Credit cards can do a lot. As a baseline, all credit cards provide you with a convenient, secure payment method and the chance to build credit with responsible use.
But the best credit cards can do so much more.
Want to save on interest while paying off debt or financing an upcoming purchase? Try a balance transfer or 0% introductory APR card. Want to earn rewards on everyday spending? The best cash-back credit card that aligns with your spending habits is the way to go. Maybe you’re looking for a travel card to make your next vacation more luxurious or a business card to take your side hustle to the next level. With so many credit cards on the market, you’re likely to find one that fits your needs.
But it can also be difficult to find the right card for you for precisely that same reason -- an abundance of choice. You’ll need to carefully compare rewards structures, annual fees and cardholder benefits. Luckily, CNET has done the research for you. Here are our editors’ top picks for the best credit cards across different categories, and what you should know before you apply for each one.
The Wells Fargo Active Cash Card offers most people the most helpful benefits overall. The lack of an annual fee makes this card accessible and low maintenance. The 2% cash rewards across your purchases is a competitive rate: While it’s not the highest you’ll find for some major shopping categories like groceries and gas, it gives you one of the best rates on more obscure spending categories like online shopping, services and bills. The introductory APR gives you an opportunity to finance a large purchase or to prevent interest charges with a qualifying balance transfer, and the welcome offer has one of the best spending-to-rewards ratio.
For more details on this card’s benefits, see our full review of the Wells Fargo Active Cash Card.
- Intro Balance Transfer APR
- 0% intro APR for 15 months from account opening on qualifying balance transfers
- Intro Purchase APR
- 0% intro APR for 15 months from account opening
- Regular APR
- 20.24%, 25.24%, or 29.99% Variable APR
- Balance Transfer Fee
- up to 5%, min: $5
The Wells Fargo Active Cash Card offers most people the most helpful benefits overall. The lack of an annual fee makes this card accessible and low maintenance. The 2% cash rewards across your purchases is a competitive rate: While it’s not the highest you’ll find for some major shopping categories like groceries and gas, it gives you one of the best rates on more obscure spending categories like online shopping, services and bills. The introductory APR gives you an opportunity to finance a large purchase or to prevent interest charges with a qualifying balance transfer, and the welcome offer has one of the best spending-to-rewards ratio.
For more details on this card’s benefits, see our full review of the Wells Fargo Active Cash Card.
- Intro Balance Transfer APR
- 0% intro APR for 15 months from account opening on qualifying balance transfers
- Intro Purchase APR
- 0% intro APR for 15 months from account opening
- Regular APR
- 20.24%, 25.24%, or 29.99% Variable APR
- Balance Transfer Fee
- up to 5%, min: $5
The Citi Simplicity* offers both one of the longest introductory balance transfer APR and a competitive balance transfer fee.
Cardholders get nearly two years to pay down a transferred balance, with the card’s offer lasting 21 months before the standard 19.24% to 29.99% variable APR kicks in. It’s introductory balance transfer fee of 3% ($5 minimum) lasts for the first four months -- then it spikes up to 5% ($5 minimum). It’s one of the best combinations on the market.
You can learn more in our Citi Simplicity review.
- Intro Balance Transfer APR
- 0% for 21 months on Balance Transfers
- Intro Purchase APR
- 0% for 12 months on Purchases
- Regular APR
- 19.24% – 29.99% (Variable)
- Balance Transfer Fee
- There is an intro balance transfer fee of 3% of each transfer (minimum $5) completed within the first 4 months of account opening. A balance transfer fee of 5% of each transfer ($5 minimum) applies if completed after 4 months of account opening.
The Citi Simplicity* offers both one of the longest introductory balance transfer APR and a competitive balance transfer fee.
Cardholders get nearly two years to pay down a transferred balance, with the card’s offer lasting 21 months before the standard 19.24% to 29.99% variable APR kicks in. It’s introductory balance transfer fee of 3% ($5 minimum) lasts for the first four months -- then it spikes up to 5% ($5 minimum). It’s one of the best combinations on the market.
You can learn more in our Citi Simplicity review.
- Intro Balance Transfer APR
- 0% for 21 months on Balance Transfers
- Intro Purchase APR
- 0% for 12 months on Purchases
- Regular APR
- 19.24% – 29.99% (Variable)
- Balance Transfer Fee
- There is an intro balance transfer fee of 3% of each transfer (minimum $5) completed within the first 4 months of account opening. A balance transfer fee of 5% of each transfer ($5 minimum) applies if completed after 4 months of account opening.
X1 Card
The X1 card operates differently than most -- instead of weighing your credit score to determine your credit limit, it weighs your income. It also provides a higher credit limit than most cards and a rewards program that gets better based on how much you spend. Its earning potential is very high as well, providing up to 10x points per dollar at brands like Apple, Macy’s, Nike and Sephora when you shop in the X1 app.
It’s worth noting that how you redeem your rewards will affect their value. For example, you can redeem rewards with a number of popular merchants like Amazon or Costco at a value of 1 cent per point, or for cash back at 0.7 cent each.
Check out our X1 Card review to learn more.
- Intro Balance Transfer APR
- N/A
- Intro Purchase APR
- N/A
- Regular APR
- 15.50% – 27.75% Variable
- Balance Transfer Fee
- 2% of the amount of each transfer.
The X1 card operates differently than most -- instead of weighing your credit score to determine your credit limit, it weighs your income. It also provides a higher credit limit than most cards and a rewards program that gets better based on how much you spend. Its earning potential is very high as well, providing up to 10x points per dollar at brands like Apple, Macy’s, Nike and Sephora when you shop in the X1 app.
It’s worth noting that how you redeem your rewards will affect their value. For example, you can redeem rewards with a number of popular merchants like Amazon or Costco at a value of 1 cent per point, or for cash back at 0.7 cent each.
Check out our X1 Card review to learn more.
- Intro Balance Transfer APR
- N/A
- Intro Purchase APR
- N/A
- Regular APR
- 15.50% – 27.75% Variable
- Balance Transfer Fee
- 2% of the amount of each transfer.
The Chase Sapphire Preferred® Card is arguably the best travel card on the market. It’s hard to rival its rewards program -- it expands to everyday categories and has competitive rates on travel. Points are worth $0.01 when redeemed for statement credit, but you get a 25% boost in redemption value if you redeem your points for travel through Chase Ultimate Rewards. This card also offers one-to-one point transfers to Chase’s 14 hotel and airline travel partners, which, if used strategically, can unlock outsized value for your points.
The welcome bonus -- 60,000 points when you spend $4,000 in purchases within the first three months of account opening -- is worth $750 toward travel booked through Chase Ultimate Rewards, as well.
There are no foreign transaction fees and you also get a slew of travel-related perks like baggage delay insurance, trip delay insurance and trip cancellation/interruption insurance. In combination, this is a standout offer for a $95 annual fee.
Read more details in our full review of the Chase Sapphire Preferred.
- Intro Balance Transfer APR
- N/A
- Intro Purchase APR
- N/A
- Regular APR
- 21.49% – 28.49% Variable
- Balance Transfer Fee
- Either $5 or 5% of the amount of each transfer, whichever is greater.
The Chase Sapphire Preferred® Card is arguably the best travel card on the market. It’s hard to rival its rewards program -- it expands to everyday categories and has competitive rates on travel. Points are worth $0.01 when redeemed for statement credit, but you get a 25% boost in redemption value if you redeem your points for travel through Chase Ultimate Rewards. This card also offers one-to-one point transfers to Chase’s 14 hotel and airline travel partners, which, if used strategically, can unlock outsized value for your points.
The welcome bonus -- 60,000 points when you spend $4,000 in purchases within the first three months of account opening -- is worth $750 toward travel booked through Chase Ultimate Rewards, as well.
There are no foreign transaction fees and you also get a slew of travel-related perks like baggage delay insurance, trip delay insurance and trip cancellation/interruption insurance. In combination, this is a standout offer for a $95 annual fee.
Read more details in our full review of the Chase Sapphire Preferred.
- Intro Balance Transfer APR
- N/A
- Intro Purchase APR
- N/A
- Regular APR
- 21.49% – 28.49% Variable
- Balance Transfer Fee
- Either $5 or 5% of the amount of each transfer, whichever is greater.
U.S. Bank Visa® Platinum Card
The U.S. Bank Visa Platinum Card offers a whopping 18 billing cycles at 0% introductory APR for purchases and balance transfers (19.74% to 29.74% variable APR thereafter). Though there is no sign-up bonus or rewards program, there is also no annual fee, making this a low-maintenance option.
Not only is this a great card if you’re making a large purchase or want to prolong your interest-free payments, but it’s an excellent emergency credit card in case you need to cover a large expense unexpectedly. Other 0% APR credit cards may have a shorter period of time with the 0% introductory rate, but you may receive other benefits and rewards.
Check out our full review of the U.S. Bank Visa Platinum Card for more information.
- Intro Balance Transfer APR
- 0% intro APR for 18 billing cycles on balance transfers
- Intro Purchase APR
- 0% intro APR for 18 billing cycles on purchases
- Regular APR
- 19.74% – 29.74% (Variable)
- Balance Transfer Fee
- Either 3% of the amount of each transfer or $5 minimum, whichever is greater
The U.S. Bank Visa Platinum Card offers a whopping 18 billing cycles at 0% introductory APR for purchases and balance transfers (19.74% to 29.74% variable APR thereafter). Though there is no sign-up bonus or rewards program, there is also no annual fee, making this a low-maintenance option.
Not only is this a great card if you’re making a large purchase or want to prolong your interest-free payments, but it’s an excellent emergency credit card in case you need to cover a large expense unexpectedly. Other 0% APR credit cards may have a shorter period of time with the 0% introductory rate, but you may receive other benefits and rewards.
Check out our full review of the U.S. Bank Visa Platinum Card for more information.
- Intro Balance Transfer APR
- 0% intro APR for 18 billing cycles on balance transfers
- Intro Purchase APR
- 0% intro APR for 18 billing cycles on purchases
- Regular APR
- 19.74% – 29.74% (Variable)
- Balance Transfer Fee
- Either 3% of the amount of each transfer or $5 minimum, whichever is greater
The Ink Business Cash is hard to beat if you’re a small business owner. Not only does it offer a good return for your expenses, but it also features a rewarding welcome bonus and a number of shopping and travel protections.
There is a $25,000 annual spending cap on the 5% and 2% rewards categories to keep in mind, but up to that point it’s one of the most rewarding business cards you could pick. Its rewards are also well-rounded, with a healthy mix of gas station, restaurant, office supply store and internet, phone, and cable service categories.
You can learn more in our Chase Ink Business Cash Credit Card review.
- Intro Balance Transfer APR
- N/A
- Intro Purchase APR
- 0% Intro APR on Purchases for 12 months
- Regular APR
- 18.49% – 24.49% Variable
- Balance Transfer Fee
- Either $5 or 5% of the amount of each transfer, whichever is greater.
The Ink Business Cash is hard to beat if you’re a small business owner. Not only does it offer a good return for your expenses, but it also features a rewarding welcome bonus and a number of shopping and travel protections.
There is a $25,000 annual spending cap on the 5% and 2% rewards categories to keep in mind, but up to that point it’s one of the most rewarding business cards you could pick. Its rewards are also well-rounded, with a healthy mix of gas station, restaurant, office supply store and internet, phone, and cable service categories.
You can learn more in our Chase Ink Business Cash Credit Card review.
- Intro Balance Transfer APR
- N/A
- Intro Purchase APR
- 0% Intro APR on Purchases for 12 months
- Regular APR
- 18.49% – 24.49% Variable
- Balance Transfer Fee
- Either $5 or 5% of the amount of each transfer, whichever is greater.
Discover it® Cash Back* offers a unique sign-on bonus: an unlimited cash-back match at the end of your first year. You don’t even have to reach a minimum spending threshold, like with most other sign-up bonuses -- but you can outearn other credit cards with such bonuses if you spend enough.
You will enjoy 5% cash back up to the quarterly maximums (then 1%) on rotating quarterly categories as you activate them. Some of these quarterly categories include purchases from Amazon.com, grocery stores or gas stations. Discover will also give you 1% cash back on all other purchases. We’ve also collected a few other credit cards with generous sign-on bonuses.
Check out more details in our full review of the Discover it Cash Back.
- Intro Balance Transfer APR
- 0% for 15 months
- Intro Purchase APR
- 0% for 15 months
- Regular APR
- 17.24% – 28.24% Variable APR
- Balance Transfer Fee
- 3% intro balance transfer fee, up to 5% fee on future balance transfers (see terms)*
Discover it® Cash Back* offers a unique sign-on bonus: an unlimited cash-back match at the end of your first year. You don’t even have to reach a minimum spending threshold, like with most other sign-up bonuses -- but you can outearn other credit cards with such bonuses if you spend enough.
You will enjoy 5% cash back up to the quarterly maximums (then 1%) on rotating quarterly categories as you activate them. Some of these quarterly categories include purchases from Amazon.com, grocery stores or gas stations. Discover will also give you 1% cash back on all other purchases. We’ve also collected a few other credit cards with generous sign-on bonuses.
Check out more details in our full review of the Discover it Cash Back.
- Intro Balance Transfer APR
- 0% for 15 months
- Intro Purchase APR
- 0% for 15 months
- Regular APR
- 17.24% – 28.24% Variable APR
- Balance Transfer Fee
- 3% intro balance transfer fee, up to 5% fee on future balance transfers (see terms)*
The Discover it® Student Cash Back* offers better rewards than a lot of credit cards, though it may be more complicated to navigate. Its bonus categories rotate quarterly and need to be manually activated each time, lest you miss out on any rewards. It also has one of the best welcome bonuses on the market. At the end of your first year, Discover will essentially double the rewards you earn for your first year with the card.
There is a quarterly spending cap of $1,500 to earn the 5% rewards rate (then 1%), but may not be an issue for college students with smaller budgets. It’s a rewarding card to use to build your credit with responsible use before moving on to non-student credit cards.
You can find all the details in our Discover it Student Cash Back review.
- Intro Balance Transfer APR
- 10.99% for 6 months
- Intro Purchase APR
- 0% for 6 months
- Regular APR
- 18.24% – 27.24% Variable APR
- Balance Transfer Fee
- 3% intro balance transfer fee, up to 5% fee on future balance transfers (see terms)*
The Discover it® Student Cash Back* offers better rewards than a lot of credit cards, though it may be more complicated to navigate. Its bonus categories rotate quarterly and need to be manually activated each time, lest you miss out on any rewards. It also has one of the best welcome bonuses on the market. At the end of your first year, Discover will essentially double the rewards you earn for your first year with the card.
There is a quarterly spending cap of $1,500 to earn the 5% rewards rate (then 1%), but may not be an issue for college students with smaller budgets. It’s a rewarding card to use to build your credit with responsible use before moving on to non-student credit cards.
You can find all the details in our Discover it Student Cash Back review.
- Intro Balance Transfer APR
- 10.99% for 6 months
- Intro Purchase APR
- 0% for 6 months
- Regular APR
- 18.24% – 27.24% Variable APR
- Balance Transfer Fee
- 3% intro balance transfer fee, up to 5% fee on future balance transfers (see terms)*
The Prime Visa has a lot going for it. It offers a high cash-back rate for Amazon’s unmatched catalog of products while providing a slew of useful shopping protections for your new purchases. It also has one of the easiest to reach welcome bonuses -- simply get approved for this card to have a $100 Amazon gift card (or more) added to your account.
While the card itself doesn’t carry an annual fee, you have to be an Amazon Prime member to qualify for it, a $139 yearly expense. While that’s a bit higher than the average credit card annual fee, if you’re a frequent Amazon shopper, faster package delivery and access to Prime Video might offset this cost.
You can learn more about it in our Prime Visa review.
- Intro Balance Transfer APR
- N/A
- Intro Purchase APR
- N/A
- Regular APR
- 19.49% – 27.49% Variable
- Balance Transfer Fee
- Either $5 or 5% of the amount of each transfer, whichever is greater.
The Prime Visa has a lot going for it. It offers a high cash-back rate for Amazon’s unmatched catalog of products while providing a slew of useful shopping protections for your new purchases. It also has one of the easiest to reach welcome bonuses -- simply get approved for this card to have a $100 Amazon gift card (or more) added to your account.
While the card itself doesn’t carry an annual fee, you have to be an Amazon Prime member to qualify for it, a $139 yearly expense. While that’s a bit higher than the average credit card annual fee, if you’re a frequent Amazon shopper, faster package delivery and access to Prime Video might offset this cost.
You can learn more about it in our Prime Visa review.
- Intro Balance Transfer APR
- N/A
- Intro Purchase APR
- N/A
- Regular APR
- 19.49% – 27.49% Variable
- Balance Transfer Fee
- Either $5 or 5% of the amount of each transfer, whichever is greater.
Petal® 2 “Cash Back, No Fees” Visa® Credit Card
Credit card options may be more limited for people with limited or fair credit. The Petal® 2 “Cash Back, No Fees” Visa® Credit Card, issued by WebBank, offers people with a wide array of credit scores the ability to earn cash-back rewards without the hassle of a security deposit or an annual fee. You can get a credit limit between $300 and $10,000, depending on your credit score and other factors. This card also works to incentivize good credit card behavior by rewarding you with more cash back if you make your monthly payments on time.
However, we’ve heard recent reports of Petal automatically downgrading some existing users of the Petal 2 card to the Petal 1 Rise, a card that has worse terms than the Petal 2 and an $8 monthly fee. (Note: The version of the Petal 1 Rise that select Petal 2 cardholders were automatically downgraded to is different from the version of the Petal 1 Rise currently available to new applicants, which carries a $59 annual fee.) While this move doesn’t affect new applicants for the Petal 2 card, which is still available and an excellent card in its own right, you should carefully consider whether a potential unexpected change to the rates and fees of your card in the future is a risk you want to take.
- Intro Balance Transfer APR
- N/A
- Intro Purchase APR
- N/A
- Regular APR
- 18.24% – 32.24% (Variable)
- Balance Transfer Fee
- N/A
Credit card options may be more limited for people with limited or fair credit. The Petal® 2 “Cash Back, No Fees” Visa® Credit Card, issued by WebBank, offers people with a wide array of credit scores the ability to earn cash-back rewards without the hassle of a security deposit or an annual fee. You can get a credit limit between $300 and $10,000, depending on your credit score and other factors. This card also works to incentivize good credit card behavior by rewarding you with more cash back if you make your monthly payments on time.
However, we’ve heard recent reports of Petal automatically downgrading some existing users of the Petal 2 card to the Petal 1 Rise, a card that has worse terms than the Petal 2 and an $8 monthly fee. (Note: The version of the Petal 1 Rise that select Petal 2 cardholders were automatically downgraded to is different from the version of the Petal 1 Rise currently available to new applicants, which carries a $59 annual fee.) While this move doesn’t affect new applicants for the Petal 2 card, which is still available and an excellent card in its own right, you should carefully consider whether a potential unexpected change to the rates and fees of your card in the future is a risk you want to take.
- Intro Balance Transfer APR
- N/A
- Intro Purchase APR
- N/A
- Regular APR
- 18.24% – 32.24% (Variable)
- Balance Transfer Fee
- N/A
This card tops many of our best lists and for good reason: The Chase Freedom Flex* can help you earn rewards on a wide range of spending, thanks to its static reward categories and its quarterly rotating categories.
It’s difficult to find a purchase type that the Freedom Flex doesn’t cover or hasn’t covered in the past. It stands out from other rotating rewards cards by offering a longer window to activate new categories. You’ll even earn retroactive rewards on any eligible purchases. So, if you forget to activate a category until later in the quarter, your past qualifying purchase will still earn the higher rewards rate as long as you activate by the quarterly deadline.
In addition to its strong earning potential, its welcome bonus offers one of the best returns on the spending required to reach it. It also includes a number of useful perks including purchase protection, which covers your new purchases against damage and theft, and some sought-after travel protections, including auto rental collision damage waiver and other travel insurance.
You can read more in our Chase Freedom Flex review.
- Intro Balance Transfer APR
- 0% Intro APR on Balance Transfers for 15 months
- Intro Purchase APR
- 0% Intro APR on Purchases for 15 months
- Regular APR
- 20.49% – 29.24% Variable
- Balance Transfer Fee
- Either $5 or 5% of the amount of each transfer, whichever is greater.
This card tops many of our best lists and for good reason: The Chase Freedom Flex* can help you earn rewards on a wide range of spending, thanks to its static reward categories and its quarterly rotating categories.
It’s difficult to find a purchase type that the Freedom Flex doesn’t cover or hasn’t covered in the past. It stands out from other rotating rewards cards by offering a longer window to activate new categories. You’ll even earn retroactive rewards on any eligible purchases. So, if you forget to activate a category until later in the quarter, your past qualifying purchase will still earn the higher rewards rate as long as you activate by the quarterly deadline.
In addition to its strong earning potential, its welcome bonus offers one of the best returns on the spending required to reach it. It also includes a number of useful perks including purchase protection, which covers your new purchases against damage and theft, and some sought-after travel protections, including auto rental collision damage waiver and other travel insurance.
You can read more in our Chase Freedom Flex review.
- Intro Balance Transfer APR
- 0% Intro APR on Balance Transfers for 15 months
- Intro Purchase APR
- 0% Intro APR on Purchases for 15 months
- Regular APR
- 20.49% – 29.24% Variable
- Balance Transfer Fee
- Either $5 or 5% of the amount of each transfer, whichever is greater.
The Platinum Card from American Express is often referred to as the best card available, primarily due to the sheer number of premium benefits and annual credits that come with it. You’ll just want to make sure you can make good use of these perks to justify the steep $695 annual fee.
American Express advertises that you can get up to $1,500 in value from the myriad of annual benefits it offers. Annual credits include up to $200 in statement credits for incidental airline fees at one qualifying airline, up to $200 statement credit for select prepaid Fine Hotels + Resorts® or The Hotel Collection booked through American Express Travel (The Hotel Collection requires a minimum two-night stay) and up to $200 in Uber Cash for rides and food in the U.S. (and up to $200 in Uber Cash for rides and food in the U.S. (up to $15 Uber Cash each month, plus an additional $20 in December).
Otherwise, its rewards are relatively lackluster, especially compared to its high price tag. But if you travel often, it’s worth considering.
You can find the complete list of benefits in our The Platinum Card from American Express review.
- Intro Balance Transfer APR
- N/A
- Intro Purchase APR
- N/A
- Regular APR
- See Pay Over Time APR
- Balance Transfer Fee
- N/A
The Platinum Card from American Express is often referred to as the best card available, primarily due to the sheer number of premium benefits and annual credits that come with it. You’ll just want to make sure you can make good use of these perks to justify the steep $695 annual fee.
American Express advertises that you can get up to $1,500 in value from the myriad of annual benefits it offers. Annual credits include up to $200 in statement credits for incidental airline fees at one qualifying airline, up to $200 statement credit for select prepaid Fine Hotels + Resorts® or The Hotel Collection booked through American Express Travel (The Hotel Collection requires a minimum two-night stay) and up to $200 in Uber Cash for rides and food in the U.S. (and up to $200 in Uber Cash for rides and food in the U.S. (up to $15 Uber Cash each month, plus an additional $20 in December).
Otherwise, its rewards are relatively lackluster, especially compared to its high price tag. But if you travel often, it’s worth considering.
You can find the complete list of benefits in our The Platinum Card from American Express review.
- Intro Balance Transfer APR
- N/A
- Intro Purchase APR
- N/A
- Regular APR
- See Pay Over Time APR
- Balance Transfer Fee
- N/A
U.S. Bank Altitude® Go Visa Signature® Card
The U.S. Bank Altitude Go features one of the best rates for dining rewards for a credit card without an annual fee. And while earning rewards for eating out is arguably its best feature, its other rewards for gas stations, streaming services and grocery stores are competitive with the best flat-rate cash back cards available.
You’ll also get an introductory purchase and balance transfer APR and an annual $15 streaming credit to essentially knock out one of your subscription costs. There’s plenty of value here for people who eat out often and those who love to order in and stream their favorite shows.
- Intro Balance Transfer APR
- 0% intro APR for 12 billing cycles on balance transfers
- Intro Purchase APR
- 0% intro APR for 12 billing cycles on purchases
- Regular APR
- 20.24% – 29.24% (Variable)
- Balance Transfer Fee
- Either 3% of the amount of each transfer or $5 minimum, whichever is greater
The U.S. Bank Altitude Go features one of the best rates for dining rewards for a credit card without an annual fee. And while earning rewards for eating out is arguably its best feature, its other rewards for gas stations, streaming services and grocery stores are competitive with the best flat-rate cash back cards available.
You’ll also get an introductory purchase and balance transfer APR and an annual $15 streaming credit to essentially knock out one of your subscription costs. There’s plenty of value here for people who eat out often and those who love to order in and stream their favorite shows.
- Intro Balance Transfer APR
- 0% intro APR for 12 billing cycles on balance transfers
- Intro Purchase APR
- 0% intro APR for 12 billing cycles on purchases
- Regular APR
- 20.24% – 29.24% (Variable)
- Balance Transfer Fee
- Either 3% of the amount of each transfer or $5 minimum, whichever is greater
The Blue Cash Preferred from American Express offers the best cash-back rate for purchases made at U.S. supermarkets (though there is a spending threshold) and for select U.S. streaming subscriptions. It also features strong rewards for U.S. gas station purchases and for transit.
Its $95 annual fee ($0 intro for the first year) hardly puts a dent in its earning potential. If you spend as little as $1,600 on groceries at U.S. supermarkets annually (most people will likely spend much more) you’d earn enough rewards to cover the fee, without considering its U.S. gas station and select U.S. streaming rewards. The card essentially pays for itself and then some.
You can find all the details in our Blue Cash Preferred review.
- Intro Balance Transfer APR
- 0% on balance transfers for 12 months
- Intro Purchase APR
- 0% on purchases for 12 months
- Regular APR
- 19.24% – 29.99% Variable
- Balance Transfer Fee
- Either $5 or 3% of the amount of each transfer, whichever is greater.
The Blue Cash Preferred from American Express offers the best cash-back rate for purchases made at U.S. supermarkets (though there is a spending threshold) and for select U.S. streaming subscriptions. It also features strong rewards for U.S. gas station purchases and for transit.
Its $95 annual fee ($0 intro for the first year) hardly puts a dent in its earning potential. If you spend as little as $1,600 on groceries at U.S. supermarkets annually (most people will likely spend much more) you’d earn enough rewards to cover the fee, without considering its U.S. gas station and select U.S. streaming rewards. The card essentially pays for itself and then some.
You can find all the details in our Blue Cash Preferred review.
- Intro Balance Transfer APR
- 0% on balance transfers for 12 months
- Intro Purchase APR
- 0% on purchases for 12 months
- Regular APR
- 19.24% – 29.99% Variable
- Balance Transfer Fee
- Either $5 or 3% of the amount of each transfer, whichever is greater.
How do credit cards work?
A credit card is a personal credit account that allows you to make purchases upfront with the credit card issuer’s money. Once you apply, the issuer determines the size of the credit line you’re able to access based on your credit score and income. Basically, you’re using borrowed money to fund your expenses. The credit card issuer makes money by charging you fees and interest.
You have to pay back any charges you put on your credit card. If you don’t pay off your credit card in full by the due date, your remaining balance will start accruing interest.
How credit card interest works
Most credit card balances accrue interest at a variable rate. A variable rate means it can change depending on certain factors.
A credit card’s interest rate is called the annual percentage rate, or APR. It’s affected by the federal benchmark interest rate which is set by the Federal Reserve based on macroeconomic factors. You can find your credit card’s APR outlined in the terms and conditions your issuer provided to you with your card.
Despite an APR being measured annually, most credit card balances actually accrue interest at a daily rate.
Interest only applies to balances left over after your payment due date, so it’s important to pay your balance in full and on time. Each day the unpaid remainder collects charges that will show up on your next billing statement. To find the daily interest rate, you can divide the card’s APR by 365. Overtime, interest charges can do considerable damage to your finances, so it’s best to avoid them whenever possible.
How credit card rewards work
Some credit cards offer rewards for your spending. Rewards come in three camps -- cash back, points or miles -- but they all work generally the same way. You earn a preset reward rate on your spending which you can later redeem for cash back, travel or other benefits.
Cash back can typically be redeemed as a statement credit or deposited directly into a bank account. Statement credits lower the overall balance of your credit card account while depositing them into your bank account will increase your account balance. Unlike with points and miles, the redemption value of cash back is pretty straightforward: 1% cash back is worth 1 cent per dollar spent.
Points and miles usually have more flexibility. Points can be redeemed for a myriad of things including statement credits, merchandise, gift cards, travel or donated to charity. Miles can often be used for much of the same. However, they may not always be worth 1 cent. They could be worth more or sometimes less.
Types of credit cards
There are a wide variety of different types of credit cards. Here’s how they break down.
Rewards credit cards
Rewards credit cards -- as the name suggests -- reward you for spending with them. There are cash-back credit cards, travel credit cards, co-branded credit cards with hotels and airlines, bonus category credit cards and credit cards with rotating bonus categories. Each one rewards you for spending within the categories outlined in the card’s reward program.
Balance transfer credit cards
Balance transfer credit cards are designed to help you eliminate existing credit card debt by taking advantage of an introductory APR. These cards provide a window of time -- usually between nine and 21 months -- where a balance you transfer from another card won’t accrue interest. During that time, you can pay it down while not having to worry about interest charges.
However, these cards typically include a one-time balance transfer fee. The industry standard fee is 3%, but some cards may have a higher fee of 5%. That said, paying the fee will typically be less expensive than paying continuous interest charges on a credit card that carries a high interest rate.
There are cards without balance transfer fees, but they typically have shorter introductory offers.
Low interest and 0% APR credit cards
Low interest and 0% APR credit cards are designed to either avoid interest charges completely or to lessen their impact by providing lower-than-average interest rates. 0% APR cards offer a limited time to make new purchases pay down the balance over time without interest.
Student credit cards
Student credit cards were created for college students. As such, they’re easier to qualify for as most college students don’t have an extensive credit history. They may not offer competitive terms or rewards, but they’re great for establishing a credit history and learning the basics.
Business credit cards
Business credit cards bolster business spending by providing rewards and perks designed to make managing payments easier or providing travel amenities to business people who travel often.
Pros and cons of credit cards
There are a number of pros and cons to consider when using credit cards:
Pros
Build credit through responsible use
Earn rewards for essential purchases
Additional card perks like shopping and travel protections
Shop more securely with virtual cards
Annual statement credits
Gain access to funds in case of emergency
Cons
Fees
Could damage credit with irresponsible use
Temptation to overspend
Could be hard to manage
Interest charges
Should you get a credit card?
If you’re 18 or older, a credit card can help you earn rewards, prevent identity theft and start building your credit..
Building credit early will set you up for success in your financial life. Your credit score will determine what kind of terms and conditions you get when asking to borrow money from a lender, whether it be for a home, a car or for college. If you’re going to college for the first time, it’s also a good way to have access to emergency funds in a pinch.
Credit cards do take some work, however. It’s important not to get enticed to spend on unnecessary purchases. A good way to do so is to treat it like cash. If you don’t have the money to pay it off immediately, it’s not a good idea to make the purchase.
How to choose the right credit card
Ultimately, the right credit card is individual to each person and their goals and preferences. Decide what features you’re looking for: maximized rewards, spaced-out payments on a large purchase, credit building, an emergency credit card or other benefits. From there, you can decide the type of card you’re looking for. You can then use online reviews like those at CNET to further narrow down what terms will work best for you.
How to get the most out of your credit card
The first step will be to choose a credit card that matches your spending habits. Choose a credit card that bolsters how you spend without having to change your habits to fit a credit card.
Make sure you understand the rewards redemption rules, too, as the rewards rates themselves can be misleading on some credit cards. For example, some travel credit card miles are worth more when used for airfare rather than as statement credits. There are some rewards credit cards where it’s better to redeem for gift cards rather than statement credits for the same reason.
You can also take advantage of all relevant benefits provided by the card -- like if there are annual statement credits. If the card has an annual fee, they can be a great way to offset the cost.
The most important thing is to pay your bill on time and in full to avoid any interest charges. That way you won’t have to worry about expensive interest that would otherwise bog down your finances. Try not to get enticed into spending on something you normally wouldn’t, even if you have an introductory APR offer. You want the credit card to work for you, rather than the other way around.
What is a credit score?
A credit score reflects your debt history and habits to potential creditors. A higher credit score indicates you’re responsible with debt management and are likely to pay back anything you borrow. Besides guiding approval decisions, your credit score helps determine the interest rate you’ll pay.
Your credit score is determined by a number of different factors including payment history, age of credit accounts, the number of credit accounts, how much of your overall credit you’re using and a handful of others.
There are three major credit bureaus that are responsible for generating your credit score based on your credit reports -- Equifax, TransUnion and Experian. Your credit card issuer will report your behavior to these bureaus.
How to build credit
The simplest way to build credit is to pay all your bills on time, for both your credit cards as well as other debts like a car loan or mortgage. A history of on-time payments contributes the most to a good credit score. It’s also important to keep your debt-to-credit ratio, or credit utilization, lower than 30%. That means using less than 30% of your available credit line at a given time. It’s good to think of your credit card like it’s directly tied to your bank account -- don’t spend money you don’t have.
Other ways to build credit include keeping credit accounts open -- as long as they’re in good standing -- for as long as you can. You could also consider becoming an authorized user on someone else’s account. Any positive activity they have will then be reflected in your own credit scores.
Using your credit products responsibly will be the fastest way to build credit. Just keep in mind it’s not a quick process. While you could see results in six months, it could also take years to rebuild or establish a good credit score.
What happens if I miss a credit card payment?
Missing a credit card payment could result in penalty fees, a higher APR and a lower credit score. How severe the consequences are typically depend on your payment history and the number of missed payments on your account.
Depending on your card, you’ll typically incur a late payment fee of $20 to $41 for each late payment. However, missed payments typically won’t show up on your credit report for 30 days after the due date. Although you might face fees or other financial penalties from your issuer, your credit score will likely be safe as long as you make the payment before then.
Missing a payment could also lead to a penalty APR, which is a punitive rate that’s much higher than a standard credit card’s APR. It’s typically capped at 29.99%.
To avoid any headaches, set reminders for when your payments are due. Most credit card issuers also support automatic payments. So if you want to minimize the risk of forgetting a payment, you can set it up to go out automatically. Just make sure that you have enough money in your bank account to cover the charge.
Who qualifies for a credit card?
You’ll need to be 18 in order to qualify for a credit card. Each credit card has different credit requirements depending on the issuer and the level of the card.
Generally speaking, the better the benefits, the more hoops you’ll need to jump through to be eligible for certain credit cards. Credit cards with attractive rewards programs or cash-back rewards require better credit than more basic credit card varieties.
If you have poor or fair credit, you might only qualify for credit builder or secured credit cards. If you have good to excellent credit, you may easily qualify for any credit card you want. But if you don’t have the right score, you can always work to improve your credit for better odds of approval.
How to apply for a credit card
Follow these steps to apply for a credit card:
- Choose a credit card that matches your needs and individual budget
- Follow one of the links above to be directed to a secure application with the credit card issuer
- Fill out the application with all of the necessary financial and personal information
- Use the credit card responsibly and pay your bill on time each month
By paying on time and in full every month, your credit and your finances will thrive.
The bottom line
The best credit cards will help you earn a return on your everyday spending while offering additional benefits like travel credits, delivery service memberships and more. They can also help you build a good credit history, which can increase your chances of securing more favorable terms for credit products in the future.
However, it’s important to use them responsibly. A large credit line can entice you to overspend. But high APRs can land you in debt if you regularly carry a balance. And missing even a single payment can come with stiff financial penalties as well as damage your credit score. You can avoid APRs entirely and prevent negative credit marks by only spending what you can afford to pay back and paying your bill in full each month.
FAQs
The best credit card for beginners will help you build credit, so consider a starter card that has simple rewards and fees. The best thing you can do is pay off your purchases right away. Once you’ve gotten the hang of things, you can apply for more advanced credit cards.
This is something you’ll have to decide for yourself. Each credit card issuer offers a wide variety of credit cards for different types of spending -- no one card is created the same. You’ll need to find the card and issuer that best fits your goals and spending habits.
While there’s no definitive number to how many credit cards you should have, you don’t want to apply for too many at once, because each card application temporarily dings your credit score.
However, you should only apply for credit cards you can safely manage. If you apply for too many and payments start to slip between the cracks, you’ll likely land in financial trouble.
You need to be 18 to apply for a credit card, but some credit cards let you add an authorized user at any age to reap the benefits of someone’s credit card history.
You’ll need to provide the credit card issuer with the following information when applying for a credit card.
- Full name
- Address
- Phone number
- Social Security number
- Gross income
- Employment status
- Monthly rent or mortgage payment
Our methodology
CNET reviews credit cards by exhaustively comparing them across set criteria developed for each major category, including cash back, welcome bonus, travel rewards and balance transfer. We take into consideration the typical spending behavior of a range of consumer profiles -- with the understanding that everyone’s financial situation is different -- and the designated function of a card.
For rates and fees of The Platinum Card from American Express, click here.
For rates and fees of the Blue Cash Preferred Card from American Express, click here.
*All information about the Discover it Cash Back, Discover it Student Cash Back, Chase Freedom Flex, and Citi Simplicity Card has been collected independently by CNET and has not been reviewed by the issuer.
The editorial content on this page is based solely on objective, independent assessments by our writers and is not influenced by advertising or partnerships. It has not been provided or commissioned by any third party. However, we may receive compensation when you click on links to products or services offered by our partners.
