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On our shortlist of the best credit cards, you'll find market-leading picks with perks that include lucrative rewards programs, big sign up bonuses, long 0% intro APR offers to avoid interest, and no annual fees. Add up the value of these benefits and it's not uncommon for the best credit card offers to pack in upwards of $1,000 in value. That's why we think it's smart to keep a credit card in your wallet. But to take advantage of the wide array of credit card benefits, you need to know where to get started. We've crunched the numbers on hundreds of credit cards and included only our select few top picks below. Read on to learn more about the hand-picked credit card offers that landed on our shortlist.
A perennial interest-avoiding favorite with a long 0% intro APR for both purchases and balance transfers. Read Full Review
N/A
$0
Purchases: 0%, 18 months
Balance Transfers: 0%, 18 months
14.74% - 24.74%, variable
N/A
This card is a triple hitter with stellar cash back rates -- particularly at U.S. supermarkets and gas stations, a big welcome offer, and a competitive 0% intro APR offer. Read Full Review
6% cash back at U.S. supermarkets ($6,000 spending cap per year), 3% cash back at U.S. gas stations and on transit, 1% back on all else
$95
2.7% of each transaction after conversion to US dollars.
Purchases: 0%, 12 months
Balance Transfers: N/A
13.99%-23.99% Variable
Earn $300 Back after you spend $1,000 in purchases on your new Card in your first 3 months of Card Membership. You will receive the $300 back in the form of a statement credit.
Reigns supreme with one of the highest cash back rates on the market. No annual fee and a long 0% intro APR offer round out this card’s stacked feature set. Read Full Review
Earn 5% cash back in rotating quarterly categories you activate ($1,500 quarterly spending cap), 1% back on all else
$0
Purchases: 0%, 14 months
Balance Transfers: 0%, 14 months
11.99% - 22.99% Variable
Double cash back in the first year
Earn up to 2% on all purchases - 1% when you buy, and 1% when you pay the minimum each month. Add that to no annual fee and an 18 month 0% intro APR offer on balance transfers and this card is a winner. Read Full Review
2% cash back: 1% when you buy plus 1% as you pay
$0
Purchases: N/A
Balance Transfers: 0%, 18 months
13.99% – 23.99% (Variable)
N/A
With a 20 billing cycle intro APR offer for both balance transfers and purchases, this is one of the best low interest credit cards on the market. Read Full Review
N/A
$0
Purchases: 0%, 20 billing cycles
Balance Transfers: 0%, 20 billing cycles
13.99%-23.99%, variable
N/A
This hard-to-beat offer includes unlimited 1.5% cash back on all purchases, a nice sized sign-up bonus, and a long 0% intro APR offer on purchases. Read Full Review
Unlimited 1.5% cash back, 5% cash back at grocery stores in the first year ($12,000 spending cap), no minimum redemption
$0
Purchases: 0%, 15 months
Balance Transfers: N/A, N/A
14.99% - 23.74% Variable
$200 after spending $500 within three months
Includes a market-leading bonus in the no-annual fee category and a flexible cash rewards program that enables you to earn premium cash back in a category of your choice. Plus, the long 0% intro APR offer makes this card a standout among its peers. Read Full Review
3% cash back on gas or in your choice category, 2% at grocery stores & wholesale clubs (up to $2,500 in combined bonus category quarterly purchases), 1% on all else.
$0
Purchases: 0%, 12 billing cycles
Balance Transfers: 0%, 12 billing cycles on transfers made within first 60 days
13.99%-23.99%
$200 after spending $1,000 in the first 90 days
With a leading sign-up bonus, the sky’s the limit for this top-rated travel rewards card. Plus, the premium points program for travel and dining make it a no brainer for travel enthusiasts everywhere. The limited time offer of up to 5x points makes it even more compelling. Read Full Review
2x points on travel and dining, 1x points on all other purchases. 25% more points for travel booked through Chase's portal.
$95
Purchases: N/A, N/A
Balance Transfers: N/A, N/A
15.99% - 22.99% Variable
60,000 points after spending $4,000 within three months -- worth $750 of travel redeemed through Chase
The sign-up bonus, premium rewards for travel & dining, and wide array of valuable travel credits make this a compelling offer that will offset the cost of the annual fee for many. The limited time offer of up to 10x points makes it even more compelling. Read Full Review
3X points on travel immediately after earning your $300 travel credit. 3X points on dining at restaurants & 1 point on all other purchases.
$550
Purchases: N/A, N/A
Balance Transfers: N/A, N/A
16.99%-23.99% Variable
50,000 points after spending $4,000 on purchases in the first 3 months. Worth $750 redeemed for travel through Chase
This no-annual-fee rewards card enables you to earn 3X points for dining out, travel, gas stations, and more, plus a big sign-up bonus. The addition of a 0% Intro APR offer makes it even more surprising that there's no annual fee. Read Full Review
3X points for eating out and ordering in, gas stations, rideshares, transit, flights, hotels, and more, 1x points on all else
$0
Purchases: 0%, 12 months
Balance Transfers: 0%, 12 months on qualifying balance transfers
14.49%-24.99%, variable
Earn 20,000 bonus points when you spend $1,000 in purchases in the first 3 months
Unlimited 2X miles, TSA Pre✓® credits, and a big sign-up bonus make this credit card one of the best travel companions on the market. Read Full Review
Unlimited 2x miles on all purchases
$95, annually
Purchases: N/A
Balance Transfers: N/A
17.24%, 21.99% or 24.49% Variable
50,000 miles after spending $3,000 on purchases within three months, equal to $500 in travel
A student card that rivals some of the best cash back cards on the market. It comes packed with a robust cash back rewards program, no annual fee, and even includes a credit for good grades. Read Full Review
Earn 5% cash back in rotating quarterly categories you activate ($1,500 quarterly spending cap), 1% back on all else
$0
Purchases: 0%, 6 months
Balance Transfers: 10.99%, 6 months
12.99% - 21.99% Variable
Double cash back in the first year -- that's worth up to 10% back
Need to build your credit history? This card is a great place to start. It offers perks rarely found in secured cards including cash back, no annual fee, and double cash back in the first year. Read Full Review
2% cash back at Gas Stations and Restaurants on up to $1,000 in purchases each quarter, 1% cash back on all else
$0
Purchases: N/A
Balance Transfers: 10.99%, 6 months
22.99% Variable
Double cash back in the first year
People with no or limited credit histories will be hard pressed to beat it. The rewards program and lack of fees are clear standouts in the category. Read Full Review
1.5% cash back after making 12 on-time monthly payments. 1% cash back on purchases right away
$0
Purchases: N/A
Balance Transfers: N/A
12.99% – 29.49%
N/A
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A credit card can be one of your most valuable financial tools--if used correctly. When you know the right moves to make, you can maximize rewards and avoid decades of debt. Our credit card guide could help you learn these important skills--or maybe even find your next favorite card.
A credit card is a card that allows you to pay for purchases by borrowing money. The maximum amount you can borrow at one time is called your credit limit. The money you've already borrowed is your balance, and the amount you have left to borrow is your available credit.
At the end of each billing cycle, the card issuer will send you a statement listing the transactions you made. It will list your total balance, as well as the minimum payment due during that billing cycle. You must pay at least the minimum amount by the due date to avoid a late fee--although it's a good idea to pay more than the minimum, if you can afford it.
Credit cards are most often used for purchases, but many of them can also be used for other types of transactions, such as cash advances and balance transfers.
Credit card interest is the fee a card issuer can charge when you borrow money with your credit card. The amount of interest charged depends on the card's annual percentage rate (APR). Many credit cards have different APRs for purchases, balance transfers, and cash advances.
The type of transaction also determines when your card issuer starts charging you interest. For example, cash advances almost always start racking up interest immediately. Purchases are different. Just about any top-rated credit cards will only charge interest for purchases that aren't paid off by the payment due date. Savvy consumers take advantage of this, pay in full, and never have to deal with credit card interest.
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Credit card interest is one of those unnecessary charges that you should do your best to avoid. There are two ways to accomplish this.
Pay off balances by the due date: The simplest option is to only use your credit card for purchases you can afford. Pay the entire statement balance on or before the due date. If you do this every billing cycle, you'll never end up with any interest charges.
Get a 0% APR credit card: With these credit card offers, you'll pay zero interest for the entire intro period. A 0% APR can apply to purchases, balance transfers, or both, so make sure you choose the right one. The APR will go up after the card's intro period ends--it's important to pay off your balance by then.
Although a credit card isn't a necessity, there are several ways it can help you financially:
Most people should carry just one credit card. One card will give you all the benefits of using a credit card, minimize your risk of debt, and cut down on possible missed payments. But this recommendation doesn't apply to everyone. You should know when one credit card is the smart choice and when multiple credit cards are worth your time.
You should stick to one credit card if:
You should carry multiple credit cards if you want more card benefits and you're confident in your ability to manage everything. There are some big advantages to having multiple cards:
The best credit card overall is the Citi® Double Cash Card – 18 month BT offer. At the same time, there's no single credit card that's perfect for everyone. The best credit card to have will depend on your needs and your spending habits.
We've chosen the Citi® Double Cash Card – 18 month BT offer as the best credit card of 2020 for these reasons:
Though there are many different credit cards, they all fall into certain categories based on their features and rewards programs. Here are the different types of credit cards and the best credit card deals right now within each category.
These cards earn rewards that can be redeemed as cash. Depending on the card, you may be able to redeem your cash back as a statement credit towards your credit card balance, a deposit to a bank account, or as a check. You'll find cards that earn the same flat rate on every purchase as well as cards that earn extra in bonus categories among the best cash back cards.
Compare more picks: Check out The Ascent's best cash back credit cards
This type of card offers a lower, introductory APR on balance transfers. Many of the top balance transfer cards have a 0% intro APR on balance transfers and intro periods can last for well over a year. If you want to refinance credit card debt and save money on interest, a balance transfer card is ideal.
Compare more picks: Check out The Ascent's best balance transfer credit cards
Cards in this category have a 0% intro APR that applies to purchases. They're a smart choice if you need to buy something expensive, but you can't afford to pay in full upfront. The most popular 0% APR credit cards also often have those intro deals for a year or longer.
Compare more picks: Check out The Ascent's best 0% APR credit cards
With travel cards, you can redeem your points or miles for free or discounted travel. There are also quite a few top travel credit cards that offer extra travel perks, such as free access to airport lounges or hotel upgrades.
Compare more picks: Check out The Ascent's best travel rewards credit cards
This category includes every credit card that earns purchase rewards. With so many cards to choose from, you'll find a diverse mix of rewards credit cards that earn cash back, travel points, and store rewards.
Compare more picks: Check out The Ascent's best rewards credit cards
If you're in college, you can get started on building your credit with a student credit card. Even though these cards are for students, there are some excellent perks to be found with the best student credit cards. Some cards include free credit score tracking and money back for good grades.
Compare more picks: Check out The Ascent's best student credit cards
You need to pay a security deposit to open a secured credit card, which is typically used for building or rebuilding credit. The security deposit is often (but not always) equal to your starting credit limit. High-quality secured credit cards can usually graduate unsecured cards, meaning you get your deposit back if you make enough on-time payments.
Compare more picks: Check out The Ascent's best secured credit cards
Looking to rebuild credit?: Check out The Ascent's best credit cards for bad credit
| You want to use a credit card to: | You should apply for a: |
|---|---|
| Finance an upcoming purchase | Card with a 0% intro APR on purchases. |
| Refinance existing credit card debt | Card with a 0% intro APR on balance transfers. We give bonus points to cards that waive balance transfer fees, too. |
| Earn rewards on all of your spending | Flat cash back card that offers 1%-2% cash back on every purchase. |
| Travel abroad and redeem rewards for travel | Travel card that offers travel rewards and no foreign transaction fees. |
| Make purchases for your business | Business card that has features designed with business owners in mind. |
| Build credit | Any credit card can help you here, but cards that offer free FICO® Scores are a good pick. |
| Minimize the risk you get denied for a credit card | Secured card which offers the highest approval rate. |
Any time you're going to apply for a credit card, you want to make sure you choose the right one. Here's how to pick a credit card:Â
Decide which type of card you want: This will narrow down your credit card offers considerably, so it makes sense to do this first. If you're most interested in, for example, earning travel points, then there's no need to look at the best credit card offers for a 0% intro APR.
Compare credit cards in that category: Once you've chosen a type of card, it's time to compare credit cards side by side. Here's how to compare credit cards and decide which option is best for you:
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In general, we think the most important features potential applicants should pay attention to are the suggested credit score range, rewards programs, sign-up bonuses, and 0% APR offers. The ongoing APR is important as well, but is less of a consideration for cardholders paying off balances by the due date to avoid interest charges.
The simplest way to apply for a credit card is online, where you can complete an application in minutes. Here's how to apply for a credit card online:
Whether your credit card helps or hurts you all depends on how you use it. To ensure that your credit card provides value and doesn't get you in debt, here are a few key guidelines:
Discover is the highest-ranked credit card company in JD Power's most recent U.S. Credit Card Satisfaction Study. It also has four cards that we've ranked as the best credit cards of 2020 in their respective categories. That was the most of any card issuer.
American Express is a close second in terms of customer satisfaction. Although Chase is further behind in that area, it does have three cards that sit at the top of their categories in our rankings.
| Credit Card Company | JD Power Score |
|---|---|
| 1. Discover | 842 |
| 2. American Express | 838 |
| 3. (tie) Capital One | 807 |
| 3. (tie) Chase | 807 |
| 5. Barclays | 806 |
Annual percentage rate (APR): The rate charged for carrying a balance on a credit card, expressed as an annual percentage. With credit cards, the APR is the same as the interest rate.
Balance: The amount owed on a credit card, including all unpaid transactions and fees. The balance at the end of a statement period is called the statement balance.
Balance transfer: Moving a balance from one credit card to another. This is usually done when the new card offers a lower APR. Not every credit card offers balance transfers, and many of the cards with this feature charge a balance transfer fee.
Cash advance: Withdrawing cash from a credit card, most often through cash advance checks, using the card at an ATM, or by wiring money with the card. Cash advances usually have a higher APR and start accruing interest immediately, so it's a poor way to use a credit card.
Credit card: A payment method issued by a bank and connected to a revolving line of credit. The cardholder can use their credit card for purchases and possibly other types of transactions, although this depends on the card.
Credit limit: The credit card's spending limit. This can vary based on the type of transaction. On credit cards that offer cash advances, there is typically a lower credit limit for cash advances than for purchases. A transaction that would exceed a card's credit limit will be declined unless the cardholder has opted to allow over-the-limit transactions (and any potential fees that come with them).
Credit score: A rating of a consumer's creditworthiness. The score indicates how likely it is that they will make bill payments on time and repay what they borrow. Credit scores are calculated based on the consumer's financial history.
Interest: A fee charged for borrowing money. The APR determines how much interest a credit card company can charge on balances.
Minimum payment: The minimum amount a cardholder can pay by the due date to remain current on their credit card bill and avoid a late fee.
A credit card is a revolving line of credit issued by a bank. When you use a credit card, it borrows money for the transaction from that line of credit. Every credit card can be used to make purchases, and many credit cards can also be used for other types of transactions, such as balance transfers.
Transactions are deducted from your card's credit limit, which is the maximum amount that can be charged to a card. After a billing cycle, the card issuer will send a statement of your charges, the balance, the minimum payment amount, and the payment due date. If you don't pay off the full balance by that due date, then the card issuer can charge you interest.
The primary reason to get a credit card is to build your credit. Your credit score can affect your life in many ways, including being a critical factor whenever you need to apply for any type of financing, and it's difficult to get an excellent credit score without using a credit card.
Many consumers get credit cards to earn rewards on their purchases, often in the form of either cash back or travel rewards. Another popular reason to get a credit card is a 0% intro APR offer, either to finance purchases or to transfer balances from other credit cards so you can pay off your debt at a much lower interest rate.
To choose a credit card, start by determining what type of card you want. You can figure this out by asking yourself why you're getting a new card. Common reasons include cash-back rewards, travel benefits, credit building, or balance transfers.
Once you’ve narrowed down your search to one category of credit cards, compare the features of the best cards in that category. Focus on features that will be easy for you to use, as those will provide you with the most value. Continue narrowing down the results until you've found the card that's right for you.
The Motley Fool owns shares of and recommends Visa and Mastercard. The Motley Fool recommends Amex. We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.
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