If you're on a Galaxy Fold, consider unfolding your phone or viewing it in full screen to best optimize your experience.
Our picks, your power: Here's why you can trust us
The Motley Fool Ascent:
We recommend the best cards below because these are the cards we would (and do!) recommend to our friends and family. Many are the credit cards we use ourselves -- as you'll see in our first-hand reviews below. And unlike other sites, we're not just putting cards we've been paid to put on our page.
There are many card options listed below, so here are the standouts we want to highlight.
Great for: Overall top credit card with simple cash rewards
Good/Excellent (670-850)
Intro APR 0% intro APR for 15 months from account opening on purchases and qualifying balance transfers
Purchases: 0% intro APR, 15 months from account opening
Balance Transfers: 0% intro APR, 15 months from account opening on qualifying balance transfers
Regular APR
20.24%, 25.24%, or 29.99% Variable APR
Rewards Earn unlimited 2% cash rewards on purchases.
2% cash rewards
Annual Fee N/A
$0
Welcome Offer Earn a $200 cash rewards bonus after spending $500 in purchases in the first 3 months.
$200 cash rewards
This card’s unlimited 2% cash rewards on purchases is the highest we’ve seen for a flat-rate rewards card with no annual fee. It also has an incredibly easy-to-earn $200 welcome bonus and a generous intro APR offer. We simply haven’t come across this combination of top perks in one card before. Read Full Review
Great for: Rotating high cash back categories plus first-year cash back match
Good/Excellent (670-850)
Intro APR
Purchases: 0%, 15 months
Balance Transfers: 0%, 15 months
Regular APR
18.24% - 28.24% Variable APR
Rewards Earn 5% cash back on everyday purchases at different places you shop each quarter like grocery stores, restaurants, gas stations, and more, up to the quarterly maximum when you activate. Plus, earn unlimited 1% cash back on all other purchases—automatically.
1% - 5% Cashback
Annual Fee
$0
Welcome Offer N/A
Discover will match all the cash back you've earned at the end of your first year.
We think this card has among the highest cash back potential for cards with no annual fee. The key is the Unlimited Cashback Match — Discover automatically matches all the cash back new cardholders have earned at the end of the first year. That cash back can seriously add up when you earn 5% cash back on rotating bonus categories (when you activate them, up to the quarterly maximum) and 1% on other purchases. Read Full Review
Capital One Venture Rewards Credit Card
Great for: Travel rewards
Good/Excellent (670-850)
Intro APR
Purchases: N/A
Balance Transfers: N/A
Regular APR
19.99% - 29.99% (Variable)
Rewards Earn unlimited 2X miles on every purchase, every day. Earn 5X miles on hotels and rental cars booked through Capital One Travel, where you'll get Capital One's best prices on thousands of trip options.
2X-5X miles
Annual Fee
$95
Welcome Offer 75,000 Miles once you spend $4,000 on purchases within 3 months from account opening
75,000 Miles
This is one of our top travel credit cards overall, because of its highly lucrative, yet dead simple rewards program. Earn unlimited 2X miles on every purchase and use them to get reimbursed for any travel purchase — or to book a trip through Capital One Travel. TSA Pre✓® credit and the opportunity to earn a massive 75,000 Miles sign-up bonus (worth $750 in travel) make this credit card one of the best travel companions. Read Full Review
Great for: Long 0% introductory offers and no late fees or penalty rates
Good/Excellent (670-850)
Intro APR
Purchases: 0%, 12 months
Balance Transfers: 0%, 21 months
Regular APR
19.24% - 29.99% (Variable)
Rewards
N/A
Annual Fee
$0
Welcome Offer 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).
Lower intro balance transfer fee
This is one of our favorite cards for balance transfers. It has 0% intro APR for 21 months on balance transfers and a discounted balance transfer fee for the first four months. That combo makes it one of the most generous balance transfer offers we’ve seen. Plus, you can choose from any available payment date. That way, you can set up automatic payments that are aligned with your paycheck. Read Full Review
Great for: Long matching 0% introductory offers
Good/Excellent (670-850)
Intro APR 0% intro APR for 21 months from account opening on purchases and qualifying balance transfers
Purchases: 0% intro APR, 21 months from account opening
Balance Transfers: 0% intro APR, 21 months from account opening on qualifying balance transfers
Regular APR
18.24%, 24.74%, or 29.99% Variable APR
Rewards
N/A
Annual Fee N/A
$0
This no-frills card is a solid choice if your priority is to avoid credit card interest for as long as possible. It offers an incredible 0% intro APR for 21 months from account opening on purchases and qualifying balance transfers. The balance transfer fee (5%, min: $5) is higher than some cards — but if you want an equally long intro APR on purchases, then this card is hard to beat. Read Full Review
Blue Cash Preferred® Card from American Express
Great for: U.S gas stations & U.S. supermarkets
On American Express' Secure Website.
Terms apply
On American Express' Secure Website.
Terms apply
Good/Excellent (670-850)
Intro APR
Purchases: 0%, 12 months
Balance Transfers: 0%, 12 months
Regular APR
19.24%-29.99% Variable
Rewards 6% Cash Back at U.S. supermarkets on up to $6,000 per year in purchases (then 1%). 6% Cash Back on select U.S. streaming subscriptions. 3% Cash Back at U.S. gas stations. 3% Cash Back on transit (including taxis/rideshare, parking, tolls, trains, buses and more). 1% Cash Back on other purchases. Cash Back is received in the form of Reward Dollars that can be redeemed as a statement credit or at Amazon.com checkout.
1%-6% Cash Back
Annual Fee
$0 intro annual fee for the first year, then $95.
Welcome Offer Earn a $250 statement credit after you spend $3,000 in purchases on your new Card within the first 6 months.
$250
This card offers market-leading cash back at U.S. supermarkets. The welcome bonus and intro APR offer sweeten the deal. Terms apply. If you spend a lot on groceries (excluding wholesale clubs and superstores like Costco and Walmart), this card is worth considering. Read Full Review
Great for: Bonus cash back
Fair to Excellent (580-850)
Intro APR
Purchases: 0%, 15 months
Balance Transfers: 0%, 15 months
Regular APR
19.24% - 29.24% (Variable)
Rewards 5% cash back in your top eligible spend category each billing cycle (up to the first $500 spent), 1% cash back on other purchases. Earn an additional 4% cash back on hotels, car rentals, and attractions booked on Citi Travel℠ portal through 6/30/2025.
1% - 5% cash back
Annual Fee
$0
Welcome Offer Earn $200 in cash back after you spend $1500 on purchases in the first 6 months of account opening. This bonus offer will be fulfilled as 20,000 ThankYou® Points, which can be redeemed for $200 cash back.
20,000 ThankYou® Points
We love this card’s easy-to-use yet lucrative cash back program. Each billing cycle, cardholders earn 5% cash back in their top spend category (up to $500 spent in eligible categories). Eligible categories include grocery stores, restaurants, gas stations, select travel and more. The card automatically adjusts to your spending habits, which makes it easy to maximize your rewards. Read Full Review
Great for: 0% offer plus rotating bonus category cash back
On Chase's Secure Website.
On Chase's Secure Website.
Good/Excellent (670-850)
Intro APR 0% Intro APR on Purchases
Purchases: 0% Intro APR on Purchases, 15 months
Balance Transfers: 0% Intro APR on Balance Transfers, 15 months
Regular APR
20.49%-29.24% Variable
Rewards 5% cash back on up to $1,500 in combined purchases in bonus categories each quarter you activate. Enjoy new 5% categories each quarter! Plus, earn 5% cash back on travel purchased through Chase Ultimate Rewards®, 3% on dining and drugstores, and 1% on all other purchases.
5% cash back offer
Annual Fee N/A
$0
Welcome Offer Earn a $200 Bonus after you spend $500 on purchases in your first 3 months from account opening!
$200 bonus
This Chase card is one of our favorites, and with good reason. You earn 5% cash back on up to $1,500 in combined purchases in bonus categories each quarter you activate, alongside other standout perks (and at least 1% on all purchases). Plus, this one comes without an annual fee and with a generous welcome bonus. Read Full Review
Bank of America® Customized Cash Rewards Secured credit card
Great for: Longer 0% intro APR while rebuilding credit
Fair/New to Credit Under(669)
Intro APR
Purchases: N/A
Balance Transfers: N/A
Regular APR
29.24% (Variable)
Rewards Earn 3% cash back in the category of your choice: gas, online shopping, dining, travel, drug stores, or home improvement/furnishings and 2% cash back at grocery stores and wholesale clubs on the first $2,500 in combined choice category/grocery store/wholesale club purchases each quarter, then earn 1%
1% - 3% cash back
Annual Fee
$0
Welcome Offer
N/A
One of the most competitive secured credit cards we've come across. The rewards program and $0 annual fee are standout features that beat many similar offers.
Discover it® Student Cash Back
Great for: Earning high cash back while building credit
Fair/New to Credit Under(669)
Intro APR
Purchases: 0%, 6 months
Balance Transfers: 10.99%, 6 months
Regular APR
18.24% - 27.24% Variable APR
Rewards 5% cash back at different places each quarter up to the quarterly maximum when you activate. 1% unlimited cash back on all other purchases - automatically
1% - 5% Cashback
Annual Fee
$0
Welcome Offer N/A
Discover will match all the cash back you’ve earned at the end of your first year.
Student credit cards are sometimes light on perks, but this Discover one might surprise you. You can earn 5% cash back on up to $1,500 of spending in rotating bonus categories -- just opt in every quarter. And earning 1% back on other purchases plus an innovative Unlimited Cashback Match welcome bonus makes this one worth considering for college students. Read Full Review
Earn 2% cash rewards on your spending. No juggling cards, no figuring out rewards systems. Spend at the grocery store: 2%. At the vet: 2%. Paying for Netflix: 2%. It's really that easy. The perks on the card aren't as extensive, but hey, we like no annual fee.
Apply for the Wells Fargo Active Cash® Card (on Wells Fargo's website)
I originally got this card intending to use it only short term. I was taking on a home renovation project and its long financing period and rewards features helped with our costs. I ended up keeping it for the cell phone protection feature.Rachel Zinanti, Marketing Manager, The Motley Fool Ascent
Leading the pack for these cards is the Discover it® Cash Back. This card has a rotating bonus category, which means that it has a different category each quarter that earns a high 5% cash back rate on spending (up to $1,500 in purchases, and note that you have to activate the bonus category). These categories include grocery stores, restaurants, and gas stations.
Apply for the Discover it® Cash Back (on Discover's website)
I give Discover it® Cash Back top scores across the board... The quarterly 5% cash-back offers are set up really well to help me max out the cash back benefits. The app and website are easy to use, the fraud protection is helpful, and I've only had a few merchants over these three years not accept Discover.Allyson Wines, Head of Marketing, The Motley Fool Ascent
The Capital One Venture Card is our top pick and was the anchor card in my wallet for a long time. (See rates and fees.) It's simply a great card that allows you to earn a solid 2 miles per $1 spent across all of your spending, plus 5 miles per $1 on hotels and rental cars booked through Capital One Travel.
I mentioned above that this used to be in my wallet. Why not anymore? It was a lifestyle change. We had kiddos enter the picture, which meant less travel, which meant less utility from the card. But this will be top of my list when that changes again, especially if it has a welcome bonus like the current one.
Apply for the Capital One Venture Rewards Credit Card (on Capital One's website)
We were doing a lot of international travel, and the no foreign transaction fee was crucial -- this credit card was time and again the easiest way to pay in countries around the world, and getting solid exchange rates without the extra fee on top made it practical to use this card from Casablanca to Kyoto.Matt Koppenheffer, The Motley Fool
The Wells Fargo Reflect® Card also makes this list because of its matching 0% introductory offers for 21 months from account opening on balance transfers and purchases. This is another card with no annual fee, which is ideal when you're trying to pay down credit card debt or generally avoid interest.
Apply for the Wells Fargo Reflect® Card (on Wells Fargo's website)
The Blue Cash Preferred® Card from American Express (see rates and fees) is hard to match for gas and grocery rewards. It earns 6% at U.S. supermarkets, on up to $6,000 each calendar year. It also earns 6% on select U.S. streaming subscriptions, plus 3% at U.S. gas stations and on transit. Terms apply.
The 6% rate at supermarkets is the highest I've seen, and I've reviewed hundreds of cards. You're practically guaranteed to earn lots of cash back, which you can redeem as a statement credit.
Apply for the Blue Cash Preferred® Card from American Express (on American Express' website)
Most gas and grocery cards have bonus categories that never change. With the Citi Custom Cash® Card (see rates and fees), bonus cash back is built around your spending. It earns 5% in your top eligible category every billing cycle, up to a $500 spending cap. Gas stations and grocery stores are two of the 10 eligible categories.
I've used this card, and I love how easy it is to earn bonus cash. Even if your spending habits change, you'll still be earning 5% back where you spend the most.
Apply for the Citi Custom Cash® Card (on Citi's website) (see rates and fees)
The Chase Freedom Flex rewards program isn't as simple as the flat cash rewards, but some people may actually like it more. There are rotating categories each quarter like gas, grocery stores (excluding Walmart and Target), Amazon, and Lowe's. If you activate the category for your card, you earn 5% back on purchases in that category for the period that it's active.
But on a regular basis, you're also earning 5% on Chase Travel bookings, 3% on dining at restaurants, takeout, eligible delivery services, and drugstores. And then it's 1% back on everything else.
You can earn 5% cash back on up to $1,500 of spending in rotating bonus categories -- just opt in every quarter. And earning 1% back on other purchases plus an innovative Unlimited Cashback Match welcome bonus makes this one worth considering for college students.
Apply for the Discover it® Student Cash Back (on Discover's website)
Here's how to make an even better decision:
The cost of a card comes in three forms: the annual fee to just have the card, the fees and penalties for missed or late payments, and the interest charges. . . Some cards have forgiveness for a single late payment. Some have no annual fee. Some charge low interest. Try to find cards that have all three.D'Arcy Becker, Ph.D., Department Chairperson and Professor of Accounting, on shoppers choosing the right card.
Though there are many different types of credit cards, they all fall into certain categories based on their features and rewards programs. Here are the main types of 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.
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 cards are best for those who want a versatile card you can use for everyday spending. If you want a card with bonus categories, look for one that aligns well with your spending habits.
With the best cash back credit card, you earn rewards that can be redeemed as cash. Depending on the card, you may be able to redeem your cash back as a statement credit towards your credit card balance, a deposit to a bank account, or as a check. You'll find cards that earn the same flat rate on purchases as well as cards that earn extra in bonus categories among the best cash back 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 or rebuilding your credit. And even though these cards don't have quite as many perks as those with an annual fee, they can still offer valuable benefits, including rewards and welcome offers.
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. But you should note that you can't transfer a balance to a new card with the same issuer. And any balance transfer card will charge you a one-time fee for making the transfer.
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.
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.
Some credit cards tend to offer higher credit limits than most. These best high limit credit cards let you spend more. They can also help you protect your credit by making it easier to keep your credit utilization ratio low. You typically need excellent credit to qualify for one.
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.
These best secured credit cards cards can be a good starting point for those trying to establish a credit history for the first time or rebuild their credit score if they've managed credit poorly in the past. Annual fees are more common with these cards and rewards are rare, so they're generally not a good fit for those who wouldn't have any trouble applying for credit cards that fall into the categories listed above.
You need to pay a security deposit to open a secured credit card, which is typically used for rebuilding or building credit. The security deposit is often (but not always) equal to your starting credit limit. Even with the best credit cards for bad credit, high-quality secured credit cards usually graduate to unsecured cards. This means you get your deposit back if you make enough on-time payments.
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.
The best business credit cards are designed with business owners in mind. This type of credit card offers higher credit limits than consumer credit cards to accommodate business spending. Many of them also have bonus categories to fit typical business spending habits. For example, a business card may offer bonus rewards on advertising, shipping, or office supply store purchases.
In addition, a business card can help you build your business credit score. 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. That can help you qualify for business financing in the future.
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.
Many chain stores, from Macy's to Target to Lowe's, offer their own credit cards. Sometimes these credit cards are accepted everywhere, but often they're only for use in-store.
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.
Card | Rating | Great For |
---|---|---|
Rating image, 5.00 out of 5 stars.
5.00/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best = Excellent = Good = Fair = Poor |
Great For: Overall top credit card with simple cash rewards |
|
2024 Award Winner
|
Rating image, 5.00 out of 5 stars.
5.00/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best = Excellent = Good = Fair = Poor |
Great For: Rotating high cash back categories plus first-year cash back match |
2024 Award Winner
|
Rating image, 5.00 out of 5 stars.
5.00/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best = Excellent = Good = Fair = Poor |
Great For: Travel rewards |
2024 Award Winner
|
Rating image, 4.00 out of 5 stars.
4.00/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best = Excellent = Good = Fair = Poor |
Great For: Long 0% introductory offers and no late fees or penalty rates |
2024 Award Winner
|
Rating image, 4.50 out of 5 stars.
4.50/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best = Excellent = Good = Fair = Poor |
Great For: Long matching 0% introductory offers |
2024 Award Winner
|
Rating image, 4.50 out of 5 stars.
4.50/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best = Excellent = Good = Fair = Poor |
Great For: U.S gas stations & U.S. supermarkets |
Rating image, 5.00 out of 5 stars.
5.00/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best = Excellent = Good = Fair = Poor |
Great For: Bonus cash back |
|
2024 Award Winner
|
Rating image, 5.00 out of 5 stars.
5.00/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best = Excellent = Good = Fair = Poor |
Great For: 0% offer plus rotating bonus category cash back |
Rating image, 4.50 out of 5 stars.
4.50/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best = Excellent = Good = Fair = Poor |
Great For: Longer 0% intro APR while rebuilding credit |
|
2024 Award Winner
|
Rating image, 5.00 out of 5 stars.
5.00/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best = Excellent = Good = Fair = Poor |
Great For: Earning high cash back while building credit |
At The Motley Fool Ascent, we rate credit cards on a five-star scale (1 = poor, 5 = best). Our rating criteria includes rewards rates, welcome bonuses, fees, and perks like travel credits and 0% intro APR offers to evaluate our ratings.
Our highest-rated credit cards have:
We combine these factors with an evaluation of brand reputation and customer satisfaction to ensure you're getting the best card recommendations. Learn more about how The Ascent rates credit cards.
The best credit card for many people is the Wells Fargo Active Cash® Card. It will get you a 2% cash rewards rate on purchases, making it one of the most lucrative and flexible credit cards. The $0 annual fee and lengthy 0% intro APR offer are also a big draw.
While this is an easy pick to recommend for many people, it's important to know that the market is packed with plenty of the best credit cards and the decision ultimately depends on your unique situation.
A credit card allows you to pay for purchases by borrowing money. The maximum amount you can borrow at one time is called your credit limit. The money you've already borrowed is your balance, and the amount you have left to borrow is your available credit.
At the end of each billing cycle, the card issuer will send you a statement listing the transactions you made. It will list your total balance, as well as the minimum payment due during that billing cycle. You must pay at least the minimum amount by the due date to avoid a late fee -- although it's a good idea to pay more than the minimum if you can afford it.
Credit cards are most often used for purchases, but many of them can also be used for other types of transactions, such as cash advances and balance transfers.
The right number of credit cards for most people is one. That's particularly important for cardholders using credit cards for rewards, since the juice may not always be worth the squeeze when carrying multiple cards and using each to optimize rewards for each spending category.
You should stick to one credit card if:
Whether your credit card helps or hurts you all depends on how you use it. To ensure that your credit card provides value and doesn't get you in debt, here are a few key guidelines:
You should carry multiple credit cards if you want more card benefits and you're confident in your ability to manage everything. There are some big advantages to having multiple cards:
Credit card interest is the fee a card issuer can charge when you borrow money with your credit card. The amount of interest charged depends on the card's annual percentage rate (APR). Many credit cards have different APRs for purchases, balance transfers, and cash advances. Most credit cards have a variable APR. A variable APR is an interest rate that can change over time.
The type of transaction also determines when your card issuer starts charging you interest. For example, cash advances almost always start racking up interest immediately. Purchases are different. Just about any top-rated credit card will only charge interest for purchases that aren't paid off by the payment due date. Savvy consumers take advantage of this, pay in full, and never have to deal with credit card interest.
Our Credit Cards Experts
We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent, a Motley Fool service, does not cover all offers on the market. The Ascent has a dedicated team of editors and analysts focused on personal finance, and they follow the same set of publishing standards and editorial integrity while maintaining professional separation from the analysts and editors on other Motley Fool brands.
For rates and fees for the Blue Cash Preferred® Card from American Express, click here