Best Credit Cards in January 2026: Top Picks for Rewards, Cash Back & Low APR
LendingTree's pick for best overall credit card
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LendingTree's pick for best overall credit card
Chase Sapphire Preferred® Card
The Chase Sapphire Preferred® Card is the best credit card because of its high rewards earning rate, flexible redemption options and modest $95 annual fee.
Key takeaways
- The best credit card offers can put hundreds or even thousands of dollars back in your wallet by offering sign-up bonuses, no annual fees, rewards on every purchase and low interest rates.
- Cash back credit cards offer flexibility while travel rewards cards typically offer better value.
- Credit cards with 0% intro APR offers help you save interest and pay off debt faster.
Best current credit cards in 2026
- Best rewards credit: Chase Sapphire Preferred® Card
- Best cash back credit card: Capital One Savor Cash Rewards Credit Card
- Best business credit card: Ink Business Preferred® Credit Card
- Best travel credit card: Capital One Venture X Rewards Credit Card
- Best credit card for beginners: Chase Freedom Rise® Credit Card
- Best credit card for students: Capital One Savor Student Cash Rewards Credit Card
- Best balance transfer credit card: Citi Simplicity® Card
- Best credit card for bad credit / secured credit card: Discover it® Secured Credit Card
- Best intro APR credit card: Blue Cash Preferred® Card from American Express
Compare credit cards
| Credit Cards | Our Ratings | Rewards Rate | Annual Fee | Recommended Credit Credit scores ranges may vary. Your individual chance at approval may vary due to factors such as creditors using a particular variation at their discretion | |
|---|---|---|---|---|---|
Chase Sapphire Preferred® Card
Apply Now
on Chase's secure site Rates & Fees |
Best rewards credit card
|
1X - 5X points
| $95 | Excellent |
Apply Now
on Chase's secure site Rates & Fees |
Capital One Savor Cash Rewards Credit Card
|
Best cash back credit card
|
1% - 8% cash back
| $0 | Good / Excellent | |
Ink Business Preferred® Credit Card*
|
Best business credit card
|
1X - 3X points
| $95 | Excellent | |
Capital One Venture X Rewards Credit Card
|
Best travel credit card
|
2X - 10X miles
| $395 | Excellent | |
Chase Freedom Rise® Credit Card*
|
Best credit card for beginners
|
1.5% cash back
| $0 | Good / Excellent | |
Capital One Savor Student Cash Rewards Credit Card
|
Best credit card for students
|
1% - 8% cash back
| $0 | Fair | |
Citi Simplicity® Card
Apply Now
on Citibank's secure site Rates & Fees |
Best balance transfer credit card
|
N/A | $0 | Good / Excellent |
Apply Now
on Citibank's secure site Rates & Fees |
Discover it® Secured Credit Card
Apply Now
on Discover's secure site Rates & Fees |
Best credit card for bad credit / secured credit card
|
1% - 2% cash back
| $0 | Limited / Poor |
Apply Now
on Discover's secure site Rates & Fees |
Blue Cash Preferred® Card from American Express
|
Best intro APR credit card
|
1% - 6% cash back
| $0 intro annual fee for the first year, then $95. | Good / Excellent |
Methodology: How we chose our best credit cards
We take a comprehensive, data-driven approach to identify the best credit cards. We use an objective rating and ranking system that evaluates over 200 credit cards from more than 50 issuers. All recommendations are made by LendingTree’s editorial team, completely independent of affiliate partnerships or compensation. Every card is selected based on its merit and ability to help people achieve their financial goals. We use the following criteria to make our picks:
We calculate the savings on a balance transfer, based on the length of the introductory period. We assume a transfer amount of $6,000 and a monthly payment of $300. We subtract balance transfer fees, annual fees and the amount paid on interest for any amount left over after the introductory period expires.
We calculate the amount saved on interest given the length of the card’s introductory period. We assume a purchase of $6,000 and a monthly payment of $300. We subtract the card’s annual fee and interest paid on any amount remaining after the introductory period expires. We also add in the amount earned on rewards for the average cardholder, including the card’s sign-up bonus, minus the card’s annual fee. We look at the average rewards earned over two years to balance out a card’s ongoing value with its first-year value.
We calculate the rewards earned for the average cardholder using Bureau of Labor Statistics data and an annual spend of $20,000, minus the annual fee. This value includes sign-up bonus and annual bonuses (including annual free night certificates). For travel cards, this value includes travel perks like lounge access and travel credits. We look at the average rewards earned over two years to balance out a card’s ongoing value with its first-year value.
We calculate how much the average cardholder can save with the card on a yearly basis. If it is a rewards card, we use U.S. Bureau of Labor data and $300 in monthly spend (the typical starting credit limit for an introductory card) to calculate how much the average cardholder can earn in rewards. We then subtract fees — including annual fees and maintenance fees — from this amount.
Depending on the category, we also look at the flexibility rewards, features for building credit and how the card’s overall list of benefits compares to other cards.
Note that our ratings are a starting point for comparing and choosing the best credit card. However, your needs may be different from the average cardholder. You should consider the amount you’re likely to spend in a card’s rewards categories and which benefits you value to choose the best card for you.
Best credit card for rewards
Chase Sapphire Preferred® Card
How LendingTree Rates Credit Cards?
Our experts rate credit cards based on several factors including card benefits, bonus offers and independent research. Credit card issuers do not influence or have a say in our card ratings. Read our credit card methodology here. Apply Now
Rewards: Earn 1X - 5X points
- Enjoy benefits such as 5x on travel purchased through Chase Travel℠
- Earn 3x on dining, select streaming services and online groceries
- Earn 2x on all other travel purchases
- Earn 1x on all other purchases
- Huge sign-up bonus
- Earn elevated rewards on travel and dining
- Rewards transfer to airline and hotel partners
- Book travel through Chase to get up to 75% more value
- Includes a variety of travel protections and insurance coverage
- $95 annual fee
- No airport lounge access
- No Global Entry/TSA PreCheck®
- No intro APR offers
The Chase Sapphire Preferred® Card is the best rewards credit card available, thanks to its high earning rate on travel and dining plus the flexibility of redeeming rewards, all for a modest $95 annual fee. By earning Chase Ultimate Rewards® points, you can increase the value of your points by utilizing airline and hotel transfer partners, or use them to book travel through Chase.
It does lack features of more premium credit cards that offer airport lounge access and Global Entry or TSA PreCheck® that are included with its sibling card, the Chase Sapphire Reserve®.
- Click APPLY NOW to apply online.
- Earn 75,000 bonus points after you spend $5,000 on purchases in the first 3 months from account opening.
- Enjoy benefits such as 5x on travel purchased through Chase Travel℠, 3x on dining, select streaming services and online groceries, 2x on all other travel purchases, 1x on all other purchases
- Earn up to $50 in statement credits each account anniversary year for hotel stays through Chase Travel℠
- 10% anniversary points boost - each account anniversary you'll earn bonus points equal to 10% of your total purchases made the previous year.
- Count on Trip Cancellation/Interruption Insurance, Auto Rental Collision Damage Waiver, Lost Luggage Insurance and more.
- Complimentary DashPass which unlocks $0 delivery fees & lower service fees for a min. of one year when you activate by 12/31/27. Plus, a $10 promo each month on non-restaurant orders.
- Member FDIC
- Rates & Fees
Find more rewards credit cards.
Best cash back credit card
Capital One Savor Cash Rewards Credit Card
How LendingTree Rates Credit Cards?
Our experts rate credit cards based on several factors including card benefits, bonus offers and independent research. Credit card issuers do not influence or have a say in our card ratings. Read our credit card methodology here.Rewards: Earn 1% - 8% cash back
- Earn 3% Cash Back at grocery stores (excluding superstores like Walmart® and Target®), on dining, entertainment and popular streaming services
- Earn 5% Cash Back on hotels, vacation rentals and rental cars booked through Capital One Travel
- Earn 8% Cash Back on Capital One Entertainment purchases
- Earn 1% Cash Back on all other purchases
- Earn a good sign-up bonus
- Intro APR offer on purchases and balance transfers
- $0 annual fee
- No cap on elevated rewards categories
- Low cash back rate outside of dining and entertainment
- Walmart and Target excluded from grocery cash back category
- Balance transfer fee applies
The Capital One Savor Cash Rewards Credit Card offers high cash back rewards rates on several popular spending categories, including dining, entertainment and grocery stores (excluding superstores like Walmart and Target). This card would be an excellent fit for foodies looking for cash back rewards for a $0 annual fee. You can also take advantage of an easy-to-earn sign-up bonus: Earn $200 Cash Back after you spend $500 on purchases within 3 months from account opening.
- Earn a one-time $200 cash bonus once you spend $500 on purchases within the first 3 months from account opening
- $0 annual fee and no foreign transaction fees
- Earn unlimited 3% cash back at grocery stores (excluding superstores like Walmart® and Target®), on dining, entertainment and popular streaming services, plus 1% on all other purchases
- Earn 8% cash back on Capital One Entertainment purchases
- Earn unlimited 5% cash back on hotels, vacation rentals and rental cars booked through Capital One Travel
- No rotating categories or sign-ups needed to earn cash rewards; plus cash back won't expire for the life of the account and there's no limit to how much you can earn
- 0% intro APR on purchases and balance transfers for 12 months; 18.49% - 28.49% variable APR after that; balance transfer fee applies
- Top rated mobile app
- For Capital One products listed on this page, some of the benefits may be provided by Visa® or Mastercard® and may vary by product. See the respective Guide to Benefits for details, as terms and exclusions apply
Why it’s in my wallet
“I like having the Capital One Savor Cash Rewards Credit Card because I earn bonus cash back on dining and can easily redeem the rewards as a statement credit. However, since it doesn’t have a foreign transaction fee and I don’t have a travel card, I was also able to use it when I went to a friend’s wedding in Colombia.”
–Sarah Fisher, deputy editor at LendingTree
Best business credit card
Ink Business Preferred® Credit Card*
How LendingTree Rates Credit Cards?
Our experts rate credit cards based on several factors including card benefits, bonus offers and independent research. Credit card issuers do not influence or have a say in our card ratings. Read our credit card methodology here.Rewards: Earn 1X - 3X points
- Earn 3 points per $1 on the first $150,000 spent in combined purchases on travel, shipping purchases, Internet, cable and phone services, advertising purchases made with social media sites and search engines each account anniversary year.
- Earn 1 point per $1 on all other purchases—with no limit to the amount you can earn.
- Earn points for spending in common business categories
- Valuable sign-up bonus
- Pairs well with other Chase cards
- Transfer points 1:1 to variety of loyalty programs
- $95 annual fee
- High spending requirement to earn sign-up bonus
You’ll earn valuable Chase Ultimate Rewards® points for purchases in common business spending categories like shipping, advertising and travel with the Ink Business Preferred® Credit Card. Plus, you can pair this card with other Chase cards — like the Chase Freedom Flex® and Chase Freedom Unlimited® — to pool points and redeem travel rewards.
Cardholders also earn 100,000 bonus points after you spend $8,000 on purchases in the first 3 months from account opening. This is one of the most valuable sign-up bonuses currently available.
- Earn 100k bonus points after you spend $8,000 on purchases in the first 3 months from account opening. That's $1,000 cash back or $1,250 toward travel when redeemed through Chase Travel℠
- Earn 3 points per $1 on the first $150,000 spent on travel and select business categories each account anniversary year. Earn 1 point per $1 on all other purchases
- Round-the-clock monitoring for unusual credit card purchases
- With Zero Liability you won't be held responsible for unauthorized charges made with your card or account information.
- Redeem points for cash back, gift cards, travel and more - your points don't expire as long as your account is open
- Points are worth more when you redeem for travel through Chase Travel℠
- Purchase Protection covers your new purchases for 120 days against damage or theft up to $10,000 per claim and $50,000 per account.
- Member FDIC
Find more business credit cards.
Best travel credit card
Capital One Venture X Rewards Credit Card
How LendingTree Rates Credit Cards?
Our experts rate credit cards based on several factors including card benefits, bonus offers and independent research. Credit card issuers do not influence or have a say in our card ratings. Read our credit card methodology here.Travel rewards: Earn 2X - 10X miles
- Earn 2 Miles per dollar on every purchase, every day
- Earn 10 Miles per dollar on hotels and rental cars booked through Capital One Travel
- Earn 5X Miles per dollar on flights booked through Capital One Travel
- Up to $300 annual travel credit for eligible bookings through Capital One’s travel booking site
- Complimentary lounge access
- Up to $120 TSA PreCheck®/Global Entry credit
- 10,000 bonus miles every cardmember anniversary
- $395 annual fee
- Restrictions on travel credit
- More complicated to transfer miles to domestic airlines
The Capital One Venture X Rewards Credit Card is a valuable and flexible travel credit card that’s well worth the $395 annual fee for frequent travelers. This card provides luxury benefits like a TSA PreCheck®/Global Entry credit up to $120 and lounge access that can help you easily recoup the annual fee.
On top of its benefits, it offers a rewarding earning rate on travel, a chance to earn a large sign-up bonus and 10,000 bonus miles on your card anniversary each year. These perks make it one of the best credit cards for earning free flights or hotel stays.
- Earn 75,000 bonus miles when you spend $4,000 on purchases in the first 3 months from account opening, equal to $750 in travel
- Receive a $300 annual credit for bookings through Capital One Travel, where you'll get Capital One's best prices on thousands of trip options
- Get 10,000 bonus miles (equal to $100 towards travel) every year, starting on your first anniversary
- Earn unlimited 10X miles on hotels and rental cars booked through Capital One Travel and 5X miles on flights and vacation rentals booked through Capital One Travel
- Earn unlimited 2X miles on all other purchases
- Enjoy access to 1,300+ lounges worldwide, including Capital One Lounge locations and Priority Pass™ lounges, after enrollment
- Use your Venture X miles to easily cover travel expenses, including flights, hotels, rental cars and more—you can even transfer your miles to your choice of 15+ travel loyalty programs
- Enjoy a $100 experience credit and other premium benefits with every hotel and vacation rental booked from the Premier Collection
- Receive up to a $120 credit for Global Entry or TSA PreCheck®
- Top rated mobile app
- For Capital One products listed on this page, some of the benefits may be provided by Visa® or Mastercard® and may vary by product. See the respective Guide to Benefits for details, as terms and exclusions apply
Find more travel credit cards.
Best credit card for beginners
Chase Freedom Rise® Credit Card*
How LendingTree Rates Credit Cards?
Our experts rate credit cards based on several factors including card benefits, bonus offers and independent research. Credit card issuers do not influence or have a say in our card ratings. Read our credit card methodology here.Increase your approval odds by having a balance of at least $250 in a Chase checking or savings account.
- $0 annual fee
- No security deposit required
- Higher approval odds with a Chase account
- Credit limit increase evaluations
- High rate of cash back
- No intro APR
- No balance transfer offer
- Not for those with bad credit
The Chase Freedom Rise® Credit Card is the best card for building credit. It’s designed for beginners, offers tools to help build your credit and offers automatic credit line reviews. In addition, you won’t have to pay a security deposit, and you can improve your approval odds by having $250 in a Chase checking or savings account. It’s one of the best unsecured credit cards for building credit. Additionally, it has a solid cash back rewards rate on all purchases, as well as valuable perks like travel insurance and purchase protection.
Notably, although there’s a $0 annual fee, the card charges hefty late fees of up to $40, so you’ll want to use it responsibly.
- Increase your approval chances - Having a Chase checking or savings account with a balance of at least $250 will increase your chances of getting approved for Chase Freedom Rise®
- Earn Cash Back - With Chase Freedom Rise®, you can start building credit while earning 1.5% cash back on all purchases. Cash Back rewards do not expire as long as your account is open and there is no minimum to redeem for cash back.
- Earn a $25 statement credit when you sign up for automatic payments within the first three months of opening your account and remain enrolled for at least 90 days. With automatic payments, just pick a date and dollar amount to make sure your Credit Card gets paid on time.
- Credit Limit Increase - As a Chase cardmember, you'll be evaluated for a credit line increase in as soon as 6 months. Your credit line is the maximum amount of money you can spend on your Freedom Rise® Card
- Free Credit Score - Track your credit score and learn how to build it with Chase Credit Journey.
- No Annual Fee - You won't have to pay an annual fee for all the great features that come with your Freedom Rise® card.
- Member FDIC
Find more credit cards for building credit.
Best credit card for students
Capital One Savor Student Cash Rewards Credit Card
How LendingTree Rates Credit Cards?
Our experts rate credit cards based on several factors including card benefits, bonus offers and independent research. Credit card issuers do not influence or have a say in our card ratings. Read our credit card methodology here.Rewards: Earn 1% - 8% cash back
- Earn 3% Cash Back at grocery stores (excluding superstores like Walmart® and Target®), on dining, entertainment and popular streaming services
- Earn 5% Cash Back on hotels, vacation rentals and rental cars booked through Capital One Travel
- Earn 8% Cash Back on Capital One Entertainment purchases
- Earn 1% Cash Back on all other purchases
- $0 annual fee
- Low spend requirement to earn sign-up bonus
- Foreign transaction fee: None
- Target and Walmart excluded from elevated rewards category
- No intro purchase APR
The Capital One Savor Student Cash Rewards Credit Card can help students start or continue their credit-building journey while earning rewards in popular cash back categories. There’s no rewards cap on its high rewards rate, which can help you stretch your savings during college. It has a $0 annual fee and a modest spending threshold to earn the sign-up bonus as well.
- Earn unlimited 3% cash back at grocery stores (excluding superstores like Walmart® and Target®), on dining, entertainment and popular streaming services, plus 1% on all other purchases
- Early Spend Bonus: Earn $50 when you spend $100 in the first three months
- Enjoy peace of mind with $0 Fraud Liability so that you won't be responsible for unauthorized charges
- Enjoy no annual fee, foreign transaction fees, or hidden fees
- Earn unlimited 5% cash back on hotels, vacation rentals and rental cars booked through Capital One Travel
- Earn up to $500 a year by referring friends and family when they're approved for a Capital One credit card
- Earn 8% cash back on entertainment purchases when you book through the Capital One Entertainment portal
- Build your credit with responsible card use
- Whether you're at a 4-year university, community college or other higher education institution, this card might be an option for you
- Top rated mobile app
- For Capital One products listed on this page, some of the benefits may be provided by Visa® or Mastercard® and may vary by product. See the respective Guide to Benefits for details, as terms and exclusions apply
Find more credit cards for students.
Best balance transfer credit card
Citi Simplicity® Card
How LendingTree Rates Credit Cards?
Our experts rate credit cards based on several factors including card benefits, bonus offers and independent research. Credit card issuers do not influence or have a say in our card ratings. Read our credit card methodology here. Apply Now
Intro balance transfer APR: 0% intro APR for 21 months on Balance Transfers; after that, a 17.49% - 28.24% (Variable) APR applies
- $0 annual fee
- Long intro APR on purchases and balance transfers
- No late fees
- No penalty APR
- No rewards or sign-up bonus
- Foreign transaction fee
- Good / Excellent credit recommended
The Citi Simplicity® Card has one of the longest intro APR on balance transfers available among major credit card issuers. It gives you nearly two years to pay off your balance transfer before the regular APR kicks in. The card offers an intro balance transfer fee if you complete the transfer within four months of opening the card, as well as a $0 annual fee.
- Click APPLY NOW to apply online.
- No Late Fees, No Penalty Rate, and No Annual Fee... Ever
- 0% Intro APR on balance transfers for 21 months and on purchases for 12 months from date of account opening. After that the variable APR will be 17.49% - 28.24%, based on your creditworthiness. Balance transfers must be completed within 4 months of account opening.
- There is an intro balance transfer fee of 3% of each transfer (minimum $5) completed within the first 4 months of account opening. After that, your fee will be 5% of each transfer (minimum $5).
- Stay protected with Citi® Quick Lock
- Rates & Fees
Find more balance transfer credit cards.
Best credit card for bad credit / secured credit card
Discover it® Secured Credit Card
How LendingTree Rates Credit Cards?
Our experts rate credit cards based on several factors including card benefits, bonus offers and independent research. Credit card issuers do not influence or have a say in our card ratings. Read our credit card methodology here. Apply Now
Rewards: Earn 1% - 2% cash back
- Earn 2% cash back at Gas Stations and Restaurants on up to $1,000 in combined purchases each quarter.
- Earn unlimited 1% cash back on all other purchases.
- $0 annual fee
- Cash back rewards program
- Welcome offer
- See if you’re preapproved on Discover’s site without harming your credit
- Security deposit required
- High interest rates
The Discover it® Secured Credit Card offers a slew of perks and features for people who want to build credit. You can check your FICO Score for free. In addition, Discover starts conducting monthly account reviews to determine if you’re eligible for an upgrade to an unsecured card in just seven months — making it one of the best secured credit cards as well. In the meantime, you’ll earn cash back rewards and pay a $0 annual fee.
- Click APPLY NOW to apply online.
- No credit score required to apply. No Annual Fee.
- Your secured credit card requires a refundable security deposit, and your credit line will equal your deposit amount, starting at $200. Bank information must be provided when submitting your deposit.
- Automatic reviews starting at 7 months to see if we can transition you to an unsecured line of credit and return your deposit.
- Earn 2% cash back at Gas Stations and Restaurants on up to $1,000 in combined purchases each quarter, automatically. You'll still earn unlimited 1% cash back on all other purchases.
- INTRO OFFER: Unlimited Cashback Match for all new cardmembers—only from Discover. Discover will automatically match all the cash back you’ve earned at the end of your first year! There’s no minimum spending or maximum rewards.
- Get an alert if we find your Social Security number on the dark web. Activate for free.
- Terms and conditions apply.
- Rates & Fees
Find more credit cards for bad credit.
Best 0% APR credit card
Blue Cash Preferred® Card from American Express
How LendingTree Rates Credit Cards?
Our experts rate credit cards based on several factors including card benefits, bonus offers and independent research. Credit card issuers do not influence or have a say in our card ratings. Read our credit card methodology here.Intro purchase APR: 0% on balance transfers for 12 months, then 19.49%-28.49% Variable
- Long intro APR on purchases and balance transfers
- High rewards rate on U.S. supermarket purchases
- Valuable welcome offer
- Up to $120 Disney streaming credit (up to $10 monthly; enrollment required)
- Balance transfer fee
- Foreign transaction fee
- Cap on elevated cash back rate
The Blue Cash Preferred® Card from American Express is an excellent cash back* card that you can use to finance a large expense with its long intro purchase APR, large welcome offer and one of the highest rewards rates on U.S. supermarket purchases. It has a $0 intro annual fee for the first year, then $95. However, its rewards can help you more than recoup the fee.
- Click APPLY NOW to apply online.
- Earn a $250 statement credit after you spend $3,000 in eligible purchases on your new Card within the first 6 months.
- $0 intro annual fee for the first year, then $95.
- Low Intro APR: 0% intro APR on purchases and balance transfers for 12 months from the date of account opening. After that, your APR will be a variable APR of 19.49% - 28.49%.
- Plan It®: Buy now, pay later with Plan It. Split purchases of $100 or more into equal monthly installments with a fixed fee so you don’t have the pressure of paying all at once. Simply select the purchase in your online account or the American Express® App to see your plan options. Plus, you’ll still earn rewards on purchases the way you usually do.
- Earn 6% cash back at U.S. supermarkets on up to $6,000 per year in eligible purchases (then 1%), 6% cash back on select U.S. streaming subscriptions, 3% cash back at eligible U.S. gas stations and on transit (including taxis/rideshare, parking, tolls, trains, buses and more) purchases and 1% cash back on other purchases. Cash Back is received in the form of Reward Dollars that can be redeemed as a statement credit and at Amazon.com checkout.
- Get up to a $10 monthly statement credit after using your enrolled Blue Cash Preferred® Card for a subscription purchase, including a bundle subscription purchase, at disneyplus.com, Hulu.com, or Plus.espn.com U.S. websites. Subject to auto-renewal.
- Apply with confidence. Know if you're approved for a Card with no impact to your credit score. If you're approved and you choose to accept this Card, your credit score may be impacted.
- Terms Apply.
- Rates & Fees
Find more credit cards with 0% intro APR offers.
Pros and cons of credit cards
- The best credit cards can help you build credit with regular, responsible use
- Earn cash back or travel rewards with some cards
- You may get a large amount of cash back, points or miles via a sign-up bonus
- Benefits like purchase protections and extended warranties, trip cancellation/interruption insurance, baggage delay insurance and emergency assistance are available with some cards
- Luxury and travel cards may offer travel perks like concierge services, lounge access and TSA PreCheck®/Global Entry
- Balance transfer credit cards can help you save money while paying off high-interest debt
- 0% intro APR offers available with some cards to help you finance large purchases
- $0 fraud liability on most cards if your card is stolen and used to purchase something
- Annual fees that can range from $95 to $695 per year
- You may accrue interest if you carry a balance from month to month
- Rewards terms may be confusing
- Sign-up bonuses may cause you to overspend
- Foreign transaction fees can add to travel costs when you use your credit card for international travel
- Balance transfer fees of 3% to 5% are common
How do credit cards work?
Credit cards work in two main ways:
- As a payment method, credit cards work as a type of currency between the cardholder and the merchant. When you use your credit card, a credit card network (Visa, Mastercard, Discover or American Express) confirms with the issuing bank that you have funds available and communicates that to the merchant.
- Credit cards work to build credit. Credit card issuers report your account activity to the major credit bureaus. Using your credit card regularly and paying the balance on time is essential to building an excellent credit score, as long as you aren’t using too much of your credit limit.
How many credit cards should I have?
The number of credit cards you should have will depend on your lifestyle and financial goals. Having at least two or three cards is a good idea for several reasons. Having more cards increases the amount of credit you have available, which can have a positive impact on your credit score. Some businesses don’t accept Discover or American Express, so if they won’t take your Discover credit card, you can most likely use your Visa or Mastercard. Finally, it’s good to have an alternate credit card in case your primary card gets lost or stolen or your account is frozen.
Advantages of having multiple credit cards
- Maximize rewards programs.
Using multiple credit cards allows you to be strategic to earn the most cash back or rewards on all of your spending. - Larger overall credit line.
Part of your credit score is based on your overall credit limit. With each new card you add more available credit. If you have a 0% APR card at 95% of its credit limit, it’s wise to keep your other credit limits as low as possible. - Spending flexibility.
Some credit cards are more widely accepted than others or have foreign transaction fees while others do not. Having more than one card allows you to use the best one for the situation.
Disadvantages of having multiple credit cards
- Potential for excess spending.
It’s easy to lose track of your spending on one card, much less two or three. You should track your spending by sticking to a simple budget. - Multiple payment dates.
Juggling different payment dates may lead to missed payments. - Additional annual fees.
It’s possible to have multiple $0 annual fee credit cards, but some of the best rewards credit cards do charge annual fees.
You may use one credit card for cash back on your weekly grocery trips and another to finance a large purchase over an extended time, interest-free.
Still, some people find it difficult to juggle several cards with different due dates and interest rates. If you struggle with credit card debt or managing payments, keep the number of credit cards in your wallet to a minimum.
Types of credit cards
There are many types of credit cards. Understanding them will help you pick the best card for your spending habits.
Cash back credit cards let you earn back a percentage on your purchases, effectively lowering the cost of everything you buy with the card. You usually redeem cash back rewards for statement credits, but you can also redeem them for direct deposits, gift cards and more.
Travel credit cards, in contrast, earn points or miles that you can redeem for flights, hotel stays and more. Points and miles are typically worth around 1 to 2 cents each. Some cards are flexible and allow you to earn rewards on any travel purchase. Others only give you points or miles on purchases from a partner airline or hotel chain.
Types of travel credit cards
Airline credit cards
These cards give you points or miles that you can use toward your next flight. They may offer travel perks like free checked bags, early boarding and lounge access. Choosing an airline credit card depends on where your loyalties lie — if you travel with one airline frequently, an airline credit card could be worth it, even if it comes with an annual fee. The Delta SkyMiles® Reserve American Express Card is our top pick for best airline credit card. It lets you earn valuable miles on flights and comes with plush perks, including airline lounge access.
Airline credit card offers usually have high spending requirements, so make sure that you can reasonably meet them in order to get the perks that come from the welcome offer.
Hotel credit cards
The best hotel credit cards give you points that you can use for free stays with a specific hotel chain. These cards also unlock hotel benefits, such as complimentary room upgrades, early check-in/late checkout, free Wi-Fi and more. The Hilton Honors Aspire Card from American Express is our pick for best hotel credit card. It has a high earning rate on travel, numerous travel credits, an annual free night reward and complimentary Hilton Honors™ Diamond status (enrollment required).
Credit cards for international travel
Costs add up quickly when using a credit card with foreign transaction fees abroad. The best international travel cards have valuable travel benefits and don’t charge foreign transaction fees. Our current favorites are the Chase Sapphire Preferred® Card, Capital One VentureOne Rewards Credit Card and American Express Platinum Card® (see rates & fees).
There are two kinds of cards for people with bad credit: unsecured credit cards (which may come with a lot of fees) and secured credit cards. Secured credit cards tend to be the more affordable option for rebuilding credit. You’ll need to put down a security deposit, but you’ll typically get your deposit back when you upgrade your card or pay it off and close your account. Many of the best unsecured credit cards for bad credit may charge annual fees and have high APRs, so it’s often best to go with a secured credit card.
The best credit cards for people with fair credit may offer no annual fee, rewards programs, lower interest rates and introductory APRs that allow you to pay off a big purchase. While a card for good credit may have all these perks, cards designed for fair credit typically offer one or two. You’ll need to decide which features are most important to you as you build credit with a credit card. Once your credit improves, you can apply for cards for good to excellent credit.
The best credit cards for making and paying off a large purchase are cards that offer a long introductory 0% APR. You’ll have breathing room — typically between a year and 24 months — to pay off your purchase over time. Look for cards with sign-up bonuses and rewards programs that you can use to offset the cost of your purchase. You can also use these benefits after the intro APR expires.
A student credit card can help you build credit while also earning rewards if you’re enrolled in school. These cards typically earn cash back rewards, offer lower credit limits and are available to people with a limited credit history.
The best cards for building credit offer free access to your credit score and report to the credit bureaus monthly. Look for cards that don’t charge annual or late fees to keep costs down. Some of our top credit-building card picks even offer sign-up bonuses and rewards programs.
Balance transfer credit cards allow you to save money by transferring your high-interest credit card debt to a card with a lower APR. The best balance transfer cards offer a 0% intro APR for a year or longer.
But while it is possible to find a credit card with no balance transfer fees, those cards tend to offer shorter interest-free periods than ones that charge 3% to 5% of each transferred balance.
If you aren’t able to pay off your card in full every month, skip the rewards and travel cards and choose a low-interest credit card. It’s simple math: The interest rates that credit card companies charge will always be higher than rewards rates. A low-interest card is the best way to save money if you regularly carry a balance.
Knowing how to use a business credit card can help keep you out of the red. Look for cards with features that match your current business needs. For instance, look for a card with a 0% APR period to finance a large purchase. Or, look for cards with good rewards programs to earn points or cash back on your most common business purchases.
What is the best credit card?
The best credit card to apply for will depend on a lot of different factors. You can narrow down your choices by taking inventory of your spending habits, credit history and rewards preferences.
- Determine what you spend the most on and what you want to buy with the card.
You can either get multiple credit cards you can use across several spending categories, or get one card for all your spending. Tiered rewards cards might be more valuable but require more juggling, while flat-rate rewards cards are simpler but may not be as valuable. - Look at your credit report and credit score.
Your credit score can help you decide whether you need a credit card to build credit before you apply for higher-earning credit cards. You should also look at your credit report and look for errors — fixing them can help boost your chances of getting approved for more valuable cards. - Determine whether you want to earn cash back or travel rewards.
If you travel often, then a travel credit card is likely better for you. Points and miles are valuable, but redeeming them can be less straightforward than cash back. If you don’t travel often or don’t want to deal with confusing points or miles systems, then a cash back credit card is likely a better fit. - Ask yourself how much you’re willing to spend on an annual fee.
Some cards have annual fees but come with benefits to offset the costs. However, if you won’t use benefits like dining credits, travel insurance or TSA PreCheck®, then a no-annual-fee credit card could be right for you. - Review what kind of credit card benefits you use or would be willing to use.
Look for a card with benefits that match your spending habits. For example, if you spend a lot on dining, a card that offers dining credits could align with your goals. Or if you travel often, a credit card with good travel insurance could also save you money.
How to get a credit card
To get a credit card, follow these steps:
- Check your credit score to know which cards you’re likely to get approved for.
- Learn credit card terms to know the common credit card fees you may have to pay with your card. The best credit cards have low, or no, fees and offer useful rewards.
- Determine what type of card best fits your needs.
- Compare credit card offers and see if you’re preapproved or prequalified.
- Gather personal information, like your full legal name, address, Social Security number, annual gross income and employment status.
- Prepare for an impact on your credit score.
- Choose where you’ll apply for the card. This is typically done online.
- Fill out and submit your application.
- Wait for a response. This usually takes three to five minutes. If your application is denied, you’ll receive a letter.
- If you’re denied, you can call the credit card reconsideration line for another chance at approval.
→ Learn more about how to get instant approval on credit cards.
Credit card company rules to keep in mind
- Wells Fargo: If you’ve opened a Wells Fargo credit card in the past six months, you won’t qualify for another card.
- Chase: There’s an unwritten rule for Chase credit cards, referred to as the Chase 5/24 rule. If you’ve opened five or more personal credit cards over the past 24 months, Chase will deny your application for a new credit card.
How to use a credit card
- Use your credit card often.
Whether you’re using your card to earn rewards or build your credit, you should use it regularly. You won’t get rewards if your cards stay in your wallet, and your issuer may close your accounts if you don’t use them. - Don’t spend more than you can afford.
Aim to pay off your credit card each month. Even if you have a high credit limit, you shouldn’t use more than 30% of it at a time. How much credit you use — also known as your credit utilization ratio — factors into your credit score. Keeping your credit utilization low will help improve your credit score. - Pay off your balance in full and on time.
This is the most important factor in maintaining a good credit score. When you pay off your balance every month, you’ll boost your credit and avoid paying interest. - Don’t cancel your credit cards unless you have to.
Canceling a credit card can temporarily hurt your credit score. Keep your credit cards — even the ones you don’t use — if they don’t cost you anything. Instead of canceling a card with an annual fee, call the credit card company and ask to waive the fee or downgrade to a card that doesn’t charge an annual fee.
→ Read more about what is a good credit score.
Frequently asked questions
Our pick for the best credit card for travel is the Capital One Venture X Rewards Credit Card. It offers excellent travel rewards, lets you earn an excellent sign-up bonus and includes a great set of benefits. Its travel credits — up to a $300 travel credit for bookings through Capital One’s travel booking site and up to a $120 credit for Global Entry/TSA PreCheck® — can make up for the card’s $395 annual fee.
It can take anywhere from a few seconds to a few days to get approved for a card. Some cards offer instant credit card numbers as soon as you’re approved, but most cards arrive via mail a few days to a couple of weeks later.
There’s no limit to the amount of credit cards you can get, in theory. However, credit card applications require hard inquiries — which can bring down your credit score temporarily. Plus, some issuers, like Chase, will deny your application if you’ve opened too many accounts recently. It’s better to plan your applications rather than apply for every card you like on the spot.
The best bank for you to get credit cards through depends on what you’re looking for. If you’re a frequent traveler, comparing Chase, Capital One and American Express transfer partners can help you make a decision. If you’re looking for a credit card to build credit, then Capital One and Discover will have more options for you than other banks.
You’ll often have better luck searching for specific cards that meet your needs rather than by bank.
To see rates & fees for American Express cards mentioned on this page, visit the links provided below:
- Blue Cash Preferred® Card from American Express
- American Express Platinum Card®
- Delta SkyMiles® Reserve American Express Card
For Capital One products listed on this page, some of the benefits may be provided by Visa® or Mastercard® and may vary by product. See the respective Guide to Benefits for details, as terms and exclusions apply
The information related to the Ink Business Preferred® Credit Card, Chase Freedom Rise® Credit Card, Chase Sapphire Reserve®, Chase Freedom Flex®, Citi® / AAdvantage® Executive World Elite Mastercard®, Hilton Honors Aspire Card from American Express and The New United℠ Explorer Card has been independently collected by LendingTree and has not been reviewed or provided by the issuer of this card prior to publication. Terms apply.
The content above is not provided by any issuer. Any opinions expressed are those of LendingTree alone and have not been reviewed, approved, or otherwise endorsed by any issuer. The offers and/or promotions mentioned above may have changed, expired, or are no longer available. Check the issuer's website for more details.
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