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Best Credit Cards
There is no one-size-fits-all credit card, but rather different credit cards that suit different types of consumers. This is why we reviewed dozens of cards issued by traditional banks, online lenders, and fintech companies to create a list of the top choices.
While some are excellent for frequent travelers, others offer 0% APR on purchases or balance transfers or generous welcome bonuses. Compare various credit card offers to make the right choice for you.
Best Credit Cards in December 2024
Upgrade Cash Rewards Visa®
Fortunly's Rating: Our editorial team determines the rating based on a set of evaluation criteria developed for each product and service category.
Upgrade Cash Rewards Visa®
- Pre-qualification: Yes
- Other fees: Balance transfer fee of up to 5% and foreign transaction fee of up to 3%
- Card network: Visa
- Intro APR: N/A
- Intro offer: N/A
Petal® 2 Visa® Credit Card
Fortunly's Rating: Our editorial team determines the rating based on a set of evaluation criteria developed for each product and service category.
Petal® 2 Visa® Credit Card
- Pre-qualification: Yes
- Other fees: None
- Card network: Visa
- Intro APR: N/A
- Intro offer: N/A
Wells Fargo Active Cash℠ Card
Fortunly's Rating: Our editorial team determines the rating based on a set of evaluation criteria developed for each product and service category.
Wells Fargo Active Cash℠ Card
- Pre-qualification: N/A
- Other fees: Program fee, monthly servicing fee, late payment fee, returned payment fee
- Card network: Visa
- Intro APR: 0% for 15 months from account opening
- Intro offer: Earn $200 bonus cash back after spending $1,000 in purchases in the first three months of the account opening
Citi® Double Cash Card
Fortunly's Rating: Our editorial team determines the rating based on a set of evaluation criteria developed for each product and service category.
Citi® Double Cash Card
- Pre-qualification: Yes
- Other fees: Balance transfer fee, cash advance fee, penalty fee
- Card network: Mastercard
- Intro APR: 0% for 18 months for balance transfers
- Intro offer: No
Capital One Venture Rewards Credit Card
Fortunly's Rating: Our editorial team determines the rating based on a set of evaluation criteria developed for each product and service category.
Capital One Venture Rewards Credit Card
- Pre-qualification: Yes
- Other fees: Balance transfer fees, cash advance fee, late payment fee
- Card network: Visa
- Intro APR: No
- Intro offer: 60,000 miles
Bank of America® Customized Cash Rewards Credit Card
Fortunly's Rating: Our editorial team determines the rating based on a set of evaluation criteria developed for each product and service category.
Bank of America® Customized Cash Rewards Credit Card
- Pre-qualification: N/A
- Other fees: Cash advances fee, late payment fee, foreign transaction fee
- Card network: Visa
- Intro APR: 0% for the first 15 billing cycles
- Intro offer: $200 cashback rewards
Discover it® Balance Transfer
Fortunly's Rating: Our editorial team determines the rating based on a set of evaluation criteria developed for each product and service category.
Discover it® Balance Transfer
- Pre-qualification: N/A
- Other fees: Balance transfer fee, cash advance fee, penalty fee
- Card network: Discover
- Intro APR: 0% for 6 months on purchases, 0% for 18 months on balance transfers
- Intro offer: Cashback Match
Chase Freedom Unlimited®
Fortunly's Rating: Our editorial team determines the rating based on a set of evaluation criteria developed for each product and service category.
Chase Freedom Unlimited®
- Pre-qualification: Yes
- Other fees: Balance transfers, cash advances, foreign transaction fees, penalty fees
- Card network: Visa
- Intro APR: 0% for the first 15 months
- Intro offer: $250 cash back
U.S. Bank Visa® Platinum Card
Fortunly's Rating: Our editorial team determines the rating based on a set of evaluation criteria developed for each product and service category.
U.S. Bank Visa® Platinum Card
- Pre-qualification:
- Other fees: Balance transfer, convenience check cash advance, cash advance ATM, cash advance, cash equivalent advance, overdraft protection, foreign transaction, penalty fees
- Card network: Visa
- Intro APR: 0% for 20 billing cycles on purchases and balance transfers
- Intro offer: N/A
Top 5 Credit Cards - Our Picks for 2024:
- Best for fair credit: Upgrade Cash Rewards Visa®
- Best for building credit / first-time cardholders: Petal® 2 Visa® Credit Card
- Best for cashback rewards: Wells Fargo Active Cash℠ Card, Chase Freedom Unlimited®
- Best for a low interest rate: U.S. Bank Visa® Platinum Card, Upgrade Visa® Card with Cash Rewards
- Best for balance transfers: Citi® Double Cash Card, Discover it® Balance Transfer
What Makes a Good Credit Card?
There’s no single credit card that’s suitable for everyone. Each person or household has unique spending needs and a different amount of money at their disposal.
That’s why we’ve conducted comprehensive research on various credit card issuers to create a list with the leading credit cards that can satisfy the largest number of consumers.
If you are on the hunt for your first credit card or want to add another one to your wallet, here’s what you need to know before you make the final step and apply for a card.
Choose a Card With Low Fees and Affordable APR
Each credit card comes with a certain cost, and that’s the first thing you should have in mind when applying for it. Of course, some credit cards are more affordable than others, and some issuers offer fee-free cards.
Generally, you can expect annual fees and higher interest rates if you want a credit card with lucrative bonus rewards and additional perks. But, if you are a first-time credit card holder, you should look for a cheaper card, even though that will probably mean limited rewards.
Here’s what to consider when looking for a new credit card:
Annual Fee
Many consumers think that a credit card shouldn’t have an annual fee. And they are only half-right. If a credit card has an annual fee, it will significantly increase the credit limit.
On the other hand, zero-annual-fee credit cards sometimes don’t offer any special reward program or access to additional credit card benefits, like cell phone insurance or travel benefits.
Other Fees
Most credit issuers will charge these fees. You can successfully avoid many of them if you pay your bills in full and on time.
- Balance transfer fee. This fee is charged when you move a balance from one credit card to another. This fee is usually 3% (5% after the intro period) or $5.
- Cash advance fee. If you plan to use your credit card for a cash advance, note that this fee can be rather steep.
- Penalty fees. Penalty fees usually apply if you are late with payments. Regardless of the credit card issuer, this fee is usually very high and goes up to $40.
- Foreign transaction fee. This is a fee you must pay for credit card transactions made abroad. Only rare credit card companies won’t charge you foreign transaction costs.
Intro APR
An introductory zero-APR period that lasts for at least a year is what differentiates an excellent credit card from an average one. It’ll give you more time to pay off your balances without interest, especially if you make big purchases with the card.
Regular APR
After the introductory period is over, you’ll pay a regular rate. In most cases, the credit card rate you get is based on your creditworthiness. To assess that, the bank will check your credit score and payment history. Your income and spending habits can also determine whether you get a low interest rate or not.
Apply for a Card With a Generous Rewards Program
As you probably already know, some credit cards allow you to earn money while using them. The rewards typically come in two forms - cash backs or miles/points.
With cashback rewards, you’ll get money directly deposited into your account or in the form of a paper check. Cashback rewards can be also used to reduce your balance. The points/miles you collect can also be redeemed for credit, or you can convert them into gift cards or use them for travel.
What else makes a good credit card is a welcome bonus. You can’t expect that from all credit card issuers, but many cards have bonus offers for new clients. The welcome bonus or signup bonus comes in two forms.
You can either get free cash or free points or miles, usually after you spend a certain amount of money on purchases within the first several months from account opening.
Seek a Credit Card Issuer That’ll Help You Build Your Credit Score
You can benefit from your credit card as long as you use it wisely and pay your balances on time. Your credit card issuer should inform the consumer reporting agencies about your payments.
It’s always good to find a credit card issuer that reports to all major consumer reporting agencies - Equifax, Experian, and TransUnion - because not all financial institutions use credit scores from the same credit bureau.
Credit card issuers also help you rebuild your credit score and track changes in your credit history. The credit score monitoring tools are especially useful if you want to improve your score quickly and apply for some other financial product, such as a credit card with a higher credit limit or a personal loan.
Find a Credit Card With Additional Perks
The credit card market is one of the most competitive ones, and that’s why credit card issuers strive to provide financial products that come with additional benefits to make them more attractive.
Aside from lucrative signup bonuses, they offer a wide range of other features, including cell phone or car insurance, travel benefits in the form of free checked bags or priority boarding, hotel benefits, and more.
Other features include tools for tracking credit scores and free credit checks from time to time. There is also an option to set up spending limits or lock your credit card via the bank’s mobile app.
Think About Security
All providers on our list offer zero-liability protection, regardless of the credit card you apply for. It guarantees you won’t be held responsible for unauthorized transactions on your credit card, provided that you report such transactions on time.
Additional security features are also important and not available with all credit cards. Only the best ones offer above-average security tools, such as cell phone protection, two-factor authentication, or voice recognition.
Fraud monitoring and identity theft protection usually come with credit cards for consumers with excellent credit scores.
In-Depth Reviews of Credit Cards
The Upgrade Cash Rewards Visa® is a financial product that combines credit card features with a personal line of credit.
San Francisco-based fintech company Upgrade is well known for offering affordable loans and credit cards with zero costs, helping its customers improve their finances and qualify for even better financial products.
APR and Fees
The first thing you should know about the Upgrade Cash Rewards Visa® is that it works like a personal line of credit. If you decide to apply for this card, you’ll also qualify for a line of credit that ranges between $500 and $25,000.
Some borrowers can qualify for up to $50,000. You can use this card to make purchases, and at the end of every month, the entire amount you’ve spent will be combined in one installment loan with a fixed interest rate.
The APR you can qualify for can be as low as 14.99%, depending on your creditworthiness. This credit card is a good solution even for consumers with a less-than-perfect credit score.
However, if you fail to prove your good credit history, expect a steep interest rate that can go up to 29.99%. There’s no intro APR offer, which can be a deal-breaker for those planning large purchases and those who want to carry a balance from month to month.
The Upgrade Cash Rewards Visa® has no annual fee, but it has a balance transfer fee of up to 5% and foreign transaction fee of up to 3%.
Reasons To Choose the Upgrade Cash Rewards Visa®
The Upgrade Cash Rewards Visa® is a good choice to pay your balances at a fixed rate and in equal monthly payments. The credit card doesn’t require any security deposit, but you can still get a high credit limit.
Although you can probably qualify for this card even with a less-than-perfect credit score, the Upgrade credit card has a pre-approval process. Your credit score will remain untouched during this process.
The provider will do only a soft credit check which won’t decrease your credit. Another great thing is that Upgrade reports to three major consumer reporting agencies (Equifax, TransUnion, and Experian).
Finally, the Upgrade card comes with a good rewards program. It offers a 1.5% cashback rate. You can earn rewards on all purchases you make in stores or online, and once you pay them back, you’ll receive your rewards.
Reasons To Explore Other Options
The Upgrade Cash Rewards Visa® has its drawbacks, too. This credit card doesn’t offer zero APR, so if you plan large purchases, there are better deals on the market.
Although the card offers standard 1.5% flat-rate rewards, there are no additional perks to count on. You won’t get a sign-up bonus, travel insurance protection, or credit score monitoring tools.
Issued by WebBank, Petal 2 is one of the most desirable credit cards to have if you don’t have a stellar credit score or still haven’t established one.
Unlike other credit card issuers, this bank doesn’t use a traditional credit score check to approve you for a credit card.
Instead, WebBank looks at other criteria, such as your income and spending history. In addition, Petal 2 has a rewards program that typically comes with credit cards that require an excellent credit score to obtain.
APR and Fees
Although you can get this credit card even if you don’t have a very good credit score, don’t expect to get zero APR. WebBank doesn’t offer a lower introductory APR, while for ongoing interest rates, you can expect an APR between 18.24% - 32.24%.
As mentioned, the bank will check several criteria to determine your creditworthiness and extend an offer. If you have a stable income and no credit card debt, expect an affordable interest rate.
The Petal® 2 Visa® Credit Card is a zero-fee card. Most credit cards charge at least transaction fees, but Petal 2 comes with a zero cost for foreign transactions.
You won’t have to cover an annual fee, balance transfer fee, or any other usual credit card fees.
Reasons To Choose the Petal® 2 Visa® Credit Card
There are several reasons to choose Petal 2. First of all, the credit card is a perfect choice for consumers who haven’t built their credit score yet or have a less-than-perfect credit score.
Since the bank uses a different method than traditional banks to decide if you are a match for its card, you won’t have to worry about your FICO score not being high enough.
You can still get this credit card even with a poor credit score.
Moreover, the Petal 2 card reports to the three major credit bureaus. It means that your credit score is regularly updated, and you’ll quickly see any improvements.
With the Petal® 2 Visa® Credit Card, you get a credit limit of at least $300. The maximum amount you can get is $10,000, which is more than with other unsecured cards.
You’ll also be able to manage your budget as you want, set monthly limits, or freeze your credit card.
Another great thing about the Petal® 2 Visa® Credit Card is that it comes with 1% cash back on all transactions. The cashback rate increases to 1.5% after 12 months from account opening. Additionally, you’ll get 2% to 10% cash back at selected stores.
Reasons To Explore Other Options
Although it does offer a very good rewards program, the Petal® 2 Visa® Credit Card doesn’t have any bonus offer. For consumers with modest credit scores, this is not a problem. However, if your credit score is good, you’d better apply for a card with a signup bonus.
The Wells Fargo Active Cash℠ Card is issued by Wells Fargo Bank, one of the “Big Four” banks of America with over 8,000 branches and 13,000 ATMs nationwide.
The unlimited cash rewards with the Wells Fargo Active Cash℠ Card are the first things that grabbed our attention, but this issuer definitely has a lot of other things to offer.
APR and Fees
The Wells Fargo Active Cash℠ Card is a zero-cost card, meaning that you don’t pay any annual or monthly maintenance fees. However, other fees might apply, so you should be mindful of them.
The introductory cash advance fee is either $10 or 5%, whichever is greater, for the first 120 days of account opening.
The bank charges a steep late payment fee, so make sure to stay on top of your monthly payments. Check and payment returns incur additional costs, too.
Finally, don’t forget about overdraft protection fees, which will set you back either $12.50 or $20, depending on the overdraft protection advance limit.
To offset all these fees, the Wells Fargo Active Cash℠ Card offers a 0% APR for 15 months for both purchases and balance transfers. After that, the APR can be 14.99%, 19.99%, or 24.99%, depending on your credit score and payment history.
Reasons To Choose the Wells Fargo Active Cash℠ Card
One of the main reasons the Wells Fargo Active Cash℠ Card deserved its spot on our list is that it lets you earn unlimited 2% cash back on purchases.
Typically, most credit cards come with 1% cash back, but the Wells Fargo Active Cash℠ Card doubles that rate.
Another great thing is that your rewards won’t expire as long as you have an account at Wells Fargo. You’ll also receive a $200 bonus if you spend $1,000 in purchases within three months from account opening.
When it comes to redemption options, there are several ways to use your rewards. You can redeem them for purchases and gift cards, or at ATMs with your debit card. If you want to open a checking account or take out a mortgage, you can use your rewards as qualification credit.
The Wells Fargo Active Cash℠ Card will protect your mobile phone against theft or damage up to $600.
This deal is available only if you pay your phone bills with the Wells Fargo consumer credit card. Other Wells Fargo cards, such as debit or business cards, are not part of this offer.
To protect your account, the bank employs two-factor authentication and voice verification. Also, the Wells Fargo Active Cash℠ Card has zero-liability protection, meaning you won’t be responsible for any unauthorized card transactions.
Moreover, you’ll get great discounts at luxury hotels worldwide with this Visa card.
Reasons To Explore Other Options
With the Wells Fargo Active Cash℠ Card, you get to enjoy unlimited rewards on all purchases. The additional welcome bonus is a plus for consumers ready to spend at least $1,000 within the first three months. However, travelers will be slightly disappointed with this credit card.
Regardless of its generous rewards rate, the Wells Fargo Active Cash℠ Card doesn’t have an option to redeem rewards for travel miles.
Thanks to its affordable APR, high rewards rate, and various redemption options, the Citi® Double Cash Card is among the better credit card options on the market today. The card is issued by Citigroup or Citi, an American financial institution that has over 200 million clients worldwide.
APR and Fees
Unfortunately, the Citi® Double Cash Card doesn’t offer zero introductory APR on purchases, although it has a 0% intro APR for 18 months for balance transfers, which makes this card a good option for consumers who want to transfer credit card debt to a new card to get a lower interest rate.
In addition, this credit card offers advantageous ongoing APR on both purchases and balance transfers. It can be extremely low (13.99%), while the highest rate you can expect is 23.99%.
Of course, to get the most affordable APR, you need to have a good to excellent credit score. When you apply for this credit card, the bank will check your credit score and your payment history, too, to see if you have open debt or late credit card payments.
There is also a cash advance APR of 25.24%. Unlike other similar credit cards, the Citi® Double Cash Card has a penalty APR that goes up to 29.99%, and it applies if you’re late with payments.
The Citi® Double Cash is a relatively affordable credit card to have. You’ll be charged either $5 or 3% for balance transfers during the first four months from account opening, and 5% afterward. Aside from this, the bank charges standard cash advance, foreign transaction, and penalty fees.
Reasons To Choose the Citi® Double Cash Card
As far as rewards go, you can earn unlimited 2% cash back on purchases. You’ll get 1% cash back once you make a purchase and an additional 1% once you pay for it.
The only requirement you need to fulfill to earn this reward is to pay at least the minimum balance before your due date. Note that you can earn rewards only on purchases, not balance transfers.
If you want to redeem your cashback reward, you need to have at least $25 in cash rewards balance. Redemption options include getting a check, credit card statement, or direct deposit.
Alternatively, you can opt for ThankYou® Points, which can be exchanged for specific brands’ gift cards or converted to travel miles.
You can also use these credit card points to shop at Amazon or enjoy the benefits of the Citi Entertainment offer that allows you to buy tickets for concerts and sports events through a presale.
Undoubtedly, the Citi® Double Cash Card's popularity stems from the fact that it doesn’t require an opening deposit. However, to get this card, you’ll need to meet other requirements, such as a good credit score and a history of timely payments.
Just like other Citibank credit cards, this one also comes with zero-liability protection. Moreover, the Citi® Double Cash Card has additional security features, including 24/7 fraud protection.
Should you become a victim of identity theft, Citi will assign you one of its identity theft solution specialists to assist you in communicating with TransUnion and creditors and filing a police report.
Reasons To Explore Other Options
If you consider applying for this credit card, make sure you can prove good to excellent credit score. Otherwise, you will only lose time trying to qualify for the Citi® Double Cash Card.
According to some clients’ reviews, the Citigroup support service would need to step up its game to meet customers’ expectations.
Issued by Capital One, an American financial institution that specializes in credit cards, the Capital One Venture Rewards Credit Card is the perfect choice for consumers who travel a lot.
The card has an excellent travel reward program, but it also requires an excellent credit score and a clear credit history.
APR and Fees
One of the best things about this card is that you can qualify for reasonable rates, but only if you have a very good to excellent credit score. The APR for purchases and balance transfers can be 15.99%, 20.99%, or 23.99%, while a 23.99% APR applies for cash advances.
The Capital One Venture Rewards Credit Card doesn’t offer an intro APR for purchases. You should also expect high credit card costs.
The annual fee for this credit card is $95, and there are also other costs, including late payment and cash advance fees. Luckily, this credit card doesn’t charge foreign transaction fees.
Reasons To Choose the Capital One Venture Rewards Credit Card
The Capital One Venture Rewards Credit Card is a good option if you need travel a lot. Firstly, all new credit cards have a one-time welcome bonus of 60,000 miles.
The cardholders are eligible for the bonus offer after spending $3,000 on purchases within three months from account opening. This bonus offer is worth $600 when redeemed for flights and other travel expenses.
The bonus offer is not the only reward you get with the Capital One Venture Rewards Credit Card. There are unlimited flat-rate rewards for any purchases you make.
You can get 2 miles per dollar on every purchase and 5 miles per dollar if you use the card to book hotels and rent cars.
Use miles when booking your next trip or get reimbursements for past travel expenses. If you prefer, convert them into gift cards or use them for purchases with Paypal or at Amazon.
Additionally, you can redeem your miles for statement credits or for a check, but their worth will be half of the worth they have if used for travel.
Reasons To Explore Other Options
Although this card comes with great travel rewards you can earn on any purchases you make, it’s not the right choice for everyone. Unlike many cards with similar rewards and perks, the Capital One Venture Rewards Credit Card is an expensive solution.
It comes with a high annual fee and no intro APR offer, so double-check if you can cover your credit card payments before applying for the Capital One.
With a generous welcome offer, 1% to 3% reward program, and zero annual fees, it’s no surprise that the Bank of America® Customized Cash Rewards Credit Card is considered to be one of the best options for consumers with very good to excellent credit scores.
APR and Fees
The Bank of America® Customized Cash Rewards Credit Card offers 0% APR for the first 15 billing cycles. The introductory APR applies to all purchases and balance transfers you make within 60 days of account opening.
After the intro period expires, the standard APR applies, which, depending on your creditworthiness, can be anywhere between 13.99% and 23.99%. If you aim to get the lowest rate, your credit score must be perfect.
The credit card charges a 29.99% penalty APR if you make late payments. The Bank of America® Customized Cash Rewards Credit Card has a grace period of 25 days, during which the issuer will not charge you any interest on purchases.
When it comes to fees, this is not a cost-heavy card. There’s no annual fee, while the balance transfer fee is $10 or 3%, whichever is greater.
There’s also a late payment fee of up to $40 and a 3% foreign transaction fee.
Reasons To Choose the Bank of America® Customized Cash Rewards Credit Card
The Bank of America® Customized Cash Rewards Credit Card allows you to choose a category for which you’ll earn 3% cash back. Some of the options include travel, online shopping, dining, and gas.
You can also earn 3% cash back when paying for home improvements and furniture. The best thing about it is that your category of choice can be changed once every month. There are also 2% cashback rewards for spendings at wholesale clubs and grocery stores, as well as 1% cash back for all other purchases.
Another great thing about this credit card is that you can qualify for a $200 bonus by spending at least $1,000 on purchases within 90 days of account opening.
The Preferred Rewards program, however, is what makes this credit card really stand out. If you manage to qualify for this program, you can earn between 25% and 75% more cash back on any purchase you make.
This program is available to both Bank of America’s and Merrill’s clients whose combined three-month daily account balance exceeds $20,000.
Reasons To Explore Other Options
The Bank of America® Customized Cash Rewards Credit Card is a good option if you already have a Merrill investment account or a deposit account at Bank of America.
Without the benefits provided by the Preferred Rewards program, this credit card is just a decent credit card with a $0 annual fee.
Another reason to look into other options is the quarterly spending cap for 2% and 3% cashback rewards - you can only earn these rewards on the first $2,500. Afterward, the reward rate drops to 1%.
Issued by Discover, the third-largest credit card issuer in America right after Visa and Mastercard, the Discover it® Balance Transfer Credit Card is designed for balance transfers.
This credit card comes with a 0$ annual fee, low interest rates, and affordable fees.
APR and Fees
Like many other offers at Discover, the Discover it® Balance Transfer is an affordable card. With it, you won’t have any annual costs. Also, if you’re late for a payment only once, the bank won’t charge you anything.
After that, the Discover card charges standard late payment fees. It’s also good to know that you won’t pay any fees on foreign transactions.
On the other hand, the Discover it® Balance Transfer card charges high fees for balance transfers. This fee starts at 3%, but it’s an intro rate. After the intro period expires, the balance transfer fee increases to 5% of the amount of every balance transfer.
Speaking about the interest rate, you can get this card with a very low APR, but only if your credit score is excellent. The APR ranges between 11.99% to 22.99% for purchases and balance transfers.
There’s also an intro APR for six months for purchases, which is significantly less compared to other major credit cards. However, this issuer focuses on balance transfer features, offering 0% APR for 18 months from account opening.
The APR for cash advances stands at 24.99%. The good thing about the Discover it® Balance Transfer credit card is that there’s no penalty APR.
Reasons To Choose the Discover it® Balance Transfer
The Discover it® Balance Transfer credit card is the perfect choice if you want to consolidate debts from multiple credit cards. You can move balances from various accounts and save money with your zero-APR credit card for 18 months and then have a lower interest rate.
Not only does the Discover it® Balance Transfer offer a low interest rate and long intro APR for balance transfers, but it also offers exceptional rewards and FICO score monitoring services.
You can earn 5% cash back on certain purchasing categories, including grocery stores, Amazon and PayPal purchases, gas stations, dining, and more. After you reach the quarterly maximum, you continue to earn 1% cash back on all other purchases.
Discover also matches the cash back that you earn at the end of the first year, meaning your rewards will be doubled. The redemption options are diverse and include a direct deposit, statement credit, gift cards, and shopping on Amazon or with PayPal.
The Discover it® Balance Transfer also comes with FICO score monitoring tools. Install the Discover mobile app on your phone, or log in to your account through the online bank portal to get insights into your credit score.
You’ll be able to track it from month to month and see how it improves. If your credit card gets stolen or lost, you can quickly lock your account through the mobile app to disable unauthorized money transactions.
In case you need assistance, you can dial the customer service number for Discover at any time, any day of the week. You can also contact the agents through the mobile app.
Reasons To Explore Other Options
Although the Discover it® Balance Transfer card offers a good intro APR for balance transfers, it’s not the most convenient credit card for consumers who plan large purchases.
The credit card has a six-month intro APR period that’s significantly shorter than that of other cards from our list.
If you plan to use a credit card for bigger purchases, you should consider other card issuers. Also, don’t forget that balance transfers increase over time.
Unlike some other banks with their credit card deals, Chase Bank offers an attractive signup bonus for new accountholders.
APR and Fees
The Chase Freedom Unlimited® comes with 0% intro APR for the first 15 months from account opening. After the introductory period expires, you can expect an APR anywhere from 14.99% to 23.74% on purchases and balance transfers.
As for the cash advance APR, it is 24.99% from the start. You shouldn’t have any problems getting an affordable interest rate if you have a good credit score.
However, make sure you pay your balances on time each month; otherwise, a high penalty APR might apply.
The Chase Freedom Unlimited® credit card charges no annual fee. Other fees may apply, and they are slightly above the industry standard. For example, a balance transfer fee is either $5 or 3% in the first two months from account opening. After that, this fee increases to either $5 or 5%, whichever is greater.
Reasons To Choose the Chase Freedom Unlimited®
With zero introductory APR for the first 15 months for both purchases and balance transfers and no annual credit card costs, the Chase Freedom Unlimited® definitely deserves to be on our list.
But it’s not only the low costs that make this credit card a good choice.
There’s also an introductory cashback bonus of $250. The bonus offer is available for new consumers who spend at least $500 on purchases in the first three months.
Moreover, this credit card comes with a rich cashback reward program. You can earn 5% cash back on travel spendings, including airline tickets, hotel costs, car rentals, and more. A 3% rewards rate applies to restaurant and drugstore purchases.
For all other purchases, you earn 1.5% cash back. The rewards are not time-limited, meaning you can use them as long as you hold an account at Chase.
Another good thing about the Chase Freedom Unlimited® credit card is the rewards redemption structure.
There are several ways to convert your cashback rewards. Redeem your rewards for cash in the form of a direct deposit or a credit statement or convert them to shop points at Amazon or gift cards. Additionally, you can use Chase Ultimate Rewards® to book travels and get discounts.
If you opt for the Chase Freedom Unlimited® credit card, don’t overlook the additional benefits that come with it. In addition to an excellent protection program, this credit card offers trip cancellation insurance.
You can get $1,500 insurance reimbursement per person and $6,000 per trip if your trip cancellation is caused by sickness, bad weather, or some other legitimate reason.
Reasons To Explore Other Options
Although the Chase Freedom Unlimited® credit card offers an excellent reward program, its structure can be a bit complicated to memorize and manage. This is a cashback reward card, but in reality, you earn points, with $1 being equal to 100 points.
Of course, you don’t have to redeem points for cash. Instead, you can exchange them for gift cards, air travel, and Amazon purchases.
The U.S. Bank Visa® Platinum Card is one of the finest credit cards to apply for if you intend to make large purchases. This card offers a long zero-interest period on both purchases and balance transfers.
With 20 billing cycles with a $0 APR, you’ll have enough time to pay off your debt.
The downsides of this card? It requires a very good credit score and doesn’t offer additional perks.
APR and Fees
The U.S. Bank Visa® Platinum Card comes with a 0% intro APR for the first 20 billing cycles. After that, the APR can be anywhere between 14.49% and 24.49%, depending on your creditworthiness.
Of course, the better your credit score, the lower interest rates you’ll get. Like other credit card issuers, U.S. Bank checks each applicant’s credit score and history of payments.
Based on this information, the bank decides if an applicant is a good candidate or not. Although this is not displayed on the bank’s website, the U.S. Bank Visa® Platinum Card requires a good to excellent credit score and a good history of payments.
U.S. Bank doesn’t charge annual fees on this card. However, there are a lot of other costs you need to watch out for. First of all, there’s a balance transfer fee of 3% or $5, whichever is greater.
The bank also charges several other fees, including cash advance fees and cash advance ATM fees.
There’s no overdraft protection. And, if you decide to use your card abroad, you’ll pay a 2% fee for foreign transactions in US dollars and 3% for transactions in other currencies.
The late payment fee can go up to $40, as well as the fee for returned payments.
Reasons To Choose the U.S. Bank Visa® Platinum Card
The main advantage of this Visa card is that it offers extended intro APR rate on purchases. It also has a 0% APR for balance transfers for the first 20 billing cycles.
This offer includes cell phone insurance, which you can use in case your phone gets stolen or broken. The insurance goes up to $600 with a $25 deductible, and you can have a maximum of two claims per year of up to $1,200.
You’ll need to pay your phone bills with the U.S. Bank Visa® Platinum Card to be eligible for this insurance. Additional security features include identity theft and fraud protection.
This card also offers credit-building tools. There is a free credit check service, so you can regularly monitor your credit score for free. You can also automate your monthly payments and avoid late payment fees.
Reasons To Explore Other Options
Not having to pay an annual fee may seem like an attractive offer, but don’t forget that this credit card comes with many other fees you’ll have to cover.
Another reason the U.S. Bank Visa® Platinum Card might not be a good choice is the lack of credit card rewards.
This credit card is ideal for gradually paying off a large purchase, but it’s not the best option for everyday spending. Unlike many other 0% intro APR credit cards, this one doesn’t have a reward program or welcome bonus offer.
A Detailed Guide to Credit Cards
One of the main reasons credit cards are favorite financial products among Americans is the shopping flexibility they offer. Practically, you can use a credit card to purchase a product or a service, whether you have cash in your wallet or not.
On the flip side, according to the latest statistics, nearly half of American citizens have credit card debt. Many users forget that they’re actually borrowing money with interest, not getting it for free. Every time you swipe your credit card, you activate your borrowing line. At some point, you’ll need to pay off what you took.
If you pay off your balances on time and in full, the credit card company won’t charge you interest. Otherwise, the card issuer charges an interest that will show up on your monthly statement. If you continue transferring balances from month to month, you can pile up serious debt.
This is how banks and credit card issuers earn money.
How Credit Cards Work
Credit cards are really simple to use. They are accepted when purchasing in-store and online - just dip, tap, or swipe your credit card to pay a bill. When you purchase products or services online, you need to type the credit card details to complete the purchase.
After submitting your order, you have to wait for a while to get approved for it. While you wait for the approval, your credit card company checks if your credit card is valid so the transaction can be authorized. If everything is fine, the company will approve the transaction, and the seller gets paid.
Finally, you repay the bank for the purchase you made. At the end of every month, you can review your credit card statement, and all purchases you made that month should show on it.
How To Apply for a Credit Card
Having plenty of choices is not always a good thing. Even the consumers who already have multiple credit cards can find it difficult to pick their next card. It requires time and knowledge to find a good credit card provider, choose the credit card type that fits your needs, and see how you can qualify for it.
However, before you undertake any of these steps, one thing should be done first - checking your credit score. The information about your current credit score is crucial because you’ll immediately know which credit cards you can qualify for and which are out of your reach.
If you want to get approved for the market's top offers, your credit score must be excellent. If your credit score is less-than-perfect, there are still decent credit card solutions that can even help you rebuild your credit score and qualify for a better card in a very short time frame.
You can check your credit score during the pre-qualification process. Almost all providers will offer you this possibility, which lets you check if you are eligible for a product you want and at what terms. You’ll find out about your estimated interest rate and ongoing fees.
The good thing about pre-qualification is that you don’t need to worry about losing any credit score points. The credit card company will only pull a soft credit check during this process, which won’t hurt your credit score.
Types of Credit Cards
There are versatile credit cards designed for consumers with various financial needs. Credit cards are a handy tool for everyday spending for some consumers, allowing them to earn cashback rewards. They’re also a good option for financing large purchases and getting more time to repay them without interest.
Generally, there are two basic types of credit cards - secured and unsecured credit cards. The main difference between those two types of credit cards is that a secured credit card requires a refundable deposit (or a security deposit).
This deposit also serves as your credit limit, and the minimum amount you need is usually $200 to open an account. This deposit is used if you fail to pay your bills. Depending on the credit card issuer, the maximum deposit can go up to $3,000. Secured credit cards are good for people who are trying to build or rebuild their credit score.
If you make payments on time, the credit card company will refund your deposit, and you’ll also get a chance to apply for an unsecured credit card, thus getting access to real credit.
The next popular category is cards with rewards. With these credit cards, you can earn cash, points, and miles which are calculated based on the percentage of your spending. Good credit cards have a flat-rate rewards structure, but the best ones also include bonus rewards on specific spending categories.
A flat-rate credit card means that you’ll get the same reward rate on all spending categories. For example, you can get 2% cash back on all purchases or one point per dollar on all spending during a month. When it comes to bonus rewards, you get them for spending on certain categories. For example, you can get 6% cash back at restaurants or gas stations and four points per dollar spent on travel.
There are also credit cards tailored toward specific consumers’ needs. If you are a frequent traveler, you may opt for a credit card with a lucrative travel reward structure. With such a card, you can redeem your rewards to pay a portion of your travel expenses.
In addition, these cards offer perks such as travel insurance, free access to private airport lounges, concierge services, or various hotel benefits.
Some credit cards even offer customers the opportunity to switch between reward categories, usually once a month, to maximize their rewards.
Low-interest credit cards are another category of credit cards. Of course, everyone wants to get as low an interest rate as possible. Many consumers seek credit cards that have long zero-APR introductory periods.
These credit cards are convenient for financing large purchases as they allow you to carry monthly balances without paying interest on them for 12 or even 18 months.
Another type of credit card is balance transfer credit cards. If you want to pay off your debt, a balance transfer credit card is an excellent way to do that. Basically, you just need to move your credit card balances to a new credit card that offers a more convenient way of paying off your debt.
It includes a 0% APR for a year or more and lower ongoing interest rates. Logically, you’ll need to pay for transferring your balance, but the money you’ll save on paying interest can be worth it.
Finally, there are also credit cards for bad credit. They usually don’t offer any rewards or intro APR, but they are helpful tools for building a credit score. In some cases, they require a refundable deposit that serves as a collateral or comes with a bit higher annual fee.
In both cases, you should use them responsibly to increase your credit score and apply for a better credit card. Otherwise, you’ll just end up owing even more money than before.
Credit cards for students and young adults are a specific category of credit cards. Logically, they don’t require a perfect credit score from an applicant because young people usually don’t have a long credit history.
While most credit card issuers check credit scores to determine an applicant’s creditworthiness, many fintech companies use nontraditional methods to evaluate new applicants. These companies use specific algorithms that include income, educational background, and spending habits to determine if you are a good candidate for a credit card.
How To Make the Most out of a Credit Card
Your credit card can be a valuable financial tool if you use it properly. You should know how to choose a credit card that suits your financial need, and once you find it, you need to learn how to make it work in your favor.
Stay out of credit card debt
This basically means - pay your bills on time. If you are late with payments and transfer balances from month to month, your credit card debt will pile up.
If you are late for payments, most credit card companies will also charge you a late payment fee that can be pretty high - $40 for every payment you didn’t make on time.
Your credit card payments are also reported to credit bureaus. If you miss a payment, that’ll show on your credit report and can decrease your credit score by a few points. On the other hand, a history of regular payments will have a positive effect on your credit score. If you use your credit card properly, you’ll see a credit score boost within a few months.
Know your spending limits
Use a credit card only when necessary. Plan your monthly budget and use a credit card for purchases you need to make. Many credit card providers offer online and mobile banking tools that can help you organize your budget and track your weekly/monthly spending.
You can also set up a monthly spending limit. For example, you can choose to use a credit card only until you reach your spending limit. After that, you don’t use it until you pay off your bill.
Find a card with rewards that fit your needs
Consider multiple credit card options before selecting the one with a reward program that matches your spending habits. You don’t have to change your spending habits but simply find compatible credit card rewards categories. This can be done very easily if you are prepared to handle multiple cards. This way, you can always use a credit card with the highest reward rate for a specific spending category.
Look for additional perks
If you want to make the most of your credit card, make sure to check what else it offers. Additional benefits, such as car insurance or discounts at hotels, come with certain credit cards. Cards that offer these benefits are usually reserved for consumers with a very good credit score.
But if you use your credit card responsibly, many issuers will offer to upgrade your credit card to the next level so you can earn some valuable rewards.
How Many Credit Cards Should I Have?
If you have ever ended up with a pile of credit card debt, having multiple credit cards might sound like a terrible idea. However, it doesn’t have to be like that, and you can even profit from such an arrangement.
To help you decide how many credit cards are enough and make the most of them, we’ve written a separate article on this complex topic, covering all the pros and cons of managing multiple cards. We encourage you to read it before making a definite decision in favor of or against taking out a new credit card.