While there are literally hundreds of credit cards available from thousands of banks and card issuers, not all of them are created equal. If you’re looking to take advantage of the benefits that come with carrying plastic, then it’s important to find the best credit card for your needs and budget. You can read more about how to choose the best credit card, but in this guide, we’ll help you narrow down your options by focusing on five different categories, each with its own set of perks and benefits.
Best cashback credit card
The best credit card for earning cashback is American Express Blue Cash Preferred because it offers an unlimited 3% cashback on everyday purchases. Since there’s no limit, you can earn more than $250 in rewards each year—and you’ll enjoy additional perks like a 0% introductory APR on purchases and balance transfers, as well as 6-month free insurance coverage against theft or damage to your purchase. This card also comes with a $95 annual fee, but if you spend at least $1,000 each month (for a total of $12,000 per year), that fee will be waived. To learn more about how to choose a credit card, read our reviews of other top cash-back cards.
Best signup bonus
One of our favorite rewards credit cards is Chase Sapphire Preferred. The card offers 50,000 bonus points after you spend $4,000 on purchases in the first three months from account opening. That's $625 toward travel when you redeem through Chase Ultimate Rewards®. Other perks include a lucrative signup bonus and a solid lineup of additional benefits that make it easy to rack up rewards with each purchase. Plus, cardmembers can earn two points per dollar spent on travel and dining at restaurants worldwide & one point per dollar spent on all other purchases worldwide. We like that we can transfer our points to different partners depending on where we want to use them the most.
Best travel rewards card
If you travel often and want to earn free flights, hotel stays, car rentals, or other types of rewards when you do, a travel credit card is likely your best bet. Travel cards typically offer higher rewards than cash-back cards for spending in specific categories like restaurants or airfare. As an added bonus, most travel credit cards won’t charge foreign transaction fees, so there’s no extra cost if you use your card abroad. And with special perks like free checked bags and priority boarding on select airlines, these cards can help reduce some of your out-of-pocket costs while traveling. For more information about how to choose a travel rewards card that’s right for you, check out our guide here.
Best low-interest rate card
If you're shopping around for a new credit card, it's worth knowing how much interest you're going to pay on your balance. By law, credit card companies have to disclose their standard interest rates; they also tend to advertise their highest advertised rates, which can be as high as 25% but apply only to very high balances. The real question is what rate you'll pay when your credit is good but not exceptional. For that, you need to look at introductory or teaser rates. Those are usually pretty low—as low as 1%—but only last for 12 months (or sometimes 18 months). And then there are always monthly fees and other fees that can quickly add up over time if not carefully monitored.
