagePlus, Virgin Atlantic Flying Club, IHG Rewards Club, Marriott Bonvoy and World of Hyatt.

A fallback for when mile seats aren’t available. You always have the option to book flights directly via Chase on most airlines without the restrictions of frequent flier programs. Every 10,000 points is worth $125 in flights, hotels, or rental cars booked via the Chase website.

A big introductory bonus. The Chase Sapphire Preferred® Card comes with a big introductory bonus offer that can earn you award travel fast. Earn 60,000 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®.

2x points on dining and travel. You get double points on all dining and travel purchases you make, even cab rides, fast food, and subway tickets.

Check to see if trying to convertible points that can turn into real airline miles makes sense for your habits, but if it does, this is a great card to get started earning big travel value fast.

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  • There are no foreign transaction fees.
  • There is an annual fee of $95.

Tip: For a real powerhouse combo, pair this up with a no annual fee Chase Freedom®. The points you earn from the Chase Freedom® can be added to those from your Chase Sapphire Preferred® Card, letting you take advantage of the fact the Chase Freedom® earns 5x points in special bonus categories.

And if you really want to turbocharge rewards, but can deal with a higher annual fee, the Chase Sapphire Reserve® offers 3x points on travel and dining.

Points that work like cash for travel

If you don’t want to put in the work to get the extra value real airline miles can offer, but like rewards for travel, consider a card that earns points that work like cash. With these cards you just pay for your flight or hotel with the card, and then use points to get statement credit.

Best for not messing with miles

If you’re a big traveler, the action is with real airline miles. But if you don’t want to keep track of rules, and still want great rewards for travel, the Capital One Venture Rewards Credit Card is one of the biggest earners available.

Transfer miles earned. The Capital One Venture Rewards Credit Card is one of four Capital One® cards that allows you to transfer the miles you earn to 14 airline loyalty programs, with more partners to be announced in the future. Transfers can be done at a rate of 2 Venture miles to 1.5 airline miles with most participating airlines. Miles are transferred at a rate of 2:1 to the Emirates Skywards and Singapore Airlines KrisFlyer programs.

Pay for travel, get it reimbursed. Instead of using an airline mile program, with the Capital One Venture Rewards Credit Card you just pay for travel with your card, then use your Venture® miles to get it reimbursed on your statement. 10,000 miles is worth $100 toward any travel.

2x miles on everything. Everything you buy with the card earns 2 Miles per dollar on every purchase, every day, so you can earn up to twice as fast as many airline cards.

A big introductory bonus. The Capital One Venture Rewards Credit Card comes with a big introductory bonus offer that can save you hundreds on your next trip.

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  • There are no foreign transaction fees.
  • Annual Fee: $95 annual fee.

Tip: You can’t mix and match Venture® miles with any regular airline miles you already have. Venture® miles are simply like cash you can use to pay for travel charged to your card.

Best for savers with no annual fee

This card has a pretty basic. You Earn unlimited 1.5 points per $1 spent on all purchases, and you can use those points to cover any travel purchase. There is a $0 annual fee and no foreign transaction fee.

$50,000+ in Bank of America accounts = big earning. Where it gets interesting is if you have $50,000 or more in retirement, savings, checking, or other account balances with Bank of America. That qualifies you for the Bank of America Preferred Rewards program which lets you earn 2.25x – 2.6x points per dollar with no limits.

That’s because Platinum and Platinum Honors level members of Preferred Rewards get a 50% – 75% more points on all the points earned with many Bank of America credit cards, including the Travel Rewards card.

You can rollover any of your 401k or IRA accounts to a Merrill Edge account with no maintenance fees, so you don’t need a huge checking or savings account balance to get this benefit.

No other card offers so much straight cash for travel earning potential off your spending across any category.

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  • There are no foreign transaction fees.
  • You need a big balance in Bank of America accounts to get the most out of the card.

Tip: Bank of America cards have the option to request a PIN that you can use for foreign purchases at places that don’t accept a signature.

3. Learn more

Are you ready to earn rewards with a credit card?

Rewards credit cards can be great, and earn you hundreds of dollars a year in savings, but they are still credit cards, with all the dangers that come with them.

Answer these questions

If you answer yes to any of these questions, you’re not ready for a rewards credit card.

  • Are you unsure if you’ll be able to pay your balance in full every single month?
  • Do you plan to do a balance transfer to your card?
  • Do you sometimes make late payments?
  • Do you tend to max out your current credit limit, even if you pay it off?

Even if you can safely say ‘no’ to the questions, be aware that the lure of rewards can cause you to spend more than you otherwise would.

Credit card companies make money every time you spend on the card, so they want you to spend more. And the more you spend, the greater the chance you spend more than you can afford, which makes them even more money in interest payments.

Cash back or miles for travel?

We don’t think most people should be messing with travel rewards.

Cash rewards cards are more generous than ever and choosing our favorite cash rewards cards will earn you 2% or better on your spending, which is hard to beat even with travel rewards.

You’ll get rewards you can use anywhere – to pay down bills, give a gift, or whatever you want – all with the same good value.

Travel rewards require extra effort, and they tend to penalize you if you use your rewards for something besides travel.

If you already travel twice a year or more, then travel rewards can sometimes offer you more rewards than straight cash back and you should read on.

We’ll cover cash back for travel, real airline miles, and a newer development, convertible points that can turn into real airline miles, but give you more flexibility.

Cash back for travel

Cards with cash rewards let you book travel with any airline or hotel, any time.

You don’t have to think about award rules or restrictions, but you get less value for your points if you try to use them for rewards that don’t involve travel, but you’re usually better off just earning straight cash rewards via a card like the Citi® Double Cash Card – 18 month BT offer.

Best for: People who want to keep it simple (but a regular cash rewards card Is usually better)

Pros

You can use the rewards for any travel. You can pay for travel with your card and use points to get credit back. No worrying about airline award seats or

There are lots of special category bonuses. If you’re really into maximizing things, cash rewards have the biggest array of extra points you can earn from special categories like grocery, gas, or dining spending. We keep a full list of them here.

Usually no annual fee. Cash rewards cards mostly have no annual fee to worry about.

Cons

They don’t have the biggest intro bonuses. The very biggest introductory offers are typically reserved for cards that earn airline miles or other travel rewards.

Expensive tickets aren’t as good a deal. If you spend a lot and can earn a lot of airline miles, you can save a lot on tickets that are expensive in cash, like big international trips or first class tickets.

Real airline miles

These are cards that earn miles directly into your account with one airline, like a Delta SkyMiles American Express. They’re usually not the fastest way to earn miles, but they often come with other benefits like a free checked bag.

Our rule of thumb is you should only consider airline miles if you typically spend $2,000 or more in a month on a credit card, so you can earn enough miles for an award in a reasonable amount of time. Otherwise, stick with a cash back rewards card.

But spending $2,000 a month isn’t the only factor. You should also be able to answer YES to at least one of these three questions:

  1. Do you have 5,000 or more existing airline miles?
  1. Are you planning to fly in business or first class?
  1. Do you want to go to expensive destinations like Asia, Europe, Africa, South America, or Australia?

If you can answer YES to one of them, then airline miles are a good choice for getting the most out of your card spending.

Pros

They can get you luxurious flights. If you’re really flexible with dates and times, a good chunk of real airline miles can get you flights that would otherwise cost thousands of dollars in cash.

You can build on miles you earn from flying.

If you fly more than a few times a year, this can be really lucrative since the miles you earn from your credit card get to build on the ones you already have, getting you to an award ticket a lot faster than spending on a card that just earns regular cash rewards.

They have big intro bonuses

Often, the most generous deals that offer you a bonus to open a new account are on cards that offer travel rewards, rather than regular cash rewards. That’s because travel rewards are more restricted, and not appealing to everyone.

Cons

If you don’t have a big balance, they can be hard to use. To get the most out of airline miles, you really need to pay attention to things like what airline partners you can use with which miles, where to search for award seats, and how many miles is a ‘good’ price to pay.

They can expire. Many airline miles expire after a year or so if you leave your account dormant. It’s easy to avoid it by earning or spending just one mile, but a lot of people forget and end up losing their miles, so unless you’re willing to make them a habit, stay away from regular airline miles.

You need a lot of them to get a good value award. Here’s how much you can expect to pay for flights with miles:

  • 25,000 – 50,000 miles: domestic roundtrip ticket in Economy class (typical value: $300 – $1,000)
  • 50,000 – 100,000 miles: domestic roundtrip ticket in First Class (typical value: $500 – $1,500)
  • 60,000 – 100,000 miles: international roundtrip ticket in Economy Class (typical value: $800 – $1,500)
  • 100,000 – 200,000 miles: international roundtrip ticket in Business Class (typical value: $2,500 – $5,000)

That’s a lot of miles. And if you’re just sticking to one credit card, don’t fly much, and

They have annual fees. Most cards that can earn you real airline miles carry a hefty annual fee, which isn’t worth it if you don’t travel much.

You’re locked into one program. Miles you earn via a traditional airline miles card are stuck in that one program, so if the airline suddenly raises prices or changes rules you’re stuck. Instead, consider convertible points (below) which we prefer over plain airline miles.

Convertible points

These are the newest kind of rewards on the block, and cards like the Chase Sapphire Preferred® Card earn points you can convert into real airline miles with certain airlines anytime.

For example, the Chase Sapphire Preferred® Card will let you convert points into miles with United MileagePlus® and Southwest RapidRewards®, so you’re not locked into just one airline program.

Best for: People who want to take advantage of real airline miles, but want extra flexibility

Pros

You get all the advantages of airline miles. With convertible points like Chase Ultimate Rewards® or Amex Membership Rewards®, you can turn your points into real airline miles with several airline programs at any time. The catch is once you turn points into real airline miles, you can’t convert them back.

You’re not stuck with one airline. Convertible points cards let you turn points into real airline miles with several participating airlines, so you have even more options than a traditional airline miles card.

You get some of the cash rewards benefits. Points from convertible points cards can be used for a lot of things besides travel, like gift cards, merchandise, and sometimes statement credit, though your points tend to go much further using them for travel.

Cons

Cash rewards aren’t as generous. If you don’t have a need for airline miles at all, don’t go for a convertible points card. Stick to a straight up cash rewards card and your points will stretch further. Convertible points cards tend to be less generous for straight cash rewards because they use the savings there to help fund the cost of being able to convert your points into real airline miles.

There are usually annual fees. You’ll generally have to pay an annual fee to get a card that earns convertible points. The Amex EveryDay® Credit Card from American Express is a notable exception. So again, only use these cards if you can answer “yes” to the 3 questions you should ask before earning airline miles with a credit card.

The information related to The Amex EveryDay® Credit Card from American Express, Citi® Double Cash Card – 18 month BT offer, Chase Freedom®, Amazon Rewards Visa® Signature Card, Chase Sapphire Preferred® Card, Chase Sapphire Reserve® and Bank of America® Travel Rewards Credit Card has been independently collected by MagnifyMoney and has not been reviewed or provided by the issuer of this card prior to publication. Terms apply to American Express credit card offers. See americanexpress.com for more information.

Questions and Answers

With most cash rewards credit cards, your rewards won’t expire as long as you keep your account open. But some like the Citi® Double Cash Card – 18 month BT offer require you to either earn or use rewards at least once every so often. For the Citi® Double Cash Card – 18 month BT offer that’s once every 12 months.

With cash rewards, you may lose all of your unused rewards if you close your account, so make sure you use them before closing. With travel rewards, miles you hold in an airline program aren’t affected if you close your credit card account, but they will be subject to whatever expiration rule the airline has.

No – you can earn rewards, even if you pay off your entire balance each month before it’s due.

Most cash rewards cards have no annual fee. But if you have an annual fee card, and don’t want to pay the fee, you can sometimes ask your bank to ‘downgrade’ you to a version with no fee. It might earn fewer rewards, but you can avoid the hassle of closing your account altogether.

Many cards won’t give you the rewards from your spending in months where you are late on your payment, so always make your payments on time with a rewards card.

Usually mortgage services and other loan providers don’t accept credit card payments. Some companies will make payments on your behalf with a credit card, but you’ll be charged a fee, and often that fee is more than the rewards are worth.

Most cards don’t offer rewards for ‘cash equivalent’ transactions like using a cash advance. Some will offer you rewards for completing a balance transfer, but you’re likely to get hit with fees or a less favorable deal than if you use a good card designed for balance transfers..

If you have cash rewards, just send the cash to whomever you want. If you have travel rewards, many cards will let you combine your points with your spouse or domestic partner. Otherwise, you can just book tickets for someone else using your points if you want to make a gift. Airline miles usually can’t be shared with other people unless you want to pay a fee.

You shouldn’t be carrying a balance month to month on rewards cards, because the interest rates on them is sometimes higher than on cards with no rewards. But if you do end up carrying a balance over from one month to another, your rewards won’t disappear as long a you make your payment on time.

5% cards are designed to catch people who aren’t paying attention. So if your card has an enrollment requirement to earn 5% each quarter, and you miss it, you’ll be out of luck for earning 5%.

Yes, many cash rewards cards offer rewards in the form of statement credit, and that reduces the balance you need to pay on your account.

Some cards require you keep your account open for a certain number of months, or else you will lose any sign on bonus you earned. It’s usually best to keep a card open for about a year or more.

Usually authorized users earn rewards in the same account as the primary user.

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The best credit cards can help you earn $2-$5 or more for every $100 you spend – an easy way to make hundreds or even thousands a year. When done properly, low-rate credit cards are also the cheapest way to borrow. Some cards won’t charge you interest for almost two years! And credit cards are one the best ways to build, rebuild or maintain an excellent credit score, if you pay on time and as agreed, and don’t carry high balances.

But if you get it wrong, you can easily end up buried under a pile of expensive debt. This is a step-by-step guide that will help you find the best credit cards listed on our site while avoiding expensive traps.

 

Top Credit Card for 2021

The Amex EveryDay® Credit Card from American Express ranks as our top credit card for 2021. This card offers a combination of benefits that are unmatched among other cards in the market, including 0% intro APR periods, rewards and great cardholder benefits — all at a $0 annual fee. Cardholders can utilize the intro periods for both balance transfers and purchases by taking over a year to pay off debt without accruing interest. The card also comes with a $0 balance transfer fee. The transfers must be requested within 60 days of account opening, which saves you the typical 3% transfer fee most other cards charge.

Beyond the intro periods, there is a rewards program where cardholders can earn 2x points at U.S. supermarkets, on up to $6,000 per year in purchases (then 1x), and 1x points on other purchases This rate is beneficial for people who spend $500 a month at U.S. supermarkets, since this spending allows you to maximize rewards at the higher rate.

The Membership Rewards® points you earn can be redeemed for a variety of options, and a great option for travelers is the ability to transfer points to 18 participating frequent flyer programs including Delta SkyMiles, British Airways, Avianca LifeMiles and Singapore Airlines KrisFlyer.

Often these transfers are on a 1:1 rate, with some programs requiring more or less points. Additional redemption options include booking for travel, gift cards, merchandise, pay with points at checkout and statement credit. This card also has a wide range of additional benefits that vary from shopping and entertainment benefits to travel and purchase protections.

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  • Simple Welcome Offer
  • The 2-point bonus on grocery store spending is capped
  • You need 20 transactions each month to get the 20% bonus

Tip: Make any large purchases or balance transfers as soon as you can so you can benefit from the 0% intro period.

To see rates & fees for The Amex EveryDay® Credit Card from American Express, please click here.

Read our full review of The Amex EveryDay® Credit Card from American Express here.

How to Choose and Use a Rewards Card

It is now easy to earn great rewards when you use a credit card for your spending. You should earn at least 2% cash back, and you can earn even more with a bit of work. At the 2% cash back rate, the money can add up quickly. If you spend $1,000 a month, you can earn $240 a year.

How to Choose

Best Cash Back Credit Cards

Cash back credit cards are a great way for you to earn money back from everyday purchases. There are two types of cash back credit cards — flat-rate and category. Flat-rate cards offer the same cash back rate for all purchases, while category cards offer higher rates for certain purchases, such as gas, groceries, travel and dining. Below, we break down the best cash back credit cards.

Best Flat-Rate

These are the top cards offering a flat cash back rate.

Citi® Double Cash Card – 18 month BT offer

1% When You Buy + 1% When You Pay

Citi® Double Cash Card – 18 month BT offer

The Citi® Double Cash Card – 18 month BT offer is the best overall cash back credit card listed in this article. So long as you pay your statement balance in full and on time every month, you will earn 2% cash back. Earn 2% on every purchase with unlimited 1% cash back when you buy, plus an additional 1% as you pay for those purchases. The bonus cash back can take up to two billing cycles to post.

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  • No caps on how much cash back you can earn.
  • Cash back earning formula is easy to understand
  • There is a range of interest rates. You won’t know yours until after you apply

Key Information

Credit Score Required : Excellent

Purchase Interest Rate : 13.99% – 23.99% (Variable) APR

Annual Fee : $0

Sign-on Bonus : None

Intro Purchase APR : None

Intro Balance Transfer : 0% for 18 months on Balance Transfers

BT Fee : 3% of each balance transfer; $5 minimum.

Tip: Make sure you pay your statement balance in full and on time to maximize your cash back.

FULL REVIEW

Fidelity® Rewards Visa Signature® Card

Unlimited 2% Cash Back on Every Purchase

Fidelity® Rewards Visa Signature® Card

The Fidelity® Rewards Visa Signature® Card offers Fidelity customers an unlimited 2% cash back on everyday purchases. The cash back you earn must be deposited into a Fidelity account, but you don’t need to have a Fidelity account to apply for the card. If you do not have a Fidelity account, they will open a Fidelity Cash Management Account to deposit your cash back. It works like a checking account with no minimum balance requirement and no monthly fees.

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  • Simple cash back earning formula
  • No caps on how much cash back you can earn
  • You need to have a Fidelity account in order to redeem your cash back

Key Information

Credit Score Required : Excellent Credit

Purchase Interest Rate :15.49% Variable

Annual Fee : $0

Sign-on Bonus : None

Intro Purchase APR : None

Intro Balance Transfer : None

BT Fee : Either 3% of the amount of each transfer or $5 minimum, whichever is greater.

Tip: You don’t need to keep your retirement or stock accounts with Fidelity to qualify for this card. Anyone can apply.

FULL REVIEW

Best Category Bonuses

Here are the top cash back cards that pay much higher rates in certain bonus categories, which can be a great way to boost your returns.

Platinum Visa® from Abound Credit Union

Unlimited 5% Cash Back on Gas

Platinum Visa® from Abound Credit Union

If you spend a lot of money on gas, there is no better card than this. You can unlimited 5% cash rewards for gas and 1% cash rewards for other eligible purchases. You must be a member of the credit union, but anyone can join. Pay $5 to join the American Consumer Council of Kentucky (you can do that here) and you will be eligible to join.

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  • No limit to the cash back you can earn, even in the bonus category
  • You have to be a member of the credit union to get the card

Key Information

Credit Score Required : Good

Purchase Interest Rate : 10.75% - 18.00% Variable

Annual Fee : $0

Sign-on Bonus : N/A

Intro Purchase APR : N/A

Intro Balance Transfer : N/A

BT Fee : $0

Tip: If you are not yet a member, you can use the non-member application process. Once approved, you can join with your $5 contribution to American Consumer Council.

Check out other gas credit cards.

Blue Cash Preferred® Card from American Express

6% Cash Back at U.S. Supermarkets (Up to $6,000 of Spend, then 1%)

Blue Cash Preferred® Card from American Express

The unparalleled 6% cash back rate at U.S. supermarkets and select U.S. streaming subscriptions makes this one of the best cards currently on the market for heavy grocery shoppers. Even with the $95 annual fee, most grocery shoppers will come out ahead. You will earn 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. You’ll earn a $250 statement credit after you spend $1,000 in purchases on your new Card within the first 3 months.

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  • Simple, easy to understand Welcome Offer
  • There is an Annual fee

Key Information

Credit Score Required : Excellent/Good

Purchase APR Rate : 13.99%-23.99% Variable

Annual Fee : $95

Welcome Offer : $250 statement credit after you spend $1,000 in purchases on your new Card within the first 3 months.

Intro Purchase APR : 0% on purchases for 12 months

Intro Balance Transfer : N/A

BT Fee : N/A

Tip: If you spend less than $200 a month on groceries, you may be better off with Citi® Double Cash Card – 18 month BT offer or Fidelity® Rewards Visa Signature® Card. But, if you spend more each year, this is a great option.

To see rates & fees for the Blue Cash Preferred® Card from American Express, please click here.

FULL REVIEW

Terms Apply |  Rates & Fees

Check out other grocery credit cards.

Uber Visa Card

3% for Dining Out

Uber Visa Card

This card appears to have millennials’ interests at heart, offering a generous rewards rate on dining purchases, including UberEATS. The Uber Visa Card offers 5% back in Uber Cash on Uber, Uber Eats, and JUMP, 3% back in Uber Cash on dining, hotels, and airfare and 1% back in Uber Cash on all other purchases

As mentioned, dining purchases are defined as spending at restaurants, bars, on takeout or via the UberEATS service. Points can be redeemed for Uber credits, gift cards or cash back.

Another perk: There is a $0 annual fee with this card. And there’s a terrific sign-up bonus – Earn $100 in Uber Cash after spending $500 on purchases in the first 90 days.

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  • Good disclosure: they tell you what you need to know
  • Simple introductory bonus
  • Impossible to know your interest rate until you apply

Key Information

Purchase interest rate : 17.24% - 27.99% Variable

Annual fee :$0

Sign-on bonus : Earn $100 in Uber Cash after spending $500 on purchases in the first 90 days.

Intro purchase APR : None

Intro balance transfer : None

BT fee : Either $10 or 3% of the amount of each transfer, whichever is greater.

Tip: Use this card for all dining, hotel and airfare purchases to maximize your rewards at the higher rate.

FULL REVIEW

Check out other dining cards.

Do you spend a lot of money in other categories? You can find our list of best cash back credit cards for every category here.

Best Travel Credit Cards

If you would like to earn free travel, there are a number of credit cards designed specifically to help you earn free flights quickly. Here is our list of the best travel rewards credit cards.

Best Credit Cards for U.S. Travel

Bank of America® Travel Rewards Credit Card

Best No Annual Fee Travel Card – Miles Can Be Used Anywhere

Bank of America® Travel Rewards Credit Card

With this card, you Earn unlimited 1.5 points per $1 spent on all purchases. There are no restrictions and no blackout dates. Every 100 points can be redeemed for $1 worth of travel. The rewards get even better if you have “Preferred Rewards” at Bank of America®. If you’re a Preferred Rewards member, you could increase your points earned with a bonus of 25% – 75%.

There is a $0 annual fee and no foreign transaction fees. You can use your points for a wide range of travel options, including flights, hotels, vacation packages, cruises, rental cars and even pesky baggage fees.

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  • Simple introductory bonus
  • No limit to the points you can earn
  • There is a range of interest rates. You won’t know yours until after you apply

Key Information

Credit Score Required : Excellent/Good

Purchase Interest Rate : 16.49% - 24.49% Variable APR

Annual Fee : $0

Sign-on Bonus : 25,000 online bonus points after you make at least $1,000 in purchases in the first 90 days of account opening - that can be a $250 statement credit toward travel purchases

Intro Purchase APR : 0% Introductory APR on purchases for 12 billing cycles

Intro Balance Transfer Offer : None

BT Fee : Either $10 or 3% of the amount of each transaction, whichever is greater.

Tip: The Preferred Rewards program offers excellent rewards. If you rollover your old 401(k) or IRA to Merrill, you can earn 25%-75% more points on every purchase and ATM fee reimbursement with a Bank of America checking account.

Best Credit Cards for International Travel

These are some of the best credit cards for use when traveling outside of the country. None of these cards have foreign transaction fees. And some of them even have chip and pin, helping to increase acceptance.

Platinum Rewards MasterCard® from First Tech FCU

No Annual or Foreign Transaction Fee + Chip and Pin Functionality

Platinum Rewards MasterCard® from First Tech FCU

This card is a great companion for overseas travel with a $0 annual fee or foreign transaction fee. Even better, the card offers chip and pin functionality. Most major credit card issuers in America have rolled out chip and signature, which can be problematic overseas. If you try to use your card at a ticket machine or with a waiter’s portable payment device, you have a good chance of being rejected.

It’s easy to join the credit union —membership is free if you work for a sponsor technology company, work for the state of Oregon or live in Lane County, Oregon. Otherwise, you just need to join the Financial Fitness Association with a one-time fee of $8. There is a sub-par rewards program: 1 point for every $1 you spend.

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  • $0 annual fee or foreign transaction fees
  • You have to be a member of the credit union

Key Information

Credit Score Required : Good

Purchase Interest Rate : 7.99% to 18.00% Variable

Annual Fee : $0

Sign-on Bonus : Earn 10,000 Rewards Points when you spend $2,000 in your first two months

Intro Purchase APR : N/A

Intro Balance Transfer APR : Introductory 0% APR balance transfer for 12 months

BT Fee : No balance transfer fee

Tip: Use this card for foreign travel, not for rewards since you earn a very low rate.

Best Foreign Travel for Fair Credit

Capital One QuicksilverOne Cash Rewards Credit Card

This card is designed for people with Fair/Limited credit. If you have defaulted on a loan in the past five years (but not more than once), or if you have had limited credit history (at least one account for less than three years), you would be considered “average.” With this card, you can earn unlimited 1.5% Cash Back on every purchase, every day. There is also no foreign transaction fee, but be aware of the $39 annual fee.

You can use this card to build your credit score by keeping your utilization low (ideally below 20%) and make your payments on time and in full every month. Capital One® provides free access to your FICO® score so you can track your score and see when you are eligible for an upgrade to a no-fee card.

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  • No limit to the cash back you can earn
  • No confusing categories or limits
  • No annual fee or foreign transaction fee

Key Information

Credit Score Required : Fair/Limited

Purchase Interest Rate : 26.99% (Variable)

Annual Fee : $39

Sign-on Bonus : None

Intro Purchase APR : None

Intro Balance Transfer Offer : None

BT Fee : None

Tip: Use this credit card to build your score and avoid expensive foreign transaction fees.

 

How to Use

In order to maximize your cash back, make sure you follow these suggestions:

  • Use your chosen cash back card for ALL of your spending. Your goal should be to replace cash, checks, automatic debits and debit cards completely. For example, you can automate bill payments (like your cell phone) to be debited from your credit card. This will make your life easier (only one payment to make each month) and it will make budgeting easier (you can set a target for spending and track it easily).
  • Set up automatic monthly payments for the statement balance, not the minimum due. If you set up automatic payments, you will ensure that your payment will be on time every month. And if you set up the automatic payment for the statement balance, you will ensure that you are never charged interest and only charge what you can afford to repay.
  • Avoid cash advances. If you use your credit card to take out cash, most companies will charge a cash advance fee that averages 3%. The interest rate on cash advances is usually above 20%. And there is no grace period, which means interest starts accruing right away.

Best Balance Transfer Credit Cards

With a balance transfer credit card, you can transfer debt from a high interest rate credit card to a 0% introductory promotional rate. You can find no fee balance transfers for up to 15 months. If you are willing to pay a fee, you can find a card that offers a 0% introductory rate on balance transfers for 18 or 21 months. The fee is usually worthwhile. If you want to do the calculation, you can use the calculator on our interactive tool.

Remember: You cannot transfer debt between two credit cards from the same bank.

Here is our list of the best 0% balance transfer offers on the market today. All of these credit cards waive interest during the promotional period, which means there is no retroactive or deferred interest charge to worry about. However, if you fail to pay the balance off within the introductory period, interest will be assessed on the remaining balance.

Citi Simplicity® Card - No Late Fees Ever

0% intro APR on transfers for 21 months; 5% balance transfer fee

Citi Simplicity® Card - No Late Fees Ever

Citibank has a strong intro of 0% for 18 months on Balance Transfers. In addition, the Citi Simplicity® Card - No Late Fees Ever has some added benefits. There are no late fees, no penalty rate and no annual fee. Although you should always try to pay on time, it is nice that this card will not punish you for the occasional mistake. In addition to the balance transfer offer, you pay no interest on purchases for 21 months.

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  • No late fee, no penalty APR and a $0 annual fee
  • Interest is not deferred during the balance transfer period, which means if you do not pay off your balance by the end of the promo period, you will not be charged the interest that would have accrued during the deferral period.
  • There is a range of interest rates. You won’t know yours until you apply.

Key Information

Credit Score Required : Excellent/Good

Purchase Interest Rate : 14.74% - 24.74% (Variable)

Annual Fee : $0

Sign-on Bonus : None

Intro Purchase APR : 0% for 18 months on Purchases

Intro Balance Transfer Offer : 0% for 18 months on Balance Transfers

BT Fee : Balance transfer fee – either $5 or 3% of the amount of each transfer, whichever is greater.

Tip: Make sure you transfer your balance within 4 months of opening the card, otherwise you lose the promotional offer.

FULL REVIEW

Chase Slate®

No Fee – introductory 0% on transfers for 15 months

Chase Slate®

With the Chase Slate® credit card you can enjoy an introductory balance transfer offer of 0% Intro APR on Balance Transfers for 15 months and pay an Intro $0 on transfers made within 60 days of account opening. After that: Either $5 or 5%, whichever is greater. The intro $0 transfer fee is a great way to save money when completing your transfer. In addition to the balance transfer offer, you pay 0% Intro APR on Balance Transfers for 15 months — great for those who want to pay off a large purchase over time without accruing interest.

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  • Interest is not deferred during the balance transfer period, which means if you do not pay off your balance by the end of the promo period, you will not be charged the interest that would have accrued during the deferral period.
  • Interest rate is not known until you apply.

Key Information

Credit Score Required : Excellent/Good

Purchase Interest Rate : 16.74% - 25.49% Variable APR

Annual Fee : $0

Sign-on Bonus : No bonus

Intro Purchase APR : 0% Intro APR on Purchases for 15 months; then 16.74% - 25.49% Variable APR

Intro Balance Transfer Offer : 0% Intro APR on Balance Transfers for 15 months; then 16.74% - 25.49% Variable APR

 

BT Fee : Intro $0 on transfers made within 60 days of account opening. After that: Either $5 or 5%, whichever is greater.

Tip: Compete your transfer within 60 days from account opening to take advantage of the intro $0 transfer fee.

FULL REVIEW

Paying off credit card debt sometimes requires more than one balance transfer credit card. If you want even more choices, check out our full guide to the best balance transfer cards, or use our balance transfer calculator to see which cards will save you most.

Best Luxury Card

The Platinum Card® from American Express

Airline benefits, entertainment benefits, rewards and more

The Platinum Card® from American Express

The Platinum Card® from American Express is the best overall luxury card currently on the market, offering numerous benefits for cardholders. To name a few benefits, you can receive: up to $200 in annual savings on Uber rides, American Express Preferred Seating for select entertainment events, access to the American Express Global Lounge Collection with more than 1,000 airport lounges across 120 countries, a $200 airline fee credit per calendar year to cover baggage fees and more at one qualifying airline, and numerous other benefits.

The rewards program is great for frequent travelers — you get five Membership Rewards points per dollar spent on flights booked directly with airlines or with American Express Travel and five Membership Rewards points per dollar spent on eligible hotels booked on amextravel.com.

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  • Good disclosure: they tell you what you need to know
  • Simple introductory bonus
  • High annual fee

Key Information

Credit Score Required : Excellent/Good

Annual Fee : $550

Welcome Offer : 75,000 Membership Rewards® Points after you use your new Card to make $5,000 in purchases in your first 6 months.

Tip: To earn the most Membership Rewards points, be sure to purchase flights directly with airlines or with American Express Travel and book hotel stays directly on amextravel.com.

To see rates & fees for The Platinum Card® from American Express, please click here.

APPLY NOW Secured

on American Express’s secure website

Terms Apply |  Rates & Fees

Best Low Rate Cards

If you’re someone who carries a balance month-to-month, a low rate credit card can be a great way for you to save money. Whether you want to complete a balance transfer, finance a large purchase, of simply have a low rate card in your wallet, there is a card for you. See below for our top picks.

How to Choose and Use a Low Rate Credit Card

When done properly, credit cards can be the cheapest way to borrow. Just make sure you choose the right credit card for your situation and automate a plan to pay off the debt as quickly as possible.

How to Choose

Best Intro 0% APR Purchase Credit Cards

With a 0% introductory APR purchase offer, you will not be charged interest for purchases made on the credit card during the promotional period. This is a great way to finance a purchase. Even better, none of these top cards charge retroactive interest if you don’t pay off the balance during the promotional period. (A lot of store credit cards offer 0%, but then hit you with a big penalty. But don’t worry – these recommendations don’t do that).

Citi® Diamond Preferred® Credit Card

0% intro on Purchases for 18 Months

Citi® Diamond Preferred® Card

If you are looking to finance a purchase, Citi offers a long introductory APR on purchases: 0% for 18 months on Purchases after opening the credit card. This is a fantastic length of time for you to pay off your balance. Additionally, the Citi® Diamond Preferred® Card has an intro 0% for 18 months on Balance Transfers. There is also a $0 annual fee and the ability to choose your payment due date from any available due date in the beginning, middle or end of the month. After the intro period ends, the APR is 14.74% - 24.74% (Variable).

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  • Interest is not deferred during the balance transfer period, which means if you do not pay off your balance by the end of the promo period, you will not be charged the interest that would have accrued during the deferral period.
  • Interest rate is not known until you apply.

Key Information

Credit Score Required :Excellent

Purchase Interest Rate : 14.74% - 24.74% (Variable)

Annual Fee : $0

Sign-on Bonus : None

Intro Purchase APR : 0% for 18 months on Purchases

Intro Balance Transfer Offer : 0% for 18 months on Balance Transfers

BT Fee : Balance transfer fee applies with this offer: 3% of each balance transfer; $5 minimum.

Tip: The 18 months starts from when you open the credit card, not when you make the purchase. So make sure you time your application with your planned purchase.

FULL REVIEW

TruWest Visa® Signature Card

0% Intro on Purchases for 18 Months – Credit Union Membership Required

TruWest Visa® Signature Card

TruWest is a credit union with restricted membership. Unfortunately, you need to live in certain regions of Texas or Arizona, or work for a few select employers to join. You can learn about membership eligibility here. If you are able to join, you will find a long 0% introductory APR for 18 months period on both purchases and balance transfers (7.90%-8.90% Variable APR, after). Even better, the credit card has reasonable credit union interest rates after the promotional period ends. There is no annual fee on the card.

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  • Interest is not deferred during the balance transfer period, which means if you do not pay off your balance by the end of the promo period, you will not be charged the interest that would have accrued during the deferral period.
  • There is a range of interest rates. You won’t know yours until you apply.

Key Information

Credit Score Required : Excellent/Good

Regular Purchase & Balance Transfer APR : 7.90%-8.90% Variable

Annual Fee : $0

Sign-on Bonus : Earn $100 when you spend $100 in the first 90 days

Intro Purchase APR : 0% introductory APR for 18 months

Intro Balance Transfer Offer : 0% introductory APR for 18 months

BT Fee : 3% of the amount of each balance transfer.

Tip: Make sure you check your membership eligibility before you apply.

Best Low Interest Credit Cards

Having a credit card with a rate that stays low is a good idea. In case of an emergency, you will always have access to a low cost way to borrow. Here are some great low interest rate options:

Visa® Titanium Signature Rewards Card from Andrews Federal CU

As Low as 8.49% Variable APR from a Credit Union Anyone Can Join

Visa® Titanium Signature Rewards Card from Andrews Federal CU

The Visa® Titanium Signature Rewards Card from Andrews Federal CU has the lowest ongoing APR on our list at 8.49% Variable. If you qualify for the lowest rate and end up carrying a balance, you may be charged little interest (compared with higher APR cards). This card is also a good option if you have existing debt on a credit card because you can transfer it during the balance transfer N/A.

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  • There is a range of interest rates. You won’t know yours until you apply.
  • You have to join the credit union, but membership is open to all. Click here to check for eligibility.

Key Information

Credit Score Required : Excellent/Good

Purchase Interest Rate : 8.49% Variable

Annual Fee : $0

Sign-on Bonus : None

Intro Purchase APR : None

Intro Balance Transfer Offer : None

BT Fee : 1.50% of the transfer amount or $50; whichever is greater

Tip: You need to have an excellent credit score in order to qualify for the lowest interest rate.

You might get a lower APR from a credit union or bank near you that doesn’t accept nationwide applications, and you can check our full list of low interest credit cards to see if there is one that works for you.

How to Use

If you need to borrow money, credit cards can be an incredibly low cost way of borrowing. Just make sure you pay attention to the following tips:

  • Get that balance transfer done quickly! If you are transferring a balance, make sure you complete the transfer as soon as possible. The introductory offer starts from when you open the card, not when the transfer is completed. And you can lose the offer with most issuers if you wait more than 60 days to complete the transfer.
  • Automate your monthly payments. If you pay late, you can be charged a costly late fee. And, if your payment is 60 days late, you can lose the introductory offer entirely.
  • You cannot transfer debt between two cards of the same bank. For example, if you open a Citi account you will only be able to transfer debt from credit cards other than Citi.

Best Cards to Help Build or Rebuild Your Credit Score

If you’re someone who is new to credit or has poor credit history, there are credit cards designed for you. These cards are a great way to begin your credit journey, or to improve your credit score. See below for our top picks.

How to Choose and Use a Credit Card to Build or Rebuild Your Score

If you are looking to build or rebuild your credit score, a credit card can be the perfect tool.

How to Choose

If you have no credit, or your credit score is below 620, you should consider a secured credit card.

If you have limited credit history (less than three years) or you have only defaulted once on a credit card or loan (not multiple times), you should consider a credit card for fair credit.

Best Secured Credit Cards if You Have Bad or No Credit

Secured credit cards are one of the best options if you need to build or rebuild your credit score. Compared to other secured card offers, the best secured credit cards have no annual fees. If you’re going to use a secured credit card, it will help you grow your score if you pay your balance on time every month, keep your credit utilization low, and you apply for an unsecured credit card after 12-18 months of regular use.

Need to know more? These are ways that you can build your credit without paying interest and spending just $10 a month, and these are tips for improving your credit score.

No Annual Fee Secured Card with Free FICO® Score; $200 Deposit Required

Discover it® Secured

This is our favorite secured credit card. You will get free access to your credit score. In order to open the card, you will need to deposit at least $200, depending upon your creditworthiness. If you have previously filed bankruptcy, you still have the chance to be approved. With this secured credit card, you will 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.

Our favorite part of this card is the automatic monthly reviews starting at 8 months to see if you can be transitioned to an unsecured card. If you qualify, you will be graduated (and get your deposit back).

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  • Free FICO® credit score

Key Information

Credit Score Required :

Sign-on Bonus : Get a dollar-for-dollar match of all the cash back you’ve earned at the end of your first year, automatically (new cardmembers only).

Tip: This product reports to all three credit bureaus. It is a great tool to build your score. But, if you miss payments, you can do damage to your score.

Rate Advantage Secured Visa Credit Card by Coastal FCU

No Fee Secured Card; Credit Union Membership and $100 Deposit Required

Rate Advantage Secured Visa Credit Card by Coastal FCU

This card has no annual fee, and you only need to deposit $100 in a Collateral Savings Account to get started. If you’re not a member of Coastal Credit Union, you can join the North Carolina Sustainable Energy Association for $18, which is deducted from your initial deposit, and become a member. So you’ll need $118 to get started. While the initial deposit is lower than the Discover it® Secured, you lose out on the rewards. This card takes more work to open, since it involves joining a credit union, but anyone can apply.

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  • A single interest rate that you know up front, before you apply
  • You have to join a credit union

Key Information

Credit Score Required : Anyone can apply

Purchase Interest Rate : as low as 17.50% Variable

Annual Fee : $0

Sign-on Bonus : None

Intro Purchase APR : None

Intro Balance Transfer Offer : None

BT Fee : $5 or 3%, whichever is greater

Tip: It is easy to join the credit union. Join an organization for $18 and you will become eligible.

We also have a list of several other no annual fee secured credit cards from both banks and credit unions anyone can join. Or browse our list of hundreds of secured cards to compare rates, fees, and deposit requirements.

Best Credit Cards if You Have Fair Credit

If you have fair or average credit, you might be able to qualify for an unsecured credit card. If you have more than one default in the last five years, you will find it difficult to get approved. In addition, if you are currently delinquent on any of your accounts it will also be hard to get approved, and you should try a secured card instead.

Here are some good cards for people with fair credit:

1.5% Cash Back on every purchase, every day for People with Average Credit – with $39 Annual Fee

Capital One QuicksilverOne Cash Rewards Credit Card

Capital One® has created a credit card specifically for people with Fair/Limited credit. If you have defaulted on a loan (but not more than one) in the last five years, or you have limited credit history (at least one account for less than three years), you would meet the definition of average credit. With this card, you will earn unlimited 1.5% Cash Back on every purchase, every day
with no limit on how much you can earn, and no changing categories.

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  • Interest is not deferred during the balance transfer period, which means if you do not pay off your balance by the end of the promo period, you will not be charged the interest that would have accrued during the deferral period.
  • There is an annual fee

Key Information

Credit Score Required : Fair/Limited

Purchase Interest Rate : 26.99% (Variable)

Annual Fee : $39

Sign-on Bonus : None

Intro Purchase APR : None

Intro Balance Transfer Offer : None

BT Fee : None

Tip: Watch your credit score closely. As you pay down your debt, your score will improve. Once your score is above 700, you can find a lot of choices for credit cards with better rewards or no annual fee.

You may also want to try and see if you are pre-qualified for a credit card before applying. Banks can perform a ‘soft’ pull on your credit file to give you a sense of whether you might qualify for one of their products. It leaves no mark on your credit score, and you can see a list of ways to check if you’re pre-qualified here.

How to Use It

In order to build your credit score with one of these cards, you should follow our tips. By doing this, you should see real improvement in your score.

  • Don’t use more than 10% – 20% of your available credit. For example, if you have a $500 credit limit, never spend more than $50. That keeps your utilization low.
  • Use your card every single month. You should make sure you have a transaction every month, so that positive data is reported to the credit bureaus.
  • Automate and pay your statement balance in full and on time every month. Even just one late payment could crush your score. And by paying the balance in full, you will avoid any interest expense.
  • Watch your score closely. Keep an eye on your credit score. After 12 months, you should really start to see a big improvement. Once your score is above 650, you should try to get your secured card converted or apply for an unsecured credit card.

A Special Note: Beware Predatory Companies

Many lenders target consumers with FICO credit scores of less than 650. If you have searched for “credit cards for bad credit,” you will probably find offers from companies like First Premier. In addition to high interest rates, these lenders often require application processing fees, maintenance fees and more. You could be given a $300 credit limit and see a big portion of it eaten up with fees.

Stay away from these specialist subprime lenders. Instead, consider the following:

  • If you need to borrow, consider a personal loan instead. You can find much better deals. Search for options here.
  • If you want to build your credit score, use a secured credit card instead.

Other Benefits of Using a Credit Card

Not only can you use a credit card to earn rewards, borrow at low rates or build your credit score for free – but there are many other benefits available. Here are some of the benefits that you can find:

Available on Most Credit Cards

  • $0 Liability on Unauthorized Charges: Credit cards are one of the best ways to protect yourself from fraud. So long as you report the fraud to your credit card company, you will not be liable for any losses on any major credit card.
  • Car Rental Collision Insurance: If you waive collision coverage when renting a car, your credit card may provide secondary coverage of $50K or more.

Available on Some Credit Cards

  • Retail Purchase Protection: Protects you from loss, theft, fire or accidental damage for a limited period of time after your purchase has been made. Not all cards protect you from loss, so look it up in the Purchase Protection Coverage Description Document.
  • Price Protection: If you buy something in stores and you see an advertised price, you will receive the difference between the two prices.
  • Extended Warranties: Duplicates both manufacturers and store warranties for a limited length of time and for limited dollar values (varies by card).
  • Travel Accident Coverage: If you are injured during travel, and you purchased the tickets via credit card, your company fully insures you.
  • Lost Luggage Coverage: You can receive compensation for lost, stolen or damaged luggage if you purchased flight or travel tickets using your credit card.
  • Trip Interruption Cancellation Coverage: If travel delays keep you from completing a trip, and you purchased the tickets on your credit card, the full value of the tickets will be refunded
  • Concierge Services: Certain cards offer free access to local concierge services that can help you make dinner reservations, purchase event tickets, and locate items while you are abroad.

Should You Get a Credit Card?

Credit cards are like knives. Used well, they are great (even essential) tools. But if you start playing with them, you can get into trouble quickly.

There are two big risks associated with swiping plastic:

  • You spend more than you should, because it is just too easy
  • You pay higher interest rates than you should, adding years to your debt repayment

Before using a credit card, you need to answer the following question honestly:

Do I trust myself with plastic? Can I exhibit the necessary self-control to spend only what I can afford to pay in full every month?

If you have the discipline and self-control, keep reading and we will help you find the best credit card for your needs. But, if you don’t, it is possible to live a long and fulfilling life without plastic cards in your pocket.

Which type of card is best for you?

Why do you want a credit card? The answer to that question will determine which type of card is best for you.

Just remember this critical rule when selecting a credit card:

You should have a Rewards Card for your spending. You should have a Low Rate Card for your borrowing. But you should avoid mixing the two. The best Rewards Cards tend to have higher interest rates. And the best Low Rate Cards often have no (or bad) rewards.

The information related to The Amex EveryDay® Credit Card from American Express, Citi® Double Cash Card – 18 month BT offer, Bank of America® Travel Rewards Credit Card, Citi Simplicity® Card - No Late Fees Ever, Chase Slate® and Citi® Diamond Preferred® Card has been independently collected by MagnifyMoney and has not been reviewed or provided by the issuer of this card prior to publication. Terms apply to American Express credit card offers. See americanexpress.com for more information.

FAQ

The minimum payment calculation differs by credit card issuer. The most common is 1% of the principal balance plus any interest or fees that accrued in the month (or a set amount, like $25, if the minimum due is very low).

If you use your credit card at an ATM to take out cash, a few things will happen. First, you would be charged a cash advance fee, which is usually about 3%. Second, interest would start accruing immediately, because most issuers do not have a cash advance grace period. And the cash advance interest rate is usually much higher than the purchase rate. Don’t be surprised to see interest rates as high as 24% (or higher).

While there is no over-limit fee, having a credit card with a balance that is greater than the credit limit can have a very negative impact on your credit score. In general, you want to keep your credit card balance below 20% (ideally below 10%) of your credit limit.

We do not recommend closing credit cards, because it can reduce your credit score. Closing unused credit cards does two things. First, it reduces your total available credit. That increases your utilization, which is bad for your score. Second, the age of your open credit cards helps your score. If you close old accounts, you can hurt your score over time.

The law requires that any payment amount beyond the minimum due must be applied to the highest APR balance first. The minimum due is at the discretion of the credit card companies. However, it is usually applied to the balance with the lowest APR first. Your goal is to eliminate high APR debt – so don’t be afraid to make much bigger payments on credit cards. The extra amount will always go to the most expensive debt first.

Each application for new credit can take 5-10 points off your credit score. If you are planning on applying for a mortgage or auto loan in the near future, you have to be very careful. Even just 5 points can be painful. However, if you are not going to be applying for a mortgage or auto loan in the next 6-12 months, you should not worry too much about your credit score. Instead, focus on getting out of debt quickly.