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The best credit cards for December 2024
We’ve gathered our best credit card picks over various categories. Each one also links to our full list of the best credit cards within that category. Whether you’re looking for your first or fifth credit card, this page is a great starting point.
The best credit card picks for December 2024
- Annual fee$95
- Welcome offerEarn 60,000 bonus points after spending $4,000 in the first 3 months — that's worth $750 when redeemed through Chase Travel℠
- Rewards rate
- 5x points on travel purchased through Chase Travel℠
- 3x points on dining, select streaming services, and online groceries
- 2x points on all other travel purchases
- 1x points on all other purchases
- Benefits
- Points are worth 25% more when you redeem for airfare, hotels, car rentals and cruises through Chase Travel
- Earn up to $50 in annual statement credits for hotel stays purchased through Chase Travel
- On every account anniversary, earn bonus points equal to 10% of your total purchases made the previous year
The Chase Sapphire Preferred Card’s versatility makes it one of the best credit cards to open for rewards-seekers looking for a Chase card. You’ll earn bonus rewards on travel purchases and in everyday spending categories, making the $95 annual fee easy to recoup with regular spending.
One of the biggest benefits of this card, though, is its high-value redemptions. One cent per point is typically the redemption rate we look for among rewards cards, but the Sapphire Preferred gets a 25% boost for 1.25 cents per point value when you use points to book travel through Chase Travel.
- Annual fee$0
- Welcome offerEarn $250 cash back after spending $500 on purchases in the first 3 months
- Rewards rate
- 8% cash back on Capital One Entertainment purchases
- 5% cash back on hotels and rental cars booked through Capital One Travel
- 3% cash back on dining, entertainment, popular streaming services, and at grocery stores (excluding superstores like Walmart and Target)
- 1% cash back on all other purchases
- Benefits
- Get a 0% APR on purchases and balance transfers for the first 15 months
- No foreign transaction fees
If you, like many Americans, spend much of your monthly budget on food — whether dining out or staying in — the Savor card from Capital One can offer incredible potential value for no annual fee. You’ll earn 3% cash back on dining, entertainment, grocery stores (excluding Target and Walmart), and popular streaming services. Plus, you get 8% cash back on Capital One Entertainment, 5% on hotels and rental cars through Capital One Travel, and 1% on everything else.
- Annual fee$95
- Welcome offerEarn 75,000 miles after spending $4,000 on purchases in the first 3 months
- Rewards rate
- 5x miles on hotels, vacation rentals, and rental cars booked through Capital One Travel
- 2x miles on all other purchases
- Benefits
- Receive up to a $120 statement credit for Global Entry or TSA Precheck application fees
- Receive a $50 experience credit, room upgrades, and early check-in at eligible hotels
- Access Hertz's Five Star membership tier, offering free upgrades, a wider selection of vehicles, and more
Travel credit cards and rewards programs can be daunting, especially for beginners. We like the Venture card because it offers great rewards value on travel spending without being too complicated. There aren’t any categories to memorize; just 2x miles on every purchase (boosted to 5x on travel spending through the portal).
Not only is it easy to earn rewards, but redemption is also simple. You can redeem the miles you earn for travel through Capital One’s portal, transfer them to partners, or cover any eligible travel purchases made with your card.
Another reason we like the Venture Card is its $95 annual fee. It’s low enough that you can easily earn the value back with the miles you earn, but a few added benefits help recoup the cost, too.
- Annual fee$0 intro annual fee for the first year, then $95.
- Welcome offerEarn a $250 statement credit after spending $3,000 in eligible purchases in the first 6 months
- Card type(s)Cash-back, Rewards
- Introductory Purchases APR0% on purchases for 12 months
- Ongoing Purchases APR18.49%-29.49% Variable
- Introductory Balance Transfer APR0% on balance transfers for 12 months
- Ongoing Balance Transfer APR18.49%-29.49% Variable
- Recommended credit scoreExcellent,Good
- Rewards rate
- 6% cash back at U.S. supermarkets (on up to $6,000 in purchases annually, then earn 1%)
- 6% cash back on select U.S. streaming subscriptions
- 3% cash back on transit and U.S. gas stations
- 1% cash back on all other purchases
- *Cash Back is received in the form of Reward Dollars that can be redeemed as a statement credit or at Amazon.com checkout
- Benefits
- Generous intro APR on purchases and balance transfers
- Receive a monthly statement credit of $7 when you spend $9.99 or more each month on an auto-renewing Disney Bundle subscription (valid only at Disney Plus.com, Hulu.com or Plus.espn.com in the U.S.)
- Enjoy $0 intro plan fees for the first 12 months when you use Plan It® to split up large purchases into monthly installments
Blue Cash Preferred offers one of the more versatile rewards structures among tiered cash-back cards today. And its rewards are focused on everyday categories, including shopping at supermarkets. Even with the $6,000 annual cap (large enough that many people won’t surpass it with regular spending), this is a huge benefit, as groceries are often among the highest-budget items. The solid welcome bonus, annual credits, and introductory 0% APR offer also sweeten the deal.
Perhaps most important is simply the Blue Cash Preferred’s earning potential. When ranking cash-back cards, we calculated an estimate of annual cash back based on consumer expenditure data from the Bureau of Labor Statistics. At $513.33 — even accounting for its annual fee after the first year — it’s hard to find a card offering more value on what Americans buy most.
- Annual fee$0
- Welcome offerEarn a $200 statement credit after spending $2,000 within the first 6 months
- Introductory Purchases APR0% on purchases for 15 months
- Ongoing Purchases APR18.49%-29.49% Variable
- Introductory Balance Transfer APR0% on balance transfers for 15 months
- Ongoing Balance Transfer APR18.49%-29.49% Variable
- Rewards rate
- 3% cash back at U.S. supermarkets (on up to $6,000 per year in purchases, then 1%)
- 3% cash back on U.S. online retail purchases (on up to $6,000 per year in purchases, then 1%)
- 3% cash back at U.S. gas stations (on up to $6,000 per year in purchases, then 1%)
- 1% cash back on all other purchases
- Cash back is received in the form of Reward Dollars that can be redeemed as a statement credit or on Amazon.com at checkout
- Benefits
- Generous intro APR on purchases and balance transfers
- Get a $7 monthly statement credit after spending $9.99 or more on a streaming subscription to the Disney Bundle, plus earn up to $15 in monthly statement credits after purchasing a Home Chef subscription
- Annual fee$0
- Welcome offerEarn an extra 1.5% on everything you buy (on up to $20,000 spent in the first year) — worth up to $300 cash back
- Introductory Purchases APR0% Intro APR on Purchases for 15 months
- Ongoing Purchases APR19.74% - 28.49% Variable
- Introductory Balance Transfer APR0% Intro APR on Balance Transfers for 15 months
- Ongoing Balance Transfer APR19.74% - 28.49% Variable
- Rewards rate
- Enjoy 5% cash back on travel purchased through Chase Travel℠
- 3% cash back on drugstore purchases and dining at restaurants (includes takeout and eligible delivery service)
- 1.5% on all other purchases
- Benefits
- You can choose to receive a statement credit or direct deposit into most U.S. checking and savings accounts
- Chase Credit Journey helps you monitor your credit with free access to your latest score, alerts, and more
- Generous intro APR on purchases and balance transfers
Planning a trip to Disney can involve all kinds of different expenses for different families. We like the Chase Freedom Unlimited overall for its flexibility in helping you save on any costs you incur. You’ll get a great 5% back if you book your travel through Chase Travel, 3% back on anything you spend eating out, and a baseline 1.5% for souvenirs, ticket costs, and more.
If you’re opening a new card ahead of your trip, you can also add up to $300 cash back to those rewards. This can offer a tidy savings on costs involved for your Disney vacation.
But most of all, we like the Chase Freedom Unlimited because it’s great for families at home, too. The flexible categories and simple rewards structure can help anyone save a significant amount of money on everyday spending any time of the year.
Planning your Disney trip? See all of the cards we recommend
- Annual fee$95
- Welcome offerEarn 90,000 points after spending $8,000 in first 3 months (that's $900 cash back or $1,125 toward travel when redeemed through Chase Travel℠)
- Rewards rate
- 3x on the first $150,000 spent each account anniversary year in the following categories: shipping purchases; advertising purchases via social media sites and search engines; internet, cable, and phone services; and travel
- 1x on all other purchases with no earning cap
- Benefits
- Redeem points for cash back, gift cards, travel and more
- Points are worth 25% more when you redeem for travel through Chase Travel
- Covers your new purchases for 120 days against damage or theft up to $10,000 per claim and $50,000 per account
For just a $95 annual fee, the Ink Business Preferred can put a lot of money back into the pockets of business owners each year. The range of reward categories can greatly benefit different types of businesses and even evolve with your needs as your business expenses change.
What’s more, this card’s sign-up bonus is tough to beat. But this card (like the personal Chase Sapphire cards) is eligible for a boost when you redeem your points for travel through Chase.
- Annual fee$550
- Welcome offerEarn 60,000 bonus points after spending $4,000 in the first 3 months
- Rewards rate
- 10x points on hotels and rental cars purchased through Chase Travel℠*
- 5x points on flights purchased through Chase Travel*
- 3x points on dining and other travel purchases
- 1x points on all other purchases
- *After the first $300 is spent on travel purchases annually
- Benefits
- Points are worth 50% more when you redeem through Chase Travel
- Earn up to $300 in annual statement credits for travel purchases
- Receive up to a $120 statement credit every four years to cover the application fee for Global Entry, TSA PreCheck, or NEXUS
If you’re a frequent traveler looking to get more for your time spent away from home, the Chase Sapphire Reserve is a top choice. To start, you’ll get a $300 annual travel credit to help offset the $550 annual fee. Rewards range from 10x points on hotels and rental cars booked through Chase, 5x points on flights booked through Chase, 3x points on other travel spending (all earned after the first $300 spent on travel per year), 3x points on dining, and 1x on everything else.
You’ll see some of the best value from the Sapphire Reserve when you’re ready to redeem rewards. You can transfer points to Chase’s travel partners or redeem points through Chase Travel with a 50% boost (1.5 cents per point) for the highest redemption value.
Learn more: See our picks for the best Chase credit card
- Annual fee$325
- Welcome offerEarn 60,000 Membership Rewards® points after you spend $6,000 on eligible purchases in the first 6 months
- Rewards rate
- 4x Membership Rewards Points at restaurants worldwide (on up to $50,000 per calendar year in purchases, then 1x)
- 4x Membership Rewards points at U.S. supermarkets (on up to $25,000 per calendar year in purchases, then 1x)
- 3x Membership Rewards points on flights booked directly with airlines or on AmexTravel.com
- 2x Membership Rewards points on prepaid hotels and other eligible purchases booked on AmexTravel.com
- 1x Membership Rewards points on all other eligible purchases
- Benefits
- Earn up to $10 in statement credits each month when you pay with your American Express Gold Card at Five Guys, Grubhub, The Cheesecake Factory, Goldbelly, and Wine.com (enrollment required)
- Up to $100 in annual statement credits ($50 semi-annually) when you use your American Express Gold Card on eligible purchases at U.S. restaurants on the Resy app or Resy.com
- Up to $84 per year ($7/month) in statement credits after you enroll and pay with your American Express Gold Card at more than 9,000 U.S. Dunkin’® locations
The Gold Card from American Express is one of the best options for earning points toward future travel with the everyday purchases you make at home.
Though the Gold Card does carry a $325 annual fee, you can get the majority back in just annual credits (see rates and fees). Not only will you get up to $120 per year in Uber Cash* ($10 per month), but you will also earn up to $120 in annual dining credits ($10 per month at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys; enrollment required).
*You must have the latest version of the Uber App downloaded and your eligible American Express Gold Card must be a method of payment in your Uber account; Amex benefit may only be used in United States
- Annual fee$695
- Welcome offerEarn 150,000 Membership Rewards® points after you spend $20,000 on eligible purchases with your card within the first 3 months of account opening
- Rewards rate
- 5x Membership Rewards points on flights and prepaid hotels on AmexTravel.com
- 1.5x points on each eligible purchase at U.S. construction material and hardware suppliers, electronic goods retailers, software and cloud system providers, shipping providers, and on purchases of $5,000 or more everywhere else (on up to $2 million of these purchases per calendar year)
- 1x points for each dollar you spend on eligible purchases
- Benefits
- Get up to $200 in statement credits per calendar year for incidental fees charged by one qualifying airline to your card
- Complimentary access to The American Express Global Lounge Collection, which includes more than 1,400 airport lounges in 140 countries
- Earn over $1,000 in annual statement credits on select business purchases
- Annual fee$0
- Welcome offerEarn $200 cash back after spending $1,500 on purchases in the first 6 months (bonus offer will be fulfilled as 20,000 ThankYou® Points, which can be redeemed for $200 cash back)
- Card type(s)Cash-back
- Introductory APR0% intro APR on balance transfers for the first 18 months (19.24% - 29.24% variable APR after that)
- Purchase APR19.24% - 29.24% variable
- Rewards rate
- 5% cash back on hotel, car rentals and attractions booked on the Citi Travel℠ portal through 12/31/24
- 2% cash back on every purchase with unlimited 1% cash back when you buy
- Earn an additional 1% as you pay for your purchases (to earn cash back, pay at least the minimum due on time)
- BenefitsGenerous intro APR on balance transfers
If simple rewards are what you’re looking for, the Citi Double Cash Card could be one of the best credit cards to open. It earns up to 2% cash back on every purchase: 1% when you make a purchase and another 1% when you pay it off. Through 2024, you’ll earn 5% cash back on hotels, car rentals, and attractions booked through Citi Travel. And for no annual fee, a baseline 2% cash back can be valuable no matter where you spend most.
- Annual fee$0
- Welcome offerNone
- Card type(s)Balance transfer
- Introductory APR0% intro APR on purchases and balance transfers for the first 21 months, after which the standard APR applies
- Purchase APR18.24% - 29.99% variable
- Rewards rateNone
- Benefits
- Get up to $600 of cell phone protection against damage or theft
- 0% introductory APR is useful to finance large purchases or transfer a balance from another card
The Wells Fargo Reflect’s 21-month introductory 0% APR period is one of the longest you’ll find today. With close to two years to pay down balances interest-free (you’ll pay 18.24%, 24.74%, or 29.99% variable APR after that), you can eliminate a significant amount of existing debt. You will pay a balance transfer fee and must make your transfer within a limited time period, but these are both common among this type of card.
The Reflect card doesn’t offer many benefits or perks beyond the intro period — if you’re looking for ongoing rewards, you’ll likely need to sacrifice a few months of 0% APR with a shorter intro period.
- Annual fee$0
- Welcome offerNone
- Introductory APR0% intro APR on purchases and balance transfers for the first 21 months, after which the standard APR applies
- Purchase APR18.74% - 29.74% variable
- Rewards rateNone
- Benefits
- Lengthy 0% introductory APR is useful to finance large purchases or transfer a balance from another card
- Get up to $600 of cell phone protection against damage or theft
- Choose your payment due date
At 21 billing cycles with 0% APR, the U.S. Bank Visa Platinum is also among the longest introductory periods available today. There’s no annual fee, and the ongoing variable APR ranges from 18.74%–29.74%. The balance transfer fee is the greater of 3% or $5.
This is one of the best credit cards to get if you’re solely focused on scoring the longest possible 0% APR, since there aren’t many ongoing benefits that the U.S. Bank Visa Platinum offers after the intro period ends.
- Annual fee$0
- Welcome offerDiscover will automatically match all the cash back you’ve earned at the end of your first year, with no minimum spending requirement or maximum rewards cap
- Card type(s)Cash-back
- Introductory APR0% intro APR on purchases and balance transfers for the first 15 months (18.24% to 28.24% variable APR after that; 3% intro balance transfer fee until until Dec. 10, 2024, then up to 5%)
- Purchase APR18.24% - 28.24% variable
- Recommended credit scoreGood to Excellent
- Rewards rate
- 5% cash back on everyday purchases at different places each quarter — including grocery stores, restaurants, gas stations, and more — up to the quarterly maximum
- 1% unlimited cash back on all other purchases
- Benefits
- Redeem your rewards for cash at any time
- Generous intro APR for purchases and balance transfers
For no annual fee, you can get a generous introductory APR on new purchases and balance transfers for 15 months. Not only is this card great for balance transfers, it also offers ongoing rewards. Earn 5% cash back on quarterly rotating bonus categories (up to the quarterly maximum with activation) and 1% back on other purchases. And though you may want to prioritize paying down your balance over the first year, you can benefit from using your card for purchases with Discover’s unlimited Cashback Match of all the spending over your first year. Just remember to only spend what you can afford to pay off each month to avoid taking on more debt.
- Annual fee$0
- Welcome offerDiscover will automatically match all the cash back you’ve earned at the end of your first year, with no minimum spending requirement or maximum rewards cap
- Card type(s)Student, Cash-back
- Purchase APR18.24% - 27.24% variable
- Introductory APR0% intro APR on purchases for the first 6 months (18.24% - 27.24% variable APR after that)
- Rewards rate
- 5% cash back at different places you shop each quarter (grocery stores, restaurants, gas stations, and more) up to the quarterly maximum, then 1%
- 1% on all other purchases
- Benefits
- Unlimited cash back match of all the cash back you earn your first year
- Redeem your rewards for cash at any time, or use your rewards at Amazon.com and millions of online stores with PayPal
- No annual fee
Among student cards available today, the Discover it Student offers among the best rewards value. The rotating quarterly 5% bonus categories cover a variety of everyday spending — and if you max out the categories each quarter, you can earn up to $300 cash back every year.
It also has the highest potential welcome bonus among student cards we’ve found. With Discover’s Cashback Match feature, you’ll double all the cash back you earn over your entire first year, with no limit.
When you use this card responsibly while in school and pay it off in full each month, you can build your credit score and avoid taking on any added debt. After graduation, you can continue to earn rewards with your card in 5% bonus categories and potentially qualify for a higher credit line.
- Annual fee$0
- Welcome offerEarn 25,000 online bonus points if you make at least $1,000 in purchases in the first 90 days
- Card type(s)Travel, Student
- Introductory APR0% intro on purchases and balance transfers for 15 billing cycles, after which the standard APR applies
- Purchase APR19.24% - 29.24% variable
- Rewards rate1.5x points on all purchases
- Benefits
- Earn unlimited 1.5x points on all purchases everywhere, every time with no expiration on points as long as your account remains open
- Access your FICO® Score updated monthly for free, within your Mobile Banking app or in Online Banking
Travel rewards aren’t just for frequent business travelers; you can earn travel rewards while building credit as a student. The Bank of America Travel Rewards Credit Card for Students has no annual fee and earns a flat 1.5x points per dollar you spend. You can redeem points for statement credits toward travel and restaurant purchases. Plus, if you study abroad while in school, you can enjoy no foreign transaction fees (similar to other non-student travel rewards cards).
- Annual fee$0
- Welcome offerGet a $300 online statement credit after you spending at least $3,000 within the first 90 days
- Card type(s)Cash-back, Rewards
- Introductory APR0% intro APR on purchases for the first 9 billing cycles
- Purchase APR18.49% - 28.49% variable
- Rewards rate
- 3% cash back* in the category of your choice: gas stations and EV charging stations (default), office supply stores, travel, TV, telecom & wireless, computer services, or business consulting services
- 2% cash back* on dining purchases
- 1% cash back on all other purchases
- *Earn 3% and 2% cash back on the first $50,000 in combined choice category/dining purchases each calendar year, then earn 1%
- Benefits
- Earn up to 75% more cash back on every purchase if you have a business checking account with Bank of America and qualify for Preferred Rewards for Business Platinum Honors tier
- Choose how to redeem your cash rewards — as a deposit into your Bank of America checking or savings account, as a card statement credit, or as a check mailed to you
- 0% on purchases for the first 9 billing cycles, after which the standard APR applies
This is another card that can benefit small businesses that can have varying types of purchases throughout the year. Rewards are your choice: You’ll earn 3% cash back on your choice of gas stations and EV charging stations, office supply stores, travel, TV or telecom and wireless spending, computer services, or business consulting services. Plus, get 2% back on dining and 1% on everything else. The 3% and 2% categories are limited to a combined $50,000 in annual spending (then they earn 1%), which could limit rewards for businesses with high costs.
- Annual fee$99
- Welcome offerEarn a $400 statement credit and 40,000 points after spending $3,000 in the first 4 months
- Card type(s)Airline, Travel
- Purchase APR20.74% - 27.74% variable
- Rewards rate
- 3x points on Southwest purchases
- 2x points on Rapid Rewards® hotel and car rental partners 2x points local transit and commuting, including rideshare 2x points on internet, cable, and phone services, plus select streaming 1x points on all other purchases
- Benefits
- Earn 6,000 points each year on your account anniversary, plus 10,000 Companion Pass qualifying points annually
- 2 EarlyBird check-ins each year
- Get 25% back on inflight purchases
- Earn 1,500 tier qualifying points (TQPs) toward A-List status for every $5,000 you spend on the card
A co-branded card with Southwest Airlines could potentially offer big savings for your Disney vacation — especially if you’re planning a trip to Walt Disney World in Orlando, Fla., where Southwest has a major presence. When you fly Southwest, you’ll get 2 EarlyBird check-ins each year and can get 6,000 extra points each account anniversary. This $99 annual fee card is versatile for non-airline spending, too.
The information for the Southwest Rapid Rewards Premier Credit Card has been collected independently by Yahoo Finance. The card details on this page have not been reviewed or provided by the card issuer.
- Annual fee$95
- Welcome offerEarn 125,000 bonus points after spending $5,000 in the first 3 months — our best points offer!
- Card type(s)Hotel, Travel
- Purchase APR20.74% - 27.74% variable
- Rewards rate
- Up to 17x points at Marriott: 6x points at participating Marriott Bonvoy® properties, 10x points for being a Marriott Bonvoy® member, plus 1x points for members with Silver Elite Status
- 3x points on the first $6,000 spent in combined purchases each year on grocery stores, gas stations, and dining
- 2x points on all other purchases
- Benefits
- Earn a Free Night Award every year after your account anniversary
- Get automatic Marriott Bonvoy® Silver Elite Status each account anniversary, plus receive 15 Elite Night Credits each calendar year and earn 1 Elite Night Credit for every $5,000 you spend
- Get a one-year complimentary DashPass membership if you activate by 12/31/24
A co-branded hotel card could be another option for your Disney vacation, and the large number of Marriott properties surrounding Disney, including two Disney resorts, make it a solid choice.
To start, the Boundless card earns 6x points at Marriott Bonvoy hotels — in addition to the 10x you get as a Marriott Bonvoy member and 1x as a Silver Elite status member (a perk of the card), for a total of 17x on eligible Marriott Bonvoy spending. You’ll also get 3x points at grocery stores, gas stations, and on dining (up to the first $6,000 in combined annual spending, then 1x), and 1x on all other purchases. Other benefits include a Free Night Award every account anniversary (with a value of up to 35,000 points), 15 Elite Night Credits every year, a spending path to Gold Elite status, and more.
- Annual fee$0
- Welcome offerEarn a $150 bonus after you spend $500 on purchases in the first 3 months
- Card type(s)Rewards, Cash-back
- Introductory APR0% Intro APR for 15 months from account opening on purchases and balance transfers, then a variable APR of 19.74% - 28.49%
- Purchase APR19.74% - 28.49% variable
- Rewards rate
- 5% cash back on up to $1,500 on combined purchases in bonus categories each quarter you activate
- 5% cash back on travel purchased through Chase Travel℠
- 3% on dining, including takeout and drug stores
- 1% on all other purchases
- Benefits
- Get 5% cash back on Lyft rides through March 31, 2025, plus select DoorDash discounts
- Enjoy perks like extended warranty protection, trip cancellation insurance, cell phone protection, and auto rental collision damage waiver
- Redeem your cash back rewards as a statement credit, direct deposit, gift card, on Amazon purchases, or to book travel through Chase
- Use the introductory 0% APR on purchases and balance transfers for the first 15 months, after which the standard APR will apply
Chase Freedom Flex is a cash-back card with a ton of potential value for different spenders. For ongoing rewards, you’ll earn 5% cash back on rotating quarterly bonus categories (up to $1,500 per quarter, when you activate). Some examples of these categories include gym memberships, Amazon purchases, wholesale clubs, and PayPal. You’ll also get 5% back on travel purchased through Chase Ultimate Rewards, 3% on dining, 3% at drugstores, and 1% on everything else.
*All information about Chase Freedom Flex has been collected independently by Yahoo Finance. Chase Freedom Flex is no longer available through Yahoo Finance.
Related: 2024 Chase Freedom bonus categories
Types of credit cards
Many types of credit cards exist, and certain card categories may overlap. For instance, airline and hotel credit cards might also fall into the category of business credit cards. Likewise, some 0% APR cards may also earn cash back. Comparing credit card offers can help you choose the best one for your wallet.
Cashback rewards credit cards
With a cashback rewards card, you earn valuable cash back on the purchases you make with your card. Depending on how the card’s rewards are structured, you might earn cash back at a flat rate, such as 2% back on all purchases, or tiered cash back in different categories, such as higher returns on grocery or gas purchases.
Many credit card issuers let you redeem your rewards for a statement credit, check, gift card, or transfer to your bank account. Some even let you convert your cash back into points you can use for travel bookings.
Balance transfer credit cards
Balance transfer cards can be invaluable for consolidating credit card debt and reducing your interest costs. Many balance transfer cards offer a 0% introductory APR for up to 18 months, meaning you can transfer your debt from a high-rate card and pay it down during the intro period without incurring hefty interest charges.
After a balance transfer card’s intro APR period ends, the card’s regular rate applies, so ensure you pay off your debts in full before then. Certain balance transfer cards may also earn rewards.
0% introductory APR cards
Zero percent introductory APR cards are closely related to balance transfer cards, but instead of an introductory APR on balance transfers, you also get a 0% intro APR on new purchases. Instead of using your card to consolidate and pay off existing high-rate debt, you could use it to pay a large expense over time and potentially avoid credit card interest.
Like balance transfer cards, 0% APR cards often offer no interest for 18 months, but the regular APR kicks in afterward.
Travel credit cards
You can earn points to offset future trips with a travel rewards credit card. Unlike cashback credit cards, which may offer flat-rate rewards, travel rewards cards typically have a tiered rewards structure. For instance, you might earn 5X points on flight or hotel purchases, 3X points on restaurant purchases, and 1X points on everything else.
Rewards structures, card benefits, and redemption options vary, but in general, you can use your points to book trips via your card’s travel portal, transfer points to an airline or hotel partner, or redeem points for cash, a statement credit, or gift card. Many travel cards offer generous welcome bonuses that you can earn after you meet a minimum spend within a certain timeframe, often three or six months.
Airline credit cards
An airline credit card can be useful if you’re loyal to one particular airline. For instance, if you fly Delta all the time, a Delta SkyMiles credit card could help you earn miles to offset your flight costs. Generally, airline cards offer the highest earnings rates on flight purchases, though some may let you earn rewards on things like hotel stays and car rentals, too.
Many airline credit cards also offer perks like priority boarding, free checked bags, seat upgrades, and even airport lounge access. Some also give you complimentary elite status, which can result in even more benefits.
Hotel credit cards
Hotel credit cards are another option, which can be useful if you strongly prefer one hotel brand over others. If you love Hilton hotels, for example, a credit card like the Hilton Honors American Express could be a good choice.
Like airline credit cards, hotel cards typically offer the highest reward rates on hotel reservations, but you might also earn rewards by using your card for airline tickets or rental cars. Some hotel cards come with benefits like early check-in, late check-out, free breakfast, or room upgrades, and certain ones may give you elite status.
Student credit cards
Student credit cards are designed specifically for college students. Many student cards have lower credit score requirements than other types of cards, making them more accessible to young adults with thin credit files. Certain cards also offer rewards programs, letting students earn cash back or points on purchases made in popular spending categories like restaurant or rideshare purchases.
Secured credit cards
Similar to student credit cards, secured credit cards are designed to help cardholders build their credit. But these cards typically require a security deposit, which often equals your total credit limit. If you’ve had past financial issues, a secured credit card could help you rebuild your credit with responsible use.
Business credit cards
Business credit cards are designed for people who want to earn rewards to offset their business expenses. Cashback business credit cards may offer flat-rate rewards or tiered rewards in popular purchase categories, like office supply stores or shipping purchases. You can also find travel rewards business cards that earn points or miles; typically, these cards come with a tiered rewards structure.
Business credit cards may come with welcome offers or travel benefits that make business trips easier, such as priority boarding or airport lounge access.
Store credit cards
Store credit cards can work a bit differently than other credit cards. Many of these cards — though not all — can only be used at a specific group of stores. With store credit cards, you can often earn store-specific rewards on your in-store or online purchases, and many offer perks like exclusive coupons, free shipping, or extra time to make returns.
How to choose the best credit card
The best credit card for you is the one that best fits your individual financial needs and spending habits. Maybe it has a great sign-up bonus to help you get extra points for an upcoming vacation. Maybe it offers simple cash-back rewards on every purchase. Or maybe it’s designed to help you rebuild credit after your score has taken a hit.
After you know exactly what you’re looking for, compare different cards to find the right fit. Everything from the annual fee and interest rate to rewards, benefits, and security is good to know before applying.
You’ll also want to consider how likely you are to qualify for the card before you apply. You’ll likely get approved for great cards with long intro APRs and high rewards rates if you have an excellent credit score. But that can be more difficult if you have bad credit or little credit history. If you’re still building your credit score, look for cards aimed at fair credit or offering pre-approval (which won’t impact your score with a hard credit inquiry).
Read more: See our picks for the best credit card sign-up bonuses
Should you have multiple credit cards?
Adding more than one credit card to your wallet can be useful. For example, say you opened a student credit card in college to begin building credit. Now, you have a good credit score and your career requires more frequent travel, so you’re looking for a travel rewards card to help maximize your flights and hotels.
Different types of credit cards — cash back, balance transfer, travel rewards, 0% APR, small business cards, etc. — can all serve different purposes. If you have multiple credit cards to serve different needs, you can ensure you get the best value for every purchase.
Just be careful not to add multiple cards at once. Applying for several cards in a short amount of time could result in multiple hard inquiries on your credit report and temporarily reduce your credit score.
How do credit cards work?
Credit cards are a form of payment that allow you to borrow up to a certain amount (your credit limit). Each month, you’ll have a period of time to pay back the amount you charge to your credit card; if you don’t pay your balance in full by then, it will begin to accrue interest at the card’s ongoing APR.
If you use your credit card like a debit card and pay it off in full by the due date each month, you can boost your credit score without incurring interest charges. With a rewards card, you can even get value back on your spending in the form of cash back, miles, or points.
You may also be eligible for added benefits like statement credits, purchase and travel protections, partner discounts, and more. Some credit cards offer introductory 0% APR periods for new purchases or balance transfers to help you avoid interest altogether for a given period. But there are also fees to keep in mind with any card, such as late payment or returned payment fees, foreign transaction fees, cash advance fees, and more.
How to get the most out of your credit card
After you choose the best credit card for you, use it wisely.
Read your credit card agreement carefully to understand exactly how you can qualify for all of your card’s benefits (some may require opting in or enrollment) and how to avoid any unwanted fees.
Also, be aware of your card’s rewards and benefits — and use them. Use your credit card whenever you make purchases that qualify for bonus rewards categories and keep up with your rewards balance. Unless you’re saving up for a big redemption, using your rewards regularly is always good.
Finally, you’ll always get the most value from any credit card by avoiding added interest charges. Paying your balance in full and on time every month can help you maintain a great credit score and avoid potential high-interest debt that can easily creep up when you carry a credit card balance.
Frequently asked questions (FAQs) about credit cards
What is the best credit card you can get?
The best credit card to open depends on your unique situation. Frequent or occasional travelers might benefit from a travel rewards credit card, while those who don’t travel often could find value in a cashback credit card. If you have significant debt, a balance transfer card with a 0% introductory APR could be the best credit card to get, while a student credit card might be the right card if you’re in college and interested in building credit.
Can I get cash back with a credit card?
Many credit cards let you earn cash back on your purchases, but the amount of cash back you can earn depends upon your card’s rewards structure and your spending habits.
It’s also possible to take a cash advance on a credit card, though we generally don’t recommend this. Cash advances carry high fees and interest rates, meaning additional charges can easily accumulate on the amount you borrow against your credit limit.
What are the best credit cards for travel rewards?
The best travel rewards card for you is one that aligns with your spending habits and travel preferences. Some of the most popular travel rewards cards are:
Our methodology: How we choose the best credit cards
We use a unique methodology to determine the top cards in each category listed above.
These methodologies include general criteria for any credit card: issuer transparency, interest rate, customer experience, security, access to credit score, and more. But they also are designed to rank cards distinctly within each category. For example, welcome bonuses and redemption options are an important part of our travel card ranking, whereas the length of the 0% APR period is a more important factor for balance transfer cards.
The best credit cards listed above are among the top cards within their individual categories. Not only do they rank highly within our grading system, but we believe they can offer a great value to the widest range of cardholders.
You can find a full rundown of the methodologies we use to rank our best credit cards at each of the links below:
This article was edited by Rebecca McCracken
Editorial Disclosure: The information in this article has not been reviewed or approved by any advertiser. All opinions belong solely to Yahoo Finance and are not those of any other entity. The details on financial products, including card rates and fees, are accurate as of the publish date. All products or services are presented without warranty. Check the bank’s website for the most current information. This site doesn't include all currently available offers. Credit score alone does not guarantee or imply approval for any financial product.
