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Our shortlist of the best credit cards for 2021 contains the market-leading picks. They include perks, such as lucrative rewards programs, big sign-up bonuses, long 0% intro APR offers to avoid interest, and no annual fees.
Add up the value of these benefits and it's not uncommon for the best credit cards to pack in upwards of $1,000 in value. That's why we think it's smart to keep a credit card in your wallet. Whether you're looking for a rewards card, a balance transfer card, a business credit card, a secured card to help you build credit, or simply a good credit card offer, there's a card out there for everyone.
To help you navigate the market, we've crunched the numbers on hundreds of credit cards and included only our select few top picks below. Read on to learn more about the hand-picked credit card offers that we would recommend to our closest friends and family.
Great for: Bonus and cash rewards flexibility
Bottom Line
Includes a market-leading bonus in the no-annual fee category and a flexible cash rewards program that enables you to earn premium cash back in a category of your choice. Plus, the long intro APR offer makes this card a standout among its peers. Read Full Review
Credit Rating Requirement:
Rewards
3% cash back in your choice category, 2% at grocery stores & wholesale clubs (up to $2,500 in combined choice category/grocery store/wholesale club quarterly purchases), 1% on all other purchases.
Annual Fee
$0
Intro APR
Purchases: 0%, 15 billing cycles
Balance Transfers: 0% Intro APR for 15 billing cycles for any balance transfers made in the first 60 days
Ongoing APR
13.99% - 23.99% Variable
Welcome Bonus
$200 after making at least $1,000 in purchases within the first 90 days of account opening
Highlights
Great for: Travel sign up bonus
Bottom Line
With a leading sign-up bonus, the sky’s the limit for this top-rated travel rewards card. Plus, the premium points program for travel and dining make it a no brainer for travel enthusiasts everywhere. Read Full Review
Credit Rating Requirement:
Rewards
2x points on travel and dining, 1x points on all other purchases. 25% more points for travel booked through Chase's portal.
Annual Fee
$95
Intro APR
Purchases: N/A
Balance Transfers: N/A
Ongoing APR
15.99% - 22.99% Variable
Welcome Bonus
80,000 points after spending $4,000 within 3 months
Highlights
Great for: Bonus category cash back
Bottom Line
Earn up to 5% cash back in rotating quarterly categories, up to the quarterly maximum when you activate. Somehow this card also packs in a 0% intro APR offer for no annual fee. Read Full Review
Credit Rating Requirement:
Rewards
5% cash back on everyday purchases at different places each quarter like Amazon.com, grocery stores, restaurants, gas stations and when you pay using PayPal, up to the quarterly maximum when you activate. 1% unlimited cash back on all other purchases - automatically
Annual Fee
$0
Intro APR
Purchases: 0%, 14 months
Balance Transfers: 0%, 14 months
Ongoing APR
11.99% - 22.99% Variable APR
Welcome Bonus
Dollar-for-dollar match of all cash back earned the first year
Highlights
Great for: Balance transfers and 0% intro APR for purchases
Bottom Line
A hard-to-beat 0% intro APR credit that's a fit for cardholders wanting to pay off debt faster with balance transfer strategies and/or finance the cost of a purchase and temporarily avoid costly interest charges. Read Full Review
Credit Rating Requirement:
Rewards
N/A
Annual Fee
$0
Intro APR
Purchases: 0%, 18 months
Balance Transfers: 0%, 18 months
Ongoing APR
14.74% - 24.74%, variable
Welcome Bonus
N/A
Highlights
Great for: U.S. supermarkets and gas
Bottom Line
The U.S. supermarkets and gas stations rewards are clear standouts, in addition to a leading welcome offer and a nice 0% intro APR offer. Terms apply. Read Full Review
Credit Rating Requirement:
Rewards
6% cash back at U.S. supermarkets ($6,000 spending cap per year), 3% cash back at U.S. gas stations and on transit, 1% back on all else
Annual Fee
$0 introductory annual fee for the first year, then $95.
Foreign Transaction Fee
2.7% of each transaction after conversion to US dollars.
Intro APR
Purchases: 0%, 12 months
Balance Transfers: N/A
Ongoing APR
13.99%-23.99% Variable
Welcome Bonus
Earn a $300 statement credit after you spend $3,000 in purchases on your new Card within the first 6 months.
Highlights
Great for: Unlimited cash back
Bottom Line
This card includes a lineup of features that makes it a great option for one-card-wallet simplicity. The unlimited cash back makes it easy to earn rewards. The sign-up bonus and long 0% intro APR offer are the cherries on top. Read Full Review
Credit Rating Requirement:
Rewards
Unlimited 1.5% cash back, 5% cash back on travel through Chase
Annual Fee
$0
Intro APR
Purchases: 0%, 15 months
Balance Transfers: N/A
Ongoing APR
14.99% - 23.74% Variable
Welcome Bonus
$200 after spending $500 within 3 months
Highlights
Great for: Cash back versatility with a big bonus
Bottom Line
Deserves to be top of wallet for many cardholders due to some of the highest cash back rates for essentials like groceries and dining, a leading sign-up bonus, and no annual fee. Read Full Review
Credit Rating Requirement:
Rewards
5% cash back ($1,500 spending cap for bonus categories each quarter you activate), 1% back on all else
Annual Fee
$0
Intro APR
Purchases: 0%, 15 months
Balance Transfers: N/A
Ongoing APR
14.99% - 23.74% Variable
Welcome Bonus
$200 after spending $500 in the first 3 months
Highlights
Great for: Balance transfers and cash back
Bottom Line
Earn up to 2% on all purchases - 1% when you buy, and 1% when you pay the minimum each month. Add that to no annual fee and an 18 month 0% intro APR offer on balance transfers and this card is a winner. Read Full Review
Credit Rating Requirement:
Rewards
2% cash back: 1% when you buy plus 1% as you pay
Annual Fee
$0
Intro APR
Purchases: N/A
Balance Transfers: 0%, 18 months
Ongoing APR
13.99% – 23.99%, variable
Welcome Bonus
N/A
Highlights
Great for: Balance transfers
Bottom Line
Get the best of both balance transfer and cash back worlds with this card. Not only do you get a long 0% intro APR on balance transfers, but you also get a market-leading cash back program. We call that a win-win. Read Full Review
Credit Rating Requirement:
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
Annual Fee
$0
Intro APR
Purchases: 0%, 6 months
Balance Transfers: 0%, 18 months
Ongoing APR
11.99% - 22.99% Variable APR
Welcome Bonus
Discover will match all the cash back you’ve earned at the end of your first year.
Highlights
Great for: Long 0% intro APR offer
U.S. Bank Visa® Platinum Card
Bottom Line
With a 20 billing cycle intro APR offer for both balance transfers and purchases, this is one of the best low interest credit cards on the market. Read Full Review
Credit Rating Requirement:
Rewards
N/A
Annual Fee
$0
Intro APR
Purchases: 0%, 20 billing cycles
Balance Transfers: 0%, 20 billing cycles
Ongoing APR
14.49% - 24.49%, variable
Welcome Bonus
N/A
Highlights
Great for: Dining
Capital One® Savor® Cash Rewards Credit Card
Bottom Line
Unlimited 4% cash back on dining and entertainment makes this the ideal option for spending nights out on the town. Pair that with the big sign-up bonus and 2% back at grocery stores and you’ve got the ingredients for a top-rated rewards card. Read Full Review
Credit Rating Requirement:
Rewards
4% cash back on dining and entertainment, 2% at grocery stores and 1% on all other purchases
Annual Fee
$95
Intro APR
Purchases: N/A
Balance Transfers: N/A
Ongoing APR
15.99% - 24.99%, variable
Welcome Bonus
$300 after spending $3,000 within 3 months
Highlights
Great for: Student cash back
Bottom Line
Earn up to 5% cash back in rotating quarterly categories, up to the quarterly maximum when you activate. Somehow this card also packs in a 0% intro APR offer for no annual fee. This student card somehow rivals many of the best cash back cards on the market. Read Full Review
Credit Rating Requirement:
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
Annual Fee
$0
Intro APR
Purchases: 0%, 6 months
Balance Transfers: 10.99%, 6 months
Ongoing APR
12.99% - 21.99% Variable APR
Welcome Bonus
Discover will match all the cash back you’ve earned at the end of your first year.
Highlights
Great for: Building credit with cash back
Bottom Line
Need to build your credit history? This card is a great place to start. It offers perks rarely found in secured cards including cash back, no annual fee, and double cash back in the first year. Read Full Review
Credit Rating Requirement:
Rewards
2% cash back at Gas Stations and Restaurants on up to $1,000 in combined purchases each quarter. 1% unlimited cash back on all other purchases - automatically
Annual Fee
$0
Intro APR
Purchases: N/A
Balance Transfers: 10.99%, 6 months
Ongoing APR
22.99% Variable APR
Welcome Bonus
Discover will match all the cash back you’ve earned at the end of your first year.
Highlights
A credit card can be one of your most valuable financial tools -- if used correctly. When you know the right moves to make, you can maximize cash rewards or travel rewards, avoid decades of debt, and protect your credit score. Our credit card guide could help you learn these important skills -- or maybe even find your next favorite card.
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.
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.
Credit card interest is one of those unnecessary charges that you should do your best to avoid. There are two ways to accomplish this.
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 different types of credit cards and the best credit cards and credit card deals right now within each category.
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 travel perks, such as free access to airport lounges, hotel upgrades, and travel insurance. An airline credit card, hotel credit card, and general travel credit card would all fall under this category.
Compare more picks: Check out The Ascent's best travel rewards credit cards
This category includes every credit card that earns purchase rewards. With so many cards to choose from, you'll find a diverse mix of rewards credit cards that earn cash back, travel points, and store rewards.
Compare more picks: Check out The Ascent's best rewards credit cards
With this type of rewards card, you earn rewards that can be redeemed as cash or a statement credit. 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 every purchase as well as cards that earn extra in bonus categories among the best cash back cards.
Compare more picks: Check out The Ascent's best cash back credit cards
This type of card offers a lower, introductory APR on balance transfers. Many of the top balance transfer 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.
Compare more picks: Check out The Ascent's best balance transfer credit cards
Some credit cards tend to offer higher credit limits than most. These high limit credit cards let you spend more, and 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.
Compare more picks: Check out The Ascent's best high limit 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 most popular 0% APR credit cards also often have those intro deals for a year or longer.
Compare more picks: Check out The Ascent's best 0% APR credit cards
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. High-quality secured credit cards can usually graduate to unsecured cards, meaning you get your deposit back if you make enough on-time payments.
Compare more picks: Check out The Ascent's best secured credit cards
Looking to rebuild credit?: Check out The Ascent's best credit cards for bad credit
If you're in college, you can get started on building your credit with a student credit card. Even though these cards are for students, there are some excellent perks to be found with the best student credit cards. Some cards include free credit score tracking and money back for good grades.
Compare more picks: Check out The Ascent's best student credit cards
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 discounts and rewards that can only be used at that store. Make sure to read the fine print on any zero-interest offers from store credit cards, as they can involve deferred interest, which is tricky and can lead to hefty surprise interest charges.
Compare more picks: Check out The Ascent's best store credit cards
Compare credit card bonuses, rewards, fees and more using our side-by-side credit card comparison!
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. It's even more true for cardholders carrying debt. The best credit cards help you earn big on all your everyday purchases while avoiding fees.
But this isn't necessarily the right mantra for everyone. There's no doubt that savvy cardholders carrying multiple cards can wring out a good amount of value. With the right strategy and a financial discipline, having a few of the best cards for different uses can be worthwhile.
You should stick to one credit card if:
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:
Any time you're going to apply for a credit card, you want to make sure you choose the right one. Here's how to pick a credit card:
Decide which type of card you want. This will narrow down your credit card offers considerably, so it makes sense to do this first. If you're most interested in, for example, earning travel points, then there's no need to look at the best credit card offers for a 0% intro APR.
Compare credit cards in that category. Once you've chosen a type of card, it's time to compare credit cards side by side. Find the best credit cards in that category and then decide which is best for you. Here's how to compare credit cards:
The simplest way to apply for a credit card is online, where you can complete an application in minutes. Here's how to apply for a credit card online:
Annual percentage rate (APR): The rate charged for carrying a balance on a credit card, expressed as an annual percentage. With credit cards, the APR is the same as the interest rate.
Balance: The amount owed on a credit card, including all unpaid transactions and fees. The balance at the end of a statement period is called the statement balance.
Balance transfer: Moving a balance from one credit card to another. This is usually done when the new card offers a lower APR. Not every credit card offers balance transfers, and many of the cards with this feature charge a balance transfer fee.
Cash advance: Withdrawing cash from a credit card, most often through cash advance checks, using the card at an ATM, or by wiring money with the card. Cash advances usually have a higher APR and start accruing interest immediately, so it's a poor way to use a credit card.
Credit card: A payment method issued by a bank and connected to a revolving line of credit. The cardholder can use their credit card for purchases and possibly other types of transactions, although this depends on the card.
Credit limit: The credit card's spending limit. This can vary based on the type of transaction. On credit cards that offer cash advances, there is typically a lower credit limit for cash advances than for purchases. A transaction that would exceed a card's credit limit will be declined unless the cardholder has opted to allow over-the-limit transactions (and any potential fees that come with them).
Credit score: A rating of a consumer's creditworthiness. The score indicates how likely it is that they will make bill payments on time and repay what they borrow. Credit scores are calculated based on the consumer's financial history.
Interest: A fee charged for borrowing money. The APR determines how much interest a credit card company can charge on balances.
Minimum payment: The minimum amount a cardholder can pay by the due date to remain current on their credit card bill and avoid a late fee.
The best credit card for many people is the Citi® Double Cash Card - 18 month BT offer. It will get you a 2% cash back rate on all purchases, making it one of the most lucrative and flexible credit cards on the market. The $0 annual fee and lengthy balance transfer 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, ones included on this shortlist and not. The best credit card to have will depend on your unique situation.
You can compare credit card offers with our side-by-side credit card comparison tool. Pay attention to key features like the APR, annual fee, rewards system, welcome offers, and credit requirements.
If you've already mastered managing one credit card, you might be ready to have multiple credit cards. Juggling multiple credit cards can help you earn rewards faster. However, it can also make it easier to miss payments and end up in debt.
Card | Rating | Great For |
---|---|---|
Rating image, 4.50 out of 5 stars.
|
Great For: Bonus and cash rewards flexibility |
|
Rating image, 5.00 out of 5 stars.
|
Great For: Travel sign up bonus |
|
Rating image, 5.00 out of 5 stars.
|
Great For: Bonus category cash back |
|
Rating image, 4.50 out of 5 stars.
|
Great For: Balance transfers and 0% intro APR for purchases |
|
Rating image, 5.00 out of 5 stars.
|
Great For: U.S. supermarkets and gas |
|
Rating image, 5.00 out of 5 stars.
|
Great For: Unlimited cash back |
|
Rating image, 5.00 out of 5 stars.
|
Great For: Cash back versatility with a big bonus |
|
Rating image, 5.00 out of 5 stars.
|
Great For: Balance transfers and cash back |
|
Rating image, 5.00 out of 5 stars.
|
Great For: Balance transfers |
|
Rating image, 5.00 out of 5 stars.
|
Great For: Long 0% intro APR offer |
|
Rating image, 4.50 out of 5 stars.
|
Great For: Dining |
|
Rating image, 5.00 out of 5 stars.
|
Great For: Student cash back |
|
Rating image, 5.00 out of 5 stars.
|
Great For: Building credit with cash back |
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