There are a bunch of factors that you should take into consideration when you're looking to open a new credit card -- especially considering credit cards can be both a godsend and a nightmare. Used conscientiously, they're an efficient and convenient way to pay for stuff, earn cash or travel rewards and build up your credit score. But perils abound. And a credit card user who spends beyond their means, pays bills late or gets caught up in onerous interest rates and fees can quickly end up in a quicksand-filled ditch of debt.
Luckily, there are plenty of options out there, allowing you to find a card that best fits your existing spending habits and lets you maximize your credit without falling into debt. First and foremost, you want to be sure you're getting a card that meets your specific needs. For example, you wouldn't want to transfer a balance to a rewards credit card or travel card with a high annual percentage rate. And certain maneuvers may require a little bit of math. Case in point: a balance transfer card with a 0% APR may not always be the best card for you.
So, before you commit to a credit card offer, whether you're opening your first card or you're adding to your personal financial arsenal, understand the landscape. You need to know what it means when a card has variable APR and be prepared to deal with credit card interest. You need to familiarize yourself with your own personal credit and how your card will affect your standing with the credit bureau. And finally, you need to look at reward points and how you can cash them in for either gift cards or statement credit. To help you with that, we've assembled the best credit cards by category -- from best rewards credit card to best travel credit card -- considering credit limits, interest rates and rewards. Note that we continuously monitor these cards and keep our eyes peeled for new ones, too. Our current top picks are presented below.
Best cash-back card
- Reward rates: Unlimited 1.5% cash back on all purchases and 5% cash back on travel, 3% cash back on dining, 3% cash back on drugstore purchases
- Annual fee: $0
- New member bonus: $200
- Bonus redemption threshold: $500 in first three months
- Credit requirement: 670 to 850
- Intro APR: 0% on purchases (15 months)
- APR for purchases: 14.99% to 23.74% variable
- APR for balance transfers: 14.99% to 23.74% variable
- Balance transfer fee: 5% (minimum of $5)
Most of the best cash-back cards offer a simple, flat rate and no fees. Until recently, the Chase Freedom Unlimited credit card gave you all of that -- a flat rate of 1.5% cash back on all purchases, without a spending limit, no annual fee and flexible redemption policies. In September 2020, however, the credit card company improved on that deal, adding a little bit of worthwhile complexity and ratcheting up the reward rates on travel (5%) purchased through Chase Ultimate Rewards points, dining (3%), and drugstore purchases (3%). While it's no longer the simplest, we think it's the best cash-back card for most people.
Check out the full review in CNET's roundup of the best cash-back credit cards.
Best credit card for travel rewards
- Reward rates: 2x miles on everyday purchases
- Annual fee: $95
- Welcome bonus: 60,000 miles
- Bonus redemption threshold: Spend $3,000 in the first three months
- APR: 17.24% to 24.49% variable
- Foreign transaction fees: None
- Credit requirement: 720 to 850
The Capital One Venture is a straightforward, easy-to-use credit card for booking travel with rewards points. And those rewards points are generated whenever you spend -- so there's no need to worry whether a particular category is eligible.
Check out the full review in CNET's roundup of the best travel credit cards.
The best credit card for students
- Standard APR: 12.99% to 21.99% variable (0% intro APR on purchases for the first 6 months)
- Penalty APR: None
- Late payment fee: Up to $40
- Annual fee: $0
- Cash back rewards: 2% on gas stations and restaurants, up to $1,000 in combined purchases each quarter; 1% on all other purchases
- Foreign transaction fee: 0%
- Standout feature: No late fee for first late payment (up to $40 thereafter)
- Eligibility requirements: No credit history required, proof of income
The Discover it Student Chrome offers a winning combination of cash back and other rewards as well as lenient terms for first-time credit card holders. You won't get dinged for a late payment -- at least the first one -- or have to deal with an exorbitant penalty APR. And getting 1 to 2% back in rewards each month is a welcome bonus. Note that Discover offers another similar card, the Discover it Student Cash Back credit card, but the rotating bonus categories make things overcomplicated, especially for first-time cardholders.
Check out the full review in CNET's roundup of the best student credit cards.
Best credit card for balance transfers
- Introductory APR: 20 months of 0% APR for balance transfers and purchases
- Standard APR: 13.99% to 23.99%, variable
- Penalty APR: None
- Introductory balance transfer fee: N/A
- Standard balance transfer fee: 3% or $5, whichever is greater
- How long you have to make transfers: 60 days
- Credit requirement: 680 to 850
- Annual fee: $0
Paying down credit card debt can be exhausting. A balance on an account with a high interest rate can take years to pay off -- or worse, balloon out of control. A balance transfer credit card, used properly, can offer you a relatively cost-efficient opportunity to catch up. The US Bank Visa Platinum offers one of the longest zero percent introductory APR periods -- 20 months -- combined with one of the lowest fees, 3%.
Learn more in CNET's roundup of the best balance transfer credit cards.
Best credit card for Amazon and Whole Foods shoppers
- Reward rates: 5% on Amazon, Whole Foods; 2% at restaurants, gas stations, drugstores; 1% on everything else
- Annual fee: $0
- New member bonus: $100 Amazon Gift Card
- Bonus redemption threshold: Card approval
- Credit requirement: 580 to 850
- Intro APR: None
- APR for purchases: 14.24% to 22.24% variable
- APR for balance transfers: 14.24% to 22.24% variable
- Balance transfer fee: 5% (minimum of $5)
This rewards card is a must-have for anyone who shops regularly on Amazon. And given that you can buy just about anything on Amazon -- 5% back on all eligible purchases there is pretty sweet. The rewards card also features 2% cash back at restaurants, gas stations and drug stores and 1% on everything else. (Note that Amazon offers a basic, non-Prime member card that features 3% cash back on Amazon purchases; but if you're spending more than $250 per month at Amazon or Whole Foods, you should be a Prime member.)
Check out the full review in CNET's roundup of the best cash-back credit cards.
Best credit card for Apple Pay super users (and privacy enthusiasts)
- Reward rates: 3% on Apple, Uber and Walgreens purchases; 2% on Apple Pay purchases; 1% on everything else
- Annual fee: $0
- New member bonus: $0
- Bonus redemption threshold: None
- Credit requirement: 580 to 850
- Intro APR: None
- APR for purchases: 12.49% to 23.49% variable
- APR for balance transfers: Not offered
- Balance transfer fee: Not offered
The Apple Card is a beautiful but odd duck. Crafted out of sleek titanium, the credit card looks like it was birthed from a slot on a MacBook Pro. But it's the iPhone that unleashes its true potential: When you use Apple Pay -- the company's digital wallet and touchless payment feature -- you get 2% cash back on all purchases. (The Citi Double Cash Card offers up to 2% on everything, no matter how you pay.) Otherwise, the Apple Card's rewards program is a mish-mash of cash rewards: 3% cash back on eligible purchases of Apple gear and services, Uber and Walgreens purchases and 1% cash rewards on everything else.
But there are a few other noteworthy features. The Apple Card's privacy policy states that it will "never share or sell your data to third parties for marketing or advertising" -- a commitment that's rare in an ordinarily mercenary industry. Apple delivers your cash-back rewards at the end of each day, instead of the usual month-long billing cycle. And Apple does not charge late fees, an annual fee or foreign transaction fees.
Check out the full review in CNET's roundup of the best cash-back credit cards.
Best credit cards
| Best cash-back card | Best travel credit card | Best card for balance transfers | Best card for students | Best card for Amazon and Whole Foods shoppers | Best card for Apple Pay super users (and privacy enthusiasts) | |
| Chase Freedom Unlimited | Capital One Venture Card | US Bank Visa Platinum | Discover it Student Chrome | Amazon Prime Rewards Visa Signature Card | Apple Card | |
| Annual fee | $0 | $95 | $0 | $0 | $0 | $0 |
| Credit requirement | 670 to 850 | 720 to 850 | 680 to 850 | No credit history required but you do need proof of income | 580 to 850 | 580 to 850 |
| Purchase APR | 14.99% to 23.74% variable | 17.24% to 24.49% variable | 13.99% to 23.99% variable | 12.99% to 21.99% variable (0% intro APR on purchases for the first 6 months) | 14.24% to 22.24% variable | 12.49% to 23.49% variable |
How should I choose a credit card?
Ultimately, a lot depends on how you plan to use a credit card. Are you expecting to carry a balance from month to month, or will you reliably pay it off? Do you need a high or low credit limit? Are you looking to earn reward points on everyday purchases or miles to redeem for a big travel purchase? Are you a student who needs to finance a bunch of back-to-school purchases? Do you already have excellent credit or do you need to improve your credit score? Do you need a cash advance? Do you need a business credit card or an employee card? Will you be actively cashing in bonus points and travel rewards? Do you need a secured card? Depending on what you need, one credit card issuer might be better than another. But, there are some that just tick all the right boxes -- offering more generous terms and conditions, more reward points, a lower interest rate, a higher credit limit, a welcome bonus, fewer fees and more consumer-friendly privacy policies.
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