Best Credit Cards of April 2024

15 Best Credit Cards of 2024

Best Cash Back Card: Wells Fargo Active Cash® Card

Why we chose it: The Wells Fargo Active Cash® Card offers a generous flat rewards rate of 2% cash rewards back on purchases with no annual fee. Cardholders can also earn a $200 cash rewards bonus after spending $500 on purchases within three months of account opening, and there’s an intro APR offer on purchases and qualifying balance transfers.

Read our Wells Fargo Active Cash review.

Best Travel Rewards Card: Chase Sapphire Preferred® Card

Why we chose it: The Chase Sapphire Preferred® Card is a well-rounded travel card. You can earn bonus rewards in a broad range of travel, dining and select everyday categories. And the card is loaded with generous perks to help cover the $95 annual fee. This includes a sizable welcome offer, annual hotel credit, anniversary bonus points and a 25% points boost when you redeem your rewards for travel through Chase Travel.

Read our Chase Sapphire Preferred review.

Best Premium Travel Card: Chase Sapphire Reserve®

Why we chose it: As a premium travel credit card, the Chase Sapphire Reserve® comes with exclusive perks that can help offset the card’s $550 annual fee. This includes a $300 annual travel credit, a statement credit for Global Entry, NEXUS or TSA PreCheck membership of up to $100 every four years and Priority Pass Select airport lounge membership.

Read our Chase Sapphire Reserve review.

Best for Airport Lounge Access: The Platinum Card® from American Express

Why we chose it: The Platinum Card® from American Express is an over-the-top travel credit card from Amex that has an exceptional welcome offer and some of the most luxurious perks of any card available today. Card members get the broadest airport lounge membership available (Global Lounge Collection). The card is also loaded with valuable credits, including up to $240 digital entertainment credit of annual savings given in statement credits each month, up to a $200 credit toward eligible airline incidentals given in statement credits charged by one selected, qualifying airline and up to $200 in Uber Cash per year.

Read our Platinum Card from American Express review.

Best for Earning Miles: Capital One Venture X Rewards Credit Card

Why we chose it: While other cards offering unlimited airport lounge access charge annual fees as high as $695, the Venture X Rewards Credit Card’s annual fee offers the same for a modest $395 a year. With the Venture X, you get a similar level of lounge access and premium travel perks that you get with more expensive cards, plus the ability to earn miles on every purchase.

Read our Capital One Venture X Rewards Credit Card review.

Best Intro APR Period: Wells Fargo Reflect® Card

Why we chose it: The Wells Fargo Reflect® Card offers one of the longest promotional periods—giving cardholders nearly two years to help with debt consolidation or making interest-free payments on purchases. You can score a 0% intro APR on purchases and eligible balance transfers made within the first 21 months after account opening. After that, you’ll pay a 18.24%, 24.74% or 29.99% variable APR. There’s also no annual fee to worry about and additional perks not typically found with cards that offer such a long introductory APR period.

Read our Wells Fargo Reflect® Card review.

Best for Everyday Spending: Chase Freedom Unlimited®

Why we chose it: The Chase Freedom Unlimited® has a range of bonus categories to help make it one of the best card for everyday spending. It comes with 5% cash back on travel through Chase Travel, 5% cash back total on qualifying Lyft rides (through March 31, 2025), 3% cash back on dining at restaurants (including takeout and eligible delivery service), 3% cash back on drugstore purchases and 1.5% cash back on all other purchases. It’s rare to see a card offer so many bonus categories and an above-average flat rate on general purchases.

Read our Chase Freedom Unlimited review.

Best for Rotating Categories: Discover it® Cash Back

Why we chose it: The Discover it® Cash Back offers 5% cash back on up to $1,500 spent in activated quarterly bonus categories (then 1% cash back), plus 1% cash back on all other purchases. There’s no annual fee, and Discover will even match all rewards earned at the end of your first year.

Read our Discover it® Cash Back review.

Best for Building Credit: Discover it® Secured Credit Card

Why we chose it: If you’re looking for good credit cards that help build credit from scratch, the Discover it® Secured Credit Card is a top choice. This secured credit card requires a cash deposit as collateral, but you can apply with limited credit or no credit at all. It also earns rewards with no annual fee, and Discover says you can get your deposit back and upgrade to an unsecured credit card in as little as seven months.

Read our Discover it® Secured Credit Card review.

Best for Students: Discover it® Student Cash Back

Why we chose it: College students looking for a first credit card will find the Discover it® Student Cash Back card an appealing option. This card doesn’t require a credit score to apply, it earns rewards on spending and there’s no annual fee. This card also helps college students build credit by reporting balances and payments to the three major credit bureaus.

Read our Discover it® Student Cash Back review.

Best for Flexible Bonus Categories: Citi Custom Cash® Card

Why we chose it: Several cards offer you the ability to earn more points or cash back in bonus categories, but the Citi Custom Cash Card is perhaps the most flexible. Each month, you’ll earn 5% on the first $500 you spend in your top eligible category automatically, without the need to enroll or select categories in advance.

Read our Citi Custom Cash® Card review.

Best for Groceries: Blue Cash Preferred® Card from American Express

Why we chose it: The Blue Cash Preferred® Card from American Express can help you save big with 6% cash back on up to $6,000 per year on U.S. supermarket purchases. After you hit that mark, you’ll still earn 1% cash back. Rewards can be redeemed as a statement credit or at Amazon.com checkout whenever you want.

Read our Blue Cash Preferred® Card from American Express review.

Best for Dining Out: Capital One SavorOne Cash Rewards Credit Card

Why we chose it: If you’re looking for a no-annual-fee dining card, the SavorOne Rewards from Capital One rewards you with unlimited 3% cash back on dining. And if you want to stay in, you’ll get 10% cash back on Uber Eats purchases along with a free Uber One membership until November 14, 2024 when you charge monthly membership to your card.

Read our Capital One SavorOne Cash Rewards Credit Card review.

Best for Gas and Transit: Wells Fargo Autograph℠ Card

Why we chose it: The Wells Fargo Autograph℠ Card offers bonus rewards in a broad mix of categories. This includes gas stations and electric vehicle charging stations and on subway tickets, rideshares, parking, tolls and more. You’ll also get other car-related benefits like roadside assistance, emergency service assistance and an auto rental collision damage waiver.

Read our Wells Fargo Autograph Card review.

Best for Fair Credit: Capital One Platinum Credit Card

Why we chose it: If your credit isn’t the best, the Capital One Platinum Credit Card can help you build credit over time with on-time payments. CreditWise can help you monitor your credit and it’s free for everyone, regardless if you have a Capital One credit card. The card also has no annual fee, and you can get an automatic credit line review in as little as six months after account opening.

Read our Capital One Platinum Credit Card review.

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A Closer Look at the Best Credit Cards

Best Cash Back Card: Wells Fargo Active Cash® Card

Why we love this card: The Wells Fargo Active Cash Card has one of the highest cash back rates on everyday spending among cash back credit cards available today (2% cash rewards back on purchases), and there’s no annual fee required. New customers can earn a $200 cash bonus after spending $500 on purchases within three months of account opening. The card also comes with cell phone coverage and a 0% intro APR on purchases and qualifying balance transfers for the first 15 months after account opening (followed by a variable APR of 20.24%, 25.24% or 29.99%).

Who should have this in their wallet: This card is ideal for consumers who want to earn a generous flat rate on all purchases without worrying about maximizing bonus categories or running into caps for spending.

Other cards to consider: There are plenty of other cards to consider with bonus rewards rates or other unique features. Some additional options to check out include the Chase Freedom Unlimited and the Wells Fargo Autograph Card. The Discover it Cash Back, with its bonus rewards in categories that rotate every three months, should also be on your list.

Best Travel Rewards Card: Chase Sapphire Preferred® Card

Why we love this card: The Chase Sapphire Preferred Card has a $95 annual fee that’s lower than some other travel credit cards and flexible rewards you can use in more than one way. Chase Ultimate Rewards points can be redeemed for gift cards, cash back, statement credits, merchandise, 25% more travel through Chase Travel or 1:1 point transfers to Chase airline and hotel partners. The card’s earning rates and welcome bonus are also a major plus.

Who should have this in their wallet: The Chase Sapphire Preferred Card works well for travelers who want some flexibility in how they can redeem their points. The fact there are no foreign transaction fees also makes this card perfect for international travel.

Other cards to consider: Some travel credit cards offer more luxury perks. If you want airport lounge access, annual travel credits or other similar benefits, check out premium travel credit cards like the Chase Sapphire Reserve and the Amex Platinum.

Best Premium Travel Card: Chase Sapphire Reserve®

Why we love this card: The Chase Sapphire Reserve earns lucrative Chase Ultimate Rewards points that transfer to airlines and hotels, although users can also get 50% more value for points when redeeming for travel through Chase Travel. This card also makes travel more affordable and comfortable with exclusive benefits like airport lounge access, Global Entry, NEXUS or TSA PreCheck membership and a $300 annual travel credit. Also, the Chase Sapphire Reserve has the most robust selection of included travel insurance benefits of all credit cards on the market today.

Who should have this in their wallet: The Chase Sapphire Reserve is best for frequent travelers who can use the $300 annual travel credit and benefit from airport perks like expedited security and lounge access. Individuals who want an array of options when it comes to using their rewards for travel will also love this card for its flexibility.

Other cards to consider: While the Chase Sapphire Reserve is the premium travel credit card for consumers from Chase, other credit card issuers have premium travel cards that earn different types of rewards. If you want airport lounge access and other luxury travel benefits, additional cards to consider include the Amex Platinum and Capital One Venture X Rewards Credit Card.

Best for Airport Lounge Access: The Platinum Card® from American Express

Why we love this card: The Platinum Card from American Express offers over $1,500 in value each year through statement credits and partner offers, and it earns flexible rewards that fall within the American Express Membership Rewards program. Card members also enjoy premium travel perks like broad airport lounge access, a fee credit for Global Entry or TSA PreCheck membership (as a statement credit), Gold elite status with Hilton Honors and Marriott Bonvoy and more.

Who should have this in their wallet: The Amex Platinum is for frequent travelers who want the best of everything, including expedited airport security and airport lounge access. Travelers who spend a lot on eligible flights and prepaid hotels booked through American Express Travel each year can also benefit from the rewards rate, as well as the flexibility of the American Express Membership Rewards program when it comes to redeeming their points.

Other cards to consider: If paying $695 per year for a credit card isn’t your cup of tea, you’re definitely not alone. Premium travel credit cards like the Capital One Venture X Rewards Credit Card and Chase Sapphire Reserve charge lower annual fees but come with some of the same benefits.

Best for Earning Miles: Capital One Venture X Rewards Credit Card

Why we love this card: The Venture X offers perks similar to the Platinum Card from American Express and the Chase Sapphire Reserve with a much lower annual fee—$395. The card’s cash-like perks—an annual travel credit and a 10,000-mile anniversary bonus—are especially appealing, easy to use and offer enough value to justify the card’s annual fee. Plus, you’ll get 10x miles on hotels and rental cars and 5x miles on flights when you book these categories through Capital One Travel.

Who should have this card in their wallet: If you travel a few times a year, it makes sense to have the Venture X Rewards Credit Card in your wallet. Even occasional travelers can easily make use of the card’s $300 annual travel credit (for airfare, hotels and more booked through Capital One Travel) and 10,000 bonus miles that you get each year you pay the annual fee and renew your card. You’ll get access to both Priority Pass and Capital One airport lounges when you travel, and the card’s Trip Delay Reimbursement and Trip Cancellation and Interruption insurance protect you when you book your travel with the card.

Other cards to consider: Your travel patterns and preferred airline will determine how much value you can get from the card’s airport lounge access relative to other cards. If you fly frequently on the same airline, your preferred airline’s premium card offering access to its own network of airport lounges might be better for you. If you live in or frequently connect through a city with an Amex Centurion lounge might get more value from the Amex Platinum Card. To see how they compare, check out our guide to the Capital One Venture X vs. Amex Platinum.

Best Intro APR Period: Wells Fargo Reflect® Card

Why we love this card: When you open a Wells Fargo Reflect card, you’ll have a full 21 months of 0% APR on all purchases and eligible balance transfers. After that, the variable APR is 18.24%, 24.74% or 29.99%. Coupled with no annual fee, up to $600 of cellphone protection, 24/7 on-demand roadside dispatch and zero liability protection, this card is hard to beat. While there’s no standard rewards program, you can even take advantage of My Wells Fargo Deals, which are personalized cash back deals from different merchants.

Who should have this card in their wallet: Spenders who know they have a big purchase on the horizon can definitely take advantage of the Wells Fargo Reflect Card. For example, if you’re about to buy a new couch or gaming computer or book a vacation, the Reflect Card will give you nearly two years to pay it off without interest.

Other cards to consider: The Citi Simplicity® Card does have an intro purchase APR offer as well, but it’s only for 12 months—you’ll have a 19.24% to 29.99% variable APR afterward. Otherwise, you might appreciate the U.S. Bank Visa® Platinum Card, which has a 0% APR offer for 21 months, after which the variable APR changes to 18.74% to 29.74%.

Best for Everyday Spending: Chase Freedom Unlimited®

Why we love this card: The Chase Freedom Unlimited earns 3% cash back on dining at restaurants and on drugstore purchases and 1.5% cash back on all other purchases. Cardholders can also earn 5% cash back on travel purchased through Chase Travel and 5% cash back on Lyft products and services purchased through the Lyft mobile app (through March 31, 2025). As a welcome bonus, earn an additional 1.5% cash back on everything you buy (on up to $20,000 spent in the first year). That can be worth up to $300 cash back.

Other benefits include an intro APR on purchases and balance transfers, purchase protection, extended warranty and a handful of travel insurance benefits.

Who should have this in their wallet: Because the Chase Freedom Unlimited offers bonus rewards in so many everyday categories, it’s a perfect top-of-wallet credit card for everyday spending. People who want to earn rewards on purchases without paying interest for more than a year can also benefit from this card.

Other cards to consider: If you like the idea of earning cash back for spending but don’t want to worry about which bonus categories earn the most, the Wells Fargo Active Cash Card is one of the best flat rate 2% cash back credit cards. The Wells Fargo Autograph is another credit card with no annual fee that offers a higher rewards rate in a range of everyday spending categories.

Best for Rotating Categories: Discover it® Cash Back

Why we love this card: The Discover it® Cash Back earns 5% cash back in activated quarterly bonus categories (up to $1,500 in spending per quarter, then 1% back), plus 1% back on all other purchases. While its quarterly bonus categories change from one year to the next, the Discover 5% cash back calendar frequently includes options like Amazon and Target spending, gas stations, grocery stores, restaurants and wholesale clubs.

Who should have this in their wallet: This card is perfect for people who want to earn heightened cash back in popular categories that change every three months, as well as individuals who want a credit card with no annual fee and no foreign transaction fees. This card works just fine as a standalone cash back credit card, but it also pairs well with cards that have a higher flat rewards rate or bonus rewards in everyday spending categories.

Other cards to consider: You could forgo quarterly bonus categories and pick up a flat-rate card like the Wells Fargo Active Cash to earn 2% cash rewards on purchases. If you like the idea of quarterly bonus categories but you’re not sold on the Discover it® Cash Back, you can also look into the Chase Freedom Flex℠. This card offers similar rewards in rotating categories that change each quarter, plus bonus rewards on travel through Chase and dining and drugstore purchases.

Best for Building Credit: Discover it® Secured Credit Card

Why we love this card: The Discover it® Secured Credit Card is one of the best cards for credit building since you don’t even need a credit score to apply. This card also comes with no annual fee and earns 2% cash back on up to $1,000 in spending at gas stations and restaurants each quarter (then 1% back) and 1% back on other spending. Discover will even match all rewards earned at the end of the first year.

Who should have this in their wallet: The Discover it® Secured Credit Card is for people who have a very limited credit history or no credit at all. A refundable security deposit is required, but the card helps build credit by reporting your monthly payments to the three credit bureaus—Experian, Equifax and TransUnion.

Other cards to consider: While the Discover it® Secured Credit Card is one of the best secured credit cards based on its rewards rate, lack of an annual fee and easy requirements to get approved, there are other secured credit cards worth looking into. Some others that offer rewards with no annual fee include the Bank of America® Unlimited Cash Rewards Secured credit card and the Capital One Quicksilver Secured Cash Rewards Credit Card. Both of these alternative cards build credit with a security deposit and offer the same earning rate of 1.5% cash back on all purchases with no annual fee.

Best for Students: Discover it® Student Cash Back

Why we love this card: The Discover it® Student Cash Back is a superior credit card for students because it doesn’t require a credit score to apply, whereas some other student credit cards require applicants to have an established credit history. Cardholders don’t pay an annual fee, and they can earn 5% cash back on up to $1,500 spent in activated bonus categories each quarter (then 1% back) and 1% back on other purchases. Discover will also match all rewards earned at the end of the first year.

Who should have this in their wallet: This student credit card is perfect for college students who want to earn rewards and build credit with no annual fee. This is especially true for college students with no credit history who prefer to start their credit-building journey with an unsecured credit card.

Other cards to consider: Other student credit cards earn rewards with no annual fee, yet their requirements for approval can vary. Alternative cards to consider include the Bank of America® Unlimited Cash Rewards credit card for students and the Capital One Quicksilver Student Cash Rewards Credit Card, both of which earn 1.5% cash back on all purchases with no annual fee required.

Best for Flexible Bonus Categories: Citi Custom Cash® Card

Why we love this card: Earning 5% rewards in bonus categories often requires enrolling in quarterly categories or selecting bonus reward categories in advance. The Citi Custom Cash gives us all of the 5% rewards of cards like the Discover it and Chase Freedom Flex but reduces complexity because you automatically earn increased rewards in the category where you spend the most.

Who should have this card in their wallet: Almost anyone can increase the amount of cash back they earn by adding the Citi Custom Cash Card to their wallet. Simply use the card mostly for purchases in a single eligible category, and you’ll earn 5% cash back.

Other cards to consider: Other cards that let you choose a bonus category can also increase the rewards you earn on your spending. The U.S. Bank Cash+ Visa Signature Card and Bank of America Customized Cash Rewards Credit Card both let you pick a bonus category of your choice, but these other cards require you to pre-select your bonus category.

Best for Groceries: Blue Cash Preferred® Card from American Express

Why we love this card: As far as grocery credit cards go, the Blue Cash Preferred tops our list because of its high 6% cash back on up to $6,000 per year on U.S. supermarket purchases (then 1%). The card also offers 6% cash back on select U.S. streaming subscriptions, 3% cash back on transit and at U.S. gas stations and 1% cash back on all other purchases, making it a truly robust offering. It even gives you up to $84 in credit for an eligible Disney Bundle subscription per year and up to $120 in Equinox+ statement credits annually.

Who should have this card in their wallet: Shoppers looking for ways to offset their bills at U.S. supermarkets will appreciate earning the high cash back they can earn on their purchases. The card’s Plan It® payment option, which lets you split up purchases of $100 or more into monthly installments with a fixed fee , makes it a good choice for spenders who have large expenses.

Other cards to consider: The Citi Custom Cash® Card lets you automatically earn 5% cash back in your top spending category up to $500 each month. If that’s groceries for you, you’ll get to enjoy a high cash back rate with no extra effort. To stay in the Amex family, consider the Blue Cash Everyday® Card from American Express. You’ll only earn 3% cash back at U.S. supermarkets on up to $6,000 per year in eligible purchases (then 1%), but there’s no annual fee to worry about.

Best for Dining Out: Capital One SavorOne Cash Rewards Credit Card

Why we love this card: Earning unlimited 3% cash back on purchases at restaurants, cafes, bars, lounges, fast-food chains and bakeries and 10% cash back on Uber Eats meals through November 14, 2024, is a great way to offset some of your expenses. You can also get 3% cash back on entertainment, streaming services and at grocery stores as well as 1% cash back on everything else to round out your savings. What’s particularly special about this card is the option to get exclusive reservations at award-winning restaurants through the Capital One Dining program.

Who should have this card in their wallet: Foodies who love trying everything from the local diner to the latest James Beard Award winner will appreciate the Capital One SavorOne Cash Rewards Credit Card’s 3% cash back on dining. It’s also a good choice if you love ordering in with Uber Eats, as you’ll appreciate the 10% cash back and Uber One credit for monthly membership.

Other cards to consider: The Capital One Savor Cash Rewards Credit Card ups your dining cash back to 4%, but at the cost of a $95 annual fee, so you’ll need to do some math to see if it’s worth it for you. You could also try the Chase Freedom Unlimited®, which offers a similar 3% cash back on dining at restaurants (including takeout and eligible delivery service) along with unlimited 1.5% cash back on other purchases.

Best for Gas and Transit: Wells Fargo Autograph℠ Card

Why we love this card: The Wells Fargo Autograph has a surprisingly good rewards rate for all kinds of purchases, including gas and transit. Cardholders earn 3 points per dollar on restaurants, travel, gas, transit, popular streaming services and phone plans. If you are using this card to offset your gas and transit expenses, you’ll also appreciate personalized My Wells Fargo Deals that can help you earn additional cash back. A few benefits also add value to this card, including cellphone insurance, auto rental coverage, roadside dispatch and an intro APR offer on purchases.

Who should have this in their wallet: The Wells Fargo Autograph is ideal for consumers who spend a lot on gas and transit but also want to earn rewards in other common categories. It’s also good if want some flexibility when it comes to redeeming rewards. Points earned with this card can be used for travel, gift cards, statement credits or even purchases made through PayPal.com.

Other cards to consider: A major downside of the Wells Fargo Autograph is the fact it only earns 1 point per dollar on non-bonus purchases. If you want a card with a higher rewards rate on all purchases or to pair the Wells Fargo Autograph with another card for regular spending, check out the Wells Fargo Active Cash or even the Citi Double Cash® Card.

Best for Fair Credit: Capital One Platinum Credit Card

Why we love this card: As far as credit cards for fair credit go, The Capital One Platinum Credit Card stands out because it doesn’t require a security deposit or have an annual fee. You can find out if you’re preapproved through Capital One’s website without hurting your credit score, and if you are approved, you’ll receive automatic credit line reviews in as little as six months. The credit monitoring tools provided by CreditWise can help you work on improving your credit score so you can potentially be approved for better cards later down the line.

Who should have this card in their wallet: If your credit score falls in the fair range (580 to 669 with FICO and 601 to 660 with VantageScore), then you’re a good candidate for this card. It can help you work on improving your credit with on-time payments without being distracted by chasing rewards or cash back.

Other cards to consider: Unfortunately, the Capital One Platinum card is pretty barebones when it comes to additional perks, so if you’re looking for more offerings, consider the Credit One Bank Wander® Card. It gives you up to 10x points on eligible hotels and car rental booked using the Credit One Bank travel partner, along with 5x points on other eligible travel. The Capital One QuicksilverOne Cash Rewards Credit Card is better if you prefer cash back, as it gives you unlimited 1.5% cash back on all purchases but is available with those with a good to excellent credit.

Beginner’s Guide to Credit Cards

“Which credit card is best for me?” is a difficult question to answer until you know exactly what your goals are and have an understanding of how credit cards work in the first place. This guide will explain the ins and outs of credit cards and how they work, plus some steps you can take to narrow down the best credit card offers for your needs.

How Do Credit Cards Work?

Credit cards offer a line of credit consumers can use to make purchases they pay back over time. That said, there are several behind-the-scenes steps required to get a credit card transaction to the finish line. There are also several parties involved in pushing credit card transactions through, including the merchant, the card member making the purchase, the merchant’s bank, the credit card processor, the issuing bank and card associations.

Here’s an overview of each step involved in a credit card transaction.

• Step 1: Consumers use their card for purchases or bills. Credit card transactions can take place in person at a point of sale or online, and they are facilitated by retailers, restaurants, merchants and other providers.
• Step 2: Authorization takes place. Once a card member tries to make a purchase with their card, the merchant or company processing the transaction requests authorization electronically from a payment processor.
• Step 3: Get an approval or denial. The payment processor then sends transaction details to the card association electronically, which will approve or deny the transaction based on available credit and other factors. The association sends its decision to the issuing bank, which forwards the decision electronically to the merchant.
• Step 4: Settlement occurs. When purchases are approved, the merchant or company receives the funds from the transaction after sending a batch of approved authorizations to the payment processor. The payment processor forwards the authorizations to the card association, who sends them to the issuing bank. From there, the merchant bank is ultimately in charge of moving the funds to the merchant’s bank account.

How Does Credit Card Interest Work?

Credit card interest is the price you pay to carry a balance on your card from one month to the next. The interest you pay is advertised as an annual percentage rate (APR), although credit card interest accrues daily and is usually added to your bill as a finance charge at the end of your billing cycle.

Also note that credit cards offer a grace period, or a length of time between when your monthly bill becomes available and the payment due date occurs. You can pay your credit card statement balance in full during the grace period to avoid being charged credit card interest altogether.

If you do carry debt from one month to the next, credit card interest is calculated in the following way:

• Interest is calculated on a card’s average daily balance on a daily basis, typically using a daily periodic rate.
• The daily periodic rate credit cards charge is determined by taking the APR and dividing it by 360 or 365 days, depending on the card.
• The daily interest charged is added to the credit card balance from the previous day, which means credit card interest compounds over time.

Some credit cards come with 0% intro APR on purchases, balance transfers or both for a limited time, which can lead to significant financial savings. However, you should note that these offers don’t last forever, and that cards begin charging the regular variable APRs they advertise once they end.

What Are the Types of Credit Card Rewards?

If you’re looking at the best credit card offers because you want rewards for spending, you’ll want to think long and hard about the type of rewards you want to earn. After all, some rewards are highly specific and come with a limited number of redemption options, whereas others let you cash in rewards for a plethora of options based on your needs and your mood.

Types of credit card rewards to know about include:

• Airline miles: Airline miles are offered through co-branded airline credit cards from carriers like American Airlines, Delta Air Lines and United Airlines. Miles can typically be redeemed for limited options like flights with the airline and its partners, upgrades to a premium cabin, seat selection and checked bag fees.
• Cash back: Rewards credit cards that earn cash back often let cardholders redeem for options like a check in the mail, statement credits, gift cards and merchandise.
• Flexible travel rewards: Credit cards that earn flexible points like American Express Membership Rewards and Chase Ultimate Rewards can be redeemed for a multitude of options like cash back, gift cards, merchandise, travel booked through a portal or point transfers to airline and hotel partners.
• Hotel loyalty points: Co-branded hotel credit cards are offered through loyalty programs like Hilton Honors and World of Hyatt. These cards offer hotel loyalty points that can be redeemed for free nights, suite upgrades and other on-property hotel amenities.

How Do Credit Card Rewards Work?

Credit card rewards are based on spending, so they accrue over time as you make purchases with your card. Depending on the type of rewards credit card you have, you may wind up accruing cash back, airline miles, hotel points or flexible rewards points.

Rewards point structures also vary widely based on the card. For example, you may be earning:

• Flat-rate rewards: Cards with a flat-rate rewards structure give you the same amount of points or cash back for each dollar you spend.
• Rotating category rewards: Cards with rotating bonus categories give you the most points in bonus categories that change each quarter, but limits can apply to the bonus you earn.
• Tiered rewards: Credit cards with a tiered rewards structure let you earn more points in some spending categories and a flat rewards rate on all other purchases.

When you receive your rewards also varies by card. For example, some rewards credit cards add points or cash back to your account as the rewards are earned, whereas others add rewards to your account once per month when your billing cycle ends.

Also be aware that some types of credit card rewards never expire as long as your credit card account is open in good standing. However, brand-specific rewards like airline miles and hotel loyalty points tend to expire if you don’t earn or use them (although exceptions apply).

How Do I Apply for a Credit Card?

Once you choose from the best credit cards available today, you need to prepare for the application process and all it entails. Fortunately, you can apply for the best credit card offers online and from the comfort of your own home.

• Step 1: Compare credit card offers. Compare all the top credit card offers to find one that fits your spending style and goals. This could be a rewards credit card, a balance transfer credit card or a card that has rewards and an intro APR.
• Step 2: See what the credit score recommendations are. Credit card issuers aren’t always transparent about what scores certain cards are available to when applying. Still, try to research this as best you can and only apply to cards in your credit score range to increase your odds of being approved.
• Step 3: Gather your personal details. Find and write down some personal information you’ll need to apply, such as your household income and your Social Security number.
• Step 4: Hit “apply now” once you’re ready. Find the card you want online and hit the button that lets you begin filling out a secure application.
• Step 5: Fill out the card application. Apply for the card you want by supplying information like your name, address, email address, phone number, household income, monthly mortgage or rent payment and Social Security number.
• Step 6: Get approved and start using your card. You may find out if you’re approved online in a matter of minutes. If not, you may find out via email or mail. Note that, if you’re denied a card, the Equal Credit Opportunity Act (ECOA) legally requires card issuers to inform you of the reason for your denial or you have the right to request an explanation within 60 days.

Should I Earn Cash Back or Points?

Most rewards credit cards earn points or cash back. When assembling your credit card arsenal, you can choose cards that offer cash-back rewards, hotel points, airline miles or transferable points. What is the best credit card for you depends on how you value simplicity versus the opportunity to get outsized value.

Earning cash back offers the simplest, most predictable reward value. When you earn cash back, you know exactly what you’ll get in terms of rewards—if you earn 2% cash back on a $100 purchase, you’ll earn $2 in rewards. Cash back can often be redeemed in small increments. With some cards, you can redeem for a statement credit as small as one penny. The downside to earning cash back is that there is rarely an opportunity to get more value from your rewards by using them for high-value redemptions.

Choosing to earn points offers more opportunity for value, but points are often more complex to redeem. While some points can be redeemed for cash rewards, airline and hotel points often offer no cash redemption options. Many bank programs like Amex Membership Rewards and Capital One Venture Miles offer a low value when you redeem points for cash. The upside of earning points is that you can sometimes use them for travel redemptions to get luxury hotel stays and premium cabin travel on the cheap. If you love optimizing your rewards, learning how to use airline and hotel programs and getting exceptional rewards value, you might choose points over cash back.

How To Choose the Best Credit Card for You

The best credit card for you depends on your goals, how you normally spend, whether you want to pay an annual fee and which perks you want access to. To choose the right credit card, compare cards based on the following factors before you apply:

Your Goals

Ask yourself why you want a new credit card (or first credit card) to begin with. Your goal could be building credit for the first time, earning rewards for spending or getting a card that lets you consolidate debt at a 0% APR. Any of these goals are valid reasons to apply for a credit card, but the purpose of getting a card will help you decide which one is right for you.

Rewards Rates

If earning rewards for spending is your goal, you’ll want to compare cards based on their earning rates and welcome offers. Strive to pick a credit card offer with the most lucrative welcome offer you can find, as well as one that offers more cash back or points in categories you spend the most in.

Intro APR Offer

Maybe you want a credit card that will let you save money on interest as you pay down debt. In that case, you should compare 0% intro APR offers credit cards have and opt for one that gives you zero interest for as long as you need it. Also note whether the intro APR applies to purchases, balance transfers or both so you can plan accordingly.

Standard APR

Even if you plan on paying your balance every month, you never know when you’ll have unexpected expenses that derail you. Look for a card that offers a decent ongoing APR after any intro period is over so you won’t be hit with large fees. The average APR for credit cards is around 22%, so anything lower than that is a good offering.

Fees

Know which fees your credit card charges, and make sure the annual fees you plan to pay make financial sense when you consider the perks you’re getting in return. Other fees and charges to watch out for include foreign transaction fees, late fees, balance transfer fees and variable interest rates.

Cardholder Perks

Finally, make sure the card you pick has most of the benefits you hope to have. These can include travel perks like airport lounge access or annual travel credits, consumer protections like purchase protection against damage or theft and extended warranties or included travel insurance benefits. Note that cards with the most benefits included tend to charge the highest annual fees.

How Many Credit Cards Should I Have?

There is no perfect number of credit cards for everyone, so you should consider your personal situation before you decide to pick just one card or several cards instead. It can easily make sense to have a single credit card if you want to keep your finances as simple as possible, track all your card spending in one place and have just one bill to pay each month. Likewise, having multiple cards can make sense if you want to maximize rewards for spending or get access to different types of credit card benefits.

The decision between having just one card or several can also be based on how well you’re able to manage debt and pay your credit card balances in full each month. Having several cards might tempt some people to overspend and rack up a considerable amount of debt over time, whereas others might manage their spending and avoid credit card debt no matter how many cards they have.

At the end of the day, only you know how many cards you can effectively manage and maximize to your benefit. If you’re unsure or you’re just starting out building credit, however, it makes sense to begin with a single credit card and build positive credit habits before you add more cards to your wallet.