Credit cards can be one of the most flexible tools in our financial toolkit. They can save us 6% on basic needs, or 5% from a retailer that sells everything. Credit cards can treat us like a VIP while traveling or improve our night away from everyday stress. We look at the best credit cards available in the categories that matter to you and help you decide if they deserve a spot in your wallet.
We update this list each year as we review the most interesting credit cards released over the past twelve months. If any of those new cards are good enough to unseat the current pick, we will update this list accordingly. This list will always represent the best options currently available.
Outside of a couple of exceptions, these recommendations ignore the Annual Percentage Yield (APY) of a card. Credit card debt is almost universal among the quickest to snowball and difficult to dig out of. Please pay your credit cards in full wherever possible and prioritize paying it off if you are in a situation where life may force you to carry a balance.
Table of Contents
Where to Start: What Kind of Credit Cards Belong in Your Wallet
Start with a universal cash back card. These cards are low maintenance and will simply save you money on your everyday purchases. If you want to limit your wallet to a single card, you can’t go wrong with our number one pick for everyday cash back detailed just below.
From there, look at where your money goes. Whether the majority of your money goes to food, travel, or dining, there are wonderful options tailored to just those needs.
If you love a particular retailer, they may have a card tailored to you. Not all are great, and they should not be your sole credit card, but several options serve this targeted use case well.
The Best Credit Cards for Everyday Expenses
Simplicity has value. In a world of rotating categories and reward limits, some purchases will inevitably slip through the cracks. A universal option has a place in everyone’s wallet. The City Double Cash card fills this need with a straightforward rewards structure. You earn a flat 1% cash back on all purchases, along with an additional 1% cash back upon payment. While you must make at least the minimum payment to earn the latter, there are no limits to the rewards you can accumulate. You can redeem rewards starting at just $25 and apply them as a direct statement credit, through a check, or deposited directly to your bank account.
The card does lack a sign-up bonus, and the required excellent credit limits access to this card. With no annual fee and a simple 2% cash back on all purchases, the Citi Double Cash card has a place in all qualified wallets.
Winner– The Citi Double Cash Card
Intro Offer: None Annual Fee: None Rewards: 1% cash back on all purchases at time of purchase. 1% on all purchases upon min payment. Suggested Credit– ~700
Best Credit Cards for College Students
As a student, you have limited options for a solid rewards card. Your credit card now will mostly serve as a stepping stone to better cards and established credit down the line. The Discover It Student Cashback cards strikes a nearly perfect balance, combining a solid cashback structure with perks relevant to this part in your journey.
Your early years help establish your credit history and Discover makes it easy to track your progress by including your current credit score on each statement. We typically ignore APY on credit cards, but textbooks and university fees can cause spikes in your spending. Discover cuts your APY to 0% for the first six months after you open your account, buying you a semester to breathe. They also wave the late fee for your first late payment, providing one more respite at a time it is most needed.
Travel will be a mixed bag with Discover, as their international acceptance is not as universal as Visa or Mastercard. Where it is accepted Discover has you covered with no foreign transaction fees.
You put in a lot of hard work throughout college and Discover will reward that effort with a $20 statement credit each year you finish with a GPA of 3.0 or higher. Perhaps a movie or light dinner to reflect on all that you accomplished.
Winner: Discover it Student Cashback
Intro Offer: None Annual Fee: None Rewards: 5% Rotating Categories(max $1500/quarter). 1% on all other purchases. Suggested Credit– No History required. If you have poor credit you may be better served by other options.
The Best Credit Card From a Single Retailer:
It’s difficult to find a place in one’s wallet to tie to one specific retailer, but Amazon does its best to make a case.
Statista show’s that Amazon now accounts for around fifty percent of the e-commerce market in the United States and offers a fantastic card for purchases within their US ecosystem. If you are the named account holder of a Prime subscription, you are eligible for a card which provides 5% cashback for these purchases and from the grocery chain Whole foods. It also provides you with an acceptable 2% back on core purchases such as gas stations, restaurants, and drugstores. The 1% back for all other purchases is nice if it is the only card on you, but is moot if you follow our advice and have a universal cashback card.
You can redeem rewards at any dollar amount by applying them to an amazon purchase. This results in one of the most flexible redemption programs available.
Not already an amazon prime member? Imagine a $119 annual fee for the following benefits:
- Everything mentioned above
- Unlimited free 2-day (often 1 day or same day) delivery
- Access to thousands of shows, movies, songs, and e-books
The Amazon Prime Rewards Signature Card becomes more and more universal each year as amazon continue to expand its offerings and user base. Offering the best everyday reward on Amazon purchases, this card makes a compelling argument for millions of individuals and families.
Winner– The Amazon Prime Rewards Visa Signature Card(Chase)
Intro Offer: $70 amazon gift card Annual Fee: none for named prime members otherwise prime membership is $119 a year Rewards: 5% cash back at Amazon US and Whole foods. 2% at gas stations, restaurants, and drug stores. 1% on all other purchases. Suggested Credit– ~700
The Best Credit Cards For Bad Credit
A bad credit history limits the options open to you, making it more difficult for you to rebuild. The Discover IT Secured credit card is here to help you move on from the past while building your credit history back up.
As a secured card, the Discover IT requires a deposit. This deposit determines the credit amount made available to you. The minimum deposit required is $200 with a maximum deposit, thus credit line of $2500. When working to rebuild your credit score, monitor the percentage of your credit you leave available each billing cycle. This percentage accounts for almost 1/3rd of the score, and the more you leave available, the better. If you can afford a slightly higher deposit, it will pay off in the long run.
Why It Deserves a Spot in Your Wallet
Discover will wave your first late payment. They also take the unique step of reviewing your account after eight months. If you have made solid progress on your credit score in that time, your deposit may be returned to you. The return of your deposit effectively transitions your account to an unsecured card. If you’re not quite in the right place after month eight, Discover will continue to review your account each month thereafter.
Rewards are often limited for secured cards, but the Discover IT Secured provides you reasonable rewards while you build credit. You will earn 2% back on crucial purchases at gas stations and restaurants and 1% on everything else. While the former is capped at $1000 per quarter, given the credit line of this card, that limit is seemingly moot.
It can be difficult to rebuild, and often the system is rigged against you. The Discover IT Secured card will help you reestablish your credit while saving you some money on the way. It’s a transition card, but for the point in life where you need it, it has your back.
Winner: Discover IT Secured
Intro Offer: None Annual Fee: None Rewards: 2% at gas stations and restaurants (max $1000 per quarter). 1% on all other purchases. Suggested Credit– new to credit or rebuilding