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Reviewed / Tara Jacoby
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Credit:
Reviewed / Tara Jacoby
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Chase's Freedom Flex℠ card gives you the power to decide when and where you want cash back, as well as general cash back on all purchases. Read More
Uniquely, this card earns 1% cash back on a purchase and an additional 1% when you pay it off. The 2% cash back on all purchases has great value. Read More
Need cash back on streaming services, transit, or groceries? The Blue Cash Preferred® Card has you covered with great reward rates in every category. Read More
While most secured cards stake their value only on accepting those with poor credit, this card does that and offers great rewards with no annual fee. Read More
With no annual fee and cash back on every purchase, this credit card allows for flexibility. Just don't expect many other perks or bonuses in return. Read More
Not sure what’s the best credit card for you? Don’t worry—we’re here to help you figure it out. Credit card issuers offer many options that can help you meet different goals.
If your goal is earning cash back without a lot of rules to follow, the Citi® Double Cash card lets you earn unlimited 1% cash back when you make a purchase and another 1% cash back when you pay it off. If you're a Prime member who shops on Amazon for most essentials (and also everything else), the Amazon Prime Rewards Visa Signature will help you earn 5% cash back each time you check out.
When comparing cards, you also want to look at the rates and fees because various terms apply and can make one card better for you than another. For example, a card with a 0% APR balance transfer deal and a low balance transfer fee may be ideal if you want to pay off debt, whereas no foreign transaction fee may be the bigger priority when planning travel.
Reviewed’s experts compared rewards card terms to develop this short list of the top cards on the market. Here’s the best of the best!
In short, the best credit card is whatever works for you. But if you want a little more specific guidance when choosing a credit card, here are a few pointers.
Rewards credit cards should align with your spending habits. In other words, those of us who rely on public transportation likely don’t need gas perks. Take a look at your checking account to see if your bank breaks down where your money goes. Are your grocery bills a considerable amount? Are you a big entertainment spender? Or is your phone bill a good chunk of your spending? Those are the types of credit card rewards you should seek out.
If a credit card charges an annual fee, its benefits should outweigh the out-of-pocket cost. Generally, the more rewards the card has, the higher the fee. For instance, the Chase Sapphire Reserve will cost you $550 every year, but there’s an annual travel credit worth a few hundred dollars that knocks down the price tag. Not to mention, you’ll score premium travel perks, including complimentary airport lounge access. On the other hand, with a no-annual-fee credit card, any rewards you earn from your very first swipe is money in your pocket.
Some credit card issuers allow you to change your payment date; others do not. If choosing a particular time of the month will help you keep on top of your bills, be sure that’s an option. Late payments not only come with a fee, but affect your credit history, which is vital for everything from job applications to getting approved for a mortgage and even utilities. When all else fails, there’s always automatic payments.
Credit card annual percentage rates range from 13% to 25%, with the national average in January 2022 around 16%. Credit cards marketed for applicants with bad credit tend to be on the higher side, as do credit cards with rewards programs.
Before you apply for a credit card, you can see this range in the cardmember agreement. You won’t know the rate until you’re approved, as it’s determined by the issuer based on your creditworthiness. The higher your credit score, the lower the rate you can expect. Remember that with a variable rate, an issuer can change the interest it charges at any time—and, per your cardmember agreement, it may not have to notify you.
An issuer may charge a different APR for purchases, balance transfers, and cash advances. It may even offer an introductory rate that includes zero interest for a period of 12 to 18 (or 21) months. Lastly, a penalty APR may kick in if you’re late for a payment, exceed your credit limit, or break other terms and conditions laid out by the issuer.
We’ll say it till we’re blue in the face: Pay off your balance each month, and you won’t have to think about interest.
Our experts have covered credit cards and studied card benefits for years, and they have experience writing for outlets like The New York Times, Associated Press, Bankrate, and The Points Guy. We looked at credit cards from major banks as well as co-branded cards from issuers like retail stores, airlines, and hotels, and evaluated our options to choose the best overall card in different situations.
Please note: The offers mentioned above were valid at time of publication but are subject to change at any time. Some may no longer be available.
Reviewed has partnered with CardRatings for our coverage of credit card products. Reviewed and CardRatings may receive a commission from card issuers.
See rates and fees for the Blue Cash Preferred Card from American Express. See rates and fees for the American Express Business Gold Card.
Despite the term “annual percentage rate,” credit card issuers calculate interest daily. The daily periodic rate is determined by dividing your APR by 365 days, which is then applied to your average daily balance. Crunch this number by adding up the total you carry each and every day of the billing cycle, and then dividing that by the number of days in the billing cycle.
Let’s say your card’s APR is 16%, and this month you carried an average daily balance of $2,000. The issuer first calculates the daily periodic rate (0.16 divided by 365). That rate (0.00043) is applied to your average balance (0.00043 x $2,000), which brings us to 0.87. Over the course of the 30-day billing cycle (0.87 x 30), you’ll pay $26.30 in interest.
If crunching numbers isn’t really your thing, some issuers include tools that calculate how much interest you’ll owe based on your monthly payment. Petal, for example, shares this information in a mobile app for its two credit cards.
Remember: You won’t be charged interest if you pay off your balance in full and on time each billing cycle. We get that life happens. So if on occasion that’s not possible, consider paying more than the minimum amount to lessen the interest you’ll pay over time, or make more than one payment during the billing cycle to lower your average balance.
We hate to break it to you, but there’s no one-size-fits-all answer here. The right number for you depends on what you can responsibly manage.
Does having a piece of shiny plastic an arm’s length away often encourage you to spend money you don’t have? You may want to think twice before applying for more credit. Carrying a balance you can’t afford contributes to interest charges, and in the long run costs you more money.
If you’re financially responsible and stick to making purchases that you can pay off, there may be some upsides to adding another card to your arsenal. For instance, if you’re a jet-setter without a card that rewards you for hitting the road, a travel card may make sense for you.
There are a few other things to consider before opening a new account, like adding a different payment processing network, or taking note of any annual fees.
Pay your outstanding balance and redeem any rewards. Then, call the issuer to confirm you have no balance, and ask to close your account. But before you pick up the phone, there are a few things to consider.
First, your score is based partly on the length of your credit history. Closing an older account will temporarily knock your score. If you’re applying for a mortgage in the near future—or anything else that may require a credit check—think twice about the timing.
Saying goodbye to a card also means you’ll have less credit available. And that means your utilization ratio will likely go up. (If you need a refresher: That’s the balance you carry divided by your credit line—and finance experts recommend keeping this at 30% or less.) Your utilization ratio is another major factor in calculating your score. In addition to being mindful of your balance, you can ask another issuer to increase your limit to help out a little.
Keep in mind, if you’re a responsible credit user, your score will eventually rebound. But there are a few other factors to consider when deciding to close an account, such as whether you’re close to hitting a rewards milestone.
Closing the account could still be the right move for you, especially if you’re tempted to spend money you don’t have, or you feel you already have too much credit at your disposal. In that case, call the issuer and then destroy your physical card.
In a month or two, check your credit report to confirm that the account has been closed at your request. Contact the issuer if it states otherwise.
Secured credit cards are geared toward those of us who have made mistakes with credit in the past, or those of us with limited credit histories. Students and people new to the U.S. often fall under these categories.
Unlike an unsecured credit card, cardholders are required to put down a security deposit—often around $200—that is typically equivalent to their credit line. There are, however, a few that require a smaller amount, including the Capital One Platinum Secured Credit Card, which is among our best secured credit cards, as you may put down as little as $49.
Many credit card issuers will review your account after several months. If you’ve responsibly used your credit card, the issuer may consider upgrading your card or refunding your deposit.
Revolving credit isn’t the only factor that impacts your score. Do you have student or car loans, or another type of installment loan? The lender likely reports your payments to the major credit bureaus, which impacts your score.
Consider taking out a credit-builder loan with a small bank or credit union. This type of installment loan will add to your credit mix. (“Credit mix” refers to the types of accounts that make up your credit report. It’s one of the factors that affects credit scores.) Making on-time payments gives it a boost, too.
Even though your credit score can affect your utilities, your utility payments are not reported to credit bureaus. We don’t make the rules! There are some services, such as LevelCredit and RentTrack, that will report your utility and rent payments to the credit bureau to give you credit for your timeliness.
There are other tools, like Experian Boost, that may make sense for you. It taps your phone and utility payments—and even your Netflix subscription—to nudge your score a bit. According to the credit bureau, users who sign up for the service see an average jump of 13 points in their FICO scores.
APR rates and credit limits vary based on your individual credit. Credit limits and interest rates for each card are determined based on each cardholder's personal situation, so we did not take that information into account when evaluating these cards. One thing to remember is that if you pay your card off in full every month, you will not be charged interest.
Banks have the final say on who they accept for a credit card. These recommendations were put together with the assumption that applicants would have average credit or above. That being said, banks decide who they will issue credit cards to using criteria including, but not always limited to, an individual's credit score when evaluating each applicant.
Business credit cards work a bit differently. Nearly every business card requires a personal guarantee, which is an agreement between the business owner and the credit card issuer. It means the issuer can go after your personal assets to satisfy any balance owed if your business defaults on the card payments—even if you leave the company. That goes for expenses you or your employees charge to the credit card.
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