The Best Credit Cards Right Now

Credit cards can be valuable tools for building a strong credit history, earning rewards and more. However, finding the best card for you requires evaluating a range of terms like fees, interest rates and perks.

Consider how large a sign-up bonus would fit your spending habits, the types of rewards you value and whether co-branded credit cards make sense for you (like Pottery Barn or Hyatt). It’s also important to review credit card benefits, earnings and fees on an annual basis.

1. Chase Freedom Unlimited

The Chase Freedom Unlimited regularly shows up on top credit card lists thanks to its healthy rewards earning opportunities, lengthy 0% intro APR and attractive ability to function as a cash back or travel rewards card. But it’s the welcome bonus that makes this no-annual-fee card truly shine.

The card’s new cardholders earn Unlimited Matched Cash Back for the first year. That means for every dollar they spend, Chase matches it with one cent in Chase Ultimate Rewards points – up to a maximum of $150 in rewards per quarter.

This is the best card for those who want a simple cash back program and a long 0% intro APR on both purchases and balance transfers. Those who prefer more structured reward programs, on the other hand, might be better served by a card such as the Bank of America Customized Cash Rewards credit card. It offers 3% on a choice category of your choosing (including gas/EV charging, online shopping, cable, phone, internet and streaming services) or at grocery stores and wholesale clubs (on up to $2,500 in combined choice-category/grocery-store/wholesale-club spending each quarter).

In addition, the card also earns 2% back on dining, travel and drugstore purchases. The card is subject to the Chase 5/24 rule, though, so it’s not ideal for those on a travel rewards journey who may be planning to get their premium cards soon.

If you’re planning on getting the Chase Freedom Unlimited, consider pairing it with other cards in your wallet that offer more rewards opportunities in categories it doesn’t cover – like the Blue Cash Everyday(r) Card from American Express or the Ink Preferred Credit Card from Chase. That way, you can maximize the amount of rewards you can earn and make it easier to redeem those rewards for free flights and other perks you desire.

2. Discover it Secured

While most secured credit cards don’t offer much beyond a small refundable security deposit, Discover it Secured flips the script with one of the best secured rewards programs and a first-year welcome bonus that gives cardholders a chance to boost their FICO scores without having to pay for the privilege. The card also offers transparent terms about when it might graduate you to an unsecured card, which isn’t standard for many other secured cards. This may make it a good choice for consumers who have bad credit or no credit and can afford to put up the minimum security deposit.

While we don’t think rewards should be the primary consideration for anyone who signs up for a new credit card, it’s nice to see that Discover is one of the few issuers to offer them on a secured card designed for people who can’t get regular cards. Specifically, Discover it Secured offers 2% cash back on the first $1,000 in combined gas station and restaurant spending each quarter (then 1%), plus a generous bonus that matches all of your rewards earned in your first year as a cardholder.

Other perks include no annual fee, no foreign transaction fees and a no-fee penalty APR on your first late payment (up to $41 after that). These waived fees help keep your costs down while you learn how to use a credit card responsibly. Plus, Discover’s U.S.-based support centers are well-regarded by customers for their speed and professionalism when it comes to dealing with issues like lost cards or missed payments. And, you can even check your credit score for free on the card’s mobile app, which isn’t something many other secure credit cards can offer.

3. Capital One Quicksilver Cash Rewards

The Capital One Quicksilver Cash Rewards card is a solid option for consumers who prioritize simplicity in their credit cards. This card offers an unlimited 1.5% flat rewards rate on all spending and a $200 welcome bonus when you spend $500 or more within the first three months of opening an account. It also has no annual fee and a lengthy zero-interest introductory APR period on purchases and balance transfers. In addition, the card offers a number of useful tools to help you manage your card spend and track your credit scores.

If you’re looking for a card with a higher rewards rate in specific categories, you should check out some of the top card offers that include better bonuses or offer better rewards rates overall. For example, if you’re planning to travel with your card, the Chase Sapphire Reserve and Bank of America Travel Rewards credit cards both have top sign-up bonuses and offer high rewards rates on travel and dining purchases.

Choosing the right credit card depends on your lifestyle and spending habits. The best way to decide is to compare the benefits of different cards and find the one that’s a good fit for your budget. If you have average credit, for instance, the Capital One SavorOne cash back card may make more sense than the Quicksilver card if most of your spending is on dining and eligible streaming services.

Both the Capital One Quicksilver and the SavorOne cards have no annual fee and are great options for consumers who want a simple rewards credit card with solid perks, including a zero-dollar balance transfer APR and an impressive 0% APR introductory period on both purchases and balance transfers. However, if you’re interested in additional perks like extended warranty protection and travel accident insurance, you might be better off with another card.

4. Bank of America Cash Rewards Credit Card

The Bank of America Cash Rewards Credit Card is one of the best credit cards for families. It offers high earnings (up to 3% in a choice category and 2% at grocery stores and wholesale clubs) along with a low annual fee ($0 intro year, then $95) that makes it an ideal everyday card for those who want to earn more rewards for their spending. The card also offers a solid choice of bonus categories that change each month, making it easy to maximize earnings while staying on track with spending caps and limits.

The card comes with the usual credit card benefits you’d expect, including free online and mobile banking with the ability to set account alerts and monitor activity, digital wallet integration and a $0 liability guarantee that blocks potential fraudulent charges or returns. It also reports to all three major credit bureaus, meaning it can be an effective tool for building or rebuilding credit, especially if you use it responsibly and pay your balances in full each month.

The Bank of America Customized Cash Rewards Credit Card is a great option for existing Bank of America customers who want to dive into the world of credit card rewards and get some breathing room on interest rates, thanks to competitive welcome APRs on purchases and balance transfers. It also offers the chance to maximize rewards through the bank’s Preferred Rewards program, for which you’ll need a Bank of America checking or savings account, Merrill Edge brokerage account, or a Bank of America or Merrill Lynch investment account. If you’re not a Bank of America customer, you might prefer the Citi Double Cash Card, which offers similar earning potential and has a slightly larger choice of bonus categories.

5. Bank of America Travel Rewards Credit Card

If you’re a frequent traveler looking for a rewards card with no annual fee, the Bank of America Travel Rewards credit card may be worth considering. It earns 1.5 points per $1 spent and gives you 25,000 bonus points after making your first 1,000 purchases within the first 90 days of account opening. That doesn’t compare with some premium travel cards that offer perks like airport lounge access or complimentary breakfast at hotels, but it’s not too shabby for a card without an annual fee. Plus, the card doesn’t carry foreign transaction fees, which can eat into the value of many other travel rewards cards.

You can redeem Bank of America Travel Rewards points for any eligible travel or dining purchase charged to your card. You can also choose to get cash back in the form of a statement credit or deposit into your Bank of America checking or savings account or Merrill Edge brokerage account. However, you’ll receive the best redemption value for your points if you use them to book travel through Bank of America’s travel portal, which typically offers higher booking rates than the options offered by other partner sites.

There are a lot of great travel rewards credit cards to choose from. The key is to understand your spending habits and the value you place on certain perks, then find a card that’s right for you. If you’re still unsure, sign up for a free WalletHub account to see personalized recommendations for the best credit cards for your needs. You can compare cards and their perks in just a few clicks, and find out how much you stand to save once you factor in annual fees.

Category: Life | January 3, 2024