Travel credit cards
Travel cards are best suited to people who travel at least a few times per year. Many of these cards charge annual fees, so you want to make sure you're earning enough in rewards to at least make up for what you're paying to own it
With travel cards, you can redeem your points or miles for free or discounted travel. There are also quite a few top travel credit cards that offer extra perks, such as free access to airport lounges, hotel upgrades, and travel insurance. The best airline credit cards, hotel credit cards, and general travel credit cards would all fall under this category.
Rewards credit cards
This category includes every credit card that earns purchase rewards. With so many to choose from, you'll find a diverse mix among the best credit cards for rewards. There are cards that earn cash back, travel points, and store rewards.
Cash back credit cards
Cash back cards can work for just about anyone. Most of them don't charge an annual fee, and cash back is a breeze to use. Depending on the card, you may be able to redeem your cash back as a statement credit toward your credit card balance, a deposit to a bank account, or as a check.
Finding the best cash back card is mostly about your spending habits. If you have a few areas where you spend a lot every month, it could make sense to get a cash back card with bonus categories. Another option is a card that earns the same flat rate (ideally 2%) no matter where you use it.
No annual fee credit cards
Lots of people don't want to pay anything for a credit card, and fortunately, you don't need to. There are many no annual fee cards you can add to your wallet without adding to your yearly bills. This type of card is a good choice if you're new to credit, rebuilding your credit, or just don't want to spend anything for a credit card.
Balance transfer credit cards
These credit cards are best suited for those who are trying to pay off credit card debt. Ideally, you can find one with an introductory APR that's long enough to enable you to pay off your full balance. Note that there is a balance transfer fee, and you can't transfer balances between cards from the same card issuer.
Many of the best balance transfer credit cards have a 0% intro APR on balance transfers and intro periods can last for well over a year. If you want to refinance credit card debt and save money on interest, a balance transfer card is ideal.
Best credit cards for beginners
The best credit cards for beginners accepts applicants with no credit history, don't charge unnecessary fees, and have educational features to help you improve your credit, such as free credit score monitoring. For those who are enrolled at college or university, student credit cards are a great first step into the world of credit.
High limit credit cards
Some credit cards tend to offer higher credit limits than most. The best high limit credit cards let you spend more and can help you protect your credit by keeping your credit utilization ratio lower. You typically need excellent credit to qualify for one of these cards.
0% intro APR credit cards
Cards in this category have a 0% intro APR that applies to purchases. They're a smart choice if you need to buy something expensive, but you can't afford to pay in full upfront. The best 0% intro APR credit cards often have those intro deals for a year or longer.
Secured credit cards
Secured credit cards require a refundable security deposit upfront. The security deposit is often (but not always) equal to your starting credit limit, and you get it back when you graduate to an unsecured card or when you close the card.
The best secured credit cards can work well for rebuilding credit after past missteps. They can also be a good starting point when you're building credit for the first time. Since these cards don't have a ton of benefits, they're not the best fit for people who already have good credit and can qualify for better cards.
Student credit cards
If you're in college, you can get started on building your credit with the best student credit cards. Even though college students are the primary audience for these credit cards, there are some excellent perks to be found with them. Some cards include free credit score tracking and big cash back bonuses.
Adults who aren't in college who are looking to build a credit history should check out secured credit cards.
Business credit cards
Business credit cards are designed with business owners in mind. They normally offer higher credit limits than consumer cards, and many of the best business credit cards have bonus categories to fit typical business spending. For example, a business card may offer bonus rewards on advertising, shipping, or office supply store purchases.
A business card can also help build your business credit score and qualify for financing in the future. Just like your own credit score is a rating of your personal creditworthiness, businesses have credit scores that rate their creditworthiness. By using a business credit card and paying on time, you can raise your business credit score.
Your business doesn't need to be a separate entity to qualify for a business credit card. It's possible to open a business credit card with a sole proprietorship. No matter what type of business you have, it's smart to compare credit card offers.
Store credit cards
Many chain stores, from Macy's to Target to Lowe's, offer their own credit cards. Some of these store cards are accepted everywhere, and others are only for use in stores.
Store credit cards usually come with exclusive benefits that may include discounts, rewards that can be used in stores, and 0% APR promotional offers. Make sure to read the fine print on those 0% APR offers, as they often have deferred interest. If you don't pay off the balance within the promo period, you're charged interest going back to the purchase date.
Opening a store credit card could be worth it if you frequently shop at that retailer. But a cash back card or travel card with more flexible benefits is a better choice for most consumers.
Fact Checked
Nathan Alderman
2024 Award Winner
