Choosing the right credit card can save you hundreds of dollars a year. There are a number of factors to consider when looking for the best credit card. Some of these include your spending habits, what type of rewards you’re looking for, and whether you’re trying to build credit or improve your credit score.
The best credit card for you will depend on your individual financial situation. If you’re a big spender, you’ll want a card with high rewards. If you’re trying to improve your credit score, you’ll want a card with low-interest rates and no annual fees.
Whether you’re looking for cash back, points, or low-interest rates, there’s a card on this list that’s perfect for you.
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To help you get started, here are some of the best credit cards available this year:
Best Credit Card for Travel Insurance
Chase Sapphire Reserve®
Annual Fee: $550
Welcome Bonus: 50,000 bonus points
APR: 17.24% – 24.24% Variable
The Chase Sapphire Reserve card is one of the best travel credit cards on the market. It offers a comprehensive package of travel benefits, including 3x points on travel and dining, $300 in annual travel credits, and a $100 application fee credit for Global Entry or TSA PreCheck. This membership will give you access to over 1,300 lounges across 600 airports worldwide. It also comes with a slew of other perks, like earning points after you spend $4,000 on purchases in the first 3 months from account opening.
And when it’s time to use your points, redeeming them for travel through Chase’s Ultimate Rewards® system gives you 50% more value. Free rental car insurance, baggage delay insurance, and trip cancellation/interruption insurance are also included.
With its high annual fee of $550 and steep credit requirements, however, it may not be right for everyone. Overall, the Chase Sapphire Reserve card is ideal for frequent travelers who are looking to get the most out of their purchases.
Best for Beginners
Chase Sapphire Preferred® Card
Annual Fee: $95
Welcome Bonus: 80,000 bonus points
APR: 16.24% – 23.24% Variable
If you’re just starting out with credit cards, the Chase Sapphire Preferred card is a great option. It features a low annual fee of just $95. The card offers 5 points per dollar on travel purchased through Chase Ultimate Rewards, 3 points per dollar on dining, 2 points per dollar on all other travel purchases, and 1 point per dollar on all other purchases. With its excellent return on travel and dining purchases, this card can help you rack up points quickly. Cardholders can use their points at 1.25 cents each to book travel through Chase or transfer them to one of Chase’s 14 valuable airline and hotel partners. In addition, it comes with a generous welcome bonus of 80,000 points if you spend $4,000 on purchases within the first 3 months from account opening. Like Sapphire Reserve, you will also get insurance protection and rental car privileges with this card.
You’ll also be happy to know that there are $0 foreign transaction fees if you use this card.
Best Automatically Maximizing Cash Back Card
Citi Custom Cash℠ Card
Annual Fee: $0
Welcome Bonus: $200
APR: 14.24% – 24.24% variable
This Citi card makes getting the most cash back simple. Each billing cycle, you’ll get 5% cash back on your top eligible spend category, up to $500 in total. For all other purchases, you’ll earn 1% cash back. Based on your spending habits, your earnings adjust automatically each billing cycle.
The card also offers a 15-month 0% introductory APR on purchases and balance transfers. After that, the variable APR will be 14.24% – 24.24%, based on your creditworthiness.
This card comes with a $200 welcome bonus after you spend $750 in purchases within the first 3 months of account opening. Best of all, there’s no annual fee to worry about.
Unfortunately, the card charges a 5% (or $5, whichever is greater) balance transfer fee.
Best Student Credit Card
Discover it® Student Cash Back
Annual Fee: $0
Welcome Bonus: Cashback Match
APR: 13.24% – 22.24% Variable
For students looking for great cash back credit cards, this card makes a good choice. There’s no credit score or income requirements to worry about, and it also features a generous cash back program. You’ll earn 5% cash back in rotating categories each quarter, up to $1,500 spent per quarter. Categories include restaurants, gas stations, grocery stores, and more. On everything else you buy, you’ll get 1% cash back.
Addditionally, Discover will match your cash back at the end of your first year. That means you can potentially turn your $100 into $200. There’s no late fee on the first late payment and No APR change for paying late.
Lastly, students will also receive a $20 statement credit each year their GPA is 3.0 or above (up to the next five years).
Best for Flexible Cash Rewards
Chase Freedom Unlimited®
Annual Fee: $0
Welcome Bonus: Additional 1.5% Cash Back ($300)
APR: 15.24% – 23.99% Variable
Choosing between a flat-rate or bonus category cash back card? With the Chase Freedom Unlimited card, you don’t have to. After your first year, this card will offer you a 5% cash back on Chase travel purchased through Ultimate Rewards®, 3% cash back on drugstore purchases and dining at restaurants, and unlimited 1.5% cash back on all other purchases. You can also earn an additional 1.5% cash back on everything you buy – worth up to $300 cash back!
Cardholders also get some valuable perks, including a 0% intro APR on purchases and balance transfers for 15 months (then a variable APR of 15.24% – 23.99%).
There is no minimum for cash back redemption. You can get a statement credit or a direct deposit into most US bank and savings accounts. As long as your account is open, your Cash Back benefits will not expire! This is one of the most flexible credit cards you’ll find today.
Best for Maximizing Rotating Categories
Discover it® Cash Back
Annual Fee: $0
Welcome Bonus: Cashback Match
APR: 12.24% – 23.24% Variable
The Discover it Cash Back credit card is one of the best credit cards offering rotating category rewards. This card delivers tremendous value for no annual fee when you combine its high cash back opportunities with its other bonuses and perks. You’ll earn 5% cash back on categories that rotate each quarter, up to $1,500 in total spend. Plus, you’ll get 1% cash back on all other purchases.
Best of all, at the end of your first year, Discover will match all the cash back you’ve earned – automatically! There’s no minimum spending or maximum rewards. You could turn $150 cash back into $300. The card also provides free access to your FICO credit score.
Another Great Travel Credit Card
Capital One Venture X Rewards Credit Card
Annual Fee: $395
Welcome Bonus: 75,000 miles
APR: 17.24%-24.24% Variable
This venture rewards credit card was just launched last November 2021 and is one of the newest entries to the travel credit card market. With this card, you’ll enjoy incredible travel benefits and perks that make it easy to earn points on your everyday spending.
You’ll earn 75,000 bonus miles when you spend $4,000 on purchases in the first 3 months from account opening. That’s worth up to $750 in travel rewards! You’ll also earn 10X miles on hotel and rental car bookings, 5X miles on flights, and 2X miles on all other purchases.
Additionally, this card offers up to $300 back annually as statement credits for bookings through Capital One Travel and 10,000 bonus miles for every account anniversary. This is one of the best credit cards we love from Capital One.
Best Credit Card for Groceries
Blue Cash Preferred® Card from American Express
Annual Fee: $0 introductory annual fee for the first year, then $95.
Welcome Bonus: Earn $300
APR: 14.24%-24.24% Variable
If you have a large family with a large grocery bill, the Blue Cash Preferred Card from American Express could be your best option for maximizing cash back on groceries. This credit card offers an incredible 6% cash back on grocery purchases up to $6,000 per year. It also offers 6% Cash Back on select U.S. streaming subscriptions, 3% Cash Back at U.S. gas stations, and 1% cash back on other eligible purchases.
In addition to amped-up earnings on groceries, you get access to Amex Offers. This is a feature that lets you earn statement credits for making purchases at businesses like Best Buy, Hilton, and more. There is also a $300 welcome bonus after you spend $3,000 within the first 6 months.
Unfortunately, there’s a 2.7% foreign transaction fee, which can add up if you’re traveling internationally. Also, this card’s $95 annual fee could put a dent in your budget if you’re not using it to its full potential. Overall, this is a perfect credit card for everyday purchases.