13 Best Credit Cards of December 2023

Money.com has partnered with CardRatings.com for our coverage of credit card products. Money and CardRatings may receive a commission from card issuers. This site does not include all card companies or all available card offers.

There's a lot to consider when deciding which credit card is best for you. After all, many cards offer a wide range of perks, from extra security features to cash back and rewards for your everyday spending.

We took a comprehensive look at the best credit card offers in the market and made our top picks for everyday purchases, business expenses, luxury spending and beyond.

Here are Money’s picks for the best credit cards of 2023.

Our Top Picks for the Best Credit Cards of December 2023

• Blue Cash Preferred® Card from American Express – Best Credit Card for Gas and Groceries
• Alliant Cashback Visa® Signature Credit Card – Highest Flat Rate Cash-Back Credit Card
• Ink Business Preferred® Credit Card – Best Business Credit Card
• Bank of America® Customized Cash Rewards Secured Credit Card - Best Secured Credit Card
• American Express® Gold Card – Best Card for Dining
• The Platinum Card® from American Express – Best Card for Rewards
• Chase Sapphire Reserve® – Best Premium Travel Credit Card
• Chase Sapphire Preferred® Card – Best Low-Annual-Fee Travel Credit Card
• Chase Freedom Unlimited® – Best No-Annual-Fee Credit Card
• TD Double Up℠ Credit Card - Best No-Annual-Fee Flat-Rate Cash Back Card
• Capital One SavorOne Rewards Credit Card - Best No-Annual-Fee Card for Dining
• Chase Freedom Flex® - Best No-Annual-Fee Card for Travel
• Ink Business Cash® Credit Card - Best No-Annual-Fee Business Credit Card
• Other credit cards we considered

Best Credit Cards Reviews

Terms apply. Click here for rates and fees.

Intro APR: intro_apr_rate,intro_apr_duration and balance_transfer_intro_apr,balance_transfer_intro_duration │ Regular APR: reg_apr,reg_apr_type │Annual fee: annual_fees

Why we chose it: The card_name is an excellent option for families trying to get the most out of everyday spending, thanks to excellent cash-back rewards on food and transportation.

The Blue Cash Preferred® Card from American Express gives back an unmatched 6% — more than double what most cards offer — on purchases at U.S. supermarkets and eligible streaming subscriptions, including Netflix, Hulu and Disney+. (Terms apply. Streaming services require enrollment and are subject to auto-renewal.) In other words, that $95 annual fee (which starts on the second year of card membership) will probably pay for itself after a couple of months.

The card also offers 3% cash back on gas purchases in the U.S. and other expenses in the transit category, such as tolls, parking, taxis, trains and more. Essentially, whatever your means of transportation, you’re going to earn rewards. On all other purchases, cardholders will get 1% cash back. (Terms apply.)

Rental car insurance, purchase protection and extended warranty* on bought items are all available through the card as well.

While it does have an annual fee, this card’s cash-back rate is high enough to make up for it. Of course, it’s important to make sure the $95 annual fee is worth it for your particular situation. For example, if you’re a single person who rarely buys groceries, then you probably won’t get as much value from this card as a prolific cook or a family of four.

Why we chose it: Alliant’s 2.5% cash back is one of the highest flat rates in the industry, which makes it one of the best all-around cash-back cards out there.

Alliant offers one of the highest cash-back rates around: 2.5% on every purchase up to the first $10,000 spent per billing cycle. After that, it’s 1.5%, which is still higher than many competitors.

The catch, however, is that you must qualify as a Tier One customer to get the 2.5%. To qualify, cardholders must:

• Have an Alliant High-Rate Checking account
• Sign up to receive eStatements
• Receive at least one monthly electronic deposit
• Have a minimum average daily balance of $1,000 in the account

While this can seem like a lot of hoops to jump through, that 2.5% is high enough to make it worth the effort.

The card also includes some protective perks, such as travel accident and rental car collision insurance, extended warranties and reimbursement for identity theft recovery costs.

All information about the Alliant Cashback Visa® Signature Credit Card has been collected independently by Money.com.

Intro APR: intro_apr_rate,intro_apr_duration│ Regular APR: reg_apr,reg_apr_type │Annual fee: annual_fees

Why we chose it: The Ink Business Preferred® Credit Card has a low annual fee but offers high rewards in business-related categories, making it a perfect choice for small businesses.

The Ink Business Preferred® Credit Card provides a great way for business owners to get something back for those operating expenses. It has a low annual fee of $95, yet it delivers a long list of bonus rewards.

Cardholders get 3X points for every dollar (on up to the first $150,000 spent each anniversary year) on combined purchases related to shipping, online advertising, internet and phone bills and travel. Also, when you redeem your points for travel through Chase Ultimate Rewards®, points are worth 1.25X, meaning 100 points are actually $1.25 instead of just $1.

Other than the rewards and redemption bonuses, the Ink Business Preferred® Credit Card offers many great travel perks. There are no foreign transaction fees, and it includes trip cancellation insurance and rental car collision insurance.

While this Chase card is not the most jam-packed with bonus rewards and perks, its straightforward points system and an annual fee that’s much lower than competitors make it an excellent choice for small business owners.

However, if your business spends more than $150,000 per year, consider The Business Platinum® Card from American Express. It has a wide variety of annual statement credits, luxury benefits and a much higher cap on rewards ($2 million versus Chase’s $150,000). However, its annual fee is a whopping $695, so be sure your business actually gets the most out of it.

(Terms apply. Click here for rates and fees of The Business Platinum® Card from American Express.)

Best Secured Credit Card: Bank of America® Customized Cash Rewards Secured Credit Card

Why we chose it: The Bank of America® Customized Cash Rewards Secured Credit Card offers more rewards and a higher spending limit than top competing secured cards, and its Visa network makes it more widely accepted as well.

This secured card by Bank of America® can help you build or repair your credit while offering plenty of rewards.

You can get the Bank of America® Customized Cash Rewards Secured Credit Card with a minimum security deposit of $200. Your credit limit is established based on the amount you deposit along with your income and credit score, if applicable. If you want to ensure a higher credit line (and can afford it), you can deposit up to $5,000, a higher maximum than competitors.

What truly stands out, however, are the rewards. Cardholders choose a category that earns them 3% back, and it can be changed monthly — choices include online shopping, dining, travel, drug stores, home improvement/furnishings, as well as gas and EV charging stations.

You also get 2% back on groceries and purchases at wholesale clubs such as Sam’s or Costco, and 1% on everything else.

Both the 3% and 2% spending categories have a combined $2,500 spending limit per quarter. After that, you’ll get 1% cash back. This is still more than other secured cards, which typically have limits below $1,000.

All information about the Bank of America® Customized Cash Rewards Secured Credit Card has been collected independently by Money.com.

Terms apply. Click here for rates and fees.

Intro APR: intro_apr_rate,intro_apr_duration│ Regular APR: reg_apr,reg_apr_type │Annual fee: annual_fees

Why we chose it: If you want to be rewarded for eating, this is the card. The American Express® Gold Card offers generous rewards on dining purchases in all categories, from restaurants to groceries and even Uber Eats. (Terms apply.)

When it comes to food, few cards cover all the bases. However, the American Express® Gold Card has high rewards for purchases at restaurants, supermarkets and delivery services: whether you go out or stay in, you’ll get 4x Membership Rewards® Points on just about every food-related purchase you make. Although the special rewards for delivery and takeout services are limited to the U.S., the benefit applies to sit-in restaurants worldwide. (Terms apply).

You can also qualify for monthly statement credits of up to $10 after dining at specific restaurants that partner with American Express®, including Shake Shack and The Cheesecake Factory (enrollment is required), as well as up to $120 a year in Uber Cash to spend on Uber and UberEats, split into $10 monthly statement credits, once you add the card to your Uber account.

Other than these dining rewards, the American Express® Gold Card gives you 3X Membership Rewards® Points on airline tickets booked through Amex Travel and 1X on all other eligible purchases, along with classic American Express® benefits, such as baggage and rental car insurance, purchase protection and access to pre-sales on select events and preferred seating when applicable.

Terms apply. Click here for rates and fees.

Intro APR: intro_apr_rate,intro_apr_duration│ Regular APR: reg_apr,reg_apr_type │Annual fee: annual_fees

Why we chose it: The card’s long list of rewards and benefits is nearly unmatched, making its high annual fee a worthwhile investment for people who travel often and spend enough to get the most out of it.

American Express® has built quite a reputation for offering generous rewards and luxury perks. In addition to giving 1X Membership Rewards® Point per dollar on regular purchases and 5X for every $1 spent on travel and hotels booked through American Express Travel, this metal card — and yes, it’s actually made from metal — stands out for its wide array of statement credits and additional perks.

The Platinum Card® from American Express gives users a huge variety of statement credits. For example:

• Up to $20 back per month on eligible purchases made with your Platinum Card® on one or more of the following: Disney+, a Disney Bundle, ESPN+, Hulu, The New York Times, Peacock, SiriusXM, and The Wall Street Journal. (Enrollment required.)

• $12.95 per month for a Walmart+ membership (subject to auto-renewal) after you pay for Walmart+ each month with your Platinum Card®. (The statement credit will cover the $12.95 plus applicable local sales tax. Plus Up Benefits are excluded.)

• Up to $189 CLEAR® Plus membership (subject to auto-renewal) when you use your Platinum Card®. (Learn more.)

• $100 Global Entry credit every 4 years for your Global Entry application fee or up to $85 every 4.5 years for a TSA PreCheck® (through a TSA official enrollment provider) application fee, if you pay with your Platinum Card®.

• Terms apply

This is just to start as, in total, Platinum Card® cardholders could earn over $1,700 in statement credits alone. (Terms apply.)

However, the card also comes with some nice travel perks. You get access to American Express® airport lounges worldwide, special access to dinner reservations at high-end restaurants and premium benefits with select rental car companies such as complimentary enrollment in Avis Preferred Club.

Intro APR: intro_apr_rate,intro_apr_duration│ Regular APR: reg_apr,reg_apr_type │Annual fee: annual_fees

Why we chose it: The Chase Sapphire Reserve® (Member FDIC) gives you a high rate of rewards for most traveling expenses, and it goes a few steps further, providing comprehensive travel insurance while charging a lower annual fee than its main premium competitor.

While its annual fee is high, the Chase Sapphire Reserve® can ultimately make your travels much more comfortable and less expensive. Once you spend $300 in travel in a year (which qualifies for a statement credit), you'll get 5x points on airfare and a staggering 10x points on hotels and rental cars, all when booked through Chase Ultimate Rewards®. You also get 3x on all restaurants, including eligible delivery services and takeout.

Another great benefit is that points can be redeemed at 50% more than their original value when purchasing travel through Chase Ultimate Rewards®. So if you’ve accrued 1,000 points (worth $10 in cash back), you’ll actually have the equivalent of 1,500 points ($15) if you use them to book flights through Chase.

Chase also offers a credit worth up to $100 every four years to reimburse you for TSA PreCheck®, NEXUS or Global Entry fees, a Priority Pass membership for airport lounge access and discounts on hotel stays in the IHG group, which includes Crowne Plaza and InterContinental properties.

There are a few limited-time memberships and perks with Chase partners as well, such as Lyft, Instacart and DoorDash.While this card offers a lot of benefits, its steep annual fee can be a deal-breaker for some. If that's the case, consider the next card on our list, the Chase Sapphire Preferred® Card, which provides plenty of rewards, for a very affordable annual fee.

Intro APR: intro_apr_rate,intro_apr_duration│ Regular APR: reg_apr,reg_apr_type │Annual fee: annual_fees

Why we chose it: The Chase Sapphire Preferred® Card offers excellent insurance coverage and a wide variety of travel rewards categories for a low annual fee of $95.

When it comes to travel, the Chase Sapphire Preferred® Card covers a lot of bases. First, it offers 5x points on travel booked through Chase Ultimate Rewards®, and when those points are redeemed for travel through the same portal, they’re worth 25% more. This means that if you have $1,000 in points you want to redeem for a plane ticket, you technically have $1,250.

Cardholders can also earn up to $50 in statement credits for hotel purchases made through Chase Ultimate Rewards® and, on each account anniversary, a point bonus equaling 10% of what you spent throughout the year.

One of the card’s main highlights is the insurance coverage it offers travelers. There’s flight cancellation and interruption insurance, as well as trip delay reimbursement and baggage delay insurance. Even more noteworthy, it offers primary rental insurance, which covers up to the cash value of the car.

When it comes to day-to-day spending, you can earn 3x points on dining, online grocery stores (excluding Target®, Walmart® and wholesale clubs) and select streaming services, which makes it much easier to rack up points to use for travel.

Best credit cards with no annual fee

Paying a credit card’s annual fee is worth it when the rewards offset the price. However, if you want to maximize rewards without paying a dime, there are many credit cards with great perks that don’t charge you for it. Check out some of the best no-annual-fee credit cards for the most popular categories.

Intro APR: intro_apr_rate,intro_apr_duration and balance_transfer_intro_apr,balance_transfer_intro_duration│ Regular APR: reg_apr,reg_apr_type

The card_name provides unlimited 1.5% on all purchases, plus Chase’s classic 5% on travel through Chase Ultimate Rewards®, 3% on dining and 3% on drugstore purchases. This, along with its very generous intro offer, purchase protection, rental collision waiver and much more, make this card the complete package.

Intro APR: balance_transfer_intro_apr,balance_transfer_intro_duration│ Regular APR: reg_apr,reg_apr_type

A recent upgrade to this offering from TD Bank has made it one of the best flat-rate cash-back cards available. The card_name offers 2% on all eligible purchases without any limits, caps or hurdles. It also offers great insurance coverage and cell phone protection when you use your card to pay your monthly bill.

While its 3% cash-back rewards on dining equals that of some competitors, the fact that the Capital One SavorOne Cash Rewards Credit Card also gives 3% back on theaters, concerts and sporting events (and up to 8% on some tickets bought directly through Capital One) makes it the perfect card for a night out. Its generous intro offers gives it a slight edge over the competition too.

The Chase Freedom Flex® Credit Card offers a whopping 5% back on quarterly bonus categories (on up to $1,500 in combined purchases in those bonus categories each quarter you activate them). It also offers 5% on travel booked through Chase’s website, along with flight delay and cancellation insurance and a rental collision waiver. In addition, it gives 3% back on dining for those nights when you’re hitting the town.

Note that it does charge a 3% foreign transaction fee, but when it comes to domestic travel, it truly is a standout choice.

All information about the Chase Freedom Flex® Card has been collected independently by Money.com.

Intro APR: intro_apr_rate,intro_apr_duration│ Regular APR: reg_apr,reg_apr_type

For small businesses, this card offers arguably the most value of any card out there. The Ink Business Cash® Credit Card has great rewards: 5% cash back on certain business-related expenses and 2% on restaurants and gas, along with a substantial intro bonus.

It also lets you bonus_miles_full.

Other credit cards we considered

Blue Cash Everyday® Card from American Express

Terms apply. Click here for applicable rates and fees.

Intro APR: intro_apr_rate,intro_apr_duration and balance_transfer_intro_apr,balance_transfer_intro_duration│ Regular APR: reg_apr,reg_apr_type

This no-annual-fee card by American Express® recently got even better. With added and improved categories yielding higher rewards, along with generous intro offers, it’s a great option for groceries, gas and everyday purchases. It didn’t make our list because the Blue Cash Preferred® Card from American Express offers even more benefits.

Wells Fargo Active Cash® Card - Best Cash Back

Straightforward rewards can be a thing of beauty. This cash rewards credit card gives you a $200 introductory bonus if you spend $1,000 within three months of opening your account and 2% back on almost everything you buy or pay (only excluding things like money orders) — meaning if this is your go-to card for purchases, you essentially have a 2% discount on, well, life.

All information about the Wells Fargo Active Cash® Card has been collected independently by Money.com.

Apple Card

The Apple Card isn’t just cool and matches your iPhone, it actually has great rewards and an unmatched user experience on the Apple Wallet app. However, the Apple Card didn’t make the cut for our top picks because it doesn’t have intro offers and lacks insurance and purchase protection.

All information about the Apple Card has been collected independently by Money.com.

Citi Double Cash® Card

The Citi Double Cash® Card is a hugely popular cash rewards credit card that offers 2% flat rate cash back — 1% when you make a purchase, and the other 1% when you pay the card. It's a comparatively good cash-back rate and works even better as a balance transfer card; however, other cards on this list offer even higher rates.

All information about the Citi Double Cash® Credit Card has been collected independently by Money.com.

Costco Anywhere Visa® Card by Citi

While the Costco Anywhere Visa® Card by Citi has one of the most tempting cash back categories (4% on gas) and decent rewards and coverage on travel, its lack of intro offers or any outstanding benefits in Costco itself are big drawbacks.

All information about the Costco Anywhere Visa® Card by Citi has been collected independently by Money.com.

Credit Cards Guide

Using credit cards wisely can help you better manage your finances, raise your credit score and even get you discounts and rewards on the things you buy. The flip side is that it’s easy to overspend with credit cards and wind up deep in debt. The terms and fees can be very confusing too, so it’s important to take the time to understand the fine print.

• How do credit cards work?
• Types of credit cards
• How does credit card interest work?
• How to use a credit card
• How to get a credit card
• How many credit cards should you have?

How do credit cards work?

Credit cards are what’s known as revolving credit. With this kind of credit, a lender gives you access to a credit line. You can borrow from it up to a pre-set limit, and you are expected to pay it back monthly. As you pay down your balance, credit is once again available for purchases.

For most loans, lenders charge an annual percentage rate (APR), or interest rate, on the amount you owe. With credit cards, you can avoid paying interest charges if you pay the balance off in full every month.

However, if you don’t pay your balance in full, you’ll be hit with interest charges, and APRs for credit cards are fairly high. While rates on mortgage notes and personal loans can start around 3% or 4%, the lowest APR you can find on a credit card is around 10% — a rate that will only be available to those stellar credit. Most average between 12% to 26%.

The interest charges and annual fees many cards charge can pile up as debt over time, even if you use the card sparingly. If you can’t pay the monthly bill in full, you must at least pay the required minimum amount each month; otherwise, the bank can raise your APR, charge you late fees and/or report you to the credit bureaus.

However, there are advantages to paying with a credit card, especially when it comes to the added security they can provide. For instance, if you file a complaint about a fraudulent transaction, the card issuer will cancel the charge and there will be no money missing from your account while the issue is being fixed.

While you can dispute a fraudulent transaction involving your debit card with your bank, you’re responsible for those charges until the bank sorts the matter out. Because your debit card is linked to your checking account, this could significantly impact your day-to-day spending or any automatic payments set up to draw from that account.

The best credit cards can also offer so many rewards and perks that, when managed well, can actually save you money in the long run.

Types of credit cards

While all credit cards essentially work the same, there are different ways to categorize them depending on their terms, benefits and how they’re used. Confusing things further, some debit cards and prepaid cards can act and look like credit cards, with Visa or Mastercard logos included, but they don’t offer the same protections and rewards that credit cards do. Here are some of the types of actual credit cards you’ll encounter:

Regular credit cards

Many banks have plain credit cards without any special rewards or benefits. These are just cards with a preset credit limit and a Visa, Mastercard or American Express® logo.

Rewards credit cards

Rewards credit cards offer cardholders additional perks for their spending. This could come in the form of cash back, which is a straightforward percentage of the purchase, or in points and miles, in which the value is determined by the issuer’s or brand’s proprietary points system.

Some cards give a fixed rewards rate across the board, like 1.5% cash back, and others have a tiered structure with bonus categories, such as supermarkets or gas stations, that yield higher-than-average rewards. The best cash back credit cards, for instance, will usually offer a combination of the two, along with other benefits, like purchase protection or rental car insurance.

More premium cards often use points, which can be redeemed for much higher value through issuers’ portals, but don’t have as much cash value. These also come with many perks such as insurance policies, statement credits for specific spending and complimentary memberships.

Balance transfer credit cards

Balance transfer credit cards usually have introductory 0% APR offers and lower balance transfer fees so that cardholders can transfer outstanding balances from other cards. The best balance transfer credit cards offer longer introductory periods, from 15 to 21 months of 0% APR, and a lower balance transfer fee — usually 3%, which is lower than the industry standard 5%.

Travel rewards credit cards

Credit cards specialized on travel generally reward users when buying plane tickets, renting cars and booking hotels. The best travel credit cards also provide benefits such as flight cancellation or delay insurance, baggage insurance and rental insurance. Taking it one step further, some of the best options also give statement credits for TSA PreCheck, grant access to airport lounges and more.

Some of the best airline credit cards also offer great travel rewards, as well as flight-specific perks such as free checked baggage, priority boarding and discounts for in-flight purchases.

Credit cards for bad credit

Credit cards tailored for bad credit will have much more lenient credit requirements. While there are regular credit cards aimed at people with bad credit, they’ll still have certain requirements and very high APRs. Secured credit cards, on the other hand, offer a much higher chance of approval since there’s a security deposit in case cardholders default.

To be approved for a secured credit card, you must make a cash security deposit — which “secures” the account. Users can typically get their deposit back after a period of time, so long as they’ve been consistently making payments on time. Secured credit cards can also be upgraded to regular credit cards after a certain amount of on-time payments.

Business credit cards

Business credit cards generally have higher spending limits than other cards, and the benefits are tailored for businesses. These can include, for instance, special rewards for advertising or shipping services. Cards can be used by company employees, not just owners or managers, so the rewards can really pile up.

Student credit cards

Student credit cards are made specifically for students enrolled in college at the time of applying. They’re easier to get approved with little to no credit history and can get eventually upgraded when cardholders graduate. They tend to have less benefits than regular credit cards, but the best student credit cards still provide more rewards and perks than other starter cards.

Charge cards

A charge card is a credit card without a pre-set spending limit. Though users can theoretically spend unlimited amounts with the card, each charge is approved individually. This kind of card is mostly used by high net worth individuals with excellent credit or large businesses, and most need to be paid in full each month.

How does credit card interest work?

First things first, it’s important to know that if you pay your credit card balance in full every month, you won’t have to pay any interest at all.

However, if you owe a balance, it will be calculated using your annual percentage rate (APR) divided by 365 and multiplied by your average daily balance (not your full balance). The resulting amount is multiplied by the days in the cycle, and this final number is added to your balance on a monthly basis.

How does the formula work?

Interest on credit cards is calculated using your APR, the daily periodic rate and your monthly balance.

Let’s say your APR is 14.24%. To obtain the daily periodic rate, you divide that amount by 365, for a total of 0.039%.

That 0.039% is then multiplied by your average daily balance, which is your entire monthly balance divided by the number of days in the billing cycle.

For example, if you owe $1,000 in May, your average daily balance would be $33.33. You multiply that by the periodic rate of 0.039 and you get $1.30 (rounded up) of daily interest.

If you multiply that by 30, you’d get approximately $39. This is what will be tacked on to your total at the end of the next cycle.

APR vs APY

The annual percentage rate (APR) is the amount of interest added to a debt, whether it’s a mortgage, a car loan, a personal loan or a credit card with an outstanding balance. The annual percentage yield (APY), on the other hand, is a return on investment earned. The APY is used in high-yield savings accounts and certificates of deposit, for example.

How to use a credit card

There’s more to using a credit card than just swiping away at the mall. When used correctly, a credit card can help you build credit, protect you from fraud and even reward the spending you already do.

• Credit utilization. Credit utilization is how much of your available credit you’re using. This percentage is known as the credit utilization ratio, and it’s one of the most important factors in determining your credit score and overall creditworthiness.

• Payments. Credit card payments are usually expected at the end of a monthly cycle. If you fail to pay, credit card companies can charge you a late fee, raise your APR or, at a certain point, report you to a credit agency.

You can pay a minimum amount (which will depend on your balance) to avoid penalties, or you can pay the full amount to avoid interest.

• Best practices. If credit card debt is left unpaid, it can affect your credit and hurt your chance of getting approved for other cards or loans. If you have a large balance and don’t pay it off, it can accrue significant amounts of interest.

A good rule of thumb is to use credit cards as if it were your actual money; in other words, if you can’t actually afford it, don’t buy it. While having a high credit limit is tempting, credit cards have some of the highest interest rates of any type of loan, and financing purchases this way is a surefire way to wind up paying far more than you intended.

If you’re able to pay the balance off completely at the end of the month, it may be smart to use credit cards to pay most of your expenses, especially with cards that provide purchase protection, rewards points and extended warranty periods on high-value items.

What is a good credit utilization ratio?

Generally, experts recommend that you use less than 25% of your overall credit card limit, and that new cardholders with little credit history keep it as low as 10%, if possible. A low utilization rate can help improve your credit score enormously, and is especially important if other factors (length of credit history, number of open accounts and payment history) are somewhat rocky.

Also, while your overall credit utilization might be low, keep in mind that having a high balance on one card could hurt your chances of getting additional cards or loans, especially with the same credit card issuer.

How to choose a credit card

Choosing the right credit card should not be limited to the offers you constantly get in the mail. If you want to get the most out of your credit card, do your research and be deliberate about choosing and applying for the right one.

Credit card approval odds

To lessen the risk of rejection (and of adding an unnecessary extra inquiry to your credit report, which can impact your score negatively), look at each card’s credit requirements before you apply.

While some banks specify the kind of credit they will accept (fair, good or excellent, for example), few banks will disclose the exact minimum credit score you need for approval. This is due to the fact that they take into account many factors other than just your FICO or Vantage Score in their underwriting process. They’ll review your personal finances, including your debt-to-income ratio, credit utilization, income and length of credit history before determining approval.

Before you apply for a credit card, make sure to get a credit check with all three major credit bureaus (Experian, Equifax and TransUnion) to at least have an idea of your overall approval odds.

If you already have a credit history, banks will send you pre-approvals or pre-qualifications by mail. Sometimes you might receive an offer for a card you already wanted.

APR

Each card has an APR range of, say from 12.24% to 24.24%. You’ll be offered a number within that card’s range depending on your creditworthiness.

Unfortunately, picking a card with a very low minimum APR doesn’t guarantee that rate for you. But if the overall range is lower, it might be a better choice for you. For example, a card with a maximum APR of 21.99% will probably give you a better rate than one that goes as high as 25.99%.

If you have an excellent credit score and a high income, though, you are more likely to qualify for the lower end of a card’s APR range. Some cards offer APRs as low as 10%.

Credit card fees

Credit cards charge a few fees you should be aware of, especially since some might not be displayed prominently on promotional material.

• Annual fee. Many credit cards charge annual fees, ranging from $95 to $795. Typically, credit cards that charge annual fees offer more generous rewards and better perks than those that don’t.

• Foreign transaction fee. A foreign transaction fee is a percentage of a purchase made in non-U.S. currency. These can range from 1% to 5%, but the most common by far is 3%. Credit cards with a focus on travel tend to waive this fee.

• Balance transfer fee. A fee will most likely be charged when you transfer a balance from one card to another, which can add an amount from 3% to 5% of the total transferred. Some cards do waive this fee, but it’s not very common.

• Cash advance fee. Most, if not all, credit cards charge a cash advance fee if you use it to withdraw cash. It’ll usually be around $5 to $10 or a percentage from 3% to 5%, whichever is higher.

• Late payment fee. While there are credit cards that don’t charge late payment fees, a late fee is still the norm. It can vary, but it is usually capped at around $40.

Cash back or points

Cash back rewards return a percentage of each purchase back to the cardholder. It basically amounts to a discount every time you buy something with the credit card; you’ll see that money in your account’s home page or mobile app, and from there you can use it as a statement credit or redeem it through the portal for travel or other offers.

Different cards have different ways of giving cash back and points. Some offer a set reward percentage across all purchases, while others have bonus categories, such as 3% at restaurants or 5% at an affiliated store (Amazon, for example).

Some cards work with a points system proprietary to the issuer. These points can be redeemed for gift cards, statement credit or for purchases through the issuer’s program, such as American Express® or Chase Ultimate Rewards®.

These points can vary in value, depending on the issuer and how you use them. If you plan to pay back the card with points, it might reduce their value. If you want to trade them in to buy airline tickets through their platform, it will generally increase their value.

Rewards

Rewards come in many different forms. While people often use “cash back” and “rewards” interchangeably, they aren’t exactly the same thing. Many of the best rewards credit cards actually use a proprietary system of points and statement credits. Rewards can come in the form of gift cards, annual statement credits for using a specific service (such as TSA PreCheck® or Uber) and sometimes discounts with partner companies.

Depending on your lifestyle and spending habits, these rewards can sometimes be more tempting (and valuable) than points or simple cash back. Partner hotels, for example, offer free nights, and some airlines offer free companion tickets after you spend a certain amount. However, not everybody will spend enough to enjoy these perks, so be sure that the card you’re getting offers rewards for your level of spending.

Welcome offers

Welcome offers are a big selling point for new cardholders. Sign-up bonuses and intro APR offers can save you money both in the short and long term. If two cards are almost the same, but one offers a $200 bonus, it can be a major deciding factor.

Credit card insurance

In addition to cash back and plenty of perks, credit cards can offer insurance and protection for valuable items as well. For example, the best travel credit cards come with travel accident insurance, flight delay and/or cancellation reimbursements, rental car insurance and even extended warranties for eligible items you purchase with your card.

Of course, you can always buy travel insurance separately (and you can check out our list of the best travel insurance if that’s what you’re looking for), but having it already included with your purchases is a great advantage. In addition to travel-related protection, there are some other possible insurance policies available as well:

• Purchase protection. This type of insurance can reimburse the cardholder for a covered item that has been damaged or lost within a certain period of time.

• Extended warranty. Extended warranty does just what its name promises, it extends the original manufacturer’s warranty of an eligible product. Keep in mind that the item does need to have an original manufacturer’s warranty, and the coverage from your card begins when that one ends.

• Return protection. This means your credit card issuer can accept your return and refund you if the original seller doesn’t accept returns or if their return period is shorter than your issuer’s.

• Flight insurance. This could have different names and cover different situations, but it typically refers to insurance for the airfare ticket or flight itself, and covers mainly long delays (over 12 hours, for example). Time and reimbursement amounts can vary from issuer to issuer.

• Trip insurance. Different from flight insurance, trip insurance can cover or reimburse you if your trip is cut short due to unforeseeable circumstances such as injury or illness.

• Baggage insurance. There are different types of baggage coverage: it could be reimbursement for lost baggage (up to a certain amount pre-determined by your issuer) or a stipend in the case your luggage is late.

• Rental car insurance. Often, credit cards offer an “auto rental collision damage waiver,” which covers damage or theft to the car. This insurance can be primary or secondary, but on no-annual-fee cards, secondary is far more likely. With primary insurance, you don’t need to provide any other insurance besides the credit card. If the card offers secondary insurance, on the other hand, it will only cover anything the driver’s primary insurance doesn’t pay for.

• Travel insurance. Travel insurance is different from flight or trip insurance, as it can cover medical costs in case of serious injury or disease, or, in some premium cards, even evacuations in case of emergencies. Some no-annual-fee cards have “travel accident insurance,” which covers some medical costs. This is not to be confused with travel and emergency assistance, which is simply assistance contacting the necessary authorities or services during travel.

How to get a credit card

There are a few ways to get a credit card. If this is your first time ever filling a credit card application, you might have to start with a secured card, giving an initial security deposit to ensure the bank approves a credit line.

If you do have a lengthy credit history, make sure to get a copy of your credit report from all three bureaus, which will give you an idea of the types of cards you’ll be approved for and the APR rates you’ll be offered. People with high credit scores will be offered the best (e.g. the lowest) rates.

You can apply for a credit card in different places:

Online. The days of having to visit a brick-and-mortar bank branch in order to apply for a card or loan are long gone. You can apply for pretty much any credit card online by providing your personal information (including your Social Security number) and be either approved or denied in a matter of minutes.

Credit card offers. Sometimes, banks send offers directly to your mailbox. These offers can mention that you’re pre-selected or pre-approved for a certain card, and they often provide a code to apply online and get the points or benefits mentioned in the letter. Before taking advantage of these offers, make sure it’s really the best card for you by following the criteria in the section How to Choose a Credit Card.

Your bank. Most banks offer some sort of credit card. While it’s not guaranteed, having an account with the bank generally increases your chances of getting approved for one of its credit cards, and perhaps even being given special offers.

Apply at a store. Many stores have branded credit cards with special benefits for purchases made with the retailer; however, they often have higher than average APR rates.

How to get a credit card with no credit

If you have poor to fair credit, or no credit at all (not even a student loan), you might be wondering how to build credit. Here are some ways to do it.

Get added as an authorized user. A parent, family member or even a (very generous) friend can add you as an authorized user on a credit card. You can piggyback off their credit history to build your own and, depending on the agreement with the other person, even enjoy the card’s perks and rewards.

Just apply. While not the most recommended method, some issuers will just approve you if you have absolutely no credit history (having bad credit is a different story). This is more feasible for people who do have a steady income and the card you apply for has lenient credit requirements. Bear in mind though that applying for new credit involves a hard credit pull, which leaves a slight mark on your report.

Secured cards. A secured credit card is a credit card that requires collateral in the form of a security deposit. These are typically used to build or rebuild credit by people who can’t qualify for traditional credit cards. If you have a low credit score or your credit history is limited, make sure to read our picks for the best credit cards to build credit.

How many credit cards should you have?

There isn’t a magical number for how many credit cards you should have. It all depends on your situation, lifestyle and your ability to pay your cards back on time. The more cards you have, the higher your credit line, which can reduce your utilization ratio. However, having more credit cards opens up the possibility of incurring higher debt and having lower approval odds due too much revolving credit.

Latest News on Credit Cards

• Debt and payment delinquencies are rising, and as student loan payments resume, these numbers could continue to go up. Read more about this in our article Credit Card Balances Just Grew by the Biggest Amount in Over 20 Years.

• Even though credit cards are one of the safest ways to pay, there are still risks to consider. Learn more about this: 10 Credit Card Scams and How To Avoid Them.

• When it comes to credit, everyone from your second cousin to thousands of financial influencers will have an opinion. If you’re overwhelmed by all the information, make sure to read The Best (and Worst) Ways to Start Building Credit, According to an Expert.

• New business owners have a whole lot to consider when calculating their budgets, including credit card processing fees. These fees, however, can be tricky to predict. Read How Much Are Credit Card Processing Fees? for more information.

How We Chose the Best Credit Cards

In order to find the best credit cards for each situation and lifestyle, our methodology included looking at over 70 cards across all issuers, and considered several factors:

• Transparency: We favored issuers that make documents easily accessible and communicate clearly about their rewards programs, interest rates and offers.

• Rewards: We looked at the rewards offered by each card, whether it be cash back, points or annual statement credits, and compared their value to their annual fees.

• Intro offers: Intro offers alone can sometimes be enough to offset a card’s annual fee, so we looked at issuers that offer high welcome bonuses and/or long-term 0% introductory APR on purchases and balance transfers.

• Coverage: One of the main advantages of using a credit card is protecting your actual money. While all cards have methods of dealing with fraud, some have additional protections like extended warranties, rental car insurance and flight cancellation coverage, to name a few, that pushed certain cards to the top of our list.

Summary of Money’s Best Credit Cards of December 2023

• Blue Cash Preferred® Card from American Express – Best Credit Card for Gas and Groceries
• Alliant Cashback Visa® Signature Credit Card – Highest Flat Rate Cash-Back Credit Card
• Ink Business Preferred® Credit Card – Best Business Credit Card
• Bank of America® Customized Cash Rewards Secured Credit Card - Best Secured Credit Card
• American Express® Gold Card – Best Card for Dining
• The Platinum Card® from American Express – Best Card for Rewards
• Chase Sapphire Reserve® – Best Travel Credit Card
• Chase Sapphire Preferred® Card – Best Low-Annual-Fee Travel Credit Card
• Chase Freedom Unlimited® – Best No-Annual-Fee Credit Card
• TD Double Up℠ Credit Card - Best No-Annual-Fee Flat-Rate Cash Back Card
• Capital One SavorOne Rewards Credit Card - Best No-Annual-Fee Card for Dining
• Chase Freedom Flex® - Best No-Annual-Fee Card for Travel
• Ink Business Cash® Credit Card - Best No-Annual-Fee Business Credit Card
• Other credit cards we considered

To see rates and fees for the Blue Cash Preferred® Card from American Express, visit this link. Terms apply.

To see rates and fees for the American Express® Gold Card, visit this link. Terms apply.

To see rates and fees for The Platinum Card® from American Express, visit this link. Terms apply.

To see rates and fees for the Blue Cash Everyday® Card from American Express, visit this link. Terms apply.

* Insurance disclosures for American Express Cards on this page:

Trip Delay Insurance: Eligibility and Benefit level varies by Card. Terms, Conditions and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by New Hampshire Insurance Company, an AIG Company.

Global Assist Hotline: Eligibility and Benefit level varies by Card. Terms, Conditions and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Card Members are responsible for the costs charged by third-party service providers.

Extended Warranty, Purchase Protection, Baggage Insurance Plan: Eligibility and Benefit level varies by Card. Terms, Conditions and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by AMEX Assurance Company.

Car Rental Loss & Damage Insurance: Eligibility and Benefit level varies by Card. Terms, Conditions and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by AMEX Assurance Company. Car Rental Loss or Damage Coverage is offered through American Express Travel Related Services Company, Inc.

** Car Rental Loss and Damage Insurance can provide coverage up to $50,000 for theft of or damage to most rental vehicles when you use your eligible Card to reserve and pay for the entire eligible vehicle rental and decline the collision damage waiver or similar option offered by the Commercial Car Rental Company. This product provides secondary coverage and does not include liability coverage. Not all vehicle types or rentals are covered. Geographic restrictions apply. Eligibility and Benefit level varies by Card. Terms, Conditions and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by AMEX Assurance Company. Car Rental Loss or Damage Coverage is offered through American Express Travel Related Services Company, Inc.