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• Published: 18 February 2021

Neural mechanisms of credit card spending

• Sachin Banker 1 , 2 ,
• Derek Dunfield 2 ,
• Alex Huang 2 &
• Drazen Prelec 2 , 3 , 4 , 5  

Scientific Reports volume  11 , Article number:  4070 ( 2021 ) Cite this article

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• Human behaviour
• Neuroscience

Credit cards have often been blamed for consumer overspending and for the growth in household debt. Indeed, laboratory studies of purchase behavior have shown that credit cards can facilitate spending in ways that are difficult to justify on purely financial grounds. However, the psychological mechanisms behind this spending facilitation effect remain conjectural. A leading hypothesis is that credit cards reduce the pain of payment and so ‘release the brakes’ that hold expenditures in check. Alternatively, credit cards could provide a ‘step on the gas,’ increasing motivation to spend. Here we present the first evidence of differences in brain activation in the presence of real credit and cash purchase opportunities. In an fMRI shopping task, participants purchased items tailored to their interests, either by using a personal credit card or their own cash. Credit card purchases were associated with strong activation in the striatum, which coincided with onset of the credit card cue and was not related to product price. In contrast, reward network activation weakly predicted cash purchases, and only among relatively cheaper items. The presence of reward network activation differences highlights the potential neural impact of novel payment instruments in stimulating spending—these fundamental reward mechanisms could be exploited by new payment methods as we transition to a purely cashless society.

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Introduction.

Since their introduction in the 1960s, credit cards have gradually replaced cash and check transactions as the default payment method for consumer purchases, and are now the fastest growing method in the United States 1 . In the future credit cards may find themselves overtaken by digital wallets and other devices. From an economic perspective, it is not surprising that technological changes in payment transactions have some impact on macroeconomic variables, notably on U.S. household debt, which has been steadily rising over the last two decades 2 , 3 . This historical debt increase may be, in part, a rational household response to new lines of credit and to the other benefits of credit cards, in terms of convenience, security, and reward points.

However, evidence is accumulating that suggests credit cards take advantage of cognitive biases and other psychological mechanisms. Many, if not most consumers overestimate their future ability to repay and are surprised by the high interest charges when these come due 4 , 5 , 6 . Empirical studies show that shoppers with credit cards are willing to spend more on items 7 , 8 , check out with bigger baskets 9 , focus on and remember more product benefits rather than costs 10 , 11 , and make more indulgent and unplanned purchase choices 12 , 13 .

Do credit cards then serve to “release the brakes” on spending or instead act to “step on the gas”? Prior evidence indicates that, in fact, both mechanisms may be involved, such that spending facilitation effects are likely to be driven by combination of these processes. For instance, most relevant to this paper are reports that mere exposure to credit card logos can stimulate spending 14 , 15 , 16 . As first argued by Feinberg 14 , spending facilitation via mere exposure implicates classical conditioning mechanisms and cue-triggered cravings associated with addiction 17 , 18 . Salient cues can often trigger a motivational urge to pursue its reward, such as the pleasure associated with consumption—in this way fueling greater spending.

Yet, recent literature has focused greater attention upon an alternative mechanism derived from the mental accounting literature. That is, credit cards may instead weaken brakes on spending by lessening the pain associated with making payments. This “pain-of-payment” hypothesis was originally proposed in a metaphorical sense 19 , 20 , however more literal interpretations have also taken root more recently. With credit card purchases, the act of payment is temporally removed from the act of acquisition, and is further decoupled when multiple transactions, perhaps spread over many months, are represented as a single consolidated balance. This dissociation of purchasing from payment may put costs out of mind and reduce the influence of price on product purchase decisions.

Understanding the brain mechanisms that are responsible for these effects is important, as they are not likely to be confined to credit cards only. By tapping these mechanisms, any new payment technology can disturb old expenditure patterns in ways that people fail to anticipate, and may come to regret.

In this exploratory study, we provide the first evidence of differences in brain activation in the presence of real credit and cash purchase opportunities, presented in an fMRI shopping task. Participants used their own personal credit card or cash funds to make real purchases of products while we simultaneously observed brain activity. Our study focuses on the purchase of everyday products with cash and credit at relatively small dollar values, similar to those examined within prior literature on payment methods. We find that activation in the classical reward networks (the striatum) differentiates credit card purchases from non-purchases, and, importantly, bears little relation to price. In contrast, activation in these same networks is a weak predictor of cash purchases, but interacts with price to predict purchases of cheaper instead of more expensive items. Activation in the insula, a brain region previously linked to pain-of-paying 21 , 22 , 23 , 24 , does not differentiate credit from cash purchases in our study.

As we discuss in the conclusion, we cannot rule out that a reduction in pain-of-paying is responsible for credit card overspending at higher dollar amounts than those used in the study. However, our results suggest that classical cue-conditioning and the resulting sensitization of neural reward networks may have a separate role in motivating credit card purchases. Even if credit cards do “release the brakes” on spending, as argued by mental accounting, it appears that they could also help to “step on the gas.”

To facilitate comparisons with previous results, our study builds on the established SHOP (“Save Holdings Or Purchase”) fMRI paradigm 21 , 22 , 25 . In the task, participants make a series of purchase decisions for products offered at a steep discount relative to market price. A trial begins with a screenshot of a product that the participant has not seen previously in the study, followed by the product price, and concludes with a “buy” versus “no-buy” decision screen. Neural signals in the task have been shown to dissociate reward-related from price-related decision processing 21 . For this reason, it is a natural protocol for assessing competing hypotheses about credit card purchase facilitation mechanisms.

In the SHOP task, a decision to buy is marked by three neural signals (see Fig.  1 for SHOP trial structure; Fig.  2 top panel for activation pattern in the original SHOP study). Two signals come from the classic dopaminergic reward network involving the striatum and the ventromedial prefrontal cortex (VMPFC). Striatal activation is a leading predictor of purchase, appearing during the product and price screens, but losing significance by the decision point. Activation in the VMPFC predicts purchase during the price presentation and decision points, and also correlates with post-scanner estimates of consumer surplus (defined as the difference between stated willingness-to-pay for a product and its price). Thus, VMPFC activity has been interpreted as a net-value signal within a range of decision making contexts 21 , 22 , 25 , 26 , 27 , 28 .

Shopping task trial structure in the current study. Participants viewed the product for 4 s, the payment method for 4 s, the price for 4 s, and then made a choice to purchase within 4 s. Post-decisional periods consisted of a confirmation, 4 s, and a pay response, 4 s. Purchase trial shown; if not purchased, the confirmation indicated “basket unchanged” and the pay screen indicated “no payment necessary.” Intertrial interval jittered 2–8 s. This study added the Method, Confirm, and Pay phases to the original SHOP paradigm.

Comparison with Knutson et al. 21 . Neural activation time courses in the striatum, VMPFC, and rAIC distinguishing purchase (black) from non-purchase (grey), y-axis labeled with percent signal change. Above: Fig. 2 from Knutson et al. 21 . Below: time courses from the current study collapsed across payment methods. Phases: * = product, M = method, $ = price, ? = choice, C = confirm, P = pay.

A separate neural indicator of product purchase is reduced activity in the right anterior insula cortex (rAIC), when the price appears 21 , 22 , 25 . Because the rAIC has been previously implicated in the processing of negative emotions and pain 29 , 30 , 31 , 32 , 33 , 34 , its activation in the SHOP task has been interpreted as evidence consistent with a “pain-of-paying” caused by high price, acting as a brake on spending 21 , 22 . Paying for products has been thought to elicit an affective pain experience associated with activation in the anterior portion of the right insular cortex, in contrast to the posterior portion of the right insular cortex which has been linked to representation of physical pain experiences 23 .

Behavioral findings

The independent variables, product price and payment method, had the expected effects on purchase behavior in the fMRI shopping task. A hierarchical logistic regression predicting purchase decisions yielded parameters on price ( b  = − 0.334, se  = 0.116, p  = 0.004), payment method ( b  = − 0.036, se  = 0.099, p  = 0.715) and their interaction ( b  = 0.251, se  = 0.120, p  = 0.037) in the anticipated direction. This interaction follows predictions based on a prior test conducted in a similar context 35 . Consistent with previous empirical studies 7 , 8 , participants were more willing to purchase higher-price items with credit rather than with cash, and thus they spent more overall when using credit card (average basket = $87.41, SD  = 61) rather than cash ($84.19, SD  = 51). These behavioral findings supported the notion that credit cards facilitate purchasing behavior, and our analysis presented below focuses primarily on the associated neural activation evidence.

Neural activation

The current fMRI design follows the approach in the original SHOP article 21 . For comparison, Fig.  2 displays the activation time course in the current study alongside the Knutson et al. 21 results. Collapsing across payment methods, the time course in each region of interest (ROI) tracks the original results to a remarkable degree. The key regions of interest—striatum, VMPFC, and rAIC—are shown graphically within Fig.  3 . While we do not consider the current findings to be an exact replication of the original SHOP results, the neural activation patterns from the earlier study provide a benchmark reference, as discussed below.

Regions of interest examined within the current study. Ventromedial prefrontal cortex shown in green and striatum shown in blue, from Bartra et al. 26 meta-analysis; right anterior insular cortex (rAIC) shown in red, from Kelly et al. 34 parcellation analysis; MNI x = − 6, y = 10, z = − 6.

Figure  4 breaks apart the time courses by payment method, and shows that the reward network differential buy signal is clearly present with credit card purchases, but is negligible with cash purchases. Logistic regressions of the purchase decision on the ROI signal change, payment method, and their interaction confirms that credit purchases were associated with greater differential striatal activation, beginning with the payment method screen and extending up until the decision screen (shown in the bottom panel of Fig.  4 ). The same pattern holds directionally but not significantly, for the VMPFC. However, if the neural signal in each ROI is collapsed across buy and no-buy decisions, there is no significant difference between credit card and cash trials, at any time point, suggesting that presentation of the credit card stimulus per se does not affect brain activity in the target ROIs.

Above: ROI signal intensity time courses illustrating purchase (black) versus non-purchase (grey). Below: Buy decision regressed on ROI signal intensity, payment method, and interaction at each TR. Red indicates a negative coefficient. Parameter significance denoted by *** p  < .001, ** p  < .01, * p  < .05, ^ p  < .10. Phases: * = product, M = method, $ = price, ? = choice, C = confirm, P = pay.

Looking at the cash trials only, the reward signals are weaker predictors of purchases than in the original SHOP task 21 , even though the earlier study also required cash payments. However, in Knutson et al. 21 , participants tapped their experimental endowment—money they did not have before the study—potentially creating a house-money effect. In contrast, participants in the current study paid out-of-pocket with the $50 in cash they brought to the experiment.

As evident in Fig.  2 , collapsing across payment methods in the current study reveals activation time courses that track the Knutson et al. 21 results. This appears to be primarily due to purchase decisions using a credit card, not cash. Accordingly, comparing the current findings to past SHOP results indicates that credit card purchase decisions resemble house-money purchases. Thus, one interpretation of these findings is that when shopping with credit card, individuals act as if drawing on an endowment (from the financial institution backing the card).

An additional analysis shows that prices modulate the association of neural signals and the decision to purchase. The y-axis in Fig.  5 displays the differential purchasing signal. That is, we take the average ROI activation on purchase trials and the average ROI activation on non-purchase trials, and plot the difference between these means; this is plotted separately for high-price items and for low-price items, when using cash and when using credit (see Figure S2 in Supplementary Information for further information). Accordingly, points plotted at the zero line indicate that neural activation did not differ between purchase and non-purchase decisions on average. Points plotted above the zero line instead indicate that purchases were associated with greater activation in the ROI relative to non-purchase decisions (and conversely for points below the zero line). The significance levels in the table in Fig.  5 come from logistic regressions of the buy decision on ROI signal change and its interaction of signal with item price (a continuous variable).

Above: y-axis plots the difference between average purchase and average non-purchase ROI signal intensity, for high-price (black) and low-price (grey) items by payment method. Below: Buy decision regressed on ROI signal intensity and the interaction between price (continuous) and ROI signal intensity at each TR, separately for credit and for cash. Red indicates a negative coefficient. Parameter significance denoted by *** p  < .001, ** p  < .01, * p  < .05, ^ p  < .10.

Focusing on decisions using cash, positive reward-related ROI activation in the striatum was associated with purchasing only among lower-priced items, and this differential purchasing signal is near zero for higher-priced items (see the left panel in Fig.  5 ). Confirmed by the interactions in the regression analysis, buying items with cash has a price-dependent neural signature that is clearest in the striatum. In contrast, the neural signature associated with credit purchases is not price-contingent, and is instead reflected by differential activation in reward-related ROIs, regardless of the price. Regression analyses that directly compare the differential sensitivity to price when using cash and credit are reported within the Supplementary Information; these findings suggest that credit cards reduce sensitivity to price information via heightened striatal activation, exhibited during the periods in which product price is presented to participants.

Although a single experiment is rarely definitive with respect to behavior outside of the lab, the results reported here provide clear clues about the neural mechanisms that differentiate credit card from cash purchases and that may be implicated in credit card overspending.

A leading hypothesis within recent literature is that credit cards facilitate purchasing by diminishing a pain-of-payment that would otherwise keep spending in check. The intuition behind it is that card transactions “decouple” (disassociate) payments from consumption 19 , 20 . The decoupling occurs because the payment is delayed, can be postponed repeatedly, and the actual repayment date may be ambiguous if diverse expenditures are lumped into a rolling balance. Decoupling of payments from consumption allows people to keep the cost of the item “out of mind,” creating a kind of analgesic at the moment of purchase.

We do not find neural evidence for this explanation, at least if pain is defined as a physical sensation and insula activity treated as its neural marker, as has been suggested in the past 21 , 22 , 23 . Although insular activation does differentiate purchase from non-purchase decisions, it does so only after the decision point, and does not clearly interact with either payment method or item price (Figs.  4 , 5 ). Insular activation seems to reflect simple product rejection in our study, perhaps similar to the rejection of bad offers in economic games 36 , 37 , 38 . Yet, our evidence is consistent with the more metaphorical interpretation of the pain-of-payment account. That is, while we did not observe credit cards to influence pain processing networks in the brain, our evidence did indicate that price information failed to have any modulating influence on neural mechanisms associated with credit card purchases (i.e., costs were out of mind).

At the same time, there are a number of important constraints within the current study that offer worthy directions for further exploration. For instance, it is possible that spending cash could elicit stronger negative affective responses at higher price levels than those examined within the current study. Some interesting exploratory research suggests that observing others make cash payments at higher price levels is associated with increased activation in the insula 24 . As applied within prior literature, our study design also mimics typical retail shopping environments in which participants add items to their basket and subsequently checkout (rather than parting with money at the moment the purchase decision is made) which may diminish the salience of cash payments. Furthermore, in conveying the payment method to participants, we also used an icon that included both Visa and Mastercard logos; additional research could help to clarify the role of brand logos in eliciting spending facilitation effects. As participants in this study had reasonable levels of financial literacy, additional research focusing on consumers with lower, or higher, levels of financial literacy and experience would be valuable to pursue. Additionally, while our study aimed to stick closely to prior SHOP tasks, more highly powered designs could offer greater insight into the role of the insula.

Taken altogether, the hypothesis that gains most support from the current evidence is that the reward network—the striatum in particular—has been chronically sensitized by prior experience with credit cards. In line with cue-triggered accounts of cravings, exposure to conditioned credit card cues may trigger sensitivity to rewards 14 , 17 , 18 , 39 , 40 . Such sensitization would show up in a reward anticipation increase following onset of the credit card logo in expectation of an imminent buy decision, a pattern that we indeed observe within striatal activity. Under this hypothesis, credit card cues may in part activate the pursuit of rewarding products rather than merely alleviating the pain associated with paying for them.

The difference in reward network activation between credit and cash conditions is notable in light of the small prices and modest behavioral effects. Self-reports taken after the shopping task suggest that participants were largely unaware of the influence of payment methods on their decisions, disagreeing with statements that they were more impulsive and less price-conscious when shopping with credit cards (see Supplementary Information). The differences in reward-related neural purchasing signals observed between payment methods do not appear to reflect inconveniences in using cash itself; indeed, prior SHOP studies examining cash purchases 21 documented similar reward-related neural purchasing signals, so long as participants were spending house-money from an experimental endowment. Further research could help to clarify the extent to which consumers consider shopping with credit card to be akin to spending house money. We do find that the impact of credit cards on behavior (purchase likelihood) and neural activity increases with price. Extrapolating on this price-related trend, one might expect greater credit card effects for big-ticket items in an actual marketplace.

Although recent literature largely interprets credit card facilitation of spending through a pain-of-payment lens, a considerable body of existing behavioral evidence is consistent with a cue-triggered account. Findings that credit card cues serve to heighten attention and memory toward the positive elements and away from the negative elements of product stimuli 10 , 11 , 41 fall in line with conditioning processes that have long been understood at both psychological and neurobiological levels 42 , 43 . Exposure to credit card logos has also been shown to increase the willingness to pay for items even when people pay with cash 14 , 15 , 16 , consistent with the idea that credit cards can serve as cues that trigger spending behavior. Moreover, while traditional mental accounting theories suggest that credit cards lessen pain-of-paying for all types of products, people are in fact more inclined to purchase vice products when shopping with credit cards 12 , as is suggested by an account in which credit cards prompt the pursuit of products that satisfy cue-triggered cravings. A conditioned spending response can lead individuals to become more attuned to consumption cues and also raise the marginal utility of consumption 39 , 40 .

Behavioral economic models with expectation-based reference points could potentially accommodate our findings and allow analytical extrapolation from the lab to the marketplace. The general idea in these models is that experience with a transaction instrument generates expectations, which then serve as a reference point 39 , 40 , 44 . If the expectations are to purchase, then failing to purchase becomes a loss relative to the reference point. Such models have explained addictive behavior in the past, however the expectation formation could be localized to a combination of card, product category, and physical environment (e.g., retail or online). In principle, any distinct transaction method: cash, credit, check or digital wallet, could stamp in its own unique set of “local preferences,” as the consumer accumulates experience.

It is notable that the neural mechanisms involved in facilitating credit card spending share similarities to neural mechanisms that have in the past been implicated in addictive behaviors. Specifically, our evidence indicates that credit card cues led to reward network sensitization in the striatum, a distinguishing feature of cue-triggered mechanisms that has emerged in studies of chemical addiction to substances 17 , 18 , 45 . While we certainly do not claim that consumers are “addicted” to credit cards, an appreciation of the overlapping physical substrates may offer insights into important individual differences in vulnerabilities to more extreme forms of credit card overspending. For example, the genetic factors involved in dopaminergic reward network function that have been linked to drug addiction 46 could also contribute to greater risk of credit card abuse, due to the underlying role they play in learning and conditioning processes.

Credit cards are now an established instrument, but similar neural effects may arise with any disruptive payment technology. New payment methods and digital currencies can sensitize reward networks in unexpected ways, removing the financial guardrails created by old purchasing habits and routines. Many new payment technologies have the ability to strengthen reinforcement mechanisms through the use of unique sounds heard when acquiring an item, visual notifications received on mobile devices, and even haptic stimuli that can simultaneously provide physical feedback. Such multisensory stimuli 47 can drive speedier conditioning in a way that could very quickly begin to impact consumer purchasing processes. Payment methods that are integrated within mobile devices could also exploit prior conditioning with the device and fuel more unrestrained purchasing behavior 48 .

This is a cautionary message for the consumer finance and payment industries, as well as for economic welfare analysis based on revealed preference. If neural mechanisms operate under the radar, one cannot assume that technical improvements in payment methods will make all consumers better off. Our study does not discuss consumer protection and related policy issues, but underlines the importance of keeping policy eyes open to neuroscience evidence as it comes in. Because novel payment methods have the potential to take advantage of the neurobiological processes that drive purchase behavior, developing guardrails to prevent misuse may enable consumers to fully benefit from advancements in payment technology.

Although payment methods are involved in every consumer purchase decision, the underlying mechanisms through which they operate have not been well understood. The current findings highlight considerable differences in brain mechanisms responsible for the influence of payment methods on purchasing decisions, and expose important consumer vulnerabilities that will require attention as payment methods rapidly evolve. Ultimately, each of the many billions of consumer financial transactions that occur across the world each year are made by individuals who share the neural mechanisms studied here.

Participants

A total of twenty-eight participants (ages 20–54; age M  = 28.7, SD  = 10.6; 18 women) completed the study. One participant was excluded from the analysis due to excessive head motion during the scan (more than 3 mm). The experimental procedures were approved by the MIT Institutional Review Board and were performed in accordance with relevant guidelines and regulations. All participants provided informed consent. Participants were compensated at least $75 for their time and received payment after 1–2 weeks of the study.

Median participants in the study had a childhood household income between $75,000 and $100,000, current household income between $25,000 and $44,999, and reported saving 5–10% of their current income. Median participants were also college graduates, and 77% of participants reported having not experienced extended unemployment in the past 2 years. Participants were also asked to respond to financial knowledge questions 49 probing their understanding of credit ratings and investments. On average, participants correctly answered 73%, or 11 of the 15 financial knowledge questions ( SD  = 2.4).

Our experimental design approach inherits heavily from prior publications adopting the SHOP paradigm 21 , 22 , 25 . To facilitate comparisons with benchmark SHOP studies, we retained the basic trial structure and added a payment method screen and two payment review screens (Fig.  1 ). The payment method screen (cash or credit card) was inserted between the product presentation and price screens. This sequencing was informed by results of a study showing that payment method matters if presented together with price information, but does not matter at the final checkout stage, after the consumer has presumably formed the intention to purchase 35 . The placement of the payment method prior to the price phase enabled us to examine whether the payment method modulated price-related or reward-related neural signals during the price differential computation. The trial ended with separate confirmation and checkout screens that required endorsement responses, giving participants a chance to “reflect on” but not change their decision, simulating the experience of receiving a receipt after a purchase. These additional stages were included to mimic the full sequence of a retail shopping experience and facilitate observation of post-decisional hedonics.

Each participant arrived to the study with their personal credit card and at least $50 in cash. Participants were told that they would be shopping within the lab’s experimental store, and that any purchases using cash or credit would be made through the lab at the end of the study. Therefore, any payments for purchases would come from a participant’s out-of-pocket funds rather than experimental endowments as in prior SHOP studies 21 . All products were offered at prices well below the minimum $50 cash on hand, with a median product price offer of $5.40 ( M  = $6.39, SD  = $3.73, min  = $1.50, max  = $18.00). Similar to prior SHOP studies, these offered prices were at a fixed 70% discount relative to actual retail price (i.e., corresponding to retail prices between $5 to $60). Participants were required to bring at least $50 in cash to the study in order to minimize differential liquidity constraints; that is, participants did not reject items simply because they did not have enough cash with them, as we structured all products to have price offers to be below the $50 that participants had on hand. The prices examined within this study are at the high end in relation to previous literature applying the SHOP paradigm 21 , 22 , 25 and behavioral research on payment method effects 41 , 41 , 50 . Yet, as we discuss within the conclusion, it is possible that other mechanisms could be at play when studying big-ticket items at prices higher than those examined in the current study.

To increase interest and simulate a typical retail experience, each participant faced a tailored set of product offerings. We populated a database of over 22,000 top selling items, drawing on product information from Amazon. An independent online sample then rated which categories they perceived to be most appealing, which reduced the database to approximately 4000 items, covering a wide range of categories, including beauty, kitchen, books, etc. Prior to entering the scanner, participants selected and rated the desirability of 42 categories from the lab’s experimental store on a 7-point scale. Products in personally more desirable categories were more likely to be offered in the fMRI shopping task.

The scanning task involved three shopping “runs,” with 28 trials each, or 84 in total. Within a trial, participants indicated whether they would buy a specific product at a stated price. If so, the product was added to the participant’s “shopping basket.” No products were repeated. Each product had a 50% chance of being offered for purchase with credit or with cash, pseudorandomly determined such that each payment method constituted half of the trials. At the end of the task, one product was randomly selected. If it was in the basket, the participant was asked to pay for the product at the stated price. Participants paid using their own personal credit card or out-of-pocket cash, as specified in the product offer. Regardless of payment method, items were shipped to participants by mail within 2–3 days of the study.

Each 24 s (s) trial consisted of six 4 s periods, followed by a jittered 2–8 s intertrial interval (see Fig.  1 for an illustration). Participants viewed a product in period 1; the payment method was introduced in period 2 with a cash or credit icon, the price in period 3. Participants signaled their decision to buy or not to buy in period 4. Following a buy decision, the participants saw a 4 s confirmation screen stating “this item has been added to your basket,” and a 4 s payment screen that required them to press a button to “commit to pay.” Following a no buy decision, the confirmation screen indicated “basket unchanged” and the payment screen required participants to press a button to acknowledge “no payment necessary.”

After exiting the scanner, participants reported their willingness to pay for each product shown in the scanner task by completing a separate incentive compatible auction procedure 51 and also completed several psychological scales. Post-scan measures were not recorded for one participant due to a technical error.

fMRI acquisition

All participants were right handed, native English speakers, with no history of neurological disorders. Participants were verified to have no magnetically reactive matter present in or on the body prior to scanning. All scans were performed using a 3 T Siemens Magnetom Tim Trio MRI System with a phase-array 32-channel head coil (Siemens Medical, Erlangen, Germany). Structural scans were acquired using a three-dimensional T1-weighted multi-echo MP-RAGE pulse sequence (TR = 2530 ms; TE = 1.64 ms, 3.5 ms, 5.36 ms, 7.22 ms; flip angle = 7°; slices = 176; thickness = 1 mm; matrix = 256 × 256). Task-based functional scans were collected using T2* weighted EPI sequence images sensitive to blood oxygen level-dependent (BOLD) contrast (TR = 2000 ms; TE = 30 ms; flip angle = 90°; slices = 32; thickness = 3 mm; matrix = 64 × 64). Analyses were conducted using the FMRIB Software Library, FSL, version 6.00 52 .

Behavioral analysis

To model the effects of price and payment method on purchase decisions, we conducted a hierarchical logistic regression in which purchase decision was predicted by price, payment method, their interaction, and demographic controls. The hierarchical model included random slopes for the price × payment method interaction and participant-level random effects, following prior work 35 . Price was a continuous, z-normalized regressor, normed at the participant-level price distribution. The demographic variables (age, marital status, education level, and amount of savings) controlled for differences in shopping behavior across participants.

ROI analysis

Region of interest analyses examined activity in a priori determined focal brain areas selected based on past observations that have isolated neural purchasing signals, as described above 21 , 22 , 25 . To specify the precise regions for analysis, we applied masks from meta-analyses of the striatum and VMPFC (see Fig. 9 within Bartra et al. 26 for brain maps depicting these regions), as well as the rAIC 34 , k = 2, cluster 2. Notably, the striatum contains the nucleus accumbens, an ROI referred to in past research 21 , 22 , 25 . See Fig.  3 for a graphical display of the ROIs.

These meta-analytically determined brain regions match the ROIs examined in prior SHOP experiments while offering interpretive advantages through the application of sample-independent functional definitions rather than sample-dependent anatomical definitions. Furthermore, automated ROI selection served to minimize potential experimenter bias associated with the manual adjustment of ROI coordinates for individual participants. ROIs for the ventral striatum and VMPFC were generated based on a five-way conjunction analysis identifying regions of the brain carrying a monotonic, modality-independent subjective value signal on the basis of thousands of independent brain scans 26 . The right anterior insula ROI was determined by applying a task-evoked coactivation-based parcellation analysis with hundreds of independent scans 34 . Whole brain contrast analyses verified that striatum activation was associated with product preference, VMPFC activation was associated with choice, and right anterior insula activation was associated with higher prices within our sample (see Supplementary Information).

Prior findings in the SHOP paradigm established that differential neural purchasing signals emerge during the price and choice phases 21 , 22 , 25 . Thus, we anticipated that the payment method would impact these neural purchasing signals at the price and choice phases, following presentation of the payment method. We focus our analysis and interpretation on these stages of the time course in which payment methods were predicted to modulate neural purchasing signals (in addition to the payment method phase), but we also provide results at all other stages of the time course for the reader’s reference (that is, including stages prior to the presentation of payment method itself and stages after participants already recorded a purchase decision). Our goal was to understand how payment method influenced the previously identified ROIs when making purchase decisions. In order to present these effects intuitively, we report the results of logistic regressions conducted separately for each ROI and at each acquisition point. The figures report parameter significance from logistic regression results without corrections; please note that the key interaction effects in the striatum remain significant after Bonferroni corrections.

Specifically, within each region of interest, we analyzed the relationship between signal change and purchasing behavior at each acquisition point (TR). Following prior literature applying the SHOP paradigm 21 , 22 , 25 , time courses were lagged by 4 s to compensate for the delay in the hemodynamic response; the time courses depicted in the figures reflect this 4 s lag. To identify the differential purchase signal associated with credit versus cash purchases, we first conducted logistic regressions of the purchase decision on the ROI signal change, payment method, and their interaction at each acquisition point (results shown in Fig.  4 ). In specific, for each ROI and acquisition point, we fit the following regression equation: \(Buy=logit({b}_{0}+{b}_{1}\,*\,ROIactivation+{b}_{2}\,*\,PaymentMethod+{b}_{3}\,*\,ROIactivation\,*\,PaymentMethod)\) ; Buy corresponds to the decision to purchase (Buy = 1, NoBuy = 0), ROIactivation refers to the activation in the particular ROI at the acquisition point on the trial, PaymentMethod refers to the contrast coded treatment (Credit = 1, Cash = − 1).

We next evaluated the relationship between ROI activity and purchase behavior by conducting logistic regressions of the purchase decision on the ROI signal change and its interaction with price (a continuous, z-normalized variable; results shown in Fig.  5 ). Specifically, for the price interaction analysis in Fig.  5 we fit the following regression equation: \(Buy=logit({b}_{0}+{b}_{1}\,*\,ROIactivation+{b}_{2}\,*\,Price+{b}_{3}\,*\,ROIactivation\,*\,Price)\) . These analyses allowed us to directly examine the effects of payment method on previously identified ROIs involved in making purchase decisions.

Notably, all regression results apply price as a continuous, z-normalized regressor, normed based on the participant-level price distribution. Participant price distributions had minimum offer prices that ranged from $1.50 to $1.96 across participants and maximum price values that ranged from $12.78 to $18.00. “High-price” and “low-price” categories were included for graphical displays only (i.e., Fig.  5 ) and were defined relative to the median of each participant’s price distribution; binary price variables were not used as regressors in any significance tests. Further details regarding whole brain analyses as well as additional participant characteristics are provided within the Supplementary Information.

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Acknowledgements

The research was funded by the MIT Sloan School of Management, through the MIT Sloan Neuroeconomics Lab. Derek Dunfield was supported by the MIT Intelligence Initiative and the National Science and Engineering Council of Canada. The authors gratefully acknowledge the Athinoula A. Martinos Imaging Center at the McGovern Institute for Brain Research, MIT for their support in data collection, and constructive manuscript comments by three anonymous referees and Danica Mijovic-Prelec.

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Reinventing credit cards: Responses to new lending models in the US

Credit cards have long been one of the most popular methods of making payments and accessing unsecured borrowing in the United States, accounting for 37 percent of consumer purchases by dollar value in 2021. 1 Data from the McKinsey US Payments Map, calculated as share of consumer purchases by dollar value (excluding bill pay). Credit cards include private-label as well as general-purpose cards. But their market position is gradually being undermined by the growth of point-of-sale (POS) financing offerings that combine installment lending with the convenience of card payments. US issuers could by 2025 lose up to 15 percent of incremental profits to newer forms of borrowing, based on our simulation of the potential impact of buy now, pay later (BNPL).

Alarming as that may sound to credit-card issuers, it is far from the whole story. Issuers have decades of experience and well-established relationships with consumers and merchants to help them compete. What’s more, credit cards have several deep-rooted advantages over other credit products. Many consumers engage with credit cards daily when purchasing goods and services. The spending data generated in this way gives issuers valuable insights into consumers’ preferences and needs. And credit cards are often part of a complementary suite of offerings alongside deposits, consumer loans, and other products, helping to reinforce customer loyalty.

Issuers can tackle the challenges they face by building on these strengths. They can reimagine their products to meet consumer needs, introduce tailored solutions to reach younger consumers, drive engagement, and rethink card economics.

A strong track record—but can it be sustained?

In the United States, credit cards are one of the best-performing businesses in financial services, with a return on assets of 3.6 percent in 2020. Credit cards are also a primary method of unsecured borrowing for US consumers, accounting for 78 percent of balances. 2 McKinsey Panorama, Global Banking Pools. Over the past few years, transaction volumes have grown by 10 percent per year, reaching $49 trillion in 2021.

Modeling revolver and transactor economics

Our analysis uses data from the Consumer Financial Protection Bureau, the McKinsey US Payments Map, the McKinsey Consumer Financial Life Survey, and McKinsey estimates. To model revolver and transactor economics, we assumed that revolvers are responsible for all of issuers’ interest income, losses, late fees, and debt suspension fees and that transactors are responsible for the majority of annual fees. We also assumed that revolver spending earns fewer rewards and generates lower interchange per dollar than transactor spending and that per-account operating expense is higher for revolvers than for transactors.

However, today’s issuers face circumstances that make profitable growth harder to sustain. Their profits rely mainly on revolvers, or customers who carry a balance on their credit-card account from month to month (see sidebar “Modeling revolver and transactor economics”). Revolvers make up around 60 percent of credit-card accounts, but they generate 85 to 90 percent of issuers’ revenues, net of rewards. Profit per account stands at around $240 for revolvers but at just $25 for transactors, or customers who pay off their balance every month (Exhibit 1). The difficulty for issuers is that the share of revolvers has started to decline over the past few years. 3 For general-purpose credit cards, the share of revolvers has fallen by as much as six to eight percentage points from its 2015 level. See The consumer credit card market , Consumer Financial Protection Bureau, September 29, 2021. At the same time, reward spend is growing, low loss rates are heading back toward normal levels, and funding costs are rising. The net effect of these trends is a squeeze on issuers’ margins.

Enter the BNPL players

Risks associated with pos financing.

Point-of-sale financing is associated with a set of risks for consumers and financial systems. In late 2021, the US Consumer Financial Protection Bureau opened market-monitoring orders for select BNPL providers. The orders focus on three themes: debt accumulation arising from the regular nature of purchases using POS financing; regulatory arbitrage , leading to limited transparency and consumer protection; and practices for data collection and usage . 1 “Consumer Financial Protection Bureau opens inquiry into ‘buy now, pay later’ credit,” Consumer Financial Protection Bureau news release, December 16, 2021. Regulators in other countries, including Australia, Singapore, and the United Kingdom, have also expressed concerns about possible risks associated with BNPL.

Meanwhile, credit bureaus and other market participants are moving to create more transparency around POS financing. Organizations such as Equifax, Experian, and TransUnion are expanding their existing products to include BNPL financing or working with BNPL providers to create new credit-reporting products geared to BNPL transactions. 2 Alicia Adamczyk, “Equifax is adding buy now, pay later payments to credit reports. Here’s how it could affect your score,” CNBC, December 31, 2021; “TransUnion to maximize financial inclusion opportunities for the nearly 100 million consumers using BNPL loans,” TransUnion news release, February 24, 2022; “Buy now pay later,” Experian, accessed June 2022.

Traditional sales finance, commonly called layaway, has been available in the US for decades, but for credit-card issuers, the risk to profitable growth comes from the rapid growth of a relative newcomer to the payments arena: technology-enabled BNPL . Consumers are choosing BNPL for a variety of reasons, including lower APR (starting at 0 percent for some purchases), predictable repayments, and the convenience of using a payment method that is integrated into online customer journeys and shopping apps. The sustainability of POS financing is subject to debate: pay-in-4 providers have historically made a loss despite positive unit economics, BNPL players now face a more challenging macroeconomic environment with rising interest rates and defaults, and questions have been raised about the risk associated with BNPL (see sidebar “Risks associated with POS financing”). Nevertheless, it seems clear that BNPL has changed consumers’ expectations of the borrowing experience and expanded the role lenders can play in shopping journeys.

Providers such as Affirm and Afterpay offer consumers seamless borrowing at the point of sale for small- and mid-ticket purchases. In doing so, they could erode a fraction of issuers’ volumes. 4 In this article, BNPL and POS financing are used interchangeably to denote all types of financing at point of sale, from small-ticket “pay-in-4” offerings from providers such as Afterpay and Sezzle to mid-ticket financing from providers such as Affirm and Uplift. The exact size of that fraction is hard to establish. McKinsey’s US Digital Payments Survey indicates that 39 percent of BNPL users making a purchase would otherwise have paid with a credit card. In another survey, 62 percent of users expressed the belief that BNPL could replace their credit card—although only about a quarter said they would want it to do so. 5 Maurie Backman, “Study: Buy now, pay later services continue explosive growth,” Ascent , updated March 22, 2021.

What is certain is that credit-card holders are adopting BNPL. Among the users of mid-ticket POS financing—typically consumers with loans of $300 to $3,000 on purchases of furniture, appliances, electronics, and other durable goods—almost 95 percent have credit cards (Exhibit 2). So do 85 to 90 percent of pay-in-4 users, who typically have six-week merchant-funded loans of less than $300 on purchases of apparel, beauty products, and accessories.

As well as capturing transaction volumes, BNPL providers are doing something else that could undermine issuers’ business: acting as an entry product for younger consumers who are new to credit. Although use among older customers is growing, BNPL attracts a predominantly young audience: 37 percent of Gen Z and 30 percent of millennials are reportedly users, compared with 17 percent of Gen X and 6 percent of baby boomers. 6 “Almost 75% of BNPL users in the US are Gen Z or millennials,” Emarketer , June 25, 2021. Issuers have traditionally relied on younger consumers as a source of growth. Since 2017, credit-card spending has increased by 11 percent a year among those under 40 while remaining flat among those over 40, who account for 62 percent of this spending. If BNPL providers continue to attract large numbers of young consumers and are able to retain them as they grow older, credit-card volume growth is likely to suffer.

BNPL providers such as Affirm, Afterpay, Klarna, and Sezzle are also starting to shape the wider retail ecosystem by developing shopping apps that drive consumer traffic and stickiness. Users of Afterpay and Klarna are engaged and loyal, making transactions via these apps almost every month. Klarna reports that customers who use its shopping app make purchases via Klarna three times more often than nonusers.

In parallel, established payments providers are expanding into BNPL and developing comprehensive financing and payments offerings for merchants and consumers. Examples include Block’s acquisition of Afterpay 7 “Block, Inc. completes acquisition of Afterpay,” Block news release, January 31, 2022. and PayPal’s introduction of credit and pay-in-4 options. 8 “PayPal introduces new interest-free buy now pay later installment solution,” PayPal news release, August 31, 2020.

How BNPL could change the payments landscape

We see four trends in BNPL that are likely to affect—or are already affecting—the strategies of issuers, as well as banks, fintechs, and other payments providers. BNPL apps are playing a greater role early in shopping journeys and offering a broader range of services. At the same time, payment networks are making POS financing widely available, and financial institutions are getting into the game.

Trend 1: BNPL apps are becoming a starting point for consumers’ shopping journeys

BNPL providers are starting to position themselves primarily as integrated apps that combine shopping with consumer financing. This strategy enables them to build customer loyalty and generate affiliate fees from nonintegrated merchants. This trend is likely to intensify as rising interest rates push up the cost of funds and merchant discount rates continue to decline, squeezing BNPL providers’ margins and prompting them to turn to affiliate fees as an additional source of revenue. 9 According to a McKinsey BNPL merchant survey conducted in 2022, the median merchant discount rate (MDR) in the US stands at 2.5 percent. Affiliate fees vary widely, from 0.5 to 1.0 percent on appliances in Home Depot and Best Buy to 20 percent on Amazon Games, according to these companies’ websites.

Trend 2: BNPL providers are venturing beyond installment lending

As BNPL players continue to expand their customer base, they are introducing new financial and loyalty products to meet their young customers’ evolving needs and to maximize customers’ lifetime value. Early examples include Klarna’s credit card and Affirm’s Debit+ card, which allow consumers to make staged payments in offline channels and at nonintegrated merchants. Other examples include Klarna’s checking accounts in Germany and Afterpay’s Money app in Australia, which offers savings accounts and a debit card. Over time, moves like these could extend to other products: high-yield savings accounts, loyalty programs, and other financial or shopping-related services.

Trend 3: Payment networks are providing access to consumer POS financing at scale

Capitalizing on their access to merchants and ownership of credit-card transaction processing, payment networks are rolling out solutions that enable greater use of BNPL. For example, Mastercard Installments allows customers to access a BNPL product via a virtual card issued by a bank or fintech, 10 “Introducing Mastercard Installments,” Mastercard, accessed June 2, 2022. and with Visa Installments, customers can split purchases on eligible Visa cards into equal installments at the point of purchase. 11 “What is Visa Installments?,” Visa, accessed June 2, 2022. Mastercard Installments technology will be used by Apple Pay for their recently announced BNPL product, Apple Pay Later. 12 Kif Leswing, “A wholly owned subsidiary of Apple will extend loans for its Pay Later service,” CNBC, June 8, 2022. Network BNPL solutions could make BNPL more accessible for consumers, small merchants, and merchants from categories with lower BNPL penetration. Payment networks wanting to raise the standard for customer experience could also allow customers to choose the best payment method—say, credit card, on-card BNPL, or virtual-card-enabled BNPL—for any transaction, depending on ticket size, credit-card limit, pricing, and other factors.

Trend 4: Financial institutions are expanding their reach by entering POS lending

Credit-card issuers and other financial institutions are exploring participation in POS lending. Some lenders are setting up their own offerings, such as Citizens Pay; others are entering the market via acquisitions, such as Goldman with GreenSky, Regions Bank with EnerBank, and Truist with Service Finance. Lenders’ robust balance sheets, strong brands, ability to underwrite big-ticket installment loans, and a large and loyal consumer base give them a competitive advantage in this new arena. In time, POS financing could become a customer-acquisition channel for lenders, as well as a means to increase their share of wallet by cross-selling traditional banking products to POS financing users.

The extent to which these trends will reshape POS financing, and consumer lending more broadly, will depend on multiple factors, including consumers’ willingness to start their shopping journey on BNPL shopping apps, the ability of networks and issuers to provide a compelling user experience and drive adoption, and lenders’ ability to integrate and grow the POS financing businesses they acquire.

How BNPL could affect issuers’ volumes and profits

Three key risks associated with BNPL could significantly affect issuers’ volumes and profits. First, issuers could lose younger consumers who prefer financing to be embedded in the shopping experience. Second, BNPL providers could take away some of the revolvers, who are issuers’ most profitable consumer segment. Third, as BNPL providers start to own customer relationships, issuers may find they must spend more on customer acquisition to compete.

Simulating BNPL’s potential impact on credit-card volumes and profits

We modeled three scenarios of declining growth in credit-card spending (exhibit), based on different assumptions for how credit-card spending would change between 2016–19 and 2020–25. A moderate scenario assumed that the 9 percent CAGR in credit-card spending in 2016–19 would decline by a half percentage point, and the base case assumed a one-percentage-point decline. In the third, or aggressive, scenario, spending would fall two percentage points. In calculating the impact of the potential incremental reduction in spending, we controlled for changes in GDP growth between 2016–19 and 2020–25, and we excluded 2020 and 2021 from the analysis because of pandemic-related distortions.

To calculate how the decline in the share of revolvers might affect pretax profit, we multiplied the incremental reduction in spend volume by the operating-profit margin, which was itself calculated on the assumption that the share of revolvers would decline by three to seven percentage points between 2020 and 2025.

This what-if analysis suggests that the growth of BNPL has the potential to reduce US credit-card spending by 2 to 12 percent by 2025. What’s more, US issuers are likely to see their profits squeezed even more than their volumes, since the customers who switch to BNPL tend to be the revolvers—the most profitable customers. If growth in credit-card spend were to decline by a half to two percentage points from its 9 percent CAGR in 2016–19, and if the share of revolvers were to fall by three to seven percentage points, issuers could see their profits decline by 2 to 15 percent.

To understand the potential impact of BNPL on US issuer volumes and profits, we ran a simulation based on three different scenarios for credit-card spending over the next few years. The simulation revealed that US issuers could lose between 2 and 15 percent of incremental profits to newer forms of borrowing by 2025 (see sidebar “Simulating BNPL’s potential impact on credit-card volumes and profits”).

In markets with more mature POS financing offerings, significant volumes have already shifted from credit cards to BNPL. In Australia, for instance, credit-card accounts have declined by about 6 percent a year, and BNPL accounts have grown by more than 40 percent a year since 2017 (Exhibit 3). Because of its higher interchange fees and different market fundamentals, the US may see a more muted shift than in Australia, but it is evident that replacement is under way.

Findings from the 2021 McKinsey Digital Payments Survey suggest that the credit-card business is more likely to be cannibalized by mid-ticket POS financing than by pay-in-4 providers. That’s because users of mid-ticket POS financing are more likely to have a credit card and to use it if BNPL is not available, as shown in Exhibit 2.

Private-label credit cards are popular among merchants because of their favorable economics, but they are likely to see more impact on their volumes than general-purpose cards. For one-off purchases at a particular merchant, BNPL tends to offer consumers experiences that are more seamless, more transparent, and in some cases more affordable than using a private-label credit card.

Finally, BNPL’s impact on credit cards is likely to vary by industry and product category. In travel, where cobranded cards offer generous rewards for customer loyalty, BNPL represents only about 2 percent of consumer transactions. In contrast, furniture, mattresses, electronics, and appliances could see considerable inroads from BNPL providers as purchases continue to shift to online channels and private-label card penetration stagnates.

How issuers could respond

As issuers face a changing consumer-lending landscape and the possibility of losing credit-card business to BNPL providers, they should prepare a thoughtful response. Options they might consider to sustain and grow their unsecured consumer lending could include reimagining their products to meet customer needs, reaching younger consumers with tailored solutions, driving consumer engagement, and rethinking the economics of their card product.

Reimagining products

Issuers could consider rolling out POS financing products and on-card installment solutions that meet consumers’ need for predictability and demand for financing offered as part of the shopping journey. Fintechs have entered this arena with products such as the Upgrade Card, a hybrid between installment lending and a traditional revolving credit card. When designing their own offerings, issuers will need to carefully consider how a product can deliver sustainable profits while remaining competitive with fintech solutions. That will involve assessing the lifetime value of potential customers, which depends on the issuer’s ability to move customers to offerings with a higher return on assets (ROA) and/or to develop multiproduct relationships with customers.

Reaching younger consumers

Issuers could offer innovative types of credit cards geared to consumers who are new to credit. In Australia, for instance, CommBank and NAB have launched cards that allow consumers to subscribe to a line of credit without being charged interest, although they may in some cases end up paying more in monthly card fees. The appeal of products like these lies in their transparency and simplicity.

Driving consumer engagement

Some issuers and payment providers have acquired e-commerce players that allow them to reduce their customer-acquisition costs or offer new forms of value to boost consumer engagement. Examples include Capital One’s acquisition of Wikibuy, a price-comparison solution, and PayPal’s acquisition of Honey, a coupon-finder service. By becoming a starting point in a shopping journey and offering consumers distinctive value, issuers can increase their chances of staying top of wallet while creating a new revenue stream from affiliate marketing.

Rethinking card economics

Issuers could consider moving toward partly or fully merchant-funded on-card financing offers, rewards, or both to help them sustain their profitability in the face of mounting margin pressures. The key will be to deliver value not only to transactors but also to revolvers, who benefit from BNPL products that are partly or fully funded by merchants.

For US credit-card issuers, the prospect of losing a substantial share of volume and profits to BNPL over the next few years should act as a spur to action. With the right strategic moves, planned and implemented without delay, issuers can give themselves the best chance of stemming likely losses and positioning their business for success in an increasingly competitive arena.

Amit Garg is a senior partner in McKinsey’s New York office, where Diana Goldshtein is an expert, Udai Kaura is a partner, and Roshan Varadarajan is an associate partner.

The authors wish to thank Phil Bruno, Aaron Caraher, Soma Cserhati, Amit Gandhi, Joe Nutter, Oliver Søe, and Jon Steitz for their contributions to this article.

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Behavioral Science

MIT Sloan study shows credit cards act to “step on the gas” to increase spending

MIT Sloan Office of Communications

Mar 11, 2021

Research presents first evidence of differences in brain activation based on payment method

CAMBRIDGE, Mass., March 11, 2021 – Research shows that people tend to spend more when using credit cards compared to cash. However, it is unclear whether credit cards act to “release the brakes” on spending or instead “step on the gas.” A recent study by MIT Sloan School of Management Prof. Drazen Prelec and University of Utah Prof. Sachin Banker presents the first evidence of differences in brain activation when using credit cards versus cash. They found that credit card purchases serve to “step on the gas,” driving more spending.

“Prior studies have shown that credit cards have a different effect on consumers than cash and are often blamed for overspending and household debt. But it is unclear from standard research tools whether credit cards ‘release the brakes’ by removing the pain of payment or ‘step on the gas’ by creating a craving to spend,” says Prelec.

Banker notes, “Billions of financial transactions each year involve cash and credit cards, so any neural differences in the ‘buy’ processes that drive decisions are multiplied to a high degree. By identifying how credit cards shape neural processes involved in making purchase decisions, we spotlight brain mechanisms that could be exploited by new payment methods as they evolve.”

In their study, which Banker worked on as a PhD student at MIT Sloan, the researchers used fMRI technology to look at the brain at the moment of purchase. Participants used their own personal credit card or cash to make real purchases of everyday products.

They found that credit cards serve to ‘step on the gas’ by putting costs out-of-mind regardless of the price of the product. More specifically, the study revealed that credit cards drive greater purchasing by sensitizing reward networks in the brain, involving the same dopaminergic reward center (the striatum) that is exploited by addictive drugs like cocaine and amphetamines.

“The reward networks in the brain that are activated by all kinds of rewards are activated by a credit card purchase,” says Prelec. “The act of putting that plastic credit card in your hand is associated with enjoyable purchases.”

The researchers did not find evidence supporting the theory that credit cards “release the brakes” on spending by reducing the pain of paying. Further, cash purchases did not activate the reward networks in the brain.

In addition, the findings suggest that not all credit cards trigger the same neural response. Prelec explains, “The card you use for restaurants and vacations creates a different appetite for spending than the card you use to buy gas for your card. We need to be aware of this, as technology is making it possible to pay with our phones, which can create different purchase cravings.”

Banker notes, “An important implication of this work is that it highlights how credit cards leverage neural reward mechanisms to facilitate greater spending. Hopefully, this research will help to encourage further work that takes new perspectives toward understanding how payment methods influence purchasing processes, particularly as people start to adopt new forms of payment.”

Prelec and Banker are coauthors of “Neural mechanisms of credit card spending,” which was published in Scientific Reports, a publication of Nature Research. Their coauthors include Derek Dunfield and Alex Huang of the MIT Sloan Neuroeconomics Laboratory.

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Page One Economics ®

Credit cards: the trillion-dollar debt.

"Money often costs too much." 

—Ralph Waldo Emerson

"Highest Credit Card Debt in History" was US headline news in early August 2023. This is quite a change from credit card debt during the pandemic, when reduced consumer spending led to a large drop in average credit card balances . 1 After reaching an all-time high and exceeding $1 trillion in the second quarter of 2023, credit card debt and usage moved into the spotlight. 

What's behind this rise in credit card debt to a trillion dollars? Everyone knows that debt is money owed in exchange for loans or for goods or services purchased with credit . But understanding credit card debt requires some knowledge of the history, purpose, and function of credit cards .

The Evolution of Credit Cards

The Diners Club card was invented by businessmen in 1950 and was the first modern-day credit card. It allowed people to charge meals in local restaurants and then pay the full balance due at the end of a month. This evolved into banks issuing cards with revolving credit : In 1958, Bank of America launched its first credit card, which became Visa in 1976. 2  

Today there are four major companies that issue credit cards—Visa, Mastercard, American Express, and Discover—as well as countless smaller issuers. Many consumers consider credit cards a necessity! They are a convenient way to purchase goods and services without carrying cash or writing a check, and sometimes you're required to use one. For example, car rentals may not rent a vehicle without a credit card.

SOURCE: * Lembo-Stolba, Stefan. "What Is the Average Number of Credit Cards per US Consumer?" Experian , April 8, 2021; https://www.experian.com/blogs/ask-experian/average-number-of-credit-cards-a-person-has/ . † Federal Reserve Bank of New York. "Total Household Debt Reaches $17.06 Trillion in Q2 2023; Credit Card Debt Exceeds $1 Trillion." Press Release, August 08, 2023; https://www.newyorkfed.org/newsevents/news/research/2023/20230808 . †† Haughwout, Andrew; Lee, Donghoon; Mangrum, Daniel; Scally, Joelle and van der Klaauw, Wilbert. "Credit Card Markets Head Back to Normal after Pandemic Pause." Federal Reserve Bank of New York Liberty Street Economics , August 8, 2023; https://libertystreeteconomics.newyorkfed.org/2023/08/credit-card-markets-head-back-to-normal-after-pandemic-pause/ .

How Typical Credit Cards Work 

Credit card issuers use information from credit reports—and the credit scores they generate—to make most decisions about issuing credit cards and setting interest rates on accounts. A credit report includes a consumer's credit history, and a credit score is calculated based on information in the credit report. 

A credit card is an unsecured loan and does not require collateral . From a card issuer's perspective, an unsecured loan is quite risky and has a high possibility of not being repaid. Therefore, interest rates on credit cards are often high overall. Generally, credit card applicants with higher credit scores are more likely to get a lower interest rate or annual percentage rate (APR) , while applicants with lower credit scores will get higher interest rates because of the higher risk in lending them money. 

A credit card offers revolving credit, usually designed for repeated use, with a preapproved credit limit. A card issuer determines the credit limit for an account using an applicant's credit report information and income. The amount of available credit decreases and increases as consumers borrow and then repay funds, oftentimes with interest .

Credit cardholders receive monthly statements from a credit card issuer. A statement includes a list of purchases made during that monthly billing cycle, the balance owed, the due date, and the minimum payment required—the lowest amount due each billing cycle. The card issuer calculates a minimum payment as a percentage of an account's total balance and any past due amounts owed. 

When a credit cardholder carries a balance, paying only the minimum amount by a due date, the card issuer will charge interest on the remaining balance. Making minimum payments means a cardholder will take longer to pay off the balance and will be charged more interest in the long run.

If a cardholder does not make a payment by a due date, the card issuer will charge a late fee and add it to the balance on the card. If a cardholder pays less than the minimum amount due, the card issuer will treat it as a missed payment and report it to credit bureaus. Missing payments will negatively affect a cardholder's credit history and credit score. 

Credit card issuers will not charge interest or late fees if a cardholder pays the statement's full balance each billing cycle by the due date. Paying a balance in full each month positively affects a cardholder's credit history and credit score.

The Lowdown on Credit Card Debt

With credit card balances having reached a record high in 2023 (Figure 1), a question arises: What are some contributing factors for this upward trend? A survey in early 2023 showed that 41% of cardholders owed credit card debt during 2022, and 72% of this group had added debt during 2022. Of those who added debt, 48% identified inflation and inflation rates (Figure 2) as the cause, while 34% blamed higher interest rates (Figure 3). The remaining 24% stated income as the primary reason. 3 The combination of these components increases the possibility that consumers will have difficulty paying balances due and accumulate more debt.

Figure 1 Credit Card Balances

SOURCE: Federal Reserve Bank of Philadelphia via FRED ® , Federal Reserve Bank of St. Louis; https://fred.stlouisfed.org/graph/?g=1b5Db , accessed October 11, 2023.

Figure 2 US Inflation Rates

SOURCE: World Bank via FRED ® , Federal Reserve Bank of St. Louis; https://fred.stlouisfed.org/graph/?g=1b5Do , accessed October 11, 2023.

Figure 3 Interest Rates on Credit Card Accounts

SOURCE: Board of Governors of the Federal Reserve System via FRED ® , Federal Reserve Bank of St. Louis; https://fred.stlouisfed.org/graph/?g=1b5DI , accessed October 11, 2023.

Interest or Annual Percentage Rates

Most credit card issuers don't offer just one interest rate, or APR, to everyone. Issuers offer a range of possible rates based on an applicant's credit risk and credit score. Those with higher credit scores tend to be offered lower interest rates, but this is not guaranteed when opening a new credit card account. At the end of the third quarter in 2023, the average APR for all accounts was 21.19%, but the average APR for new credit card accounts was 24.45%. 4  

There are also different interest rates for different categories in a credit card account, which include the following:

• An introductory APR may be offered to new applicants. This is an incentive that card issuers offer; it may be a very low or 0% APR for a certain amount of time. 
• A purchase APR is the interest on purchases made with the card. 
• A cash advance APR may be charged when the card is used at an ATM.
• A balance transfer APR is charged on balances transferred from another card and is usually lower for a certain amount of time. 
• A penalty APR is applied when a consumer misses a credit card payment. 

Regardless of which APR applies, it will affect the amount of credit card debt. And APR rates tend to be variable, which means they can change over time. When consumers use credit cards to pay expenses and pay off their balances in full each month, the APR is not an issue: They do not pay any interest at all. For consumers who don't pay the full balance or pay just the minimum amount, the APR is very significant. And it is very costly when consumers miss their payments, as it adds to the national credit card debt: From a low in the second quarter of 2021, the share of all credit card accounts 30 or more days past due has trended upward (Figure 4).

Figure 4 Share of All Credit Card Accounts 30+ Days Past Due

SOURCE: Federal Reserve Bank of Philadelphia via FRED ® , Federal Reserve Bank of St. Louis; https://fred.stlouisfed.org/graph/?g=1b5C3 , accessed October 11, 2023.

Rights and Responsibilities of Cardholders

Over the years, credit card laws have given consumers some protection. For example:

• The Fair Credit Reporting Act of 1970 governs how credit information is used and gives consumers the right to know what's in their credit reports. 5  
• The Equal Credit Opportunity Act of 1974 made it illegal for credit card companies to discriminate based on race and gender. 
• The Fair Credit Billing Act, also passed in 1974, allows consumers to dispute unauthorized charges on their bills. 
• The FICO score was introduced by the Fair Isaac Corporation in 1989 as a tool to help assess whether card applicants were creditworthy. 6  
• The Credit Card Accountability Responsibility and Disclosure Act (Credit CARD Act) of 2009 was introduced in response to the high fees and penalties that credit card issuers charged cardholders. This law protects cardholders from deception by card issuers.

These and other consumer protection laws are helpful to credit cardholders. But it is the responsibility of consumers to understand the way credit cards work and the conditions and terms of their credit card account. For example, according to a Forbes Advisor survey from February 2023, 47% of US cardholders reported that they don't know or are unsure about the interest rate on their credit card. 7 This oversight can be costly; it's important to read the fine print and information on a monthly statement to manage an account wisely.

The record-high US $1 trillion credit card debt is a result of several factors, including an increasing number of credit card accounts, inflation, increased interest rates, and credit card account management. While most of these factors are out of the control of consumers, credit card account management can be addressed on an individual level: Consumers can choose the types and number of cards they want, how much to spend on each card, and how to manage each of their accounts. Credit card laws add protections, but a consumer has the responsibility to know what's involved in using this type of unsecured loan. It means you must pay a bill every month for all the things you purchased. And it's important to remember that if you don't pay for all the things you bought by the due date on a statement, those things end up costing much more than their original price because of interest and fees.

1 Dashiell, Steve. "US Credit Card Debt Reaches All-Time High, Exceeds $1 Trillion." Bankrate.com, August 09, 2023; https://www.bankrate.com/finance/credit-cards/credit-card-debt-reaches-all-time-high/ .

2 Capital One. "When Were Credit Cards Invented?" August 23, 2023; https://www.capitalone.com/learn-grow/money-management/when-were-credit-cards-invented/ .

3 Thangavelu, Poonkulali. "Poll: 72% of Those with Credit Card Debt Have Added To it in the Last Year." CreditCards.com, January 23, 2023; https://www.creditcards.com/statistics/credit-card-debt-increase-poll/ .

4 Schulz, Matt. "Average Credit Card Interest Rate in America Today." LendingTree.com, October 6, 2023; https://www.lendingtree.com/credit-cards/average-credit-card-interest-rate-in-america/ .

5 Johnston, Joey. "Fair Credit Reporting Act: Common Violations and Your Rights." InCharge Debt Solutions , May 19, 2022; https://www.incharge.org/debt-relief/credit-counseling/credit-score-and-credit-report/fair-credit-reporting-act/ . 

6 Capital One. "When Were Credit Cards Invented?" August 23, 2023; https://www.capitalone.com/learn-grow/money-management/when-were-credit-cards-invented/ .

7 Pokora, Becky. "Credit Card Statistics and Trends 2023." Forbes , March 9, 2023; https://www.forbes.com/advisor/credit-cards/credit-card-statistics/ .

© 2023, Federal Reserve Bank of St. Louis. The views expressed are those of the author(s) and do not necessarily reflect official positions of the Federal Reserve Bank of St. Louis or the Federal Reserve System.

Annual percentage rate (APR): The percentage cost of credit on an annual basis and the total cost of credit to the consumer. APR combines the interest paid over the life of the loan and all fees that are paid up front.

Collateral: Property required by a lender and offered by a borrower as a guarantee of payment on a loan. Also, a borrower's savings, investments, or the value of the asset purchased that can be seized if the borrower fails to repay a debt. 

Credit: The granting of money or something else of value in exchange for a promise of future repayment

Credit card: Cards that represent an agreement between a lender (the institution issuing the card) and the cardholder. Credit cards may be used repeatedly to buy products or services or to borrow money on credit. Credit cards are issued by banks, savings and loan associations, retail stores, and other businesses. 

Credit card balance: The amount of outstanding debt on a credit card.

Inflation: A general, sustained upward movement of prices for goods and services in an economy.

Inflation rate: The percentage increase in the average price level of goods and services over a period of time.

Interest: The price of using someone else's money. When people place their money in a bank, the bank uses the money to make loans to others. In return, the bank pays interest to the account holder. Those who borrow from banks or other organizations pay interest for the use of the money borrowed.

Interest rate: The percentage of the amount of a loan that is charged for a loan. 

Revolving credit: A line of available credit that is usually designed to be used repeatedly, with a preapproved credit limit. The amount of available credit decreases and increases as funds are borrowed and then repaid with interest.

Unsecured loan: A loan not backed with collateral.

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Frequently asked questions, the best credit cards of may 2024: rewards, top offers & reviews.

May 2, 2024

How we Choose

Credit cards are a secure payment method that give you access to a limited line of credit. You can borrow from this credit limit and pay it back over time. When used responsibly, they’re a great credit-building tool that can help establish credit, build a positive credit history and help you save money.

The best credit cards are particularly worth it because they provide long-term value with rewards and perks that aren’t found with other payment methods.

The right credit card for you will depend on a number of factors, your spending habits and financial goals. It may come with generous rewards rates, lengthy promotional APRs on purchases or balance transfers, generous welcome offers or favorable terms and conditions like low ongoing interest rates. Below you’ll find the top cards from our partners, followed by a detailed list of our editors’ picks and tips on how to find the right card for you.

Best Credit Cards of May 2024

• Wells Fargo Active Cash® Card – Best for flat-rate cash rewards
• Discover it® Cash Back – Best for category variety
• Chase Sapphire Preferred® Card  – Best for travel value
• Capital One SavorOne Cash Rewards Credit Card – Best for food and entertainment
• Blue Cash Everyday® Card from American Express  – Best for household shopping
• Capital One Quicksilver Cash Rewards Credit Card  – Best starter rewards card
• Capital One Venture X Rewards Credit Card  – Best for travel perks
• Capital One Venture Rewards Credit Card  – Best for flat-rate travel rewards
• Citi Custom Cash® Card  – Best second rewards card
• Blue Cash Preferred® Card from American Express  – Best for groceries
• The Platinum Card® from American Express – Best for luxury travel
• American Express® Gold Card – Best for foodies
• The American Express Blue Business Cash™ Card – Best business credit card
• Discover it® Student Cash Back – Best student credit card
• Capital One Platinum Secured Credit Card – Best secured credit card

Filter Cards by Category

• All Categories
• Everyday Cash Rewards
• Cash Back Match
• Sign-Up Bonus
• Unlimited cash back
• No Annual Fee
• Starter Credit Card
• Unlimited miles
• Automatically Maximizing Cash Back
• Best for luxury travel
• Dining Rewards

Wells Fargo Active Cash® Card

Rewards rate

At a glance, overall rating, why we like this card.

It has an edge over rival flat-rate rewards cards since it not only earns unlimited 2% cash rewards on all purchases, but also boasts a welcome bonus and solid intro APR offers on both balance transfers and new purchases.

• It’s one of the only flat 2% cash rewards cards that earns a welcome bonus.
• Stands apart from other flat-rate cards with its handy cellphone protection perk, which offers $600 coverage against damage or theft each month you pay your cellphone bill with this card (up to two claims per year, subject to a $25 deductible).
• Qualifying balance transfers must be made within 120 days of account opening to qualify for the lower intro fee of 3% or pay up to 5% after ($5 minimum).
• This card charges a 3% foreign transaction fee, making it a poor choice for making purchases abroad.

Bottom Line

This card’s generous flat rewards rate and welcome offer make it a terrific standalone option, but it should shine even brighter when paired with a bonus category card.

• Select "Apply Now" to take advantage of this specific offer and learn more about product features, terms and conditions.
• Earn a $200 cash rewards bonus after spending $500 in purchases in the first 3 months.
• Earn unlimited 2% cash rewards on purchases.
• 0% intro APR for 15 months from account opening on purchases and qualifying balance transfers. 20.24%, 25.24%, or 29.99% Variable APR thereafter; balance transfers made within 120 days qualify for the intro rate and fee of 3% then a BT fee of up to 5%, min: $5.
• $0 annual fee.
• No categories to track or remember and cash rewards don't expire as long as your account remains open.
• Find tickets to top sports and entertainment events, book travel, make dinner reservations and more with your complimentary 24/7 Visa Signature® Concierge.
• Up to $600 of cell phone protection against damage or theft. Subject to a $25 deductible.

Rates & Fees

Discover it® cash back.

Its unique cash back match and generous rewards rate in a variety of rotating bonus categories can deliver a ton of value. Terrific category diversity makes it easy to reap rewards from a range of common expenses throughout the year, usually including online retail purchases, dining, PayPal purchases, gas and more.

• It’s a great fit if you’re looking to avoid fees and penalty charges: The card carries no annual fee, foreign transaction fees, penalty APR or fee the first time you pay late (up to $41 after that).
• Its first-year cash back match offer could be the most valuable welcome offer available on a no-annual-fee card — especially given this card’s high rewards rates.
• It’s not a great fit if you’re looking for a simple way to earn rewards: You have to enroll in bonus categories each quarter to earn the maximum cash back rate.
• The card’s rotating bonus categories may not always line up with your spending habits, potentially limiting its value.

You’ll need to strategize to maximize your earnings, but this card’s high rewards rate, solid intro APR offer and exceptionally low rates and fees make it a fantastic package.

• Intro Offer: Unlimited Cashback Match for all new cardmembers – only from Discover. Discover will automatically match all the cash back you’ve earned at the end of your first year! There’s no minimum spending or maximum rewards. You could turn $150 cash back into $300.
• Earn 5% cash back on everyday purchases at different places you shop each quarter like grocery stores, restaurants, gas stations, and more, up to the quarterly maximum when you activate. Plus, earn unlimited 1% cash back on all other purchases—automatically.
• Redeem your rewards for cash at any time.
• Discover could help you reduce exposure of your personal information online by helping you remove it from select people-search sites that could sell your data. It’s free, activate with the mobile app.
• Get a 0% intro APR for 15 months on purchases. Then 17.24% to 28.24% Standard Variable Purchase APR applies, based on credit worthiness.
• No annual fee.
• Terms and conditions apply.

Chase Sapphire Preferred® Card

Frequent travelers can squeeze a ton of value out of this card for only a $95 annual fee. Chase points are worth an extra 25% if you redeem for Chase Travel℠ or potentially even more if you transfer to one of Chase’s airline partners. Plus, the card blows rivals with the same annual fee out of the water thanks to its exceptional annual bonuses and travel insurance perks.

• It’s possible to make up for the annual fee with just the yearly $50 Chase Travel℠ hotel stay credits and 10% account anniversary point bonus (you earn 10% points on your total combined spending in points form the previous year)
• It’s an excellent first travel card since you can increase the value of no-annual-fee Chase card rewards with this card’s transfer partners and redemption value boost toward Chase travel.
• Less frequent travelers might want to skip the $95 annual fee.
• More frequent travelers may earn more travel rewards with a higher-tier travel card.

Between the competitive rewards rates, value-boosting redemption options, annual perk value, and extensive travel protections , frequent travelers can rack up plenty of points to quell their wanderlust.

• Earn 75,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's over $900 when you redeem through Chase Travel℠.
• Enjoy benefits such as 5x on travel purchased through Chase Travel℠, 3x on dining, select streaming services and online groceries, 2x on all other travel purchases, 1x on all other purchases, $50 Annual Chase Travel Hotel Credit, plus more.
• Get 25% more value when you redeem for airfare, hotels, car rentals and cruises through Chase Travel℠. For example, 75,000 points are worth $937.50 toward travel.
• Count on Trip Cancellation/Interruption Insurance, Auto Rental Collision Damage Waiver, Lost Luggage Insurance and more.
• Get complimentary access to DashPass which unlocks $0 delivery fees and lower service fees for a minimum of one year when you activate by December 31, 2024.
• Member FDIC

Capital One SavorOne Cash Rewards Credit Card

Its remarkable variety of bonus categories makes it a fantastic primary rewards card for foodies and thrill-seekers alike. Not only is this one of the few cards that earns rewards at a high rate on both grocery store purchases and dining, but it also boasts a robust entertainment category that earns rewards everywhere from movie theaters to museums.

• It’s ideal for fans of food delivery since it boasts a stellar 10% cash back rate on Uber Eats purchases and a complimentary Uber One membership, which includes unlimited $0 delivery fees on Uber Eats orders (offer expires Nov. 14, 2024).
• Includes a solid introductory APR offer on both purchases and balance transfers, making it a great option if you need to chip away at a balance but don’t want to give up earning rewards long term.
• Some entertainment and travel purchases only earn the maximum cash back rate if you buy through the Capital One Entertainment or travel portal.
• The card’s 3% cash back rate doesn’t apply to purchases at wholesale clubs or grocery superstores like Walmart® and Target®.

Few cards reward such a wide variety of food and entertainment purchases, let alone at such high cash back rates. This makes the SavorOne easily one of the best no-annual-fee cash back cards on the market.

• Earn a one-time $200 cash bonus after you spend $500 on purchases within the first 3 months from account opening
• Earn unlimited 3% cash back on dining, entertainment, popular streaming services and at grocery stores (excluding superstores like Walmart® and Target®), plus 1% on all other purchases
• Earn 10% cash back on purchases made through Uber & Uber Eats, plus complimentary Uber One membership statement credits through 11/14/2024
• Earn 8% cash back on Capital One Entertainment purchases
• Earn unlimited 5% cash back on hotels and rental cars booked through Capital One Travel, where you'll get Capital One's best prices on thousands of trip options. Terms apply
• No rotating categories or sign-ups needed to earn cash rewards; plus cash back won't expire for the life of the account and there's no limit to how much you can earn
• 0% intro APR on purchases and balance transfers for 15 months; 19.99% - 29.99% variable APR after that; balance transfer fee applies
• No foreign transaction fee
• No annual fee

Blue Cash Everyday® Card from American Express

See if you’re pre-approved for this card using our CardMatch tool .

A no-annual-fee alternative to Amex’s Blue Cash Preferred, the Blue Cash Everyday Card offers competitive (though admittedly less lucrative) cash back in some of the same everyday categories, including at U.S. supermarkets and U.S. gas. However, the Everyday’s comprehensive U.S. online retail category makes it a better-rounded card for household shopping than the Preferred.

• Includes up to $84 in annual Disney Bundle streaming service credits ($7 after a $9.99 or higher monthly payment) — a remarkably valuable perk for a no-annual-fee cash back card.
• The intro APR on purchases and balance transfers is on par with competing cash back cards’, making this card a solid option for paying off a balance or upcoming expenses.
• All 3% cash back categories share a $6,000 combined purchase limit each year (then 1%), which may be too low for many households.
• You’ll only earn 1% cash back if you shop for groceries at wholesale clubs, superstores (like Walmart or Target), specialty markets or through online grocery orders.

Excellent rewards categories and no annual fee make this card a no-brainer for the frequent shopper or commuter, especially if online retailers are a sizable part of the shopping.

• Earn a $200 statement credit after you spend $2,000 in purchases on your new Card within the first 6 months.
• No Annual Fee.
• Balance Transfer is back! Enjoy 0% intro APR on purchases and balance transfers for 15 months from the date of account opening. After that, 19.24% to 29.99% variable APR.
• 3% Cash Back at U.S. supermarkets on up to $6,000 per year in purchases, then 1%.
• 3% Cash Back on U.S. online retail purchases, on up to $6,000 per year, then 1%.
• 3% Cash Back at U.S. gas stations, on up to $6,000 per year, then 1%.
• Cash Back is received in the form of Reward Dollars that can be redeemed as a statement credit or at Amazon.com checkout.
• Thinking about getting the Disney Bundle which can include Disney+, Hulu, and ESPN+? Your decision made easy with $7/month back in the form of a statement credit after you spend $9.99 or more each month on an eligible subscription (subject to auto renewal) with your Blue Cash Everyday® Card. Enrollment required.
• Enjoy up to $15 back per month when you purchase a Home Chef meal kit subscription (subject to auto renewal) with your enrolled Blue Cash Everyday® Card.
• Terms Apply.

Capital One Quicksilver Cash Rewards Credit Card

This no-annual-fee cash back credit card offers one of the simplest rewards experiences on the market, thanks to its unlimited, flat-rate cash back and automatic rewards redemption option. And, while you can conceivably earn more with other rewards cards, credit card newbies will appreciate this card’s flexible redemption options.

• Its unlimited, flat-rate rewards and automatic cash back redemption allow it effortlessly pair with other rewards cards you may get in the future.
• On top of no annual or foreign transaction fees, you can save on potential interest with the respectable intro APR offer on purchases and balance transfers.
• The Quicksilver is relatively light on cardholder perks, even for a no-annual-fee cash back card.
• Despite offering a lower rewards rate than many of the best cash back cards, this card still requires a good to excellent credit score.

This popular Capital One card pairs minimal fees with good (though not quite best-in-class) rewards, making it a solid choice for first-time cash back credit cardholders.

• Earn a one-time $200 cash bonus after you spend $500 on purchases within 3 months from account opening
• Earn unlimited 1.5% cash back on every purchase, every day
• $0 annual fee and no foreign transaction fees
• Enjoy up to 6 months of complimentary Uber One membership statement credits through 11/14/2024
• No rotating categories or sign-ups needed to earn cash rewards; plus, cash back won't expire for the life of the account and there's no limit to how much you can earn

Capital One Venture X Rewards Credit Card

The Venture X’s premium perks and unlimited miles pair up nicely with Capital One’s top-of-the-line benefits and protections. Add in a generous sign-up bonus and annual credits, and the Venture X becomes easily one of the best travel rewards cards around.

• It offers a more straightforward experience than other premium travel cards thanks to its flat-rate rewards, flexible travel redemptions and streamlined (but still valuable) perks.
• You can easily make up for the card’s annual fee via its ongoing perks, including $300 in annual travel credits through Capital One Travel and 10,000 bonus miles every year on your account anniversary (worth $100 toward Capital One travel).
• You’ll have to book through Capital One Travel to earn the biggest perks.
• Though the card’s annual fee is modest compared to the fee you’ll find on many other premier travel cards, it may still pose too much risk for some cardholders.

The Venture X more than makes up for its annual fee with valuable, practical travel perks, excellent rewards rates and flexible travel miles.

• Earn 75,000 bonus miles when you spend $4,000 on purchases in the first 3 months from account opening, equal to $750 in travel
• Receive a $300 annual credit for bookings through Capital One Travel, where you'll get Capital One's best prices on thousands of trip options
• Get 10,000 bonus miles (equal to $100 towards travel) every year, starting on your first anniversary
• Earn unlimited 10X miles on hotels and rental cars booked through Capital One Travel and 5X miles on flights booked through Capital One Travel
• Earn unlimited 2X miles on all other purchases
• Unlimited complimentary access for you and two guests to 1,300+ lounges, including Capital One Lounges and the Partner Lounge Network
• Use your Venture X miles to easily cover travel expenses, including flights, hotels, rental cars and more—you can even transfer your miles to your choice of 15+ travel loyalty programs
• Elevate every hotel stay from the Premier or Lifestyle Collections with a suite of cardholder benefits, like an experience credit, room upgrades, and more
• Receive up to a $100 credit for Global Entry or TSA PreCheck®

Capital One Venture Rewards Credit Card

The Capital One Venture presents an easy-to-use alternative to other premium travel cards, complete with flat-rate rewards that can even be redeemed to cover a remarkable variety of travel purchases you’ve already made within the past. This redemption option, coupled with your 2X miles on all purchases, provides a uniquely simple rewards scheme if you want to avoid complicated travel reward programs. However, you still have the option to maximize your miles through Capital One transfer partners or the Capital One Travel portal.

• The Capital One Travel portal is simpler and more value-focused than many other issuer portals, providing price protection features, a cancel-for-any reason refund policy (fees may apply) and an extensive 1:1 transfer partner roster.
• You can expedite your journey with an up to $100 Global Entry or TSA PreCheck application fee credit.
• Its low rewards rate and lack of noteworthy travel perks may make the $95 annual fee hard to justify compared to rival cards with a similar fee.
• Capital One’s current airline partners don’t include any large U.S. airlines.

The user-friendly processes for earning and redeeming your rewards make this card a favorite among travelers who prefer simplicity, but still want transfer partners and other rewards-savvy options for maximum value.

• Enjoy a one-time bonus of 75,000 miles once you spend $4,000 on purchases within 3 months from account opening, equal to $750 in travel
• Earn unlimited 2X miles on every purchase, every day
• Earn 5X miles on hotels and rental cars booked through Capital One Travel, where you'll get Capital One's best prices on thousands of trip options
• Miles won't expire for the life of the account and there's no limit to how many you can earn
• Use your miles to get reimbursed for any travel purchase—or redeem by booking a trip through Capital One Travel
• Enrich every hotel stay from the Lifestyle Collection with a suite of cardholder benefits, like a $50 experience credit, room upgrades, and more
• Transfer your miles to your choice of 15+ travel loyalty programs

Citi Custom Cash® Card

Since it offers some of the highest rewards rates available at no annual fee in a single category like groceries or dining, this card works remarkably well when paired with rewards cards that cover other everyday expenses. You can improve your rewards value even further by pooling your points with a Citi travel card.

• You’ll automatically earn cash back in your eligible top spend category each billing cycle.
• Eligible bonus categories include popular options like restaurants, gas stations and grocery stores.
• The cap on the 5% bonus cash back makes this a good, though not entirely best-in-class cash back card.
• Purchases outside your top spending category each billing cycle only earn 1% back. This means you’ll likely miss out on bonus rewards in some of your major everyday spending categories.

With its generous cash back rate on your top spending category each billing cycle, the Citi Custom Cash® Card is an excellent fit for anyone seeking simplicity in a cash back rewards card. However, the monthly spending cap and automatic single category selection mean you’ll probably get more value from the Custom Cash if another rewards card covers your biggest expenses.

• Earn $200 cash back after you spend $1,500 on purchases in the first 6 months of account opening. This bonus offer will be fulfilled as 20,000 ThankYou® Points, which can be redeemed for $200 cash back.
• 0% Intro APR on balance transfers and purchases for 15 months. After that, the variable APR will be 19.24% - 29.24%, based on your creditworthiness.
• Earn 5% cash back on purchases in your top eligible spend category each billing cycle, up to the first $500 spent, 1% cash back thereafter. Also, earn unlimited 1% cash back on all other purchases. Special Travel Offer: Earn an additional 4% cash back on hotels, car rentals, and attractions booked on Citi Travel℠ portal through 6/30/2025.
• No rotating bonus categories to sign up for – as your spending changes each billing cycle, your earn adjusts automatically when you spend in any of the eligible categories.
• Citi will only issue one Citi Custom Cash® Card account per person.

Blue Cash Preferred® Card from American Express

Perhaps no other grocery card can match the Blue Cash Preferred’s incredible cash back rates on everyday expenses, including 6% on select U.S. streaming service and U.S. supermarket purchases (up to $6,000 in supermarket purchases per year, then 1%) and a competitive 3% cash back at U.S. gas stations and on transit.

• It offers perhaps the highest rewards rates available for U.S. supermarkets and select U.S. streaming services.
• This is one of the few premium credit cards to offer an intro APR on purchases and balance transfers.
• The bonus cash back rate at U.S. supermarkets is limited to your first $6,000 in purchases per year (then 1%) and doesn't cover groceries purchased at superstores (like Walmart) or wholesale clubs (like Costco).
• You can only receive cash back as statement credits. Some competitors let you redeem for a direct deposit to your bank account.

If you spend a lot on groceries and commuting, this card’s top-of-the-line rewards rates are hard to beat.

• Earn a $250 statement credit after you spend $3,000 in purchases on your new Card within the first 6 months.
• $0 intro annual fee for the first year, then $95.
• Buy Now, Pay Later: Enjoy $0 intro plan fees when you use Plan It® to split up large purchases into monthly installments. Pay $0 intro plan fees on plans created during the first 12 months from the date of account opening. Plans created after that will have a monthly plan fee up to 1.33% of each eligible purchase amount moved into a plan based on the plan duration, the APR that would otherwise apply to the purchase, and other factors.
• Low Intro APR: 0% on purchases and balance transfers for 12 months from the date of account opening. After that, your APR will be a variable APR of 19.24% - 29.99%. Variable APRs will not exceed 29.99%.
• 6% Cash Back at U.S. supermarkets on up to $6,000 per year in purchases (then 1%).
• 6% Cash Back on select U.S. streaming subscriptions.
• 3% Cash Back at U.S. gas stations.
• 3% Cash Back on transit (including taxis/rideshare, parking, tolls, trains, buses and more).
• 1% Cash Back on other purchases.
• Get up to $120 in statement credits annually when you pay for an auto-renewing subscription to Equinox+ at equinoxplus.com with your Blue Cash Preferred® Card. That’s $10 in statement credits each month. Enrollment required.
• Thinking about getting the Disney Bundle which can include Disney+, Hulu, and ESPN+? Your decision made easy with $7/month back in the form of a statement credit after you spend $9.99 or more each month on an eligible subscription (subject to auto renewal) with your Blue Cash Preferred® Card. Enrollment required.

The Platinum Card® from American Express

Its long list of high-value travel and shopping perks is almost impossible to beat. Frequent travelers should love this card’s expedited security screening benefits and generous lounge access privileges, as well as its unique credits for everything from hotels to airline incidentals to Uber and digital entertainment.

• Carries unmatched value via its many perks, which could make offsetting the annual fee a cinch if you take full advantage.
• Amex points are among the most valuable travel rewards on the market and Amex offers an impressive list of airline and hotel transfer partners.
• Its annual fee is one of the highest you’ll find and its rewards rates are relatively low, making the card’s cost hard to justify if you won’t use its luxury perks often.
• Many of the card’s perks (like its Equinox or Saks Fifth Avenue credits) may have limited appeal, making the card lucrative only on paper.

Though it carries a hefty price tag, this card could be one of the most valuable on the market for frequent travelers searching for luxury perks like airport lounge access and hotel elite status.

• Earn 80,000 Membership Rewards® Points after you spend $8,000 on eligible purchases on your new Card in your first 6 months of Card Membership. Apply and select your preferred metal Card design: classic Platinum, Platinum x Kehinde Wiley, or Platinum x Julie Mehretu.
• Earn 5X Membership Rewards® Points for flights booked directly with airlines or with American Express Travel up to $500,000 on these purchases per calendar year and earn 5X Membership Rewards® Points on prepaid hotels booked with American Express Travel.
• $200 Hotel Credit: Get up to $200 back in statement credits each year on prepaid Fine Hotels + Resorts® or The Hotel Collection bookings with American Express Travel when you pay with your Platinum Card®. The Hotel Collection requires a minimum two-night stay.
• $240 Digital Entertainment Credit: Get up to $20 back in statement credits each 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, and The Wall Street Journal. Enrollment required.
• The American Express Global Lounge Collection® can provide an escape at the airport. With complimentary access to more than 1,400 airport lounges across 140 countries and counting, you have more airport lounge options than any other credit card issuer on the market. As of 03/2023.
• $155 Walmart+ Credit: Save on eligible delivery fees, shipping, and more with a Walmart+ membership. Use your Platinum Card® to pay for a monthly Walmart+ membership and get up to $12.95 plus applicable taxes back on one membership (excluding Plus Ups) each month.
• $200 Airline Fee Credit: Select one qualifying airline and then receive up to $200 in statement credits per calendar year when incidental fees are charged by the airline to your Platinum Card®.
• $200 Uber Cash: Enjoy Uber VIP status and up to $200 in Uber savings on rides or eats orders in the US annually. Uber Cash and Uber VIP status is available to Basic Card Member only. Terms Apply.
• $189 CLEAR® Plus Credit: CLEAR® Plus helps to get you to your gate faster at 50+ airports nationwide and get up to $189 back per calendar year on your Membership (subject to auto-renewal) when you use your Card. CLEARLanes are available at 100+ airports, stadiums, and entertainment venues.
• Receive either a $100 statement credit every 4 years for a Global Entry application fee or a statement credit up to $85 every 4.5 year period for TSA PreCheck® application fee for a 5-year plan only (through a TSA PreCheck® official enrollment provider), when charged to your Platinum Card®. Card Members approved for Global Entry will also receive access to TSA PreCheck at no additional cost.
• Shop Saks with Platinum: Get up to $100 in statement credits annually for purchases in Saks Fifth Avenue stores or at saks.com on your Platinum Card®. That's up to $50 in statement credits semi-annually. Enrollment required.
• Unlock access to exclusive reservations and special dining experiences with Global Dining Access by Resy when you add your Platinum Card® to your Resy profile.
• $695 annual fee.

American Express® Gold Card

It comes with terrific perks for foodies and some of the best rewards rates you can get at restaurants and U.S. supermarkets. Add in a great mix of travel transfer partners and valuable points and it should be easy to justify this card’s annual fee.

• Travel can net you considerable value, either through Amex’s bevy of popular travel partners or via 3X points on airfare booked with American Express Travel or airlines directly.
• Offers up to $240 worth of annual food-related perks, including up to $120 per year in dining credits with enrollment and up to $120 per year in Uber Cash ($10 per month).
• The annual dining credits may not match up with your favorite restaurants. The only eligible merchants are The Cheesecake Factory, Grubhub, Goldbelly, Wine.com Milk Bar and select Shake Shack locations.
• It may be a poor choice for occasional travelers since Amex points are worth less when you redeem for cash back instead of travel through Amex.

Foodies who love to travel can quickly earn a ton of points thanks to this card’s terrific rewards rates. Even if you order in, you can easily get your money’s worth thanks to the card’s many food delivery credits.

• Earn 60,000 Membership Rewards® points after you spend $6,000 on eligible purchases with your new Card within the first 6 months of Card Membership.
• Earn 4X Membership Rewards® Points at Restaurants, plus takeout and delivery in the U.S., and earn 4X Membership Rewards® points at U.S. supermarkets (on up to $25,000 per calendar year in purchases, then 1X).
• Earn 3X Membership Rewards® points on flights booked directly with airlines or on amextravel.com.
• $120 Uber Cash on Gold: Add your Gold Card to your Uber account and each month automatically get $10 in Uber Cash for Uber Eats orders or Uber rides in the U.S., totaling up to $120 per year.
• $120 Dining Credit: Satisfy your cravings and earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, Milk Bar and select Shake Shack locations. Enrollment required.
• Get a $100 experience credit with a minimum two-night stay when you book The Hotel Collection through American Express Travel. Experience credit varies by property.
• Choose the color that suits your style. Gold or Rose Gold.
• No Foreign Transaction Fees.
• Annual Fee is $250.

The American Express Blue Business Cash™ Card

It boasts an impressive flat cash back rate and streamlined rewards program that make it ideal for small-business owners who want to keep things simple. You won’t even need to put any thought into redeeming rewards — cash back is automatically applied as a statement credit at the end of each billing cycle. You can also earn a $250 statement credit after you make $3,000 in purchases in your first three months.

• Includes Expanded Buying Power, which allows you to make purchases over your credit limit and pay them off over time — while charge cards require you to pay off your full balance every billing cycle.
• Its intro APR offer on purchases is relatively long compared to the offers you’ll find on most business cards.
• Your 2% cash back rate only applies to your first $50,000 in purchases per year, after which it drops to just 1% back. This cap could make a card with bonus categories more rewarding as a standalone option.
• Big business spenders may be able to find a more lucrative business credit card, albeit for an annual fee.

This is one of the best no-annual-fee business cards out there thanks to its generous rewards rate and flexible financing features.

• Earn a $250 statement credit after you make $3,000 in purchases on your Card in your first 3 months.
• 0.0% intro APR on purchases for 12 months from the date of account opening, then a variable rate, 18.49% - 26.49%, based on your creditworthiness and other factors as determined at the time of account opening. APRs will not exceed 29.99%
• Earn 2% cash back on all eligible purchases on up to $50,000 per calendar year, then 1%. Cash back earned is automatically credited to your statement.
• From workflow to inventory to floor plans, your business is constantly changing. That’s why you’ve got the power to spend beyond your credit limit with Expanded Buying Power.
• Just remember, the amount you can spend above your credit limit is not unlimited. It adjusts with your use of the Card, your payment history, credit record, financial resources known to us and other factors.
• Terms Apply

Discover it® Student Cash Back

It not only offers one of the most lucrative rewards programs available on a student credit card, but also features exceptionally low rates and fees that make it ideal if you’re new to credit cards.

• It’s one of the few student cards to offer an intro APR on purchases, which could come in handy if you need time to pay off big expenses like a new laptop or textbooks.
• It carries next to no fees and one of the lowest APRs available on a student card. The card charges no annual fee, no foreign transaction fees, no penalty APR and no fee the first time you pay late (up to $41 after that).
• You’ll need to plan purchases and activate bonus categories each quarter to maximize your cash back earnings. That may be too high-maintenance if you’re new to credit cards.
• Its rotating bonus categories aren’t tailored specifically to student spending, so they may not always yield a ton of cash back.

Though its rotating categories may pose a steep learning curve, this card can be an especially rewarding and low-cost option for students.

• Intro Offer: Unlimited Cashback Match for all new cardmembers – only from Discover. Discover will automatically match all the cash back you’ve earned at the end of your first year! So you could turn $50 cash back into $100. Or turn $100 cash back into $200. There’s no minimum spending or maximum rewards. Just a dollar-for-dollar match.
• No credit score required to apply.
• No annual fee and build your credit with responsible use.
• 0% intro APR on purchases for 6 months, then the standard variable purchase APR of 18.24% - 27.24% applies.

Editor's Pick

Capital one platinum secured credit card.

It’s one of the most accessible secured credit cards on the market, featuring no annual fee, a low security deposit requirement ($49 to $200), and a clear pathway to a higher line of credit.

• You can be eligible for a higher, unsecured credit line after just six months. Many other issuers make you wait seven months to over a year before they review your account for graduation.
• Its fees are relatively low for a credit-building card. It charges no annual fee, no foreign transaction fees and no penalty APR.
• Its maximum starting credit limit is just $200, which could make it hard to maintain low credit utilization (a key credit scoring factor).
• A few other secured cards can earn rewards as well as upgrade your credit line through automatic account reviews.

This card’s starting credit limit is a bit low, but its even-lower deposit requirement and limited fees make it an accessible stepping stone for credit-builders.

• No annual or hidden fees. See if you're approved in seconds
• Building your credit? Using the Capital One Platinum Secured card responsibly could help
• Put down a refundable security deposit starting at $49 to get a $200 initial credit line
• You could earn back your security deposit as a statement credit when you use your card responsibly, like making payments on time
• Be automatically considered for a higher credit line in as little as 6 months with no additional deposit needed
• Enjoy peace of mind with $0 Fraud Liability so that you won't be responsible for unauthorized charges
• Monitor your credit score with CreditWise from Capital One. It's free for everyone
• Get access to your account 24 hours a day, 7 days a week with online banking to access your account from your desktop or smartphone, with Capital One's mobile app

Our methodology and research

Criteria used.

Rates and fees, rewards rates, sign-up bonuses, redemption options, credit needed, miscellaneous benefits, customer service, security, ease of application.

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.

For Capital One products listed on this page, some of the above benefits are provided by Visa® or Mastercard® and may vary by product. See the respective Guide to Benefits for details, as terms and exclusions apply.

Comparing the best credit cards

Up to $240 in annual dining-related credits (issued as monthly statement credits) $250 5 / 5 The American Express Blue Business Cash™ Card Business 2% cash back on all eligible purchases (up to $50,000 per year, then 1%)

Expanded Buying Power allows spending beyond the credit limit, based on creditworthiness No annual fee 3.8 / 5 Discover it® Student Cash Back Students 5% cash back on rotating quarterly categories (activation required) on up to $1,500 per quarter, then 1%

Cashback Match™: All rewards earned in the first year are matched at the end of your first year $0 4.3 / 5 Capital One Platinum Secured Credit Card Secured Minimum $200 credit limit with a security deposit as low as $49 ($49, $99 or $200, depending on creditworthiness)

Editor’s picks: A closer look at top-rated credit cards

Best for flat-rate cash rewards: wells fargo active cash® card.

• Best features : The Active Cash card goes further than other flat-rate credit cards that earn a high 2% cash rewards on purchases, offering a welcome bonus and additional perks like concierge service, hotel benefits at Visa Signature Hotel collection properties worldwide and up to $600 in cellphone protection ($25 deductible applies) when you pay with your eligible Wells Fargo card.
• Biggest drawbacks : A credit card that earns rewards at a higher rate in your biggest spending categories could prove more valuable overall. You also can’t pool rewards across multiple Wells Fargo cards the way you can with other issuers’ cards, limiting your redemption options and value.
• Alternatives : The Chase Freedom Unlimited® has a slightly lower base cash back rewards rate than the Active Cash Card (just 1.5% back on general purchases), but it comes with additional bonus categories that could easily make up the difference if you spend more on travel and dining. The Citi Double Cash® Card is also a solid alternative to the Active Cash if you want a slightly longer balance transfer offer or the ability to transfer your points (in this case, to the Citi Premier card).
• Bottom line : This is one of the best credit cards for anyone looking for a straightforward way to earn cash rewards on purchases.

Read our full Wells Fargo Active Cash Card review or jump back to this card’s offer details .

Best for category variety: Discover it® Cash Back

• Best features : Most cards earn rewards in only a handful of fixed categories, but this card earns a stellar cash back rate on a wide variety of popular rotating categories – often ten or more categories per year. Discover’s rotating rewards program is especially valuable for new cardholders since the issuer matches all the cash back you’ve earned at the end of your first year.
• Biggest drawbacks : Enrollment is required for bonus categories so you’ll need to keep an eye on Discover’s quarterly category schedule . If you’re not up for planning in advance, you may miss out on the potential value of the card. Discover also lacks a dedicated rewards program similar to Amex or Chase, so you won’t have the opportunity to transfer your rewards to travel partners.
• Alternatives : If bonus categories aren’t your bag, the Citi Double Cash Card is an excellent flat-rate cash back card that charges no annual fee. The Capital One SavorOne Cash Rewards Credit Card may also be more lucrative since it earns rewards year-round on staples like groceries, dining and entertainment.
• Bottom line : This card’s high rewards rate is sure to please anyone willing to plot out rotating categories in advance, and big spenders will certainly get the most out of this card’s opportunity to have all your earnings matched at the end of your first year.

Read our full Discover it® Cash Back review or jump back to this card’s offer details .

Best for travel value: Chase Sapphire Preferred® Card

• Best features : The Sapphire Preferred card’s travel perks , transfer partners and rewards are exceptional for its relatively low annual fee. Along with high rewards rates on travel and everyday purchases, you’ll get a 25% boost in point value when you redeem for travel with Chase. This makes the card a terrific pairing option with no-annual-fee Chase rewards cards.
• Biggest drawbacks : You’ll get the best value from this card if you redeem rewards for travel and take advantage of its perks. If you only travel occasionally, the card’s annual fee may be harder to justify.
• Alternatives : If you want premium perks like annual travel credits and complimentary lounge access, consider upgrading to the Chase Sapphire Reserve® Card or Capital One Venture X.
• Bottom line : Frequent travelers who aren’t loyal to one airline or hotel brand can get a lot of value out of this general-purpose travel card. It offers stellar rewards value, flexibility, perks and card combination opportunities for a low annual fee making it a worthy choice for most wallets.

Read our full Chase Sapphire Preferred Card review or jump back to this card’s offer details .

Best for food and entertainment: Capital One SavorOne Cash Rewards Credit Card

• Best features : Few cards cover the combination of food and entertainment like the SavorOne. You’ll have an easy time earning an unlimited 3% cash back when grocery shopping (excluding superstores like Walmart® and Target®), eating in or out, binge watching your favorite shows via popular streaming services or visiting popular destinations like zoos, concerts, sporting events and movie theaters. Plus, it’s hard to beat the 8% cash back on Capital One Entertainment purchases and 10% back on Uber rides and Uber Eats orders (Uber offer through Nov. 14, 2024).
• Biggest drawbacks : The SavorOne doesn’t provide the highest rewards rates for groceries or dining, or annual credits for food or entertainment. Other cards may be a better fit if you’re looking for rich bonus features and best-in-class rewards rates on those purchases.
• Alternatives : If you spend heavily on groceries, you may reap more value from the Blue Cash Preferred® Card from American Express since it boasts a much higher cash back rate on U.S. supermarket purchases. Meanwhile, the American Express® Gold Card may be a better fit for foodies thanks to its dining-centric categories and perks.
• Bottom line : Almost any cardholder can benefit from this no-annual-fee ( See Rates and Fees ) card’s unlimited 3% rewards in popular spending categories. However, entertainment fans will find the SavorOne card’s comprehensive category coverage and 8% back on Capital One Entertainment purchases provide a unique value.

Read our full Capital One SavorOne Cash Rewards Credit Card review or jump back to this card’s offer details .

Best for household shopping: Blue Cash Everyday® Card from American Express

• Best features : This no-annual-fee card carries solid cash back rates on everyday spending at U.S. supermarkets and gas stations, and its comprehensive online shopping category can fill in the gaps for the rest of your shopping staples.
• Biggest drawbacks : The bonus rewards are less generous than the Blue Cash Preferred but have the same spending cap on U.S. supermarket spending (along with a cap on the other bonus categories). Similarly, this card isn’t a great fit if you’re a fan of bargain shopping since its supermarket category excludes superstores and warehouse clubs (though you may earn rewards by shopping online at these stores).
• Alternatives : If you spend $270 or more each month on groceries, the Blue Cash Preferred should rake in enough cash back on U.S. supermarket purchases to make it the more rewarding card , even with its annual fee. Plus, you’ll also enjoy a slew of other bonus categories that cover common expenses. The Bank of America® Customized Cash Rewards credit card is also excellent for groceries, and it offers a similar choice category for online shopping.
• Bottom line : Families with a smaller grocery budget can enjoy the Blue Cash Everyday’s rewards without worrying about recouping an annual fee. But whether the card is worth it depends on where you prefer to buy your groceries.

Read our full Blue Cash Everyday Card from American Express review or jump back to this card’s offer details .

Best starter rewards card: Capital One Quicksilver Cash Rewards Credit Card

• Best features : This popular Capital One credit card has all the features you should look for in a first rewards credit card: no annual fee ( See Rates and Fees ), a sign-up bonus with a low spending threshold and additional benefits like free credit monitoring and 24/7 concierge service, and a simplicity which makes it easy to maximize your card value. You can also choose to redeem cash back automatically if you want to streamline the rewards process.
• Biggest drawbacks : A 1.5% cash back rate isn’t the best you can find on a flat-rate cash back card . In fact, some flat-rate cards offer the same cash back rate without requiring a good credit score.
• Alternatives : You can earn more with the Wells Fargo Active Cash card, which offers a full 2% cash rewards on purchases. Or, if you have average credit, you might have to settle for the Capital One QuicksilverOne Cash Rewards Credit Card , which lacks the sign-up bonus and comes with an annual fee, but earns 1.5% cash back on all purchases.
• Bottom line : The Quicksilver is an excellent choice for your first rewards credit card thanks to its low cost and the ease with which you can earn and redeem rewards.

Read our full Capital One Quicksilver Cash Rewards Credit Card review or jump back to this card’s offer details .

Best for travel perks: Capital One Venture X Rewards Credit Card

• Best features : This premium card has one of the lowest annual fees for a top-of-the-line rewards card with luxury benefits like complimentary lounge access. On top of valuable annual credits and bonus anniversary miles that easily justify the annual fee, the card also offers an impressive flat rate of 2X miles and a stellar sign-up bonus.
• Biggest drawbacks : Other luxury travel cards offer more perks and privileges with partner brands, including rideshare credits and complimentary hotel elite status. Competing cards may also earn more rewards on general travel, dining and other travel-related purchases, so you’ll want to review your travel and spending habits to understand whether the Venture X is worth it.
• Alternatives : If you’re not deterred by the $695 annual fee (see rates and fees ), you may prefer The Platinum Card® from American Express , which offers broader airport lounge access, more luxury travel benefits and a larger network of transfer partners. If you’d rather avoid a high annual fee, consider the Chase Sapphire Preferred® Card , which offers stellar value for just a $95 annual fee.
• Bottom line : The Venture X is a great option for anyone looking for a taste of luxury perks without paying over $500 for an annual fee ( See Rates and Fees ). Frequent travelers will be able to easily offset the card’s annual fee with the card’s practical features, including annual travel credits, yearly bonus miles and generous reward opportunities.

Read our full Capital One Venture X Rewards Credit Card review or jump back to this card’s offer details .

Best for flat-rate travel rewards: Capital One Venture Rewards Credit Card

• Best features : This is one of the best general-purpose travel cards for people who want a straightforward travel rewards card with flexible redemption options. A decent sign-up bonus, travel benefits, flat-rate rewards and boosted miles on eligible Capital One Travel bookings combine to make this an especially well-rounded travel card. For many travelers, the $95 annual fee ( See Rates and Fees ) will be well worth the cost.
• Biggest drawbacks : The Venture card doesn’t carry any perks with a clear monetary value other than the up to $100 fee credit for a Global Entry or TSA PreCheck application you can receive every four years. That means you’ll have to rely on your rewards to make up for the $95 annual fee instead of the annual credits and perks competing cards provide.
• Alternatives : Though they carry the same annual fee, the Chase Sapphire Preferred could be more lucrative than the Venture card thanks to its remarkable travel benefits and mix of bonus categories. Alternatively, you may want to upgrade to the Venture X card since its travel credits and other perks may deliver more value for its annual fee.
• Bottom line : Frequent travelers looking for a streamlined travel rewards card without complicated redemption options or fluff features may enjoy the Capital One Venture.

Read our full Capital One Venture Rewards Credit Card review or jump back to this card’s offer details .

Best second rewards card: Citi Custom Cash® Card

• Best features : Few cards adapt to your spending habits like the Custom Cash card, since it automatically earns 5% cash back in your top eligible spending category (on up to $500 in spending each billing cycle). The card’s eligible categories also include a number of options that don’t typically earn such a high cash back rate like gas stations, transit and home improvement stores. This makes the Custom Cash an excellent secondary rewards card if your primary card covers your largest expenses.
• Biggest drawbacks : Since you only earn bonus cash back in one eligible spend category and all other purchases earn 1% cash back, you could lose out on a lot of cash back rewards if you put all of your spending on this card.
• Alternatives : Though it comes with an annual fee after the first year, the Blue Cash Preferred card earns more rewards in multiple everyday categories, including purchases made at U.S. gas stations and U.S. supermarkets. If you take full advantage of the card’s rewards earning potential, you could offset that fee and still rake in plenty of cash back.
• Bottom line : The Custom Cash card is a good option for anyone looking for a well-rounded, no-annual-fee rewards card, given it also includes a sign-up bonus and promotional APR on balance transfers and purchases. To make sure you’re getting the best value, pair it with a flat-rate card or another bonus-category rewards card.

Read our full Citi Custom Cash Card review or jump back to this card’s offer details .

Best for groceries: Blue Cash Preferred® Card from American Express

• Best features : This card packs a lot of everyday value, offering substantial rewards in far more household categories than the typical cash back card. In fact, it includes one of the highest rewards rates for U.S. supermarkets and select U.S. streaming services. It also comes with an intro APR offer on purchases and balance transfers, annual streaming credits and outstanding rewards on transit and U.S. gas station purchases.
• Biggest drawbacks : There are a few caveats attached to the bonus rewards – namely the $6,000 cap on U.S. supermarket purchases per year (then 1%) and the fact that the 3% and 6% rewards are only available stateside.
• Alternatives : If you spend less than $3,200 on groceries each year, you might squeeze more value out of the Blue Cash Everyday® Card from American Express . It earns rewards at a slightly lower rate but charges no annual fee and includes a lucrative U.S. online retail category.
• Bottom line : If you spend at least $3,200 per year at U.S. supermarkets, this will be one of the most lucrative grocery rewards cards out there, despite its ongoing annual fee.

Read our full Blue Cash Preferred Card review or jump back to this card’s offer details .

Best for luxury travel: The Platinum Card® from American Express

• Best features : The Amex Platinum card’s benefits include perhaps the most generous airport lounge access available, as well as credits for expedited security screening, Uber, airline fees and more – all of which could add up to more than $2,000 of value each year. Plus, your points could be extremely valuable if you take advantage of Amex’s airline and hotel transfer partners .
• Biggest drawbacks : The card carries an extremely high annual fee, many of its perks may be impractical for the average cardholder, and the card’s ongoing rewards rate on non-travel spending is low. If you only travel occasionally or aren’t sure you’ll use the card’s perks, the Amex Platinum probably isn’t the best fit.
• Alternatives : The Capital One Venture X offers a much more practical set of travel perks at a lower cost, making it a better option if you’re a frequent traveler but don’t plan on using many of the Platinum Card’s niche features.
• Bottom line : This card could be either more than worth the cost or a money pit, depending on how frequently you travel and how appealing you find its sometimes niche perks.

Read our full Amex Platinum review or jump back to this card’s offer details .

Best for foodies: American Express® Gold Card

• Best features : On top of earning generous Amex Membership Rewards points for airfare and purchases made at U.S. supermarkets, this card boasts one of the highest rewards rates out there for dining, including eligible takeout and delivery services like Uber Eats. It also carries an impressive welcome offer, dining credits and other perks that make it one of the top rewards cards for dining and travel.
• Biggest drawbacks : The credits are doled out on a monthly basis, in $10 increments, which may feel limiting if you were hoping for a larger payout. Plus, the dining credit only covers a small list of options: Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, Milk Bar and select Shake Shack locations. These limitations may decrease the card’s value and make it harder to offset the $250 annual fee.
• Alternatives : At $95 a year, the Citi Premier® Card has a much lower annual fee. But you could end up earning more rewards if your spending habits line up with the card’s multiple 3X bonus categories, which cover restaurants, supermarkets, gas stations, air travel, and hotels.
• Bottom line : The Amex Gold can easily be worth the annual fee if you’re looking for a best-in-class travel card for dining, U.S. supermarket and airfare purchases.

Read our full American Express Gold Card review or jump back to this card’s offer details .

Best business credit card: The American Express Blue Business Cash™ Card

• Best features : This is a great card for business owners who want an easy-to-use business card packed with features that can help you manage operations. Along with a nice flat rate on all eligible purchases, you also get plenty of expense management tools like free employee cards and access to business software to help you track your spending. Plus, the card comes with Expanded Buying Power, which can offer some peace of mind if you get stuck with unforeseen expenses.
• Biggest drawbacks : You won’t earn maximum rewards for your business with a flat-rate credit card. And you’ll need to be careful not to exceed the spending cap: If you spend more than $50,000 per year, your flat rate drops to 1% for all purchases.
• Alternatives : Big spenders may get more value out of a card that offers unlimited flat-rate rewards. Consider the Ink Business Unlimited® Credit Card , which offers unlimited 1.5% back on all purchases for no annual fee. The Capital One Spark Cash Plus is another great option: It carries no preset credit limit, earns a flat 2% cash back and includes a $150 cash bonus every year you charge $150,000 or more to the card.
• Bottom line : Business owners looking for cash flow solutions, along with business owners who spend less than $50,000 each year, should consider this card a top option for their wallet.

Read our full The American Express Blue Business Cash Card review or jump back to this card’s offer details .

Best student credit card: Discover it® Student Cash Back

• Best features : Students will be hard-pressed to find a starter credit card that offers more value than the Discover it® Student Cash Back. Not only do you get an unsecured card to help build credit, but you’ll also get the same first-year welcome offer and high rewards rate as the full-fledged Discover it® Cash Back card.
• Biggest drawbacks : You’ll have to keep track and enroll in quarterly rotating bonus categories, which might be more maintenance than you’re looking for.
• Alternatives : If you don’t want to deal with rotating bonus categories that require enrollment, the Capital One Quicksilver Student Cash Rewards Credit Card keeps it simple by earning cash back on all your purchases. But if you spend more on staples like food and entertainment, then the Capital One SavorOne Student Cash Rewards Credit Card could be more consistently rewarding.
• Bottom line : Students who want to earn rewards and enjoy beginner-friendly benefits are a great match for this well-rounded cash back credit card.

Read our full Discover it® Student Cash Back review or jump back to this card’s offer details .

Best secured credit card: Capital One Platinum Secured Credit Card

• Best features : This is perhaps the most accessible secured card available. You can put down a deposit of just $49 or $99 (if you qualify) and still get a minimum $200 credit limit. Capital One may also refund your security deposit after only six months of responsible card use — the shortest automatic account review period you’ll find.
• Biggest drawbacks : You’ll need to pay your balance in full each billing cycle to avoid the card’s high variable APR. It also doesn’t earn rewards or offer a clear path to a higher credit limit like some competing secured cards. The $1,000 maximum security deposit may make it harder to improve your credit score since keeping your credit utilization ratio low could be challenging.
• Alternatives : The Discover it® Secured Credit Card is another leading secured card thanks to its cash rewards, low fees and similar review process for an unsecured credit line. Although you’ll need a $200 minimum security deposit, its higher $2,500 maximum credit limit could make it easier to keep your credit utilization ratio low.
• Bottom line : This card is a top option for people with bad credit who aren’t likely to qualify for an unsecured credit card. Just take care to review the card’s benefits guide to make sure you avoid fees and other financial missteps.

Read our full Capital One Platinum Secured Credit Card review or jump back to this card’s offer details .

Picking the right credit card

There are numerous types of credit cards available to consumers, ranging from straightforward, no-frills cards, to options that are packed full of features. You’ll need to compare credit cards based on your spending habits, credit history and any desired benefits. To help you narrow it all down, we’ll detail a few credit card types and their top features.

Low-interest credit cards + –

Low-interest credit cards feature APRs lower than the average credit card interest rate , which hovers around 20%. They can be a handy option if you need to carry a balance in an emergency. Cards with low rates usually require you to have at least a good credit score.

If you want the absolute lowest ongoing APRs available, or if you have a lower credit score, a credit union credit card may be your best bet. You have plenty of options if you have a good credit score, which means making a decision may take more work. A great place to start your research would be comparing cards like the Discover it Balance Transfer and the Wells Fargo Reflect® Card , one of the best low-interest cards. Both cards prioritize low-interest rates and intro APR offers. The Discover it Balance Transfer also doubles as a cash back card.

Zero-interest credit cards + –

Zero-interest credit cards come with introductory periods that let you avoid interest on purchases, balance transfers or both for a limited time. These intro APR periods usually give you 12 to 21 months to pay off your balance. When your 0% introductory period ends , the card’s regular APR will apply, and you’ll begin accruing interest on any remaining balance.

To determine which zero-interest credit card is the best pick, you must evaluate your current debt and the amount of money you plan to spend in the coming months. Zero-interest cards typically have introductory APR offers for both balance transfers and purchases. However, some cards offer an extended intro APR period for one at the loss of the other. Others may include generous rewards programs alongside zero-interest offers.

Comparing two options, like the Capital One SavorOne card and the Citi Simplicity® Card , can give you a better idea of available intro APR cards. Although the SavorOne card offers high rewards rates with an intro APR offer, the Citi Simplicity has a much longer intro APR period.

Balance transfer credit cards + –

Balance transfer credit cards provide lengthy 0% intro APR offers on balance transfers so that you can transfer your current balance from one or more cards – or sometimes eligible loans – and pay off the consolidated balance without the burden of incoming interest.

Many specialized balance transfer cards cut rewards in favor of 18-month to 21-month intro APRs, but some offer rewards. People who carry high-interest debt on one or more credit cards could save hundreds of dollars by doing a balance transfer . When choosing the most cost-effective card, make sure you account for the card’s balance transfer fee (typically 3% to 5% of your transferred total).

The right balance transfer card for you may come down to how much debt you have on other cards. The more debt you have, the longer intro APR offer you’ll want. For high debt, you should look at cards like the Citi Simplicity Card, which has one of the longest intro APR offers available. If you have moderate debt and still want an all-around great card, consider comparing the Capital One SavorOne Cash Rewards Credit Card and the Bank of America® Customized Cash Rewards credit card . Both cards have boosted cash back rates in several categories and generous balance transfer offers.

Rewards credit cards + –

A rewards credit card earns cash back, points or miles on eligible purchases, depending on the type of rewards card . Reward rates may apply to all purchases or only to purchases in a specific category like gas or groceries. The best rewards credit cards also often include lucrative sign-up bonuses, intro APR offers, purchase protections or other useful perks. In exchange for an annual fee, some cards also offer especially valuable rewards rates and benefits like annual credits.

There are several rewards cards to choose from, and the right one for you will depend on your unique expenses. If you aren’t sure where to start, consider comparing the American Express Gold Card and the Capital One Quicksilver Cash Rewards credit card to better understand which type of rewards card aligns with your needs.

Cash back credit cards + –

Cash back credit cards let you earn and redeem cash, usually in the form of statement credits, gift cards, checks or direct deposits into your bank account. They generally fall into three categories:

• Flat-rate cash back cards : These cards offer a high rewards rate on general purchases — usually between 1.5% and 2% cash back. They’re a good fit for people who want a simple way to earn generous rewards.
• Tiered bonus category cash back cards : These cards offer a high rewards rate — usually between 2% and 6% cash back — in specific spending categories, like dining, gas or groceries. They’re best suited to people who spend a lot in particular bonus categories.
• Rotating bonus category cash back cards : These cards often offer 5% cash back up to a certain spending limit in a variety of bonus categories that rotate each quarter. They’re a bit more high maintenance than flat-rate or tired bonus category cash back cards, but these cards can be great for maximizing rewards.

There’s no shortage of choice regarding cash back cards, and they won’t all be right for you. If you aren’t sure where to start, consider comparing the Wells Fargo Active Cash card and the Blue Cash Everyday card from American Express. The Active Cash is an excellent example of a solid flat-rate card, while the Blue Cash Everyday is a rewarding tiered cash back card. If you can decide between the two, you may be able to determine which cash back program works best for you and whether you should consider a rotating category cash back card to fill in any gaps.

Travel credit cards + –

Travel credit cards let you earn points or miles to redeem for future travel bookings. They often tout additional travel benefits, like annual credits, complimentary lounge access, no foreign transaction fees, airline or hotel upgrades and supplemental travel insurance. As with cash back cards, there are several types of travel rewards credit cards.

• General-purpose travel credit cards : Top travel cards earn points or miles that aren’t tied to specific airlines or hotels – usually 1.5X to 2X rewards on general purchases or 2X to 10X rewards in specific bonus categories. You can redeem these rewards for various travel purchases, including airfare, hotel stays, car rentals, travel experiences or vacation packages. They’re best for travelers who want the flexibility to earn rewards with various airline and hotel brands, and don’t mind transferring rewards between travel partners to get the most value for their points.
• Airline credit cards : These cards let you earn miles and airline-specific perks you won’t find with general-purpose travel cards, including free checked bags, priority boarding and seat upgrades. Airline credit cards are a good fit for people who fly with the same carrier several times a year.
• Hotel credit cards : These cards let you earn points and special perks at a specific hotel brand. Cardholders can earn free nights, free amenities (like in-room Wi-Fi) and room upgrades. Hotel credit cards are a good fit for people who frequently travel and stay at the same hotel chain several times a year.

Choosing a travel card can be overwhelming, but a good place to begin your search will be comparing a general travel rewards card with a branded travel card partnered with the airline or the hotel you travel most frequently with. The branded card will vary by user, but if you look at how a card like the Chase Sapphire Preferred card compares to your preferred airline or hotel card, you might find you value flexibility more than niche extras — or vice versa.

Credit-building credit cards + –

You may have heard that getting a credit card is one of the best ways to build credit . That’s because there are credit cards designed specifically to help people with no, fair or even bad credit do just that.

• Secured credit cards : These cards require applicants to put down an upfront refundable deposit (typically between $200 to $2,500), which serves as the card’s credit limit. They’re a good option for people with bad credit or no credit who can’t qualify for a traditional, unsecured credit card.
• Student credit cards : These cards are geared toward students and recent graduates. They’re more accessible than traditional credit cards and are typically unsecured, so applicants don’t need a long credit history or security deposit to obtain one. Student cards also usually feature the best rewards rates and lowest APRs and fees compared to other credit-building cards, so they’re a great first credit card option.
• Starter credit cards : These are beginner-friendly cards geared toward credit users who would have trouble qualifying for traditional credit cards. Student cards and secured cards fall under this umbrella, but they can also include unsecured cards for people with:
• No credit : These cards are a good choice if you have no credit history. Some of these cards offer rewards, but watch out for fees and high purchase APRs.
• Bad credit : You can find a card that accepts bad credit with no annual fee, but many of these cards have one-off fees that you need to watch out for. The regular APR will almost certainly be high, although some offer rewards.
• Fair credit : If you are trying to improve your credit into the good or excellent category, a card that accepts fair or average credit is a good choice. There may be an annual fee , the APR may be somewhat high, and a 0% intro APR is unlikely. However, these cards typically offer the best reward rates and benefits if you’re building credit and aren’t a student.

Business credit cards + –

Business credit cards are designed for entrepreneurs, small-business owners, gig workers and freelancers. When it comes to business credit cards versus personal cards , business cards aren’t required to offer the same legal protections found with consumer cards. However, business cards set themselves apart with rewards in popular business purchases, potentially higher credit limits (or no pre-set spending limits), expense tracking tools and other features that could be valuable for managing your business.

You’ll want to find a business card with rewards rates that align with your business expenses. Sometimes, the best choice may be a flat-rate rewards card like the American Express Blue Business Cash Card. To explore tiered category rewards in specific categories, look at a card like the Chase Ink Business Cash® Credit Card .

How do credit cards work?

In simple terms, credit cards are financial products that allow you to borrow money (usually) without collateral. Essentially, this is how credit cards work :

• When you want to make a purchase, you present your credit card or account number to the merchant who will then run the transaction.
• You’ll receive a bill each month, by email or online, for all of your purchase charges and any interest charges.
• If you don’t carry a balance month to month, then you don’t pay interest. Carry a balance, and the interest starts accumulating.

Credit cards are for short-term borrowing. If you plan on borrowing long term, a personal loan would be a better fit. A credit card APR is much steeper and may lead to hundreds — or even thousands — of dollars in interest charges if you carry a balance long term, especially if you only pay the minimum each month. However, there are ways to avoid paying any interest and ways to make credit cards benefit your whole financial picture.

How do credit card rewards work?

Credit card rewards come in many forms but generally fall into one of three categories: cash back, points or miles. Cash back is the most straightforward since you earn a percentage of your total spending back based on your card’s rewards rate. For example, a card that earns 5% cash back on groceries would earn $5 back on $100 in grocery purchases. You’ll typically be able to redeem cash rewards as statement credits, direct deposits, mailed checks or gift cards.

Points and miles usually work the same way, but your redemption options and the value of your rewards may differ depending on the rewards program. For example, if a card offers 5X points on dining, you’ll earn 500 points or miles on a $100 purchase, but you may get the best value for your points when you redeem them in a specific way, such as for travel (a card may earn points worth 1.5 cents per dollar when you redeem for travel, but only 0.5 cents per point when you opt for cash back).

Although every rewards program works differently, you should generally choose a card that earns :

• Cash back to keep things simple and save on your everyday expenses.
• Travel miles if you fly or stay in hotels frequently.
• Reward points for flexibility to redeem rewards as either cash back or travel.

How do credit scores work?

Issuers will evaluate your credit application by reviewing your credit score to determine your creditworthiness and assess risk based on your previous credit history. Your credit score is shaped by a wide range of factors. These factors include your on-time payment history, credit utilization ratio, the age of your oldest line of credit and number of open accounts. More recently, some credit scores even factor in your rental payment history , which can be a huge boon to your overall credit profile.

The most commonly used credit score is the FICO score. This three-digit number is based on your credit history and ranges from 300 to 850. VantageScore, created by Equifax, Experian and TransUnion, is another widely used indicator of creditworthiness and uses a similar range to FICO. In both cases, the credit issuer operates under the assumption that those with a higher credit score pose less risk.

FICO and VantageScore group credit scores within the following ranges:

Naturally, a ”good” credit score or higher will net you the best credit card approval odds, interest rates and credit limit.

Under the Fair Credit Reporting Act, you can request your credit score for free once every year. It’s a good idea to know your score and review your credit report to look for mistakes, which happen more than you might think. An error on your credit report can drag down your score and prevent you from being approved for credit cards, loans, apartments and more. If you do find a mistake, you can dispute it and possibly have the error removed from your credit report .

How does credit card interest work?

Credit card interest is the fee financial institutions charge you to borrow money. It’s listed as an annual percentage rate (APR) on your credit card statement or in your card’s terms and conditions. There are various credit card interest charges , such as purchase APR, cash advance or penalty APR, but it’s purchase APR you typically encounter the most.

• Your issuer determines your interest rate . You will often see a range of interest rates listed with a credit card based on the prime rate, which is set by the Federal Reserve , but your exact rate is determined by the card issuer. Your creditworthiness is the main determining factor, and if you fall into a good or excellent credit rating, you will qualify for a lower interest rate compared to people with fair or bad credit.
• Interest is added to any unpaid balance . Interest is calculated by what you owe at the end of your billing cycle, including your unpaid balance from the previous cycle. Issuers typically calculate the credit card interest owed using a daily periodic rate, which is multiplied by your average daily balance and the number of days in your billing period.
• You can avoid paying interest . There are two ways to avoid racking up interest if you can’t pay off your balance before your payment due date. The first is to take advantage of the grace period found with most credit cards. These periods give you a certain amount of time (typically at least 21 days) to make purchases with your card and pay them off without dealing with interest charges. Another way to avoid paying interest is to take advantage of cards offering a 0% introductory APR on purchases or balance transfers.

When used responsibly, a credit card gives you substantial advantages, such as the ability to earn rewards, handle emergencies and build credit. Here are some of the most useful benefits of using a credit card , as well as some potential drawbacks of having a credit card.

• Credit building . Using a credit card responsibly can help you build credit since your card issuer will report your transaction activity to the three credit bureaus.
• Earning rewards . You can earn cash back, points or miles for your spending, potentially earning hundreds of dollars on purchases you would have made anyway.
• Access to card membership perks . Certain credit cards come with discounts, purchase protections, complimentary services or memberships. Plus, your credit card may provide more peace of mind next time you travel with benefits such as baggage delay insurance, rental car collision coverage or trip cancellation and interruption insurance.
• Protection against fraud . Credit cards are far more secure than debit cards since they are not tied to your bank account. Many credit cards include some form of fraud protection , so if your card is stolen and someone makes large transactions with it, you will not be held liable. Cardholders are covered under the Fair Credit Building Act (FCBA) in the case of fraudulent credit card transactions, so if you fear your card has been lost or stolen, or if you notice strange charges, your credit card issuer will most likely cancel your card and cover the fraudulent charges.
• Pay off purchases over time . Credit cards also allow you to make a purchase and repay the balance at a later date, which could come in handy if you have any unexpected expenses arise. However, it’s wise to pay off your purchases before the end of your billing cycle since accruing interest can snowball into a costly problem.
• Damaging your credit. Although properly using a credit card is one of the best ways to improve your credit score , you can seriously hurt your score with missteps like missing credit card payments and keeping a balance over 30% of your credit limit.
• Taking on credit card debt. Being able to make purchases you don’t have to pay off immediately may tempt you to spend more than you can manage.
• Paying fees. Depending on what you want out of a credit card, paying fees may be an unavoidable part of the cardholder experience. Luxury travel cards and high-caliber rewards cards typically pose annual fees. Luckily, they usually also come with more than enough reward opportunities and valuable perks to make up for the fee . However, make sure you’ve read your card terms carefully to dodge late and returned payment fees, foreign transaction fees, cash advance fees and other avoidable costs.

Finding your ideal card isn’t always an easy process. Your choice of credit card should be one that fits not only your credit score but also your spending habits and financial goals.

As you narrow down your choices, we recommend asking yourself the following questions:

• What’s your credit score ? Card issuers primarily look at your credit score and income to determine approvals, so a big first step in choosing a credit card involves checking your credit . Typically, the higher the score, the better the benefits and rewards.
• Do you tend to carry a balance ? If so, a low-interest or non-rewards zero interest credit card is a better choice than a rewards credit card, given you’re likely to lose any points, miles or cash back you earn to interest.
• Are you currently carrying high-interest credit card debt ? If so, opt for a balance transfer credit card with a long 0% introductory APR window or a waived balance transfer fee.
• Can you recoup an annual fee ? If you charge a lot (and pay your balances in full each month), don’t necessarily forego a card with an annual fee. A premium card may be worth it since these cards tend to carry the most lucrative benefits. Big spenders are more likely to offset the cost of the annual fee with these perks and potentially pocket more value than a no-annual-fee rewards card may offer.
• Are you looking to earn cash back or miles ? Travel credit cards offering points or miles can be quite lucrative, but cash back cards are generally very easy to leverage, particularly when it comes time to redeem.
• Do you favor a certain airline, hotel or retailer ? Co-branded cards tend to carry a good return on those specific purchases, plus extra perks that make them a worthwhile addition to your wallet. However, store credit cards usually aren’t the best option for your primary credit card due to their limited flexibility.
• Are you looking for a sign-up bonus ? These offers let you earn bonus rewards in your first year if you spend a certain amount of money in a set time frame (usually within your first three months, but six-month time frames are somewhat common). The best credit card sign-up bonuses have a spending requirement that you can reasonably reach based on your normal spending habits.
• Do you already have a credit card ? It’s common to carry more than one credit card, given your financial profile and goals change over time. In fact, a common way to maximize your credit card rewards is by pairing a flat-rate card with bonus-category or travel-specific credit cards in order to cover a wide range of spending. That way, you’ll earn the most rewards possible.

How to compare credit card features

There’s no such thing as a one-size-fits-all credit card. Each cardholder will have a unique set of needs, and it’s unlikely that one credit card will tick off every box. When determining which credit card offers the best set of features to fit your must-haves, compromise is the name of the game. If you’re hoping to land a card that comes loaded with premium frills but doesn’t charge an annual fee, you may have to choose one or the other.

When narrowing down the type of card that’s right for you, ask yourself which of the following features you hope to avoid and which you absolutely can’t do without:

Fees + –

While avoiding credit card fees altogether is unlikely, you could keep them to a minimum with certain cards. Annual fees and foreign transaction fees are two fees that may be hard to avoid entirely, depending on the features you need and where you’ll use your card.

You may want to consider a card with no foreign transaction fees if you often travel abroad. Capital One and Discover cards usually don’t charge foreign transaction fees, and Discover cards waive several other common card fees. However, penalty APRs and late payment fees are avoidable on other cards if you use them responsibly.

There are plenty of high-quality credit cards with no annual fee. However, cards with annual fees (which usually range from around $30 to close to $700) typically offer stronger rewards rates and more valuable perks. Whether annual fees are worth it depends on how much use you’ll get from your card’s benefits based on your lifestyle and spending habits.

Interest rates + –

A card’s interest rate is one of the most critical aspects to be aware of when choosing a card. This is the rate your card issuer will charge you for borrowing from your line of credit, and that rate can vary quite a bit based on your credit score and other factors.

The  current average credit card APR  is quite high – around 20 percent variable – but your card’s APR could run much higher or lower based on your credit history. A good interest rate is often at least three to four percentage points below average.

You should prioritize your card decision based on your habits. Regarding interest rates, you should look at how reliably you’ll pay your bill each billing cycle. If you frequently pay late or miss payments, you might want to prioritize a low-interest card in your search.

Benefits + –

Credit cards often come with handy benefits for cardmembers, such as extended purchase warranties, airport lounge access, travel insurance and discounts on services or at retailers. Premium rewards cards generally offer higher-value benefits.

Cash back cards typically don’t carry as many extra perks as travel cards, but some may offer annual credits or partner perks for domestic expenses like streaming services or food delivery. You’ll need to ask yourself which perks you’ll likely use and how their value compares to the cost of holding a card.

Rewards + –

Premium cards also offer a better rewards rate on purchases. When comparing credit card rewards programs, you’ll want to weigh which bonus categories and types of rewards suit your spending habits, your redemption options and how much your rewards will be worth.

To calculate a card’s yearly  rewards value :

• Multiply your annual spending in a given category by a card’s rewards rate in that category (for example, $5,000 in annual grocery spending x 5 points per dollar = 25,000 points).
• Multiply that total by the card’s rewards redemption value (for example, 15,000 points x 1 cent per point in redemption value = $250 value).
• Subtract the annual fee (for example, $250 value – $95 annual fee = $155 total earnings).

If you’re not sure what your points are worth, check out Bankrate’s latest  point and mile valuations .

Introductory bonus + –

Credit cards offer hefty introductory bonuses, also known as welcome or sign-up bonuses, to new cardholders. These bonuses are often given in the form of points or cash after the new cardholder spends a certain dollar amount within a given period of time.

Understanding a typical bonus value and spending requirement is helpful when measuring welcome offers. No-annual-fee rewards cards usually offer around a $200 to $250 value after you spend $500 to $1,000 within your first three months. Premium card welcome offers often deliver $500 to $800 in value after you spend $4,000 to $6,000, and business cards sometimes feature even bigger bonus values and spending requirements.

Choosing a card based on its welcome offer isn’t always wise because this is only short-term value. But if the sign-up bonus is your deciding factor, choose the card with the welcome offer you will most likely obtain with normal spending.

Tip : To help make your decision, check out our  compare credit cards  tool to find the card that is best for you.

How to apply for a credit card

Check your credit score.

Before you apply for a credit card, you need to know where your credit stands and which credit cards you qualify for. A quick glance over your credit report will also help you spot any errors or potential hurdles and give you an opportunity to correct them before you apply.

You can access your credit for free at AnnualCreditReport.com , or visit the FICO® Score website for more info on where to view your score.

Find a credit card that matches your needs

Once you have a sense of the type of cards available to you based on your credit score, it becomes easier to narrow down the search. The card you choose should match your spending habits, budget, and financial goals. For example, is there a chance you may need to carry a balance from time to time? Will you use rewards primarily for travel or would a more flexible rewards card suit you best?

Once you’ve determined exactly what it is you’re looking for in a credit card, it’s time to apply.

There are a number of ways to apply for a credit card . The application process is fairly standard, as you can apply by mail or online directly through the issuer’s site. You can also apply through your financial institution if you like the card’s offerings. Chances are you’ll receive more favorable terms as an existing client. Assuming your account history has remained relatively unblemished, your bank may be willing to approve you for cards you may not be able to get elsewhere.

When applying, you’ll be asked to provide basic personal information such as name, address, SSN and annual income as well as a list of current financial obligations such as your monthly housing costs or auto loan payments. When calculating your income, you may include money earned outside of work such as any government benefits or passive income.

Receive a decision

In many cases, your online application is processed right then and there, giving you an answer in a matter of seconds. Once approved, your new card will typically be mailed out to you within a week or two. Other times, the process may take a bit longer and you may receive a later decision by email, snail mail, or telephone.

What happens if your credit card application is denied?

Card issuers raised the bar for credit card approval during the pandemic and have kept the approval requirements tight as many Americans continue to struggle financially due to inflation. This has resulted in a decline in overall credit card ownership . If your credit card application has been rejected, the issuer must provide you with an explanation for its decision, which is usually sent by email or sometimes snail mail.

There are a number of reasons why an issuer might choose to reject an application, here are a few:

• Your credit score is too low . Credit cards come with an estimated minimum credit score. If your credit score falls below the required minimum, then it’s likely that you will be denied. You can sometimes check if you’re pre-approved for certain cards on the issuer’s website or you can use Creditcards.com’s CardMatch™ tool which helps match you with personalized card offers based on your credit profile.
• Unreliable proof of income . If you fail to report stable or regular income in your application, the credit card issuer may ask for proof of income or deny your application. You can get a credit card without a job , but issuers will look to see that you have a reliable way to pay back the money you borrow.
• You have errors on your credit report . Errors on your credit report, like unauthorized accounts, duplicate accounts, incorrect balances or the wrong personal information like an address or misspelling can hurt your chances of approval.
• You’re carrying too much debt . If you already hold a credit card that you carry a balance on month-to-month or have loan accounts open which you have not made frequent payments on, then you may be denied when you apply for a new credit card because of excessive debt. Issuers will approve applications from potential borrowers who they are confident will pay their credit card bill on time.
• Multiple credit applications . If you have applied for several credit cards in a short period of time then an issuer will likely deny your application because they view this as risky behavior.

If a rejection takes you by surprise, you can appeal the decision by calling the issuer’s reconsideration line . There you can make your case to an agent and address any concerns they may have about your credit profile. There’s no guarantee that they’ll reverse the decision but it’s worth a shot for those who feel they are a good candidate for the card. If you do plan to reach out to the issuer, it’s best to call within a few days of the rejection and have a copy of your credit report handy for quick reference.

Applying for a credit card results in what is known as a hard pull on your credit, which temporarily dings your score each time. For that reason, you don’t want to apply for another card immediately after you’ve been denied. Issuers will interpret this as risky behavior.

How we picked the best credit cards

Different types of credit cards are designed to help you achieve different financial goals. As a result, comparing cards across categories can be difficult. The best rewards credit card, for instance, will be characterized by a solid base rewards program, generous sign-up bonus and additional benefits. Meanwhile, the best balance transfer credit card would depend on the length of its balance transfer offer, its balance transfer fee and what its APR might be once the balance transfer expires. Having said that, we picked the best credit cards in our database by considering the following criteria.

• Standout terms in the card’s category : We assessed whether a card’s terms and conditions were competitive when stacked against other cards in its respective category. For instance, for a rewards card, we looked at its rate of return on spending and evaluated whether that return was competitive, compared to other cards in the rewards category.
• Reasonable costs : We looked at the major costs associated with most credit cards (purchase APR, balance transfer APR, penalty APR, annual fee, foreign transaction fees, etc.) to determine if a card’s offer was competitive in its category.
• Overall value : If a card does carry certain fees, could those fees be justified by its other benefits? For instance, could you recoup an annual fee via the card’s rewards program? Could you still save on a balance transfer offer paying the balance transfer fee if you paid your balance off in the introductory 0% interest period?

Remember, the right credit card for you will vary, depending on your spending profile and financial goals.

Check out our expert guides below for more information to help you find the best credit credit cards for your needs. Plus, we’ve included a few extra CreditCards.com resources so you can effectively evaluate your options and make the most informed choice.

Credit card guides

• Types of credit cards compared
• What you should know about credit cards
• When is a credit card annual fee worth it?
• What credit score do you need for a credit card?
• A beginner’s guide to points and miles
• How to maximize credit card rewards
• The average credit card balance – and how to pay off your debt
• Can a credit card help you beat inflation?

Credit card resources

• The Credit Card Comparison tool
• Credit card calculators
• Credit card reviews
• Credit card advice
• Credit card news

What is the best credit card? + –

There is no single best credit card, but the best credit card for you depends on factors like your spending habits, financial needs and your credit profile. Our “ How to choose a credit card ” guide above can help narrow down your search, but you can save some time by starting with our CardMatch tool for a personalized list of credit card recommendations and exclusive offers.

However, credit cards aren’t created equally – some cards can certainly be stronger than others in their category. You can learn more about these exceptional credit cards in our “ Editor’s picks ” above. The best credit cards on the market come and go as new cards debut and factors like welcome offers and card features change, but our partners at Bankrate bestow many of our consistently top-rated cards with a Bankrate Award. You can check out the 2023 Bankrate Award winners to help you find the right card for your wallet.

How many credit cards should you have? + –

The number of credit cards you should have depends on your personal needs and spending habits. You may want to stick to one credit card if you’re new to credit, rebuilding your credit score or you just prefer a standalone card to reward all your expenses. Consolidating your balances to a single balance transfer card may also be helpful if you’re trying to pay off your credit card debt.

On the other hand, you’ll likely want multiple credit cards if you want to maximize your value with access to a variety of bonus reward categories, additional features and redemption options. For example, one of the most common card combinations is a card with bonus categories that rewards your biggest expenses and a flat-rate rewards card to earn rewards on all your other spending. If you prefer cash back, stacking up several cards for a range of categories is one of the best ways to maximize your credit cards’ value.

However, frequent travelers may want multiple cards to shore up their travel perks and leverage the most valuable redemption options for their travel plans. For instance, pairing Chase cash back cards with the Sapphire Preferred – or another Chase Ultimate Rewards card – allows you to receive more rewards value toward Chase travel redemptions and the right Chase transfer partner .

Similarly, traveling often with your favorite airline or hotel may justify adding a co-branded rewards card to your current roster. A brand-specific hotel or airline card could sprinkle additional reward and loyalty perk value onto your rewards card strategy, and smooth out kinks in your travel with features like airport lounge access, complimentary hotel elite status and more.

Learn more: Best credit card combinations for everyday spending

What credit score do you need to get a credit card? + –

There are a range of credit cards built for each credit score level . Balance transfer credit cards and popular rewards cards often require good to excellent credit – a FICO score of 670 or higher, or a VantageScore of 660 or higher. However, there are plenty of quality credit cards you can get with a fair credit score or lower. In fact, you could even qualify for some credit cards if you have no credit history , such as secured credit cards or student credit cards (if you’re enrolled in college)

What credit cards are easiest to get? + –

The easiest credit cards to get are starter credit cards like secured and student cards, which don’t require a particular credit score to be eligible. To make the application process even easier, there are several instant approval cards available at each credit level that will let you know whether you’re likely to be approved immediately after applying.

What is the best credit card company? + –

Credit card companies consist of credit card networks and credit card issuers . Credit card networks support their branded cards with partner merchants and process transactions made with them. There are four major credit card networks: Visa, Mastercard, American Express and Discover. Visa and Mastercard are the two largest networks and have the highest acceptance rates worldwide, although cards on all four networks are accepted by a majority of U.S. merchants. Discover and American Express are smaller networks but they issue credit cards as well. Based on the latest J.D. Power Credit Card satisfaction survey , American Express is the best credit card company for customer service, but Discover usually ranks in first or second place as well.

Credit card issuers provide the actual credit cards and manage your credit card account. Popular credit card issuers (besides Amex and Discover) include Chase, Capital One, Citi, Wells Fargo and Bank of America, for example. The best card issuer is the issuer that provides the cards that best support your spending habits with the rewards and features you’re interested in. For instance, Chase credit cards are some of the best for earning rewards and pairing multiple cards, Capital One focuses on streamlined rewards programs and Discover is known for cards with low rates and fees.

In terms of credit card satisfaction, J.D. Power’s 2022 survey ranked Amex, Discover and Bank of America as above average (in that respective order). Chase and Capital One earned almost identical scores and round out the survey’s top five issuers.

About the Author

Garrett Yarbrough

Garrett Yarbrough is a staff writer for CreditCards.com, specializing in product news and recommendations. He strives to make navigating credit cards, earning rewards and credit building smooth sailing for his readers.

About the Editor

Tracy Stewart

Tracy Stewart is a personal finance writer specializing in credit card loyalty programs, travel benefits, and consumer protections. He previously covered travel rewards credit cards, budget travel, and aviation news at SmarterTravel Media. His money-saving tips have appeared in the Washington Post, the Wall Street Journal, Consumer Reports, MarketWatch, Vice, People, the Zoe Report and elsewhere.

About the Reviewer

Jason Steele

Jason Steele is a professional journalist and credit card expert who has been contributing to online publications since 2008. He was one of the original contributors to The Points Guy, and his work has been appearing there since 2011. He has also contributed to over 100 of the leading personal finance and travel outlets. He’s frequently interviewed and quoted by mainstream outlets on the subjects of credit cards and travel. Jason is passionate about travel rewards credit cards, which he uses to earn rewards that he can redeem for him and his family to travel around the world. Jason is also the founder and producer of CardCon, a conference for credit and credit card journalists that’s held annually.

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CreditCards.com is an independent, advertising-supported comparison service. The offers that appear on this site are from companies from which CreditCards.com receives compensation. This compensation may impact how and where products appear on this site, including, for example, the order in which they may appear within listing categories. Other factors, such as our own proprietary website rules and the likelihood of applicants' credit approval also impact how and where products appear on this site. CreditCards.com does not include the entire universe of available financial or credit offers. CCDC has partnerships with issuers including, but not limited to, American Express, Bank of America, Capital One, Chase, Citi and Discover.

Since 2004, CreditCards.com has worked to break down the barriers that stand between you and your perfect credit card. Our team is made up of diverse individuals with a wide range of expertise and complementary backgrounds. From industry experts to data analysts and, of course, credit card users, we’re well-positioned to give you the best advice and up-to-date information about the credit card universe.

Let’s face it — there’s a lot of jargon and high-level talk in the credit card industry. Our experts have learned the ins and outs of credit card applications and policies so you don’t have to. With tools like CardMatch™ and in-depth advice from our editors, we present you with digestible information so you can make informed financial decisions.

Our top goal is simple: We want to help you narrow down your search so you don’t have to stress about finding your next credit card. Every day, we strive to bring you peace-of-mind as you work toward your financial goals.

A dedicated team of CreditCards.com editors oversees the automated content production process — from ideation to publication. These editors thoroughly edit and fact-check the content, ensuring that the information is accurate, authoritative and helpful to our audience.

Editorial integrity is central to every article we publish. Accuracy, independence and authority remain as key principles of our editorial guidelines. For further information about automated content on CreditCards.com , email Lance Davis, VP of Content, at [email protected] .

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• Public Service That Makes a Difference ®

2017 Series • 17–14

Research department working papers, credit card utilization and consumption over the life cycle and business cycle.

Nearly 80 percent of U.S. adults have a credit card, and more than half of them revolve their debt from month to month. Using a large sample of credit bureau data, this paper documents a tight link between available credit (the limit) and credit card debt, and then it offers a model-based interpretation of this linkage. Credit limits change frequently for individuals, increase rapidly on average as people age, and show large changes over the business cycle. Yet credit card debt changes nearly proportionately to credit and at about the same time, so the fraction of credit used is relatively stable over time. The authors build a life-cycle consumption model that includes the joint use of credit cards to pay directly for expenditures, to help smooth consumption against income shocks, and to borrow longer term (revolving indefinitely). The authors estimate the parameters of the model using several data sources, including a large credit bureau database and a new daily diary of consumer payment choices.

Implications

People experience important changes in credit throughout their life, especially between the ages of 20 and 40, when their credit limits soar. These changes in credit are in effect changes in liquidity, and observing how people react to them provides insight into the more general savings and consumption decisions they make.

Although people use credit cards for different purposes, all uses contribute to stable credit utilization. Payment use is proportional to consumption, and when an increase in income leads to an increase in credit limits, a convenience user will increase consumption and payments use. People who use credit cards to borrow because of impatience see a rise in their credit limit as an increase in wealth and increase their consumption (and debt) accordingly. And those who use credit cards for smoothing purposes early in life—when income rises more slowly than credit limits—increase their credit card debt at about the same rate as their credit limits rise.

The revolving credit available to consumers changes substantially over the business cycle, life cycle, and for individuals. We show that debt changes at the same time as credit, so credit utilization is remarkably stable. From ages 20–40, for example, credit card limits grow by more than 700 percent, and yet utilization holds steadily at around 50 percent. We estimate a structural model of life-cycle consumption and credit use in which credit cards can be used for payments, precautionary smoothing, and life-cycle smoothing, uniting their monetary and revolving credit functions. Our estimates predict stable utilization closely matching the individual, life-cycle, and business-cycle relationships between credit and debt. The preference heterogeneity implied by the different uses of credit cards drives our results. The revealed preference that some people with credit cards borrow at high interest, while others do not, suggests that around half the population is living nearly hand to mouth.

• Full Text Document (pdf)

Contributing business areas Research Monetary Policy & Economic Research

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Bankrate.com is an independent, advertising-supported comparison service. The offers that appear on this site are from companies from which Bankrate.com receives compensation. This compensation may impact how and where products appear on this site, including, for example, the order in which they may appear within listing categories. Other factors, such as our own proprietary website rules and the likelihood of applicants' credit approval, also impact how and where products appear on this site. Bankrate.com does not include the entire universe of available financial or credit offers.

Bankrate has partnerships with issuers including, but not limited to, American Express, Bank of America, Capital One, Chase, Citi and Discover.

Best Credit Cards of June 2024

• • Credit card strategy
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Bankrate expert Garrett Yarbrough strives to make navigating credit cards and credit building smooth sailing for his readers. After regularly featuring his credit card, credit monitoring and identity theft analysis on NextAdvisor.com, he joined the CreditCards.com and Bankrate teams as a staff writer to develop product reviews and comprehensive credit card guides focused on cash back, credit scores and card offers.

• • Rewards credit cards
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Nouri Zarrugh is a writer and editor for CreditCards.com and Bankrate,  focusing on product news, guides and reviews. His areas of expertise include credit card strategy, rewards programs, point valuation and credit scores, and his stories on building credit have been cited by Mic.com, LifeHacker, People.com and more. Through his thorough card reviews and product comparisons, Nouri strives to demystify personal finance topics and credit card terms and conditions to help readers save money and protect their credit score.

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The listings that appear on the website are from credit card companies from which Bankrate receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). This site does not include all credit card companies or all available credit card offers. Here's an explanation for how we make money.

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Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for placement of sponsored products and services, or by you clicking on certain links posted on our site. Therefore, this compensation may impact how, where and in what order products appear within listing categories, except where prohibited by law for our mortgage, home equity and other home lending products. Other factors, such as our own proprietary website rules and whether a product is offered in your area or at your self-selected credit score range, can also impact how and where products appear on this site. While we strive to provide a wide range of offers, Bankrate does not include information about every financial or credit product or service.

No matter what a credit card company or advertisement says, there isn’t a single “best” credit card for everyone. The best card for you depends on your spending habits, credit score, existing debt and more. But with so many options to choose from, picking the right card can be intimidating. 

That’s why Bankrate’s experts rated and reviewed over 250 cards of the top card offers on the market to create our list of the best credit cards of 2024. We’ve evaluated each card based on its rewards value, rates and fees, welcome offers, customer experience, cardholder perks and more to give you a clear sense of where it shines and where it may fall short. In addition to Bankrate’s review scores, check out our deep dive into each card to see if it’s a good fit for your wallet (and pick up pro tips for maximizing its value).

So whether you’re looking for a rewards powerhouse, a money-saving 0-percent intro APR or a reliable way to build credit, one of these cards from our partners should be a great fit.

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Best credit cards of June 2024

• Best for point value:  Chase Sapphire Preferred® Card
• Best for dining and entertainment:  Capital One SavorOne Cash Rewards Credit Card
• Best overall: Wells Fargo Active Cash® Card
• Best cash back on everyday spending: Blue Cash Everyday® Card from American Express
• Best for long intro APR: Wells Fargo Reflect® Card
• Best for travel card beginners: Capital One VentureOne Rewards Card
• Best for long-term value: Chase Freedom Unlimited®
• Best starter rewards card: Capital One Quicksilver Cash Rewards Credit Card
• Best for gas and transit: Wells Fargo Autograph℠ Card
• Best for no-frills benefits: Capital One Venture X Rewards Credit Card
• Best for flexible travel redemption: Capital One Venture Rewards Credit Card
• Best business card with no annual fee: Ink Business Cash® Credit Card
• Best flat-rate cash back business card: Capital One Spark Cash Plus
• Best starter airline card: Southwest Rapid Rewards® Plus Credit Card
• Best for companion certificate: Alaska Airlines Visa Signature® credit card
• Best no-annual-fee hotel card: Hilton Honors American Express Credit Card
• Best for luxury perks: The Platinum Card® from American Express
• Best for food and travel: American Express® Gold Card
• Best for upgrading: Capital One Platinum Credit Card
• Best for students with no credit history: Discover it® Student Cash Back
• Best for low-cost credit building: Chime Credit Builder Secured Visa® Credit Card
• Best credit limit policy: Capital One Platinum Secured Credit Card

Expert insights: What is the best credit card of 2024?

How do credit cards work.

• How Bankrate experts chose their rewards card

What people say about the best credit cards

• Credit card application process explained

Our data: Which cards are the most popular?

Frequently asked questions, how we assess the best credit cards.

• Ask the experts

Credit range

A FICO score/credit score is used to represent the creditworthiness of a person and may be one indicator to the credit type you are eligible for. However, credit score alone does not guarantee or imply approval for any financial product.

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How do we choose the best overall card?

In determining which cards were worthy of “Best Overall” distinction on marketplace pages, our editorial team reviewed the cards currently available on each page and narrowed the list of candidates to only those cards that either:

• A) had received a minimum 4.0-star overall rating in their primary scoring category based on our proprietary card rating methodology , or 
• B) were currently the highest-rated card on the page. 

We then surveyed an internal panel of expert credit card writers and editors as to which card from the candidate list was most deserving of a “Best Overall” distinction. The winner was selected based on popular vote.

Best Rewards Credit Card Offers

Best starter travel card

Chase Sapphire Preferred® Card

Bankrate score

Our writers, editors and industry experts score credit cards based on a variety of factors including card features, bonus offers and independent research. Credit card issuers have no say or influence on how we rate cards.

Intro offer

Earn 75,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's over $900 when you redeem through Chase Travel℠.

We calculate this number by multiplying the card's intro offer by Bankrate's valuation of this issuer's rewards program , showing you how much your points or miles are worth in dollars.

Rewards rate

5x on travel purchased through Chase Travel℠. 3x on dining, select streaming services and online groceries. 2x on all other travel purchases. 1x on all other purchases.

Regular APR

• 5x 5x on travel purchased through Chase Travel℠.
• 3x 3x on dining, select streaming services and online groceries.
• 2x 2x on all other travel purchases.
• 1x 1x on all other purchases.

What we love: Occasional travelers who value flexibility can enjoy this card’s excellent rewards on both travel and everyday spending, stellar travel protections and other lucrative benefits. It already delivers top-notch long-term value with its remarkable redemption options, perks and transfer partners. Plus, the hefty welcome offer makes the short-term rewards value exceptional as well. Learn more: Chase Sapphire Preferred benefits guide Alternatives: The Capital One Venture Rewards Credit Card is an option similar to the Chase Sapphire Preferred. Consider this alternative if its list of benefits and credits — some of which are missing on the Chase card — appeal to you.

• Its annual hotel statement credits and anniversary points bonus can carry enough value to easily justify the annual fee.
• Ultimate Rewards points are some of the most valuable rewards available and redeeming points for travel with Chase comes with a 25 percent value boost.
• It doesn’t have flight-focused travel perks like airport lounge access or free checked bags.
• The card's grocery rewards rate only applies to eligible online grocery purchases, which could limit its appeal as a standalone option for everyday rewards.
• Earn 75,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's over $900 when you redeem through Chase Travel℠.
• Enjoy benefits such as 5x on travel purchased through Chase Travel℠, 3x on dining, select streaming services and online groceries, 2x on all other travel purchases, 1x on all other purchases, $50 Annual Chase Travel Hotel Credit, plus more.
• Get 25% more value when you redeem for airfare, hotels, car rentals and cruises through Chase Travel℠. For example, 75,000 points are worth $937.50 toward travel.
• Count on Trip Cancellation/Interruption Insurance, Auto Rental Collision Damage Waiver, Lost Luggage Insurance and more.
• Get complimentary access to DashPass which unlocks $0 delivery fees and lower service fees for a minimum of one year when you activate by December 31, 2024.
• Member FDIC

Best for dining and entertainment

Capital One SavorOne Cash Rewards Credit Card

• Earn a one-time $200 cash bonus after you spend $500 on purchases within the first 3 months from account opening

8% Cash Back on Capital One Entertainment purchases 5% Cash Back on hotels and rental cars booked through Capital One Travel (terms apply) 3% Cash Back on dining, entertainment, popular streaming services and at grocery stores (excluding superstores like Walmart® and Target®) 1% Cash Back on all other purchases

• 8% 8% Cash Back on Capital One Entertainment purchases
• 5% 5% Cash Back on hotels and rental cars booked through Capital One Travel (terms apply)
• 3% 3% Cash Back on dining, entertainment, popular streaming services and at grocery stores (excluding superstores like Walmart® and Target®)
• 1% 1% Cash Back on all other purchases

What we love: This is one of the most well-rounded options with no annual fee for people who want a standalone rewards card. It earns a competitive, unlimited rewards rate in some of the most common spending categories, including restaurants, grocery stores and the often-overlooked entertainment category. Learn more: Why we love the Capital One SavorOne Cash Rewards Card Alternatives: You might also want to consider the Chase Freedom Unlimited ®, another flexible no-annual-fee card that earns bonus rewards on dining and a flat rate on general purchases. It’s an especially good pick if you already have a Chase travel card to pool rewards with.

• It offers some of the best spending category coverage and unlimited rewards potential available on one card.
• The intro APR and reward bonus offers provide solid introductory value for a card in its class.
• This card is missing a handful of rewards categories that may make rival cards more rewarding based on your budget, including gas, general travel and transit.
• It doesn’t have as many perks or benefits as other rewards credit cards.
• Earn unlimited 3% cash back on dining, entertainment, popular streaming services and at grocery stores (excluding superstores like Walmart® and Target®), plus 1% on all other purchases
• Earn 10% cash back on purchases made through Uber & Uber Eats, plus complimentary Uber One membership statement credits through 11/14/2024
• Earn 8% cash back on Capital One Entertainment purchases
• Earn unlimited 5% cash back on hotels and rental cars booked through Capital One Travel, where you'll get Capital One's best prices on thousands of trip options. Terms apply
• No rotating categories or sign-ups needed to earn cash rewards; plus cash back won't expire for the life of the account and there's no limit to how much you can earn
• 0% intro APR on purchases and balance transfers for 15 months; 19.99% - 29.99% variable APR after that; balance transfer fee applies
• No foreign transaction fee
• No annual fee

Best Cash Back Card Offers

Best overall

Wells Fargo Active Cash® Card

Earn a $200 cash rewards bonus after spending $500 in purchases in the first 3 months

Earn unlimited 2% cash rewards on purchases

• 2% Earn unlimited 2% cash rewards on purchases

Why it’s the best overall: " This card has been a vital part of my credit card journey. It not only offers generous cash rewards on purchases, but also fits seamlessly with my financial goals thanks to its user-friendly features and transparent terms. It’s an indispensable tool in my credit card arsenal.” — Re’Dreyona Walker , Editor, Credit Cards What we love: People who prefer a simple, flexible card find this flat rewards rate a step up from many competing cards. And it’s one of the only 2 percent cash rewards cards that has a welcome offer and an intro APR offer on both purchases and qualifying balance transfers. Learn more: Wells Fargo Active Cash benefits guide Alternatives: While technically not a flat-rate cash back card, the Chase Freedom Unlimited® earns 1.5 percent back on general purchases and has various other unlimited bonus categories. Depending on your spending habits, you could out-earn the Wells Fargo Active Cash with the Chase Freedom Unlimited. 

• Paying your cellphone bill each month with this card gets you cellphone protection against damage or theft (limit of two up to $600 claims per year, subject to a $25 deductible) — a handy but relatively uncommon perk that will be useful to many cardholders.
• The Active Cash is one of the only 2 percent cash rewards cards that doesn’t weigh down your rewards with spending caps or minimum redemption requirements.
• Your reward redemption options are limited to cash rewards; you can’t transfer rewards to travel partners.
• It charges a 3 percent foreign currency conversion fee, which will be disappointing to people who enjoy traveling abroad.
• Select "Apply Now" to take advantage of this specific offer and learn more about product features, terms and conditions.
• Earn a $200 cash rewards bonus after spending $500 in purchases in the first 3 months.
• Earn unlimited 2% cash rewards on purchases.
• 0% intro APR for 15 months from account opening on purchases and qualifying balance transfers. 20.24%, 25.24%, or 29.99% Variable APR thereafter; balance transfers made within 120 days qualify for the intro rate and fee of 3% then a BT fee of up to 5%, min: $5.
• $0 annual fee.
• No categories to track or remember and cash rewards don't expire as long as your account remains open.
• Find tickets to top sports and entertainment events, book travel, make dinner reservations and more with your complimentary 24/7 Visa Signature® Concierge.
• Up to $600 of cell phone protection against damage or theft. Subject to a $25 deductible.

Best cash back on everyday spending

Blue Cash Everyday® Card from American Express

• Earn a $200 statement credit after you spend $2,000 in purchases on your new Card within the first 6 months.

3% Cash Back at U.S. supermarkets on up to $6,000 per year in purchases, then 1%. 3% Cash Back on U.S. online retail purchases, on up to $6,000 per year, then 1%. 3% Cash Back at U.S. gas stations, on up to $6,000 per year, then 1%. 1% Cash Back on other purchases.

• 3% 3% Cash Back at U.S. supermarkets on up to $6,000 per year in purchases, then 1%.
• 3% 3% Cash Back on U.S. online retail purchases, on up to $6,000 per year, then 1%.
• 3% 3% Cash Back at U.S. gas stations, on up to $6,000 per year, then 1%.
• 1% 1% Cash Back on other purchases.

What we love: Its high cash back rate on several crucial everyday categories can make this one of the most lucrative cards for any household’s day-to-day spending. And its U.S. online retailer category is especially rewarding for online shoppers since few cards have an online shopping category. Learn more: Is the Amex Blue Cash Everyday worth it? Alternatives: Thanks to its unparalleled rewards rate at U.S. supermarkets, the Blue Cash Preferred® Card from American Express could rack up more cash back for big grocery spenders and commuters compared to the Blue Cash Everyday .

• It’s one of the only no-annual-fee cards with benefits as valuable as its monthly credits for eligible home meal kits and Disney Bundle streaming subscriptions.
• Its intro APR is competitive and includes both purchases and balance transfers, which gives new cardholders breathing room with interest charges.
• Wholesale clubs and stores like Target and Walmart don’t count in the U.S. supermarkets category.
• You’ll only earn 3 percent cash back on up to $6,000 of annual spending in each select category before the rate drops to 1 percent, which could be a low ceiling for some spenders.
• No Annual Fee.
• Balance Transfer is back! Enjoy 0% intro APR on purchases and balance transfers for 15 months from the date of account opening. After that, 19.24% to 29.99% variable APR.
• 3% Cash Back at U.S. supermarkets on up to $6,000 per year in purchases, then 1%.
• 3% Cash Back on U.S. online retail purchases, on up to $6,000 per year, then 1%.
• 3% Cash Back at U.S. gas stations, on up to $6,000 per year, then 1%.
• Cash Back is received in the form of Reward Dollars that can be redeemed as a statement credit or at Amazon.com checkout.
• Thinking about getting the Disney Bundle which can include Disney+, Hulu, and ESPN+? Your decision made easy with $7/month back in the form of a statement credit after you spend $9.99 or more each month on an eligible subscription (subject to auto renewal) with your Blue Cash Everyday® Card. Enrollment required.
• Enjoy up to $15 back per month when you purchase a Home Chef meal kit subscription (subject to auto renewal) with your enrolled Blue Cash Everyday® Card.
• Terms Apply.

Best Balance Transfer Card Offers

Best for long intro APR

Wells Fargo Reflect® Card

Purchase intro APR

0% intro APR for 21 months from account opening

Intro offer is not available for this Wells Fargo credit card.

Rewards rate is not available for this credit card.

• Rewards details Caret Down N/A N/A

What we love: Its chart-topping intro APR offer extends to both purchases and qualifying balance transfers, offering maximum flexibility if you want to minimize interest charges. Plus, this card’s benefits sprinkle on a little more value with perks like some of the best cellphone protection available (subject to a deductible). Learn more: Is the Wells Fargo Reflect Card worth it? Alternatives: The U.S. Bank Visa® Platinum Card * is a no-frills, low-interest card and may be a great fit if you need to carry a balance after your intro APR ends. Its U.S. Bank ExtendPay® feature may also help you save on interest when you divide eligible purchases into equal installment payments with a monthly fee.

• Unlike most competitors, this card offers the same length of intro APR period on both purchases and qualifying balance transfers.
• The card comes with cell phone protection against damage or theft (up to $600, subject to a $25 deductible, when you pay your monthly phone bill with the card).
• The card's balance transfer fee is relatively high. A lower-fee card could save you more overall, even if it carries a shorter intro APR period.
• There’s no rewards program, so the card has limited long-term value.
• 0% intro APR for 21 months from account opening on purchases and qualifying balance transfers. 18.24%, 24.74%, or 29.99% variable APR thereafter; balance transfers made within 120 days qualify for the intro rate, BT fee of 5%, min $5.
• $0 Annual Fee.
• Through My Wells Fargo Deals, you can get access to personalized deals from a variety of merchants. It's an easy way to earn cash back as an account credit when you shop, dine, or enjoy an experience simply by using an eligible Wells Fargo credit card.

Best 0% Intro APR Card Offers

Best for travel card beginners

Capital One VentureOne Rewards Credit Card

0% intro on purchases for 15 months

• Earn a bonus of 20,000 miles once you spend $500 on purchases within 3 months from account opening, equal to $200 in travel

5 Miles per dollar on hotels and rental cars booked through Capital One Travel 1.25 Miles per dollar on every purchase, every day

1.25 Miles - 5 Miles

• 5 Miles 5 Miles per dollar on hotels and rental cars booked through Capital One Travel
• 1.25 Miles 1.25 Miles per dollar on every purchase, every day

What we love: It’s a great starter card for occasional travelers, as it has no annual fee, a flat rewards rate on general purchases and an even higher rewards rate on hotels and rental cars booked through Capital One Travel. Budding reward strategists may also enjoy redeeming miles through transfer partners — a valuable option no-annual-fee travel cards typically don’t provide. Learn more: 7 reasons to get the Capital One VentureOne Rewards Card Alternatives: If you want to boost your travel reward earnings, the Capital One Venture Rewards Credit Card could be a good fit for a higher flat rate on all purchases, or the Capital One Venture X Rewards Credit Card for the chance to get valuable travel perks.

• Its easy-to-earn welcome bonus could be one of the most valuable upfront offers for a card in its class.
• Unlike many travel rewards cards, it comes with solid intro APR offers.
• Its 1.25X-mile flat rate is lower than other starter travel cards’ flat rates, even those with no annual fees.
• Its travel incentives aren't very noteworthy when compared to other travel rewards cards.
• $0 annual fee and no foreign transaction fees
• Earn unlimited 1.25X miles on every purchase, every day
• Miles won't expire for the life of the account and there's no limit to how many you can earn
• Earn 5X miles on hotels and rental cars booked through Capital One Travel, where you'll get Capital One's best prices on thousands of trip options
• Use your miles to get reimbursed for any travel purchase—or redeem by booking a trip through Capital One Travel
• Transfer your miles to your choice of 15+ travel loyalty programs
• Enjoy 0% intro APR on purchases and balance transfers for 15 months; 19.99% - 29.99% variable APR after that; balance transfer fee applies

Best for long-term value

Chase Freedom Unlimited®

0% Intro APR on Purchases for 15 months

Earn an extra 1.5% on everything you buy (on up to $20,000 spent in the first year) — worth up to $300 cash back. That's 6.5% on travel purchased through Chase Travel, 4.5% on dining and drugstores, and 3% on all other purchases.

Enjoy 5% cash back on travel purchased through Chase Travel, our premier rewards program that lets you redeem rewards for cash back, travel, gift cards and more 3% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery service 1.5% on all other purchases

• 5% Enjoy 5% cash back on travel purchased through Chase Travel, our premier rewards program that lets you redeem rewards for cash back, travel, gift cards and more
• 3% 3% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery service
• 1.5% 1.5% on all other purchases

What we love: If you’re looking for a card that will earn its keep long after you finish financing new purchases or paying off debt, this is one of the best options out there thanks to its generous base and bonus rewards rates, pairing potential and impressive redemption flexibility.  Learn more: Is the Chase Freedom Unlimited worth it? Alternatives: If you like the Chase Freedom Unlimited's flat rate, then the Citi Double Cash® Card  might be a better choice since it earns 1 percent cash back when you make purchases and another 1 percent when you pay them off.

• You can redeem rewards for travel, cash back and more at the same 1-cent-per-point value, giving this card terrific flexibility.
• It could offer much better long-term value than the typical no-annual fee rewards card, especially for frequent travelers: Points are worth 25 to 50 percent more when you pair the Freedom Unlimited with a premium Chase travel or business card.
• A few other cards offer a higher flat cash back rate (2 percent or more back on all purchases), so they could prove more lucrative if you don’t spend much on travel or dining.
• Instead of offering a lump sum of rewards when you meet a spending threshold, this card’s welcome bonus gives you extra cash back on top of your regular rate. While that could prove very lucrative in the end, maximizing it could require a ton of spending.
• Intro Offer: Earn an additional 1.5% cash back on everything you buy (on up to $20,000 spent in the first year) - worth up to $300 cash back!
• Enjoy 6.5% cash back on travel purchased through Chase Travel, our premier rewards program that lets you redeem rewards for cash back, travel, gift cards and more; 4.5% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery service, and 3% on all other purchases (on up to $20,000 spent in the first year).
• After your first year or $20,000 spent, enjoy 5% cash back on travel purchased through Chase Travel, 3% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery service, and unlimited 1.5% cash back on all other purchases.
• No minimum to redeem for cash back. You can choose to receive a statement credit or direct deposit into most U.S. checking and savings accounts. Cash Back rewards do not expire as long as your account is open!
• Enjoy 0% Intro APR for 15 months from account opening on purchases and balance transfers, then a variable APR of 20.49% - 29.24%.
• No annual fee – You won't have to pay an annual fee for all the great features that come with your Freedom Unlimited® card
• Keep tabs on your credit health, Chase Credit Journey helps you monitor your credit with free access to your latest score, alerts, and more.

Best No Annual Fee Card Offers

Best starter rewards card

Capital One Quicksilver Cash Rewards Credit Card

• Earn a one-time $200 cash bonus after you spend $500 on purchases within 3 months from account opening

Earn unlimited 5% cash back on hotels and rental cars booked through Capital One Travel, where you'll get Capital One's best prices on thousands of trip options. Terms apply Earn unlimited 1.5% cash back on every purchase, every day

• 5% Earn unlimited 5% cash back on hotels and rental cars booked through Capital One Travel, where you'll get Capital One's best prices on thousands of trip options. Terms apply
• 1.5% Earn unlimited 1.5% cash back on every purchase, every day

What we love: Although its flat 1.5 percent cash back rate doesn’t set it apart from the crowd, the Quicksilver offers streamlined features and a nice mix of redemption options (including the option to automatically redeem rewards), making it a fantastic first rewards card if you’re learning the ropes and value simplicity. Learn more: Why the Capital One Quicksilver is a great starter card Alternatives: Unless you’re set on a card with automatic cash back redemption, the Chase Freedom Unlimited outperforms the Quicksilver , mainly for its additional 3 percent cash back on drugstore purchases and dining at restaurants. However, a 2 percent flat-rate card like the Wells Fargo Active Cash® Card or Citi Double Cash® Card will be more rewarding if you mostly spend outside those categories.

• Its cost-effective terms make it excellent for both everyday and international spending.
• Features an automatic cash back redemption option, making it one of the simplest rewards card experiences available.
• The Quicksilver card’s benefits are barebones compared to a few of its rival cards.
• There are other cards on the market that offer a higher unlimited cash back rate.
• Earn unlimited 1.5% cash back on every purchase, every day
• Enjoy up to 6 months of complimentary Uber One membership statement credits through 11/14/2024
• No rotating categories or sign-ups needed to earn cash rewards; plus, cash back won't expire for the life of the account and there's no limit to how much you can earn

Best for gas and transit

Wells Fargo Autograph℠ Card

• Earn 20,000 bonus points when you spend $1,000 in purchases in the first 3 months - that's a $200 cash redemption value.

Earn unlimited 3X points on restaurants, travel, gas stations, transit, popular streaming services and phone plans. Earn 1X points on other purchases

• 3X Earn unlimited 3X points on restaurants, travel, gas stations, transit, popular streaming services and phone plans.
• 1X Earn 1X points on other purchases

What we love: This card not only has one of the best ongoing rewards rates on everyday travel purchases but it also covers various other popular categories like restaurants, airfare and hotels. It’s tough to earn bonus points in that many categories with a single card, making this a great standalone rewards card for commuters and families on the go. Learn more: Is the Wells Fargo Autograph worth it? Alternatives: While the Autograph card covers many popular spending categories, it’s missing arguably the most important everyday bonus category: groceries. If you spend more on staples like groceries, gas and online shopping than extras like dining out and air travel, the Blue Cash Everyday® Card from American Express is a solid alternative.

• Offers terrific category variety for a no-annual-fee rewards card, earning unlimited rewards in several of the most popular everyday spending categories.
• You can redeem rewards for statement credits or travel without sacrificing point value.
• The additional benefits and intro APR offer on purchases are weaker than competing cards’ features, especially compared to travel cards.
• You can’t transfer rewards to airline or hotel loyalty programs and your points are only worth 1 cent apiece — a lower point value than what many competing travel rewards programs offer.
• Earn unlimited 3X points on the things that really add up - like restaurants, travel, gas stations, transit, popular streaming services, and phone plans. Plus, earn 1X points on other purchases.
• 0% intro APR for 12 months from account opening on purchases. 20.24%, 25.24%, or 29.99% variable APR thereafter.
• Redeem your rewards points for travel, gift cards, or statement credits. Or shop at millions of online stores and redeem your rewards when you check out with PayPal.

Best Travel Card Offers

Best for no-frills benefits

Capital One Venture X Rewards Credit Card

• Earn 75,000 bonus miles when you spend $4,000 on purchases in the first 3 months from account opening, equal to $750 in travel

10 Miles per dollar on hotels and rental cars booked through Capital One Travel 5 Miles per dollar on flights booked through Capital One Travel 2 Miles per dollar on every purchase, every day

2 Miles - 10 Miles

• 10 Miles 10 Miles per dollar on hotels and rental cars booked through Capital One Travel
• 5 Miles 5 Miles per dollar on flights booked through Capital One Travel
• 2 Miles 2 Miles per dollar on every purchase, every day

What we love: Frequent travelers wanting to strike the balance with top-notch rewards, elite travel benefits and affordability will find this card is a unique middle-ground option. Instead of stuffing its perk roster to the gills with niche features, the Venture X includes practical benefits like airport lounge access and yearly travel credits and bonus miles. Learn more: Is the Capital One Venture X worth it? Alternatives: Occasional travelers who aren’t concerned with premium travel perks may get more value with the Capital One Venture Rewards Credit Card .

• It offers practical, high-value perks that can help you easily offset the annual fee.
• You can redeem miles for travel-related purchases on your statement from the past 90 days.
• Capital One doesn’t have as many useful, U.S.-based travel partners as other issuers have.
• You must book through Capital One Travel to earn rewards in key travel categories.
• Receive a $300 annual credit for bookings through Capital One Travel, where you'll get Capital One's best prices on thousands of trip options
• Get 10,000 bonus miles (equal to $100 towards travel) every year, starting on your first anniversary
• Earn unlimited 10X miles on hotels and rental cars booked through Capital One Travel and 5X miles on flights booked through Capital One Travel
• Earn unlimited 2X miles on all other purchases
• Unlimited complimentary access for you and two guests to 1,300+ lounges, including Capital One Lounges and the Partner Lounge Network
• Use your Venture X miles to easily cover travel expenses, including flights, hotels, rental cars and more—you can even transfer your miles to your choice of 15+ travel loyalty programs
• Elevate every hotel stay from the Premier or Lifestyle Collections with a suite of cardholder benefits, like an experience credit, room upgrades, and more
• Receive up to a $100 credit for Global Entry or TSA PreCheck®

Best for flexible travel redemption

Capital One Venture Rewards Credit Card

New Venture cardholders can earn 75,000 miles once they spend $4,000 on purchases within 3 months from account opening

5 Miles per dollar on hotels and rental cars booked through Capital One Travel 2 Miles per dollar on every purchase, every day

2 Miles - 5 Miles

What we love: This card offers frequent travelers easy-to-earn, flat-rate rewards and some of the most flexible travel redemption options. It provides the unique ability to redeem miles toward travel-related purchases on your statement from the past 90 days. Plus, savvy flyers can transfer miles to one of Capital One’s 15+ travel hotel and airline partners, potentially at a higher redemption value. Learn more: Why we love the Capital One Venture Rewards Card Alternatives: Considering the Venture card’s perks are relatively weak, the Capital One VentureOne Rewards Credit Card could be more cost-effective for more modest travelers.

• It’s one of the only travel cards that allows you to redeem rewards toward vacation rentals like Airbnb and VRBO stays.
• Its perks and fees make it a good companion abroad.
• Unlike with several competing cards, you can’t offset the annual fee with annual credits or similar perks.
• Capital One’s transfer partners don’t include a major U.S. airline.
• Enjoy a one-time bonus of 75,000 miles once you spend $4,000 on purchases within 3 months from account opening, equal to $750 in travel
• Earn unlimited 2X miles on every purchase, every day
• Enrich every hotel stay from the Lifestyle Collection with a suite of cardholder benefits, like a $50 experience credit, room upgrades, and more

Best Business Credit Card Offers

Best business card with no annual fee

Ink Business Cash® Credit Card

Earn $350 when you spend $3,000 on purchases in the first three months and an additional $400 when you spend $6,000 on purchases in the first six months after account opening.

Rewards Rate

Earn 5% cash back on the first $25,000 spent in combined purchases at office supply stores and on internet, cable and phone services each account anniversary year Earn 2% cash back on the first $25,000 spent in combined purchases at gas stations and restaurants each account anniversary year Earn 1% cash back on all other card purchases with no limit to the amount you can earn

• 5% Earn 5% cash back on the first $25,000 spent in combined purchases at office supply stores and on internet, cable and phone services each account anniversary year
• 2% Earn 2% cash back on the first $25,000 spent in combined purchases at gas stations and restaurants each account anniversary year
• 1% Earn 1% cash back on all other card purchases with no limit to the amount you can earn

What we love: Small-business owners who spend heavily on office supplies and internet, cable and phone services could enjoy some of the best rewards potential of any no-annual-fee business card — especially those who plan to pair the Ink Business Cash with a higher-tier Ultimate Rewards card. Learn more: How the Ink Business Cash can rack up rewards on your business needs Alternatives: If you’d rather not juggle multiple cards to ensure you’re earning bonus rewards on all your business spending, you may prefer the simplicity that comes with the Ink Business Unlimited® Credit Card . However, the Ink Business Preferred® Credit Card may be a more lucrative option if you’re looking to maximize your rewards’ value.

• The card’s sign-up bonus offer is one of the best available on a no-annual-fee business card, so it’s a good option if you have a large business expense on the horizon.
• Its intro APR period is on the longer side for a business rewards card, so it could be a great fit if you want to finance business purchases.
• You can’t transfer points to airline or hotel loyalty programs or get more than 1 cent per point in redemption value unless you pool points with one of the Chase Sapphire cards or the Ink Business Preferred card.
• Depending on how much you spend in this card’s bonus categories, you may earn more with a flat-rate rewards card — even if that means paying an annual fee.
• Earn $350 when you spend $3,000 on purchases in the first three months and an additional $400 when you spend $6,000 on purchases in the first six months after account opening
• Earn 5% cash back on the first $25,000 spent in combined purchases at office supply stores and on internet, cable and phone services each account anniversary year
• Earn 2% cash back on the first $25,000 spent in combined purchases at gas stations and restaurants each account anniversary year. Earn 1% cash back on all other purchases
• 10% Business Relationship Bonus If you have the Ink Business Cash card plus a Chase Business Checking account on your first card anniversary
• With Zero Liability you won't be held responsible for unauthorized charges made with your card or account information.
• No Annual Fee
• Redeem rewards for cash back, gift cards, travel and more through Chase Ultimate Rewards®.
• 0% introductory APR for 12 months on purchases

Best flat-rate cash back business card

Capital One Spark Cash Plus

$1,200 cash back once you spend $30,000 in the first 3 months

Earn unlimited 5% cash back on hotels and rental cars booked through Capital One Travel Earn unlimited 2% cash back on every purchase, everywhere—with no limits or category restrictions

• 5% Earn unlimited 5% cash back on hotels and rental cars booked through Capital One Travel
• 2% Earn unlimited 2% cash back on every purchase, everywhere—with no limits or category restrictions

What we love: It earns a flat, unlimited 2 percent cash back rate on everyday purchases, plus a boosted rate on Capital One Travel purchases. Big spenders can get exceptional value with this card since Capital One could refund the $150 annual fee as a statement credit every year you spend at least $150,000 with the card. Learn more: Is the Capital One Spark Cash Plus worth the annual fee? Alternatives: Small-business owners with more modest budgets may want a no-annual-fee business card with a decent cash back rate, like The American Express Blue Business Cash™ Card . 

• It’s a charge card, so business owners don’t have to worry about credit limits or interest costs.
• The cash back rate can make it easy to offset the annual fee and rack up rewards, regardless of your biggest spending categories.
• The annual fee — and spending requirement to have it refunded — might be too high for businesses with modest budgets.
• Capital One recommends excellent credit for applicants, which can put the card out of reach for some business owners.
• Earn a one-time cash bonus of $1,200 once you spend $30,000 in the first 3 months
• Earn unlimited 2% cash back on every purchase, everywhere—with no limits or category restrictions
• Comes with no preset spending limit, so it can adapt to your needs based on your spending behavior, payment history and credit profile
• Get your $150 annual fee refunded every year you spend at least $150,000
• Earn unlimited 5% cash back on hotels and rental cars booked through Capital One Travel
• Add employee cards for free, and earn unlimited 2% cash back from their purchases
• $150 annual fee
• Spark Cash Plus has no APR because your balance is due in full every month

Best Airlines Card Offers

Best starter airline card

Southwest Rapid Rewards® Plus Credit Card

• Earn 50,000 bonus points after spending $1,000 on purchases in the first 3 months from account opening.

Earn 2X points on Southwest® purchases. Earn 2X points on local transit and commuting, including rideshare. Earn 2X points on internet, cable, and phone services; select streaming. Earn 2X points on Rapid Rewards® hotel and car rental partners. Earn 1X points on all other purchases.

• 2X Earn 2X points on Southwest® purchases.
• 2X Earn 2X points on local transit and commuting, including rideshare.
• 2X Earn 2X points on internet, cable, and phone services; select streaming.
• 2X Earn 2X points on Rapid Rewards® hotel and car rental partners.
• 1X Earn 1X points on all other purchases.

What we love: Occasional travelers who mostly fly domestically and don’t need luxury perks should consider this entry-level airline card since it carries key air travel benefits, rewards and intro bonus rewards similar to those of higher-tier Southwest credit cards but for a low annual fee. Learn more: Why we love the Southwest Rapid Rewards Plus Alternatives: Despite its $99 annual fee, the Southwest Rapid Rewards® Premier Credit Card may offer better value overall thanks to its stronger annual bonus and perks.

• Its anniversary points bonus can help offset part of the annual fee.
• Comes with basic perks like free checked bags and early check-ins.
• It lacks the luxury perks you can find on other mid-tier airline rewards cards.
• Its bonus categories aren’t the most popular or practical, so you may not earn a ton of points on everyday spending.
• 3,000 anniversary points each year.
• Earn 2X points on Southwest® purchases.
• Earn 2X points on local transit and commuting, including rideshare.
• Earn 2X points on internet, cable, and phone services; select streaming.
• 2 EarlyBird Check-In® each year.
• Earn 1 point for every $1 spent on all other purchases.

Best for companion certificate

Alaska Airlines Visa Signature® credit card

60,000 bonus miles plus Alaska's Famous Companion Fare™ ($99 fare plus taxes and fees from $23) with this offer. To qualify, make $3,000 or more in purchases within the first 90 days of opening your account.

Earn unlimited 3 miles for every $1 spent on eligible Alaska Airlines purchases. Earn unlimited 2 miles for every $1 spent on eligible gas, EV charging station, cable, streaming services and local transit (including ride share) purchases. Earn unlimited 1 mile per $1 spent on all other purchases.

1 mile - 3 miles

• 3 miles Earn unlimited 3 miles for every $1 spent on eligible Alaska Airlines purchases.
• 2 miles Earn unlimited 2 miles for every $1 spent on eligible gas, EV charging station, cable, streaming services and local transit (including ride share) purchases.
• 1 mile Earn unlimited 1 mile per $1 spent on all other purchases.

What we love: This card shines thanks to its companion fare perk, which lets you book an Alaska Airlines ticket for a travel companion at a steep discount after you spend $6,000 or more within the prior anniversary year. Other airline companion passes usually have much steeper spending requirements. Alternatives: The Southwest Rapid Rewards® Priority Credit Card may be a better fit for frequent travel duos. Southwest cards give you a chance at the coveted (but harder-to-earn) Southwest Companion Pass, which you can use the year you earn it and throughout the following year.

• The welcome bonus is easily one of the most valuable available on a mid-tier airline card since it comes with both a companion pass and a windfall of miles.
• It earns miles in some everyday categories like gas, streaming services and cable.
• Although Alaska Airlines has several travel partners, this card is mainly for West Coast flyers since the airline’s routes are quite limited.
• The annual fee may be tough to cover for some occasional travelers.
• Limited Time Online Offer—60,000 Bonus Miles!
• Get 60,000 bonus miles plus Alaska's Famous Companion Fare™ ($99 fare plus taxes and fees from $23) with this offer. To qualify, make $3,000 or more in purchases within the first 90 days of opening your account.
• Get Alaska’s Famous Companion Fare™ ($99 fare plus taxes and fees from $23) each account anniversary after you spend $6,000 or more on purchases within the prior anniversary year. Valid on all Alaska Airlines flights booked on alaskaair.com.
• Earn unlimited 3 miles for every $1 spent on eligible Alaska Airlines purchases. Earn unlimited 2 miles for every $1 spent on eligible gas, EV charging station, cable, streaming services and local transit (including ride share) purchases. And earn unlimited 1 mile per $1 spent on all other purchases. And, your miles don’t expire on active accounts.
• Earn a 10% rewards bonus on all miles earned from card purchases if you have an eligible Bank of America® account.
• Free checked bag and enjoy priority boarding for you and up to 6 guests on the same reservation, when you pay for your flight with your card — Also available for authorized users when they book a reservation too!
• With oneworld® Alliance member airlines and Alaska’s Global Partners, Alaska has expanded their global reach to over 1,000 destinations worldwide bringing more airline partners and more ways to earn and redeem miles.
• Plus, no foreign transaction fees and a low $95 annual fee.
• This online only offer may not be available elsewhere if you leave this page. You can take advantage of this offer when you apply now.

Best Hotels Credit Card Offers

Best no-annual-fee hotel card

Hilton Honors American Express Card

• Earn 70,000 Hilton Honors Bonus Points plus a Free Night Reward after you spend $2,000 in purchases on the Hilton Honors American Express Card in the first 6 months of Card Membership. Offer Ends 7/31/2024.

Earn 7X Hilton Honors Bonus Points for each dollar of eligible purchases charged on your Card directly with hotels and resorts within the Hilton portfolio. Earn 5X Points per dollar on purchases at U.S. restaurants, at U.S. supermarkets, and at U.S. gas stations. Earn 3X Points for all other eligible purchases on your Card.

• 7X Earn 7X Hilton Honors Bonus Points for each dollar of eligible purchases charged on your Card directly with hotels and resorts within the Hilton portfolio.
• 5X Earn 5X Points per dollar on purchases at U.S. restaurants, at U.S. supermarkets, and at U.S. gas stations.
• 3X Earn 3X Points for all other eligible purchases on your Card.

What we love: This card is easy to justify for Hilton loyalists who want some status perks and hotel card benefits, but don’t need an ultra-luxury experience to enjoy their stay. It doesn’t have an annual fee but it’s packed with features that would normally warrant a fee, including boosted rewards in popular everyday spending categories and automatic Hilton Honors™ Silver Elite status to fast-track you to higher-tier benefits. Learn more: Why we love the Hilton Honors American Express Card Alternatives: If you’re a frequent Hilton guest, then you can certainly squeeze more than enough value out of the Hilton Honors American Express Surpass® Card and its stronger rewards, automatic Hilton Honors™ Gold status and travel perks to justify its annual fee.

• It doesn’t have an annual fee, so it’s a good option if you only travel occasionally or are searching for your first hotel card.
• Guests who stay for four consecutive nights and pay with points can get a valuable fifth night free on award stays (must book five consecutive nights).
• It lacks many of the perks you can find on higher-tier hotel rewards cards, like free breakfast and room upgrades.
• Other Hilton cards earn more on Hilton hotel bookings, which could make them more lucrative — even with annual fees.
• Earn 7X Hilton Honors Bonus Points for each dollar of eligible purchases charged on your Card directly with hotels and resorts within the Hilton portfolio.
• Earn 5X Points per dollar on purchases at U.S. restaurants, at U.S. supermarkets, and at U.S. gas stations.
• Earn 3X Points for all other eligible purchases on your Card.
• Enjoy complimentary Hilton Honors™ Silver status with your Card. Plus, spend $20,000 on eligible purchases on your Card in a calendar year and you can earn an upgrade to Hilton Honors™ Gold status through the end of the next calendar year.
• No Foreign Transaction Fees. Enjoy international travel without additional fees on purchases made abroad.

Best Card Offer for Excellent Credit

Best for luxury perks

The Platinum Card® from American Express

Earn 80,000 Membership Rewards® Points after you spend $8,000 on eligible purchases on your new Card in your first 6 months of Card Membership.

Earn 5X Membership Rewards® Points for flights booked directly with airlines or with American Express Travel up to $500,000 on these purchases per calendar year. Earn 5X Membership Rewards® Points on prepaid hotels booked with American Express Travel.

• 5X Earn 5X Membership Rewards® Points for flights booked directly with airlines or with American Express Travel up to $500,000 on these purchases per calendar year.
• 5X Earn 5X Membership Rewards® Points on prepaid hotels booked with American Express Travel.

What we love: If you’re a frequent traveler looking for top-tier perks, this card may be worth the price of admission. It boasts an unrivaled set of cardmember benefits, including perhaps the most extensive lounge access and credits for expedited security screening, airline incidentals, Uber, digital entertainment and much more. Learn more: Amex Platinum Card benefits guide Alternatives: If you think the Amex Platinum’s list of perks is impractical, consider the Capital One Venture X Rewards Credit Card instead . Another premium travel card, the Venture X is more cost-effective while still offering a terrific flat rewards rate and valuable perks like annual travel credits and bonus miles.

• There’s around $1,700 of yearly value in ongoing credits, which is perhaps unrivaled in the rewards card market.
• Earns one of the highest travel rewards rates of any American Express card.
• Not all of the card’s niche perks and credits are practical for the average person, so the card may end up costing more than it’s worth.
• It earns just 1X points on all non-travel spending, so it won’t make much sense if you want a standalone rewards card to cover everyday spending.
• Earn 80,000 Membership Rewards® Points after you spend $8,000 on eligible purchases on your new Card in your first 6 months of Card Membership. Apply and select your preferred metal Card design: classic Platinum, Platinum x Kehinde Wiley, or Platinum x Julie Mehretu.
• Earn 5X Membership Rewards® Points for flights booked directly with airlines or with American Express Travel up to $500,000 on these purchases per calendar year and earn 5X Membership Rewards® Points on prepaid hotels booked with American Express Travel.
• $200 Hotel Credit: Get up to $200 back in statement credits each year on prepaid Fine Hotels + Resorts® or The Hotel Collection bookings with American Express Travel when you pay with your Platinum Card®. The Hotel Collection requires a minimum two-night stay.
• $240 Digital Entertainment Credit: Get up to $20 back in statement credits each 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, and The Wall Street Journal. Enrollment required.
• The American Express Global Lounge Collection® can provide an escape at the airport. With complimentary access to more than 1,400 airport lounges across 140 countries and counting, you have more airport lounge options than any other credit card issuer on the market. As of 03/2023.
• $155 Walmart+ Credit: Save on eligible delivery fees, shipping, and more with a Walmart+ membership. Use your Platinum Card® to pay for a monthly Walmart+ membership and get up to $12.95 plus applicable taxes back on one membership (excluding Plus Ups) each month.
• $200 Airline Fee Credit: Select one qualifying airline and then receive up to $200 in statement credits per calendar year when incidental fees are charged by the airline to your Platinum Card®.
• $200 Uber Cash: Enjoy Uber VIP status and up to $200 in Uber savings on rides or eats orders in the US annually. Uber Cash and Uber VIP status is available to Basic Card Member only. Terms Apply.
• $189 CLEAR® Plus Credit: CLEAR® Plus helps to get you to your gate faster at 50+ airports nationwide and get up to $189 back per calendar year on your Membership (subject to auto-renewal) when you use your Card. CLEARLanes are available at 100+ airports, stadiums, and entertainment venues.
• Receive either a $100 statement credit every 4 years for a Global Entry application fee or a statement credit up to $85 every 4.5 year period for TSA PreCheck® application fee for a 5-year plan only (through a TSA PreCheck® official enrollment provider), when charged to your Platinum Card®. Card Members approved for Global Entry will also receive access to TSA PreCheck at no additional cost.
• Shop Saks with Platinum: Get up to $100 in statement credits annually for purchases in Saks Fifth Avenue stores or at saks.com on your Platinum Card®. That's up to $50 in statement credits semi-annually. Enrollment required.
• Unlock access to exclusive reservations and special dining experiences with Global Dining Access by Resy when you add your Platinum Card® to your Resy profile.
• $695 annual fee.

Best Card Offer for Good Credit

Best for food and travel

American Express® Gold Card

Earn 60,000 Membership Rewards® Points after you spend $6,000 on eligible purchases with your new Card within the first 6 months of Card Membership.

Earn 4X Membership Rewards® Points at Restaurants, plus takeout and delivery in the U.S. Earn 4X Membership Rewards® points at U.S. supermarkets (on up to $25,000 per calendar year in purchases, then 1X). Earn 3X Membership Rewards® points on flights booked directly with airlines or on amextravel.com.

• 4X Earn 4X Membership Rewards® Points at Restaurants, plus takeout and delivery in the U.S.
• 4X Earn 4X Membership Rewards® points at U.S. supermarkets (on up to $25,000 per calendar year in purchases, then 1X).
• 3X Earn 3X Membership Rewards® points on flights booked directly with airlines or on amextravel.com.

What we love: This card is a good fit for traveling restaurant-goers and home chefs thanks to its high rewards rate at both restaurants and supermarkets, two practical everyday categories that should make it easy to rack up rewards. Along with rewards, this card’s exclusive annual dining credits and Uber Cash can nearly make up for the annual fee without eating into your rewards. Learn more: Why expert Matt Bundrick loves the Amex Gold Alternatives: If the American Express Gold’s high annual fee is turning you away, the Capital One SavorOne Cash Rewards Credit Card is a terrific alternative if you still want to earn on dining and grocery purchases.

• Carries a handful of travel benefits, including lost luggage reimbursement and hotel privileges with eligible stays.
• Delivers extra purchasing power since there is no preset spending limit, and you can carry a balance with the Pay Over Time feature if needed.
• You need to use the right transfer partner to get the most value out of this card’s points.
• It’s missing several premium travel perks other cards have, such as airport lounge access and trip cancellation and interruption insurance.
• Earn 60,000 Membership Rewards® points after you spend $6,000 on eligible purchases with your new Card within the first 6 months of Card Membership.
• Earn 4X Membership Rewards® Points at Restaurants, plus takeout and delivery in the U.S., and earn 4X Membership Rewards® points at U.S. supermarkets (on up to $25,000 per calendar year in purchases, then 1X).
• Earn 3X Membership Rewards® points on flights booked directly with airlines or on amextravel.com.
• $120 Uber Cash on Gold: Add your Gold Card to your Uber account and each month automatically get $10 in Uber Cash for Uber Eats orders or Uber rides in the U.S., totaling up to $120 per year.
• $120 Dining Credit: Satisfy your cravings and earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, Milk Bar and select Shake Shack locations. Enrollment required.
• Get a $100 experience credit with a minimum two-night stay when you book The Hotel Collection through American Express Travel. Experience credit varies by property.
• Choose the color that suits your style. Gold or Rose Gold.
• No Foreign Transaction Fees.
• Annual Fee is $250.

Best Card Offer for Fair Credit

Best for upgrading

Capital One Platinum Credit Card

Intro offer is not available for this Capital One credit card.

What we love: This brass-tacks card is tailored to people with fair credit who want to focus on building credit without distractions. Unsecured cards for people with less-than-perfect credit often charge a ton of fees, but this card gives responsible cardholders the chance to increase their credit limit and possibly upgrade to a more rewarding Capital One card in the future if their score improves. Learn more: Is the Capital One Platinum Card worth it? Alternatives: The Capital One QuicksilverOne Cash Rewards Credit Card may be more rewarding during your credit-building journey since it earns a flat 1.5 percent cash back rate and is also available with fair credit.

• You’ll be considered for a higher credit limit after just six months of responsible use — one of the shortest credit limit review periods available with a credit-building card.
• Capital One may consider applicants with FICO scores as low as 580 for this card.
• The variable APR is assigned to all cardholders, regardless of credit score. That’s a bit high, even for a card for someone with fair credit.
• It comes with no rewards program or notable perks, which limits this card’s long-term value compared to other credit-building cards.
• No annual or hidden fees. See if you're approved in seconds
• Be automatically considered for a higher credit line in as little as 6 months
• Help build your credit through responsible use of a card like this
• Enjoy peace of mind with $0 Fraud Liability so that you won't be responsible for unauthorized charges
• Monitor your credit score with CreditWise from Capital One. It's free for everyone
• Get access to your account 24 hours a day, 7 days a week with online banking from your desktop or smartphone, with Capital One's mobile app
• Check out quickly and securely with a contactless card, without touching a terminal or handing your card to a cashier. Just hover your card over a contactless reader, wait for the confirmation, and you're all set
• Pay by check, online or at a local branch, all with no fee - and pick the monthly due date that works best for you

Best Student Card Offer

Best for students with no credit history

Discover it® Student Cash Back

• Intro Offer: Unlimited Cashback Match for all new cardmembers – only from Discover. Discover will automatically match all the cash back you’ve earned at the end of your first year! So you could turn $50 cash back into $100. Or turn $100 cash back into $200. There’s no minimum spending or maximum rewards. Just a dollar-for-dollar match.

Earn 5% cash back on everyday purchases at different places you shop each quarter like grocery stores, restaurants, gas stations, and more, up to the quarterly maximum when you activate. Plus, earn unlimited 1% cash back on all other purchases - automatically.

• 5% Earn 5% cash back on everyday purchases at different places you shop each quarter like grocery stores, restaurants, gas stations, and more, up to the quarterly maximum when you activate.
• 1% Plus, earn unlimited 1% cash back on all other purchases - automatically.

What we love: Thanks to its first-year Cashback Match and generous rotating cash back program , this is one of the most lucrative rewards credit cards available to students. First-time cardholders will have a hard time beating the value of a major rewards card combined with the peace of mind students can get from Discover’s top-tier customer service and generously low rates and fees. Learn more: Is the Discover it® Student Cash Back card worth it? Alternatives: Budget-conscious students will love the Capital One SavorOne Student Cash Rewards Credit Card ’s unlimited 3 percent cash back on student-centric categories (dining, entertainment and popular streaming services), exceptional cash back rate on Capital One Entertainment purchases and more straightforward rewards program.

• It carries no annual fee, foreign transaction fees or penalty APR and even waives your first late payment fee (the late fee is up to $41 after that).
• This card’s intro APR offer is a rare but potentially helpful perk for newly independent cardholders.
• The rotating bonus rewards program might be too high-maintenance for credit card newbies.
• Its additional features are barebones outside the rewards and low fees, even for a student card.
• Earn 5% cash back on everyday purchases at different places you shop each quarter like grocery stores, restaurants, gas stations, and more, up to the quarterly maximum when you activate. Plus, earn unlimited 1% cash back on all other purchases—automatically.
• Redeem your rewards for cash at any time.
• No credit score required to apply.
• Discover could help you reduce exposure of your personal information online by helping you remove it from select people-search sites that could sell your data. It’s free, activate with the mobile app.
• No annual fee and build your credit with responsible use.
• 0% intro APR on purchases for 6 months, then the standard variable purchase APR of 18.24% - 27.24% applies.
• Terms and conditions apply.

Best Card Offer for No Credit History

Best for low-cost credit building

Chime Credit Builder Secured Visa® Credit Card

Intro offer is not available for this Chime credit card.

What we love: People who build their credit with as few card costs as possible may enjoy this card, especially since there’s no minimum security deposit. There’s no APR, late payment fees, over-limit penalties or annual fee to worry about. It also offers one of the highest potential credit limits for secured cards in exchange for managing balances between Chime and your bank account. Alternatives: The Capital One Platinum Secured Credit Card may offer a solid — and lower-maintenance — starting credit limit with only a small deposit. The card also gives you a chance at a higher credit limit in as little as six months and reports credit utilization to credit bureaus (unlike the Chime card), which could expedite your credit-building.

• This secured card offers one of the highest possible credit limits, with a $10,000 maximum secured account balance.
• Chime does not require a credit check, so applicants can avoid hard and soft pulls on their credit.
• There isn’t much long-term value since you can’t earn rewards or eventually upgrade to an unsecured card.
• Requires opening a Chime Checking Account with at least a $200 direct deposit in order to apply for the card, which equates to a typical security deposit.
• To apply for Credit Builder, you must have received a single qualifying direct deposit of $200 or more to your Chime® Checking Account
• The qualifying direct deposit must be from your employer, payroll provider, gig economy payer, or benefits payer by Automated Clearing House (ACH) deposit OR Original Credit Transaction (OCT).
• The Chime Credit Builder Card is a secured credit card that can help consumers build credit history. It has no interest*, no annual fees, no credit check to apply, and no minimum security deposit required**
• Help build your credit history with your own money. The money you move into the Credit Builder secured account is the amount you can spend on your card (no minimum deposit required**). Turn on Safer Credit Building** and have your monthly balance automatically paid on time. Chime will report your activities to Transunion®. Experian®. and Equifax®.
• Use your secured Credit Builder card everywhere VISA is accepted, including on everyday purchases, such as gas and groceries.
• *No Interest: Out-of-network ATM withdrawal and OTC advance fees may apply. View The Bancorp agreement or Stride agreement for details; see back of card for issuer.
• **No Minimum Security Deposit: Money added to Credit Builder will be held in a secured account as collateral for your Credit Builder Visa card, which means you can spend up to this amount on your card. This is money you can use to pay off your charges at the end of every month.
• The secured Chime Credit Builder Visa® Credit Card is issued by The Bancorp Bank, N.A. or Stride Bank, N.A., pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa credit cards are accepted. Please see the back of your card for its issuing bank.
• To apply for Credit Builder, you must have received a single qualifying direct deposit of $200 or more to your Chime Checking Account. The qualifying direct deposit must be from your employer, payroll provider, gig economy payer, or benefits payer by Automated Clearing House (ACH) deposit OR Original Credit Transaction (OCT). Bank ACH transfers, Pay Anyone transfers, verification or trial deposits from financial institutions, peer to peer transfers from services such as PayPal, Cash App, or Venmo, mobile check deposits, cash deposits, one-time direct deposits, such as tax refunds and other similar transactions, and any deposit to which Chime deems to not be a qualifying direct deposit are not qualifying direct deposits.
• **Safer Credit Building - On-time payment history may have a positive impact on your credit score. Late payment may negatively impact your credit score. Chime will report your activities to Transunion®, Experian®, and Equifax®. Impact on your credit may vary, as Credit scores are independently determined by credit bureaus based on a number of factors including the financial decisions you make with other financial services organizations.

Best Card Offer for Bad Credit

Best credit limit policy

Capital One Platinum Secured Credit Card

What we love: Not many secured cards come with security deposit requirements as low as $49, making this a great option for starting to build credit. Plus, Capital One will review your account for a potential credit limit increase after six months — one of the shortest credit line review periods available on a card available at this credit level. Alternatives: The Discover it® Secured Credit Card may be a better option for some credit-builders looking for perks since it earns rewards on purchases and comes with an introductory APR on balance transfers.

• The potential $49 minimum security deposit is one of the lowest available on a secured card and is especially valuable considering it still gets you a starting credit limit of $200.
• Capital One reports your card usage to all three credit bureaus to help you build credit.
• Its ongoing value is greatly limited compared to secured cards that earn rewards, and its APR is higher than several other cards’ rates.
• If you take advantage of the possible $49 minimum security deposit, the $200 starting credit limit can make it hard to manage your credit utilization ratio, which could easily hurt your credit-building efforts.
• Building your credit? Using the Capital One Platinum Secured card responsibly could help
• Put down a refundable security deposit starting at $49 to get a $200 initial credit line
• You could earn back your security deposit as a statement credit when you use your card responsibly, like making payments on time
• Be automatically considered for a higher credit line in as little as 6 months with no additional deposit needed
• Get access to your account 24 hours a day, 7 days a week with online banking to access your account from your desktop or smartphone, with Capital One's mobile app

Compare Bankrate's best credit cards of 2024

While no one card will be “the best” for everyone, there may be a clear “best credit card” for you based on your goals, spending habits, credit score and more. Perhaps the closest answer to the objective “best credit cards” and issuers are listed below, based on extensive research data from experts at Bankrate and J.D. Power.

2024 Bankrate Award winners

If you’re looking for a lay of the land, the 2024 Bankrate Award winners are a great place to start. Every year, Bankrate’s credit card experts research, rate and compare hundreds of cards and crown the best in each major category as Bankrate Award winners based on their outstanding features, rewards value and more. 

Several of the cards on this page were winners this year, including:

• American Express Gold Card — Best credit card for foodies (three-time winner*)
• Capital One Venture X Rewards Credit Card — Best credit card for jet-setters (three-time winner*)
• Capital One SavorOne Cash Rewards Credit Card — Best credit card for entertainment (2024), Best credit card for families (two-time winner*)
• Discover it® Student Cash Back — Best credit card for students (two-time winner*)
• Wells Fargo Active Cash Card — Best credit card for flat-rate cash back
• Blue Cash Everyday Card from American Express — Best credit card for everyday use (2024), Best credit card for shopaholics (2023)

Check out more 2024 Bankrate Award winners if you’re ready to snag one of the best credit cards on the market.

2024 Bankrate Awards for Credit Cards

Previous years: *2022 Bankrate Awards , 2023 Bankrate Awards

Perfect Bankrate review scores

Bankrate’s review scores can also highlight especially great cards. Review scores are calculated on a scale of 1 to 5 and based mainly on a card’s rewards value, perks, introductory offers, APR and other fees. Although several fantastic cards hold a score of 4 and above, scoring a perfect 5/5 is quite an accomplishment. 

Here are the exceptional cards that currently hold a 5/5 Bankrate review score:

5/5 Rewards Cards:

• Chase Sapphire Reserve®
• Capital One Venture X
• American Express Gold Card
• American Express® Business Gold Card
• Capital One SavorOne

5/5 Credit-building cards:

• Petal® 2 “Cash Back, No Fees” Visa® Credit Card 

5/5 Student cards:

• Discover it® Student Cash Back

J.D. Power’s top-rated credit cards

The annual J.D. Power credit card satisfaction study details the major credit card industry trends each year, and the 2023 study added individual card rankings to the survey. For an extra vote of confidence, here are the top three credit cards according to consumers in the 2023 survey’s five categories (scored on a 1,000-point scale):

Rewards cards (Premium)

• Bank of America® Premium Rewards® Elite Credit Card (712)
• American Express Gold Card (693)
• The Platinum Card from American Express (687)

Category Average: 611

Rewards cards (No annual fee)

• Capital One SavorOne (666) ( See Rates & Fees )
• Discover it® Student Cash Back (658)
• Blue Cash Everyday® Card from American Express (655)

Category Average: 626

Co-branded cards (Airline)

• JetBlue Plus Card (643)
• Southwest Rapid Rewards Plus (628)
• American Airlines AAdvantage® MileUp® (614)

Category Average: 612

Co-branded cards (No annual fee)

• Apple Card (655)
• Hilton Honors American Express Card (638)
• Prime Visa (636)

Category Average: 617

Cards with no rewards (No annual fee)

• Capital One Platinum Secured (620) ( See Rates & Fees )
• BankAmericard® credit card (569)
• Citi Simplicity® Card (559)

Category Average: 598

J.D. Power’s top-rated credit card companies

J.D. Power’s annual credit card satisfaction survey is perhaps the definitive gauge of the best credit card issuer. The 2023 survey ranked 16 credit card issuers — major and regional — on a 1,000-point scale based on their customers’ satisfaction with their experience. American Express ranked first in the 2023 survey with Bank of America in second place, which is a departure from Amex and Discover’s typical neck-and-neck battle for the top two spots. It’s also worth noting the average score was 609, which means only American Express, Bank of America, Discover and Capital One achieved an above-average customer satisfaction rating.

Here are how the 16 issuers rank based on J.D. Power’s 2023 survey results, as well as how many Bankrate Awards the issuer’s cards have won since 2022 and an estimated point or mile value for their top rewards cards:

It’s also worth noting that the study’s seven midsize issuers — mostly regional banks and credit unions — offer cards that have earned Bankrate Awards or carry rewards that Bankrate includes in its point valuation database . Of these midsize issuers, TD Bank won “Best Bank for Sign-Up Bonuses” and PNC won “Most Trusted Bank” in the 2023 Bankrate Awards for banking . Several of the Navy Federal Credit Union cards are featured in Bankrate’s list of the best credit union cards as well.

A credit card  is a financial product similar to a personal line of credit that lets you make purchases now, but pay for them later. When you’re approved for a credit card, you get a credit limit that determines the maximum dollar amount you can charge to your card. As you make purchases, your available credit decreases. When you pay your bill, your available credit increases.

With a credit card, you can carry a balance from month to month, meaning you can make a partial or minimum payment rather than paying your balance in full. The downside to carrying a balance is facing potential interest charges determined by your credit card’s APR , or annual percentage rate. Your credit card’s APR is effectively the cost of borrowing money. Remember, credit card interest is relevant only if you carry credit card debt from month to month, and it’s best to pay your balance on time and in full whenever possible.

Credit card rewards programs are another major advantage of credit cards. Cards typically earn one of three types of rewards : cash back, travel miles or points.

• Cash back is the simplest form of rewards. You earn back a percentage of your purchase cost, so if your card earns 3 percent back in a certain category, spending $100 in that category would net you $3 in cash back.
• Credit card points and miles work similarly, but the value of points and miles varies based on how they’re redeemed. Miles are generally best used to book travel (typically airfare) while points may offer more flexibility, allowing you to redeem for different types of travel as well as cash back.

Important credit card terms

Your understanding of certain credit card terms is essential when choosing a credit card. The terms and phrases listed below should be top of mind when you begin shopping:

• Interest rate : Interest is the daily-compounding fee a card issuer charges for carrying a credit card balance from month to month, one of the main ways that credit card companies make money . Rates are influenced by your credit score and the prime rate set by the Federal Reserve.
• Annual Percentage Rate (APR) : In the world of credit cards, your interest rate and your APR are interchangeable. Your credit card’s annual percentage rate is the interest you’re charged for carrying a balance on the credit card in a billing cycle. The potential APR range is listed in your card’s terms (17.99 percent to 29.99 percent, for example).
• Credit limit: This is your credit card’s spending limit and will vary based on your credit score. You’ll likely have different credit limits for different transactions. For example, your cash advance limit (if your credit card offers cash advances) will be lower than your credit limit for purchases. If you go over your credit limit , the drawbacks can be severe, so it's important to know your limit and keep your balance beneath it, if you plan to carry a balance.
• Credit card balance: Your credit card’s statement balance is the amount owed at the end of a billing cycle. This amount will include all unpaid transactions made on your credit card and any unpaid fees.
• Credit card issuer: Often confused with credit card networks — like Visa or Mastercard that facilitate transactions between merchants and card issuers — credit card issuers provide credit cards directly to consumers. Cardholders can receive credit cards from financial institutions like credit unions or banks.
• Co-branded: Co-branded cards typically earn rewards and offer perks with a particular merchant or brand they’re partnered with, such as an airline, hotel or retail store. However, these cards are also part of a major credit card network, so they can be used wherever that network is accepted.
• Private-label: “Private-label” (or “closed loop”) cards aren’t branded with a credit card network at all, so they can only be used with the partnered merchant. Many of these products are store credit cards and gas station credit cards. Private label cards usually aren’t recommended since they carry weak features and high APRs and fees.

Pros and cons of credit cards

Credit cards can be a great way to manage your money and make sure you pay your bills on time — but the problem is that they’re also very easy to misuse. Because of this, you should be aware of some of the benefits and drawbacks of owning a credit card .

Earn rewards and enjoy perks. Rewards card programs and perks like bonus statement credits can help you save money on travel, dining and other big expenses.

Build your credit score . Using a credit card responsibly is one of the best ways to establish and improve your credit score as long as you consistently pay on time and keep your balance low.

Financial flexibility and extra protection . A credit card even offers peace of mind when you pay for goods and services. It comes with strong consumer protections to ensure safe transactions and guard against identity theft .

Consolidate debt and pause interest . A card with a 0 percent intro APR on purchases and balance transfers can give you time to pay off new purchases and consolidated debt from other cards or loans.

Help others establish credit . If you have children or other loved ones who need help building (or rebuilding) their credit score, you can add them as authorized users on your card so they can build credit without the hassle of opening their own (and earn you extra rewards).

You could face high interest rates. Credit card interest rates are higher than other types of loans or credit accounts, so paying off credit card debt could become costlier than installment loan interest.

You could get into debt . Spending more on your credit card than you can pay off before the end of each billing cycle could pile expensive interest charges onto your balance and compound into snowballing debt.

Your credit score can drop with irresponsible use . Improper card use could damage your credit profile and lead to higher loan interest rates and insurance premiums or trouble getting a job or finding housing .

You may take on fees . Even the best credit cards can come with a variety of fees, though you can avoid many of these with responsible card use. Some will have fees for foreign transactions or annual fees for perks that you don't need or use.

What type of credit card should you get?

Credit card issuers offer different types of credit cards to meet a variety of consumer needs. For example, some cardholders don’t see the appeal of a premium travel card or won’t use the card enough to justify its annual fee , while others may primarily use their card while traveling abroad. The former type of cardholder would likely benefit from a no-annual-fee card , while the latter would benefit from a no-foreign-transaction-fee card with plenty of travel features.

But there’s no such thing as a one-size-fits-all credit card, and the sheer number of options can make it difficult to choose a credit card that’s best for your unique situation. That’s why it’s good to consider which card best matches your spending habits .

Here are the major credit card types and the ideal cardholder they’re suited for:

Cash back rewards cards

What to know:.

• Cash back cards usually earn rewards on everyday purchases like groceries, dining, gas and more.
• You can typically redeem cash back as a statement credit , deposit to your bank account or gift card. Some cash back rewards also let you pool rewards with travel cards from the same issuer.
• While some cards earn a flat cash back rate on every purchase, others offer higher rewards rates in specific categories year-round or seasonally in rotating categories .

Who they’re great for:

• Household shoppers — The most popular cash back bonus categories are a good fit if you spend mostly on groceries, gas, dining and other everyday categories.
• Simplicity seekers — If you prefer streamlined redemption and minimal fees, cash back cards are a good option.
• Staycation-ers and infrequent travelers — If you don’t plan to redeem rewards for travel, cash back is likely your best alternative.

Where to look:

• Bankrate’s best cash back cards
• How to choose a cash back credit card
• Bankrate’s best grocery cards hub
• Bankrate’s best restaurant cards hub
• Bankrate’s best gas station cards hub

Travel rewards cards

What to know.

• Along with earning valuable travel rewards, these cards also tend to feature benefits that make your journey easier and more affordable. Popular perks include airport lounge access, free hotel upgrades, travel protections (like trip cancellation insurance) and credits toward expenses like airfare, hotel stays and expedited security screening services.
• General travel cards earn rewards on airfare, hotels and other expenses, no matter how you fly or where you stay. These cards may also include perks like airport lounge access or credits for expedited security screening services.
• Co-branded cards typically carry high reward rates and elite loyalty status with particular airlines or hotel chains. Airline cards typically provide perks like in-flight purchase discounts, priority boarding and free checked baggage. Similarly, hotel cards may offer free nights, hotel credits and status that gives you perks like room upgrades and flexible check-in.
• Flexibility-focused travelers — If you want to book with the airline or hotel that offers the best deal and care more about earning and redeeming rewards than traveling in style, you’ll likely prefer a general-purpose travel card.
• Road warriors — Road trippers and weekend adventurers could save on accommodations and future trips with travel cards’ lodging, dining, entertainment and rental car rewards.
• Strategic shoppers — Travel cards’ broad category coverage, pairing opportunities and transfer partners will help you squeeze the most mileage from your rewards.
• Loyal jet-setters and hotel guests — An airline or hotel card would be a rewarding pick if you prefer to fly with a specific carrier or stay with a particular hotel chain.
• Travel hackers — A co-branded airline or hotel card may be worthwhile if you don’t mind holding multiple cards to maximize your travel rewards .
• Bankrate’s best travel cards hub
• Bankrate’s best airline cards hub
• Bankrate’s best hotel cards hub
• Fine-tune your rewards strategy with Bankrate’s Travel Toolkit

0% APR and balance transfer cards

• A balance transfer credit card lets you move debt from an existing credit account to the new card and, ideally, pay off the transferred debt with a 0 percent intro APR lasting 18 to 21 months. Meanwhile, cards with 0 percent intro APR periods on purchases are useful if you want to pay off new purchases over time.
• Cards typically charge a 3 percent to 5 percent balance transfer fee. Make sure to check your math beforehand since a card with a lower transfer fee may be more cost-effective than one with a longer intro APR if you have a large balance.
• Debt-settlers — A balance transfer card may give you enough breathing room to finally pay off snowballing debt .
• Balance managers — You can consolidate multiple credit card balances (and sometimes personal loans) onto one zero-interest card if you’re having a hard time keeping up with interest charges across multiple cards.
• Big purchase planners — You can use a card with a strong 0 percent intro APR on purchases to keep interest at bay as you pay off big purchases .
• Bankrate’s best balance transfer cards hub
• Bankrate’s best 0 percent APR cards hub

Low-interest cards

• You’ll want to consider a low-interest credit card that has an ongoing APR below the average interest rate (currently hovering around a high 20 percent) if you may need to carry a balance.
• Emergency expense planners — Minimize the impact of interest should you need to carry a balance.
• First-time cardholders — Provides a lower-cost safety net in case you miss a payment while getting the hang of credit cards.

Where to look: 

• Bankrate’s best low-interest cards hub 
• Credit union cards often carry the lowest APRs

Business cards

• With a cash back card for business, you can earn a flat percentage on general purchases or a higher rate on specialty categories such as office supplies. A business travel card that earns miles or points can also help you reduce your costs for airfare, hotel stays and transit.
• Business cards typically carry specialized features, such as higher credit limits than consumer cards, tools to help you manage expenses, free cards for employees and business-related rewards categories , such as shipping, advertising or office supply store purchases
• Small-business owners — On top of business-oriented features not found on personal cards, business cards can also help you handle your small business or startup costs and build your business’ credit score .
• Side hustlers — Even if you have a small online store, dog walking or ridesharing side gig , you can use a business card to earn rewards, access expense management tools and keep your business spending separate from your personal spending.
• Business travelers — Many of the top-tier business cards offer travel perks and rewards, and frequent business travelers can put features like annual travel credits, airline companion passes and lounge access privileges to good use.
• Bankrate’s best business cards hub
• Bankrate’s best business cards for startups

Student cards

• You might not need a good or excellent credit score (or even a credit history at all) to qualify for a student card. In fact, some cards for international students don’t even require a Social Security number.
• Some student card perks are especially useful if you’re in college, like statement credits for Amazon Prime Student, streaming services or other common subscriptions.
• Annual fees, foreign transaction fees and penalty APRs are less common among student cards, and some issuers even waive your first late payment fee. These minimal fees can provide some peace of mind for students without the same income or credit experience as a seasoned cardholder.
• Students — Unlike secured cards and other credit-building options for people with limited credit, student credit cards are only available to students. Student cards’ comparatively low rates and fees, $0 deposit requirement, student-oriented perks and rewards make them perhaps the best cards available if you want to build a credit history.
• Bankrate’s best student cards hub
• Bankrate’s best cards for international students

Secured credit-building cards

• Secured cards are the most accessible — and feature-rich — credit card option if you have no credit history or a “bad” to “fair” credit score (typically a FICO score of 669 or lower, or a VantageScore of 660 or lower).
• In exchange for a refundable security deposit (typically starting at $200), issuers provide you a matching credit limit that allows you to work on building credit . Setting your own credit limit with a large deposit can make it much easier to keep your credit utilization ratio — a key credit scoring factor — in check.
• Non-students may find that secured cards generally offer stronger perks than unsecured credit-building cards. In fact, several issuers provide secured cards with rewards rates identical to their full-fledged counterparts, such as the Bank of America® Customized Cash Rewards Secured Credit Card * or Discover it® Secured Credit Card.
• Credit-builders with bad credit or no credit history — If you have money for a security deposit, a secured card could be the most cost-effective, rewarding and expedient card option to build or repair your credit.
• Bankrate’s best secured cards hub
• Bankrate’s best cards for no credit history hub
• Bankrate’s best cards for bad credit hub

Unsecured credit-building cards

• Unsecured credit cards for bad or fair credit can be handy if you don’t have the flexibility to tie up a large security deposit for several months. However it’s important to carefully read each card’s terms and conditions.
• Unsecured credit-building cards tend to charge much higher rates and fees than secured cards, and some of these unsecured cards’ terms border on being predatory. Decent unsecured cards designed for subprime credit do exist, but a secured card may be a more cost-effective option in the long run for building credit.
• Credit-builders avoiding a security deposit — Unsecured cards can be helpful if you’re hesitant to fork up a hefty deposit and you can carefully navigate the risks.
• Credit-builders with fair credit — Since you’ll be seen as a lower risk than someone with bad credit, having fair credit can get you unsecured credit-building cards that are a bit more rewarding than secured alternatives.
• Bankrate’s best unsecured credit-building cards
• Bankrate’s best cards for fair credit hub

How to choose a credit card

Choosing the best credit card all comes down to which card is going to provide you with the most value based on your financial situation, spending habits and more. Think about these questions when a credit card offer catches your eye:

What’s your credit score?

The better your credit score, the better your chance of qualifying for a credit card with excellent perks and terms. Check your credit score before applying for a new card, and, if your credit score isn’t where you’d like it to be, work on improving your credit .

Are you looking to pay off debt or upcoming purchases?

If you only need 12 to 15 months to pay off your balance, a no-annual-fee rewards card with a short intro APR period may be your best choice long term. Otherwise, cards designed specifically for balance transfers or financing new purchases will be a better fit since they tend to offer 0 percent APR periods of 18 to 21 months.

It’s best to pay your balance in full each month so you avoid paying interest, but a card with a low interest rate or alternate payment plan may be wise if you think you may need extra time to pay off unexpected purchases after intro zero-interest APRs typically end. Low-interest cards tout APRs that are lower than the average credit card interest rate , which has been hovering around a high 20 percent.

What are your spending habits?

Start your research by deciding what type of rewards you’d like to earn: cash back, points or miles . If your spending is concentrated in certain categories — like groceries, dining or travel — look for a card that carries a high rewards rate on those purchases. If you don’t spend a lot in one particular category, consider a card that earns rewards at a flat rate on all purchases.

Flat-rate rewards cards typically offer a maximum of 2 percent cash back or 2X miles on purchases, while cards with rotating or year-round bonus categories can offer anywhere from 2 percent to 6 percent back on certain purchases (sometimes with a few restrictions on how much you can earn).

Can you earn a sign-up bonus?

Many credit cards carry a sign-up bonus for new cardholders. No-annual-fee rewards cards typically offer sign-up bonuses worth $200 to $250 after you spend $500 to $1,000 in the first three months. Meanwhile, premium rewards cards generally offer bonuses worth $500 to $800 after you spend $4,000 to $6,000 in your first three or six months. Business cards often offer even more valuable sign-up bonuses with a bigger spending requirement to match.

Bankrate’s Spender Type Tool

Here’s how bankrate experts chose their rewards card.

With all of this advice in mind, let’s see how a credit card expert made their pick. Here’s Bankrate writer and credit card reviewer Garrett Yarbrough on how he chose his primary rewards card:

Although I knew which cards carried the highest rewards rates, most impressive sign-up bonuses and most valuable perks, I started my search by considering what I wanted most out of my card. I knew I wanted a versatile card that could reward my biggest expenses and remain a valuable staple in my rewards strategy even after I added more cards to my wallet. APRs weren’t a huge concern since I already had a low-interest card from my credit union and I avoid carrying a balance. So I focused on rewards. While a cash back card would be a good fit, I didn’t want to close the door to more valuable travel rewards and transfer partners in the future. My biggest expenses tend to be bills and everyday purchases like groceries, gas and dining, but I also shop at Walmart and online in a rush. I love to cook, too, so I’d probably lean on a card with a grocery rewards category more than one with a restaurant category. On paper, my spending habits meant a card with a high rewards rate at grocery stores would be helpful. But in practice, I’d likely rack up more rewards with a flat-rate card. Knowing I wanted a future-proof, flat-rate rewards card with diverse redemption options and plenty of pairing opportunities helped me quickly narrow my search to the Chase Freedom Unlimited. Although it doesn’t carry the highest flat cash back rate, its combination of both 1.5 percent back on general purchases and 3 percent back on dining and drugstore purchases gives it an extra layer of rewards value. Down the road, I can even boost the value of the Freedom Unlimited card’s rewards by adding the Chase Sapphire Preferred to my wallet and redeeming points for travel. I can also shore up my rewards earning with the categories from a card like the Capital One SavorOne or Blue Cash Everyday. Until then, the Freedom Unlimited gives me a stellar foundation on which to build my rewards strategy. —  Garrett Yarbrough — Writer, Credit Cards

Because people have many options when looking for their next credit card, reading current cardholders' experiences can be helpful. We reviewed the most useful comments on the best credit cards from online forums and discussion boards, vetted this information to ensure accuracy, and curated the highlights here. 

First-hand perspectives

For many Reddit and myFICO Forums users, American Express cards come out on top. While people favor the Amex Platinum and Gold cards for their lucrative rewards structure and perks, both the Blue Cash Everyday® Card from American Express and Blue Cash Preferred® Card from American Express are noted for their high rewards rate on grocery purchases.

For one Reddit user, the Amex Blue Cash Preferred provides plenty of value because of its high reward rates on groceries and other key categories. 

"Groceries are my highest spend. Multipliers on streaming and gas are nice, as well as the purchase protection, return protection and extended warranty it provides." — Reddit user *

However, some commenters on myFICOforums observe that the Blue Cash Preferred card's annual fee and yearly spending cap on groceries cut into rewards. If that’s a concern for you, we recommend choosing the Blue Cash Everyday instead: though the rewards rates are lower, you’ll get a valuable no-annual-fee card.

Current cardholders also shared these perspectives about the best credit cards:  

• Rotating bonus categories: Discover it® Cash Back cardholders enjoy its high rewards rate in different categories each quarter. 
• Customized bonus categories: Both the Citi Custom Cash® Card and Bank of America® Customized Cash Rewards credit card are considered strong cards, especially when paired with an unlimited flat-rate card. Our current Bankrate Award winner for best flat-rate cash back is the Wells Fargo Active Cash® Card. 
• Travel cards: Many Reddit users cite the Chase Sapphire Reserve® and U.S. Bank Altitude® Reserve Visa Infinite® Card as their go-to cards. While some would like improvements in Chase's Pay Yourself Back feature, one Redditor points out , "I use [the Chase Sapphire Reserve] mainly for gas and dining, transfer points from my other Chase cards over, and it seems like points just add up." Capital One's suite of Venture cards also gets high praise, particularly for the issuer’s "fantastic app" that makes the user experience seamless.
• Everyday spending: Most Reddit users agree that finding a 2 percent flat-rate cash back card with no annual fee would be best for everyday, general spending. Many commenters on Quora list the Citi Double Cash® Card as a great card for its 2 percent cash back (1 percent when you buy and 1 percent when you pay off your purchase), with no spending cap or annual fee.

At the end of the day, the best credit card is the one that meets your needs and earns a high rewards rate in categories where you do the most spending. For many people, that’s groceries, which is why the Amex Blue Cash Preferred is so popular. If you want to carry more than one card, as many credit card users on Reddit and other forums do, you can get more value by using a flat-rate cash back card for general purchases and pairing it with a card that earns high rewards rates in your favorite spending categories.  

*The quotes and citations included on this page have been verified by our editorial team and are accurate as of the posting date. Outlinked content may contain views and opinions that do not reflect the views and opinions of Bankrate.

What's the credit card application process?

Once you’ve decided which credit card is best suited for your needs, it’s finally time to apply for your new card . You’ll have the best approval odds if you pursue a card that welcomes applicants with your credit score or if you’ve received a prequalified card offer.

Although it’s straightforward on paper, here’s a bit more information to guide you through how to apply for a credit card and get approved :

How to apply for a credit card

Know what you can get approved for.

Before you start filling out applications, find out your current credit score . Knowing your credit score will give you a better idea of:

• The cards you’re most likely to qualify for. On Bankrate, each card offered by our partners lists a recommended credit score you can use as a guide.
• The APR you might be offered. The higher your credit score, the more likely you are to get a lower APR.

You can check your credit score through any of the major credit bureaus, the Fair Isaac Corporation (FICO) or possibly through your bank. Based on the FICO scoring model, a good-to-excellent credit score will fall in the range of 670 to 850 (or 661 to 850 on the VantageScore model).

Choose the right card for you

Choosing the best credit card for you comes down to deciding which card provides the most value based on your financial situation, spending habits and more. Think about these questions when a credit card offer catches your eye:

• What’s your credit score? The better your credit score, the better your chance of qualifying for a credit card with excellent perks and terms. If your credit score isn’t high enough for the card you prefer, work your way up to it by improving your credit .
• Do you plan to carry a balance? It’s best to pay your balance in full each month so you avoid paying interest, but a low-interest credit card may be a wise choice if you expect to carry a balance from time to time. Credit union cards often offer especially low rates, with low-end APRs sometimes ranging from 8 percent to 14 percent.
• Are you looking to pay off debt or a large purchase? Most no-annual-fee cards only offer an intro APR for 12 to 15 months. If you need more time to pay off debt, consider a dedicated balance transfer card. These cards often carry longer intro APR periods of 18 to 21 months.
• What are your spending habits? If your spending is concentrated in a certain area (like groceries or travel), look for a card that earns 2 percent to 6 percent rewards back in that category. If you don’t spend a lot in one particular category, consider a card that earns up to 2 percent rewards back at a flat rate on all purchases.
• Can you earn a sign-up bonus? No-annual-fee rewards cards typically offer sign-up bonuses worth around $200 after you spend $500 to $1,000 in the first three months. Meanwhile, premium rewards cards generally offer bonuses worth $500 to $800 after you spend $4,000 to $6,000 in your first three or six months. Business cards often offer even more valuable sign-up bonuses with a bigger spending requirement to match.

Look for personalized or prequalified offers

With a prequalified credit card offer, you can get an idea of your approval odds without submitting an application that will trigger a hard credit inquiry. Hard credit inquiries temporarily decrease your credit score and stay on your report for two years. Prequalification processes usually involve a soft credit check, so they could help you avoid minor, short-term dings to your credit score as you shop for the right card.

One way to find and compare offers is by using tools like CardMatch™ . CardMatch only requires a soft credit pull and lists cards that match your credit profile. Based on your information, you may also receive special offers and prequalified matches. However, it’s important to be aware that a prequalified match is still not a guarantee of approval.

Fill out your application

You can apply for a card online via the issuer’s website, in person at an issuer branch, over the phone or by mail.

Before you begin filling out the application, you’ll need to have the following information on hand:

• Date of birth
• Social Security number

The issuer may also ask follow-up questions about your employment, housing situation or any additional assets and income.

Wait for a response from the credit card issuer

Your application can take as little as one minute to process , but you won’t always know whether your application was approved immediately. Getting a decision can take a few days or weeks, but issuers are required to inform you whether your application was approved or denied within 30 days of your application.

If you’ve been approved, you’ll typically get your card in the mail within 10 business days. Some issuers also provide a virtual credit card number upon approval that you can use before your physical card arrives.

Below, we’ve listed Bankrate’s three most popular credit card offers, based on how frequently our visitors began their application for them in 2023 compared to other cards that appeared on a “Best of” page in the same category (cash back, travel, business, balance transfer, etc.).

Most clicked on:

Citi Custom Cash® Card

Bank of America® Customized Cash Rewards credit card

Chase Sapphire Preferred® Card

Balance Transfer

BankAmericard® Credit Card

Citi® Diamond Preferred® Card

Citi Simplicity® Card

Zero Interest

Fair Credit

Mission Lane Cash Back Visa® Credit Card

Mission Lane Visa® Credit Card

OpenSky® Secured Visa® Credit Card

Chime Credit Builder Secured Visa® Credit Card

Chase Freedom® Student Credit Card

Discover it® Student Chrome

Petal® 1 "No Annual Fee" Visa® Credit Card

Brex 30 Card

Revenued Business Card

The American Express Blue Business Cash™ Card

Bankrate data indicates that, regardless of the type of credit card, users prefer straightforward rewards programs, no annual fee and solid zero-interest periods.

These fan-favorite cards often carry flat rewards rates or strong rates in a mix of everyday bonus categories like groceries, dining and gas. The cards that received the most applications also tended to offer convenient cash back redemption options. We found that even among premium travel cards, the most popular cards were those that came at a low cost and offered a cash back redemption option: Most only had a $95 annual fee and let you redeem for cash back or statement credits that cover past travel purchases.

Considering how credit cards can help fight inflation and more cardholders are carrying balances , it makes sense to apply for easy-to-manage cards that help you save on everyday expenses and pay off debt at a minimal cost. And if you’re planning summer travel , well-rounded cards that can either rack up travel rewards or save you money on your usual expenses are a safe bet.

How many credit cards should I have?

The number of credit cards you should have depends on your goals. For example, you’ll probably want to carry multiple cards if you’re looking to maximize rewards on a broader range of expenses or wield perks specific to your favorite stores, airlines or hotels. However, you may want to stick to one card if you prioritize building credit or a streamlined rewards experience.

Having several cards is fine as long as they deliver benefits that you take full advantage of (miles, cash back, perks and so on). Just beware of burdening yourself with annual fees and temporarily bruising your credit score from multiple card applications in a short period. For reference, statistics show that 77 percent of U.S. adults have at least one credit card, with the average American holding three to four credit cards.

Does applying for a credit card hurt your credit score?

A credit card application could have a negative (but temporary and relatively small) effect on your credit score. Getting approved for a credit card or other type of credit account requires some scrutiny of your track record as a borrower. The process can involve two types of credit checks :

• A “hard” inquiry is when the lender pulls your credit report to make a decision about whether to lend to you.
• A “soft” inquiry is when the lender checks your credit as part of a preliminary screening. Pre-qualified credit card offers involve soft credit inquiries, so keep an eye out for cards that offer pre-qualification.

A hard inquiry can subtract a few points from your credit score temporarily, while a soft inquiry usually has no effect. You’ll want to limit the number of hard inquiries on your credit report, so be as selective as possible about which credit cards you apply for and try to get preapproved first.

How old do I have to be to get a credit card?

Generally, you must be at least 18 years old to be the primary cardholder of a credit card . However, there are considerably more strict requirements to hold a credit card if you’re below the age of 21. You must be able to prove that you can independently pay your credit card bill or you can elect to have a cosigner, who is financially responsible for your bills if you cannot pay.

There is also the option to become an authorized user on a parent or guardian’s credit card. With this option, you can have access to a credit line before the age of 18, though age restrictions will depend on the issuer.

When evaluating the best credit cards, we take into account several factors, including how cards score in our proprietary card rating system and whether they offer features that fit the priorities of a diverse group of cardholders, from earning rewards to saving on interest. Whenever possible, we also feature cards that are available at various credit levels and price points. 

We analyzed over 250 of the most popular credit cards in each of our primary card scoring categories, including Cash Back, Rewards, Balance Transfer, Low Interest, Business, Credit-Building, and Student, as well as in a few popular subcategories like Travel, No Annual Fee, Airline and Hotel.

We scored each card based on the factors most relevant to its primary category, including its rewards rate, estimated annual earnings, intro APR period length, ongoing APR, fees, perks and more to determine whether it belonged in this month’s roundup. 

Here’s a quick look at how our card ratings are distributed as of May 2024, as well as some of the key factors that we considered in selecting this month’s Best Cards.

• 4 - 4.9 stars 35%
• 3 - 3.9 stars 39%
• 2 - 2.9 stars 22%
• 1 - 1.9 stars 2%

Great rewards value

For cards that put earning rewards front and center, a key criteria for their inclusion in our list of the best credit cards is whether they offer impressive rewards value. This includes a card’s average rewards rate, estimated annual rewards earnings, sign-up bonus value and reward redemption value.

To estimate a card’s average annual rewards earnings, we calculate its average rewards rate based on how much it earns in different bonus categories, as well as how closely those categories match the average person’s spending habits. In other words: Does the card earn rewards at a high rate in the most popular spending categories?

We use consumer spending data from the Bureau of Labor Statistics (BLS) to get a reliable third-party measure of people’s spending habits. The most recent BLS data estimates average total spending in 2022 was $72,967 per consumer. We then narrow our focus to which purchases are likely to be put on a credit card and earn rewards, subtracting expenditures like housing, vehicle purchases and education. This gives us a total “chargeable” annual spend of around $25,500.  

This includes the following spending by category:

• Groceries: $5,700
• Dining out: $3,600
• Entertainment: $2,400
• Gas: $3,100
• Apparel and services: $1,900

Using this data, we assign a weighting to each of a card’s bonus categories. For example, a card’s grocery rewards rate receives a 22 percent weighting based on how much of the average person’s budget is spent on groceries. We also estimate the redemption value of points or miles from various issuer, airline and hotel rewards programs.

This weighting and rewards valuation allows us to estimate a card’s average annual rewards earnings — how many points or miles you’d earn with a given card if your spending was about average and you used the card for all of your purchases — as well as what those points are worth. We also use point valuations to determine a card’s sign-up bonus value

With these calculations complete, we assign each card a score based on how its average rewards earnings, sign-up bonus value, rewards rate and redemption value stack up against other rewards cards.

The better these values, the higher its score will be, making it more worthy of inclusion in our list and increasing its potential ranking, particularly in the Rewards and Cash Back categories.

Reasonable fees and APR

We also score cards based on how much it costs to keep them in your wallet or carry a balance. 

We rate all cards based on how their ongoing average APR compares to the average APR you’ll find on other cards in their primary category. However, the impact of an especially high or low APR on a card’s overall score depends on its primary category.

For rewards-earning cards, this factor has only a minor influence on the card’s score and whether the card is included in our list, since rewards card users generally try to avoid carrying a balance. That said, rewards-earning cards may get a solid boost in score if they also offer an intro APR on balance transfers or new purchases, since such offers aren’t always present on these cards.

More important to these cards’ scores and their inclusion in our list is how their annual fees influence their overall value. We consider a card’s annual fee in two ways — how it ranks relative to the fees you’ll find on other cards in the category and how it impacts a card’s overall rewards value. 

Cards with an annual fee will always be at a slight disadvantage in our scoring system since annual fees inherently cut into your rewards value. However, if a card offers terrific value via its ongoing rewards and perks, it can earn a high score and a spot in our list even if it carries a high annual fee. After all, the highest rewards rates and most valuable perks are often found on cards with annual fees. 

Interest rates and intro APR offers play a much larger role in a card’s score and whether it’s included in our list when the card is designed specifically for users looking to save on interest charges. This could include cards in the Balance Transfer and Low Interest categories, as well as those designed for people new to credit or working to rebuild their score (the Credit-Building category). 

We strive to feature cards with the most generous intro APR offers and lower balance transfer fees or ongoing APRs in our Balance Transfer and 0 percent Intro APR card categories. In these categories, factors like intro APR period length, ongoing APR and balance transfer fee make up a large portion of a card’s overall score and influence our decision to include it in our best cards list.

Flexibility and perks

Along with rewards value and cost, we consider other factors that could give cards great long-term value, like flexible rewards redemption, unique and valuable perks or the ability to switch to another card with the same issuer after you’ve paid off debt or improved your credit score.

We rate rewards-earning cards based on the restrictions they impose on earning and redeeming rewards and consider this when deciding on a card’s inclusion in our list. 

These restrictions could include only allowing users to earn a high rewards rate on a small amount of spending or requiring users to meet a certain earning threshold before they can redeem rewards. We also examine whether points are worth less when you opt for some redemption options over others and whether a card gives you the flexibility to transfer rewards to airline and hotel partners. 

We also evaluate each card’s perks based on their value, usefulness and uniqueness. Cards that offer top-tier benefits like airport lounge access or travel credits are likely to stand out in the Rewards and Travel categories, but we also aim to highlight cards that offer valuable under-the-radar perks, like the ability to graduate from a secured to an unsecured card with responsible use.

For low-interest, balance transfer and credit-building cards, we factor in the presence of a rewards program (as this could give the card better long-term value) and perks designed to help cardholders protect their credit score (like free credit monitoring or the ability to prequalify with no impact to your score).

The information about the U.S. Bank Visa® Platinum Card has been collected independently by Bankrate.com. The card details have not been reviewed or approved by the card issuer.

Ask the experts: What is the best feature you look for in a credit card?

Erica Sandberg

Stephanie Zito

Thomas Nitzsche

Contributor, Credit Cards

I gravitate to the perks the credit card offers. For example, I have a United℠ Explorer Card. It's great for the miles, and since there is a United Airlines hub in San Francisco, where I live, I tend to fly with them frequently. But the perks are where it really stands out. The “basic” United fare is substantially less than other classes, but you have to pay for overhead and checked baggage. Since this card offers complimentary checked bags, I come out ahead. I get the cheapest airfare plus free bag check! These are the kind of things I recommend that people look for when they're considering new credit cards — perks that make your life easier and save you money.

Contributor, Personal Finance

For me, credit cards are all about rewards, rewards, rewards. I look specifically for cards that pay me back in great dividends for using them. I always want a good signup bonus. And for a card I want to keep and use long term, I specifically look for benefits that far outweigh the annual fee.

Financial Educator, Debt and Credit

I look for no-annual-fee cards with rewards programs that match my spending habits. For example, I travel a lot but I do not have affinity for any particular hotel brand, so I like a travel card that rewards me for staying anywhere.

Article sources

We use primary sources to support our work. Bankrate’s authors, reporters and editors are subject-matter experts who thoroughly fact-check editorial content to ensure the information you’re reading is accurate, timely and relevant.

“ Consumer Expenditures 2022 ,” U.S. Bureau of Labor Statistics. Accessed on May 10, 2024.

“ Credit Card Issuers Must Confront Consumers’ Mounting Debt, J.D. Power Finds ,” J.D. Power 2023 U.S. Credit Card Satisfaction Study. Accessed on May 10, 2024.

* See the online application for details about terms and conditions for these offers. Every reasonable effort has been made to maintain accurate information. However all credit card information is presented without warranty. After you click on the offer you desire you will be directed to the credit card issuer's web site where you can review the terms and conditions for your selected offer.

Editorial Disclosure: Opinions expressed here are the author’s alone, and have not been reviewed or approved by any advertiser. The information, including card rates and fees, is accurate as of the publish date. All products or services are presented without warranty. Check the bank’s website for the most current information.

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Find the best credit card for you

The best credit cards of june 2024, we rounded up the best credit cards that can help you build credit, save on interest charges and earn you over $2,000 in five years..

Terms apply to American Express benefits and offers. Visit americanexpress.com to learn more.

With so many credit cards on the market, it can be hard to choose the best one. There's no "one size fits all" credit card, but instead options for different types of people — whether you're a foodie , road warrior , traveler , student or someone looking to build credit . A little research can help you find a card specifically designed for your lifestyle.

To determine which cards offer the best value, each month, CNBC Select analyzes over 250 credit cards available in the U.S. When comparing rewards cards, we use a sample budget based on spending data available from the location intelligence firm Esri to break down how much money each card could net you over five years. The cards we select also provide numerous additional benefits, such as annual statement credits , sign-up bonuses , discounts at select retailers, insurance and more that make using a credit card truly worthwhile.

Below, CNBC Select rounded up the best credit cards of June 2024 that can help you build credit, save on interest charges and earn you over $2,000 in cash back over five years. (See our methodology for more information on how we choose the best cards.)

• Best cash-back credit card : Chase Freedom Unlimited®
• Best travel rewards card : American Express® Gold Card
• Best credit card welcome bonus : Chase Sapphire Preferred® Card
• Best no annual fee credit card : Citi Double Cash® Card
• Best no annual fee travel credit card : Discover it® Miles
• Best balance transfer credit card :  Citi Simplicity® Card
• Best low-interest credit card :   Titanium Rewards Visa® Signature Card from Andrews Federal Credit Union
• Best secured credit card : Discover it® Secured Credit Card
• Best for building credit : Petal® 2 "Cash Back, No Fees" Visa® Credit Card
• Best for college students : Discover it® Student Cash Back
• Best dining rewards credit card : Chase Sapphire Reserve®
• Best gas rewards credit card : PenFed Platinum Rewards Visa Signature® Card
• Best grocery rewards credit card : Blue Cash Preferred® Card from American Express
• Best for paying rent: Bilt Mastercard®
• Best entertainment rewards credit card : Capital One Savor Cash Rewards Credit Card*
• Best credit card for Global Entry and/or TSA PreCheck® credit : Capital One Venture Rewards Credit Card
• Best for airport lounge access : The Platinum Card® from American Express
• Best for premium perks: Capital One Venture X Rewards Credit Card

Best cash-back credit card

Chase freedom unlimited®.

Enjoy 4.5% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery services, 6.5% cash back on travel purchased through Chase Travel, our premier rewards program that lets you redeem rewards for cash back, travel, gift cards and more; and 3% cash back on all other purchases (on up to $20,000 spent in the first year). After your first year or $20,000 spent, enjoy 5% cash back on travel purchased through Chase Travel, 3% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery service, and unlimited 1.5% cash back on all other purchases.

Welcome bonus

INTRO OFFER: Earn an additional 1.5% cash back on everything you buy (on up to $20,000 spent in the first year) - worth up to $300 cash back!

0% for the first 15 months from account opening on purchases and balance transfers

Regular APR

20.49% - 29.24% variable

Balance transfer fee

Intro fee of either $5 or 3% of the amount of each transfer, whichever is greater, on transfers made within 60 days of account opening. After that, either $5 or 5% of the amount of each transfer, whichever is greater.

Foreign transaction fee

3% of each transaction in U.S. dollars

Credit needed

Excellent/Good

Member FDIC. Terms apply.

Read our Chase Freedom Unlimited® review.

• No annual fee
• Rewards can be transferred to a Chase Ultimate Rewards card
• Generous welcome bonus
• 3% fee charged on foreign transactions

Who's this for? The Chase Freedom Unlimited® is ideal for consumers who want a robust rewards card with no annual fee. If you're looking to maximize your rewards, there's also a generous welcome bonus: earn an additional 1.5% cash back on everything you buy (on up to $20,000 spent in the first year) - worth up to $300 cash back! Cardholders earn 6.5% cash back on travel purchased through Chase Travel, 4.5% cash back on drugstore purchases and dining at restaurants (including takeout and eligible delivery service), and 3% on all other purchases (on up to $20,000 spent in the first year). After your first year or $20,000 spent, enjoy 5% cash back on travel purchased through Chase Travel, 3% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery service, and unlimited 1.5% cash back on all other purchases.

This card has no annual fee , and you can benefit from a 0% intro APR for the first 15 months from account opening on new purchases and balance transfers (after, 20.49% - 29.24% variable). This card also offers 5% cash back on Lyft purchases and complimentary three months of DashPass with 50% off for the next nine months. Simply activate by December 31, 2024.

Check out CNBC Select's best cash-back credit cards .

Best travel rewards card

American express® gold card.

4X Membership Rewards® points at Restaurants (plus takeout and delivery in the U.S.) and at U.S. supermarkets (on up to $25,000 per calendar year in purchases, then 1X), 3X points on flights booked directly with airlines or on amextravel.com, 1X points on all other purchases

Earn 60,000 Membership Rewards® points after you spend $6,000 on eligible purchases with your new Card within the first 6 months of Card Membership.

Not applicable

See Pay Over Time APR

See rates and fees , terms apply.

Read our American Express® Gold Card review .

• Up to $120 dining credit annually ($10 a month) for purchases made with Grubhub, Goldbelly and other eligible restaurants (after a one-time enrollment)
• Up to $120 Uber Cash annually ($10 a month) for U.S. Uber Eats orders and U.S. Uber rides (card must be added to Uber app to receive the Uber Cash benefit)
• Strong rewards program with 4X points earned at restaurants and 3X points earned on flights booked directly with airlines or amextravel.com
• Baggage insurance plan covers up to $1,250 for carry-on baggage and up to $500 for checked baggage that is damaged, lost or stolen
• No fee charged on purchases made outside the U.S.
• No introductory APR period
• $250 annual fee
• Estimated rewards earned after 1 year: $1,074
• Estimated rewards earned after 5 years: $2,969

Rewards totals incorporate the points earned from the welcome bonus

Who's this for? If you love food and travel, the American Express® Gold Card could be the ideal rewards card. Whether you dine out or cook at home, this card earns a competitive 4X points per dollar spent at restaurants and 4X points at U.S. supermarkets (on up to $25,000 per year in purchases, then 1X). Plus, travelers can benefit from the 3X points on flights booked directly with airlines or on amextravel.com.

The value of Membership Rewards points varies depending on how cardholders redeem them. You can use them in a variety of ways, from paying with points at checkout at sites like Amazon to redeeming for gift cards or a statement credit to booking travel. See more on how points are calculated .

Cardholders also receive an annual dining credit of up to $120 ($10 in statement credits a month) at participating partners, including Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, Milk Bar and select Shake Shack locations. Terms apply. Enrollment required. There are also *no foreign transaction fees.

This card does have a *$250 annual fee, but it can be reduced to effectively $130 if you take advantage of the $120 dining credit each year. Then, the rewards you earn help further "pay" for the card.

Gold Card members can also participate in Amex Offers, where you can earn statement credits or bonus Membership Rewards® points at select retailers. These limited-time offers are location-based and additional terms apply.

*See rates and fees .

Check out CNBC Select's best rewards credit cards and best travel credit cards .

Best credit card welcome bonus

Chase sapphire preferred® card.

Enjoy benefits such as 5x on travel purchased through Chase Travel℠, 3x on dining, select streaming services and online groceries, 2x on all other travel purchases, 1x on all other purchases, and $50 annual Chase Travel Hotel Credit, plus more.

Earn 75,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's over $900 when you redeem through Chase Travel℠.

21.49% - 28.49% variable on purchases and balance transfers

Either $5 or 5% of the amount of each transfer, whichever is greater

Terms apply.

Read our Chase Sapphire Preferred® Card review .

• Points are worth 25% more when redeemed for travel via Chase Travel℠
• Transfer points to leading frequent travel programs at a 1:1 rate, including: IHG® Rewards Club, Marriott Bonvoy™ and World of Hyatt®
• Travel protections include: auto rental collision damage waiver, baggage delay insurance and trip delay reimbursement
• $95 annual fee
• No introductory 0% APR

Who's this for? If you want to get a lot of value right out of the gate, consider the  Chase Sapphire Preferred . The card is currently offering new cardholders the chance to earn 75,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's over $900 when you redeem through Chase Travel℠. You can even potentially get more value if you transfer Chase points to Chase's travel partners, like Hyatt hotels and United Airlines, and book business-class flights and luxury hotels.

The Sapphire Preferred is also a great travel rewards credit card and has strong earning categories for those who spend on travel and dining. It earns 5X on travel purchased through Chase Travel℠, 3X on dining, select streaming services and online groceries, 2X on all other travel purchases, 1X on all other purchases, $50 Annual Chase Travel Hotel Credit, plus more.

Check out CNBC Select's best welcome bonuses currently available .

Best no annual fee credit card

Citi double cash® card.

Earn 2% on every purchase with unlimited 1% cash back when you buy, plus an additional 1% as you pay for those purchases. To earn cash back, pay at least the minimum due on time. Plus, for a limited time, earn 5% total cash back on hotel, car rentals and attractions booked on the Citi Travel℠ portal through 12/31/24

Earn $200 cash back after you spend $1,500 on purchases in the first 6 months of account opening. This bonus offer will be fulfilled as 20,000 ThankYou® Points, which can be redeemed for $200 cash back.

0% for the first 18 months on balance transfers; N/A for purchases

19.24% - 29.24% variable

For balance transfers completed within 4 months of account opening, an intro balance transfer fee of 3% of each transfer ($5 minimum) applies; after that, a balance transfer fee of 5% of each transfer ($5 minimum) applies

Fair/Good/Excellent

Read our Citi Double Cash® Card review.

• 2% cash back on all eligible purchases
• Simple cash-back program that doesn't require activation or spending caps
• One of the longest intro periods for balance transfers at 18 months
• 3% fee charged on purchases made outside the U.S.
• Estimated rewards earned after 1 year:  $443
• Estimated rewards earned after 5 years: $2,213

Who's this for? The Citi Double Cash® Card is a straightforward rewards card that continues to offer one of the best flat-rate cash-back programs since it launched in 2014. Cardholders earn 2% cash back on all purchases — 1% when you make a purchase and an additional 1% when you pay your credit card bill. Plus, for a limited time, earn 5% total cash back on hotel, car rentals and attractions booked on the Citi Travel SM portal through 12/31/24.

There is no limit to the amount of cash back you can earn and you don't have to worry about activating bonus categories. Cashback can be redeemed for a statement credit or direct deposit.

This card is also a good choice for debt consolidation. There's a 0% intro APR for the first 18 months on balance transfers (then 19.24% - 29.24% variable APR). There's an intro balance transfer fee of 3% of each transfer (minimum $5) completed within the first 4 months of account opening. After that, your fee will be 5% of each transfer (minimum $5). (See more on how to make the most of a balance transfer .)

Check out CNBC Select's best no annual fee credit cards .

Best no annual fee travel credit card

Discover it® miles.

Automatically earn unlimited 1.5x Miles on every dollar of every purchase.

Unlimited Bonus: Unlimited Mile-for-Mile match for all new cardmembers—only from Discover. Discover gives you an unlimited match of all the Miles you've earned at the end of your first year. You could turn 35,000 Miles to 70,000 Miles. There's no signing up, no minimum spending or maximum rewards. Just a Miles-for-Miles match.

0% Intro APR for 15 months on purchases

17.24% to 28.24% Variable

3% intro balance transfer fee, up to 5% fee on future balance transfers (see terms)*

Good / Excellent

*See rates and fees , terms apply.

Read our Discover it® Miles review.

• Miles program
• No blackout dates
• No limit to the amount of miles you can earn and miles never expire
• No Global Entry or TSA PreCheck statement credit offerings
• Travel spending does not receive additional rewards
• No airport lounge access

Who's this for?  The  Discover it® Miles  comes with a generous rewards program — all for zero annual fee — that makes it a standout among travel cards.

The Discover it® Miles offers users unlimited 1.5X miles for every dollar spent on all purchases. But for higher spenders, Discover offers a welcome bonus that's hard to beat: It will do a mile-for-mile match of all miles earned the first year (for new card members in their first year only). If you rack up 35,000 miles within the first 12 months, Discover will match you with 35,000 miles. That's a total of 70,000 miles or $700 toward travel. (Based on our calculations, the average card user will earn around 32,777 miles in the first year; see "Our Methodology" below.)

With this card, there are no blackout dates when you pay for travel purchases using your card. And, you can easily redeem miles as a statement credit for travel,  restaurant or gas station  purchases, as well as a deposit to your bank account. The best part is that miles earned never expire — even if your account is closed.

Check out CNBC Select's best no annual fee travel credit cards .

Best balance transfer credit card

Citi simplicity® card.

0% Intro APR for 21 months on balance transfers from date of first transfer and 0% Intro APR for 12 months on purchases from date of account opening.

19.24% - 29.99% variable

There is an intro balance transfer fee of 3% of each transfer (minimum $5) completed within the first 4 months of account opening. After that, your fee will be 5% of each transfer (minimum $5).

See rates and fees . Terms apply. Read our Citi Simplicity® Card review.

• Balances can be transferred within 4 months from account opening
• One of the longest intro periods for balance transfers
• 3% foreign transaction fee
• No rewards program

Who's this for? The Citi Simplicity® Card offers one of the longest balance transfer intro periods at 0% for 21 months from the date of the first transfer (after, 19.24% - 29.99% variable APR). Balance transfers must be completed within four months of account opening. This is nearly two years to pay off debt, which can be helpful if you have a large balance or if your cash flow doesn't allow you to pay off the debt within the 6-, 12- or 15-month time periods of other balance transfer cards.

This card has no annual fee and comes with an intro balance transfer fee of 3% of each transfer (minimum $5) completed within the first 4 months of account opening. After that, your fee will be 5% of each transfer (minimum $5). This can be worthwhile if you're paying high-interest charges.

New cardholders have four months to complete their balance transfer (longer than the typical 60 to 90 days). While you have more time to complete a transfer, the intro APR period starts at account opening — so try to make the transfer as soon as possible to get the most benefit of the interest-free period.

This card also never charges late fees (though we always recommend you pay your balance on time and in full). There isn't a welcome bonus or a rewards program.

Check out CNBC Select's best balance transfer credit cards .

Best low-interest credit card

Titanium rewards visa® signature card from andrews federal credit union.

3X points on gas and grocery purchases and 1.5X points on all other purchases

Earn 10,000 points when you spend $1,500 within the first 90 days

N/A for purchases and balance transfers

13.74% to 18.00%   variable on purchases; 13.74% to 17.99% on balance transfers. 

2.00%, $10 minimum

• Low 9.49% to 16.49% variable APR
• Credit union membership required, though it’s free
• No special financing on purchases or balance transfers
• Balance transfer fee of 1.5%, or $50, whichever is greater.
• Estimated return after 1 year: $543
• Estimated return after 5 years: $2,314

Who's this for? The  Titanium Rewards Visa® Signature Card from Andrews Federal Credit Union stands out for offering low interest rates, a strong rewards program and no foreign transaction fees — all at no annual fee.

This card offers a variable APR of 13.74% to 18.00% on purchases. If you carry a balance, you can benefit from low interest charges compared to other cards that have high interest rates. Balance transfers do incur a fee of $10.00 or 2.00% of the amount of each cash advance, whichever is greater.

Beyond interest rates, the Visa® Titanium Signature Rewards Card offers a generous rewards program: Earn 3X points on gas and grocery purchases and 1.5X points on all other purchases. Plus, there's a welcome bonus of 10,000 points after spending $1,500 within the first 90 days.

To open this card, you need to join Andrews Federal Credit Union, but anyone can join. If you don't meet the qualification requirements , you can opt to join the American Consumer Council (ACC) for free with the promo code "Andrews."

Check out CNBC Select's best low interest credit cards .

Best secured credit card

Discover it® secured credit card.

Earn 2% cash back at Gas Stations and Restaurants on up to $1,000 in combined purchases each quarter, automatically. Plus earn unlimited 1% cash back on all other purchases.

Discover will match all the cash back you've earned at the end of your first year

N/A on purchases

28.24% Variable

New / Rebuilding

Read our Discover it® Secured Credit Card review.

• Cash-back program
• Starting at seven months from account opening, Discover will automatically review your credit card account to see if you can transition to an unsecured line of credit and return your deposit
• Cash-back program limits earnings: 2% cash back at gas stations and restaurants on up to $1,000 in combined purchases each quarter, then 1%
• Low credit line prevents cardholders from charging high-cost items or many expenses

Who's this for? The Discover it® Secured Credit Card is a well-rounded secured card that offers many benefits typically found with unsecured cards. Cardholders can earn cash back, receive a generous welcome bonus, use the card overseas without incurring added fees and more — all for no annual fee.

Cardholders earn a competitive 2% cash back at gas stations and restaurants on up to $1,000 in combined purchases each quarter, then 1%. Plus, you can earn unlimited 1% cash back on all other purchases automatically. The welcome bonus is also unique: For new card members in the first year only, Discover will automatically match all the cash back you've earned at the end of your first year. So, if you earn $50 cash back at the end of the first year, Discover will give you an additional $50.

This card requires a minimum $200 security deposit, which is fairly standard for secured credit cards . It stands out from the crowd because it gives users a clear path to upgrading to an unsecured card (and getting their deposit back). Starting seven months from account opening, Discover will automatically review your credit card account to see if they can transition you to an unsecured line of credit and return your deposit. This takes the guesswork out of wondering when you'll qualify for an unsecured credit card.

Check out CNBC Select's best secured credit cards .

Best for building credit

Petal® 2 "cash back, no fees" visa® credit card.

• 1% cash back on eligible purchases right away and up to 1.5% cash back on eligible purchases after making 12 on-time monthly payments; 2% to 10% cash back at select merchants

18.24% - 32.24% variable

Fair, Good, No Credit

• No credit history required (if you do have a credit history, that does factor into the credit decision)
• No fees whatsoever
• Credit limits range from $300 to $10,000
• Card isn't for rebuilding credit, but it's good for building credit
• No special financing offers
• No welcome bonus
• Estimated rewards earned after 1 year: $249
• Estimated rewards earned after 5 years: $1,577

Who's this for? The Petal 2 "Cash Back, No Fees" Visa Credit Card , issued by WebBank, is easier to get approved for because it takes a different approach to the credit card application process. Instead of judging your creditworthiness solely based on credit history, Petal may ask you to link bank accounts during the application process. Then, WebBank analyzes your bank statements and other data, such as bill payments and earnings, to determine your eligibility.

This is especially beneficial for applicants who may not have any credit history. However, if you do have a credit history, that does factor into the credit decision.

The Petal 2 Visa Credit Card is one of the few cards that charge zero fees*: no annual fee, no late payment fee and no foreign transaction fees. And it stands out for consumers trying to build credit because there's no security deposit required.

It also offers a rewards program with 1% cash back on eligible purchases right away, which can increase up to 1.5% cash back after you make 12 on-time monthly payments. This is not only a nice perk, but a great way to encourage responsible behavior. Cardholders also earn 2% to 10% cash back from select merchants.

Check out CNBC Select's best credit cards for building credit and best credit cards for average and fair credit .

Best for college students

Discover it® student cash back.

Earn 5% cash back on everyday purchases at different places you shop each quarter like grocery stores, restaurants, gas stations, and more, up to the quarterly maximum when you activate. Plus, earn unlimited 1% cash back on all other purchases-automatically.

Discover will match all the cash back earned for all new cardmembers at the end of your first year

0% for 6 months on purchases

18.24% - 27.24% Variable

Fair / New to Credit

Read our Discover it® Student Cash Back review.

• Cash-back categories must be activated each quarter
• Cash-back program limits earnings: Enroll every quarter to earn 5% cash back in various categories on up to $1,500 in quarterly purchases, then 1%
• You must be a U.S. citizen and college student to apply for this card

Who's this for? The Discover it® Student Cash Back is a well-rounded card that offers college students enrolled in a two- or four-year college the chance to build credit while earning rewards. You must be over 18 and a U.S. citizen to apply.

Upon activation, cardholders can earn 5% cash back on rotating categories up to a $1,500 maximum each quarter (then 1%). All other purchases earn unlimited 1% cash back automatically.

There is also an introductory 0% APR for six months on new purchases — perfect for financing dorm room essentials or textbooks. After the intro period, there's a 18.24% - 27.24% variable APR. After you graduate, your Discover it student credit card becomes a regular credit card.

Check out CNBC Select's best credit cards for college students .

Best dining rewards credit card

Chase sapphire reserve®.

Earn 5X total points on flights and 10X total points on hotels and car rentals when you purchase travel through Chase Travel℠ immediately after the first $300 is spent on travel purchases annually. Earn 3X points on other travel and dining & 1 point per $1 spent on all other purchases plus, 10X points on Lyft rides through March 2025

Earn 75,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $1,125 toward travel when you redeem through Chase Travel℠.

22.49% - 29.49% variable

5%, minimum $5

Read our Chase Sapphire Reserve® review.

• $300 annual travel credit for travel purchases
• Global Entry or TSA PreCheck application fee credit up to $100 every four years
• Priority Pass™ Select lounge access at 1,000+ VIP lounges in over 500 cities worldwide
• Points are worth 50% more when redeemed for travel via Chase Travel℠
• Special benefits at The Luxury Hotel & Resort Collection
• Complimentary year of Lyft Pink membership
• High annual fee, but it can be offset by taking advantage of all the card’s perks
• No introductory APR
• Estimated rewards earned after 1 year: $1,469
• Estimated rewards earned after 5 years: $3,346

Who's this for? The Chase Sapphire Reserve® is geared toward foodies and frequent travelers looking for luxurious perks, such as free airport lounge access and complimentary hotel room upgrades. Cardholders earn a competitive 3X points on dining and travel worldwide. Based on CNBC Select's calculations, we found the average American using this card could earn an estimated $165 per year in rewards for dining purchases alone (assuming you redeem rewards for travel via Chase Travel℠, receiving 50% more value).

The value of Chase rewards points varies depending on how you use them. If you redeem points for cash and gift cards, each point is worth $.01, which means that 100 points equals $1 in redemption value. (See more on how the value of points is calculated .)

This card has a unique benefit where all points are worth 50% more when redeemed for travel via Chase Travel℠. For example, 75,000 points are worth $1,125 toward airfare, hotels, car rentals and cruises when you redeem through Chase Travel℠. This perk is a great way to get the most value for your rewards.

While this card has a robust travel rewards program, it also comes with a steep $550 annual fee . All the card's added credits and benefits provided by Chase can help offset the annual cost. The $300 annual travel credit effectively reduces the annual fee to $150. Cardholders can take advantage of a Priority Pass™ Select membership that has a value of about $429. They also get a Global Entry or TSA PreCheck application fee credit of up to $100 every four years.

Check out CNBC Select's best credit cards for restaurants and dining out .

Best gas rewards credit card

Penfed platinum rewards visa signature® card.

5X points on gas purchases at the pump and electrical vehicle charging stations, 3X points on 5X points on gas purchases at the pump and electrical vehicle charging stations, 3X points on purchases at the supermarket (including most Target and Walmart locations † ), restaurants, and TV, radio, cable, streaming services

15,000 points when you spend $1,500 in first 90 days

0% introductory APR for 12 months on balance transfers made in the first 90 days after account opening.*

17.99% variable on purchases; 17.99% non-variable on balance transfers

Good/Excellent

• High 5X points on gas at the pump and 3X on supermarket purchases
• No bonus category activations
• Good special financing offer on balance transfers
• 3% balance transfer fee
• Estimated rewards earned after 1 year: $513
• Estimated rewards earned after 5 years: $2,167

Rewards totals incorporate the points earned from the welcome bonus.

*0% introductory APR for 12 months on balance transfers made in the first 90 days after account opening. After that, the APR for the unpaid balance and any new balance transfers will be a non-variable rate of 17.99%. 3% balance transfer fee per transaction. Subject to credit approval. If you take advantage of this balance transfer, you will immediately be charged interest on all purchases made with your credit card unless you pay the entire account balance, including balance transfers, in full each month by the payment due date.

Who's this for? Among the cards we analyzed, the PenFed Platinum Rewards Visa Signature® Card currently offers the highest rewards rate at gas stations with 5X points per dollar spent for gas purchases at the pump.

This card has no annual fee, so road warriors can maximize their savings. In addition to earning high rewards at gas stations, cardholders also benefit from unlimited 3X points for supermarket purchases.

PenFed is a credit union, so membership is required to open the PenFed Platinum Rewards Visa Signature® Card. Anyone can join by completing a few extra steps: You need to apply, open a savings account with a $5 deposit and maintain a $5 account balance.

Check out CNBC Select's best credit cards for gas .

Best grocery rewards credit card

Blue cash preferred® card from american express.

6% cash back at U.S. supermarkets on up to $6,000 per year in purchases (then 1%), 6% cash back on select U.S. streaming subscriptions, 3% cash back at U.S. gas stations, 3% cash back on transit (including taxis/rideshare, parking, tolls, trains, buses and more) and 1% cash back on other purchases. Cash Back is received in the form of Reward Dollars that can be redeemed as a statement credit or at Amazon.com checkout.

Earn a $250 statement credit after you spend $3,000 in purchases on your new card within the first 6 months. 

$0 intro annual fee for the first year, then $95.

0% for 12 months on purchases from the date of account opening

19.24% - 29.99% variable. Variable APRs will not exceed 29.99%.

Either $5 or 3% of the amount of each transfer, whichever is greater.

• High 6% cash back at U.S. supermarket spending (up to $6,000 a year, then 1%)
• Unlimited 6% cash back on select U.S. streaming subscriptions
• Unlimited 3% cash back at U.S. gas stations and on transit
• 2.7% fee on purchases made abroad
• Estimated rewards earned after 1 year: $679
• Estimated rewards earned after 5 years: $2,397

Rewards totals incorporate the cash back earned from the welcome bonus

Who's this for? Frequent grocery shoppers will be happy to learn the Blue Cash Preferred® Card from American Express offers the highest cash-back rate at U.S. supermarkets at 6% (on up to $6,000 per year in purchases, then 1%). The average American can earn $310 in cash back each year when they do their shopping at qualifying supermarkets .

If you want to maximize cash back on groceries, this card is for you. In addition to high grocery rewards, there's an unlimited 6% cash back on select streaming subscriptions , unlimited 3% cash back at U.S. gas stations, unlimited 3% cash back on transit including taxis/rideshare, parking, tolls, trains, buses and more and 1% cash back on all other purchases.

This card has $0 intro annual fee for the first year (then $95), but it can be offset by the cash back you earn and discounts you can get through the Amex Offers. (See rates and fees )

Check out CNBC Select's best credit cards for grocery shopping .

Best for paying rent

Bilt mastercard®.

Earn Bilt Points when you make 5 transactions that post each statement period - up to 1x points on rent payments without the transaction fee (up to 100,000 points each calendar year), 3x points on dining, 2x points on travel, and 1x points on other purchases.

Introductory fee of either $5 or 3% of the amount of each balance transfer, whichever is greater, for 120 days from account opening. After that, up to 5% for each balance transfer ($5 minimum).

See rates/fees and rewards/benefits ; terms apply.

• Solid rewards on broad spending categories
• Ability to pay your rent with no transaction fees
• Transfer points to leading frequent traveler programs at a 1:1 rate, including American Airlines, United and World of Hyatt®
• No welcome offer

Who's this for? The Bilt Mastercard® is the only credit card that lets you earn travel rewards on rent payments with no fees .

So long as you make at least five card transactions per statement period, you'll earn 3X points on dining, 2X points on travel 1X points on rent (on up to $50,000 in rent payments every year) and everything else. Thanks to a new partnership with Lyft , cardholders can now also earn up to 5X points on their rideshares .

Thanks to the BiltProtect feature, cardholders are protected from using up their entire credit limit or risk going into debt by charging their rent to their card every month. Other benefits include cell phone protection ; Purchase Assurance Plus, which covers your purchases for 90 days; exclusive discounts with brands like Lyft, DoorDash and ShopRunner; and access to the Mastercard Luxury Hotels & Resorts portfolio, which offers amenities like upgrades, free breakfast and property credits.

Bilt Rewards points are extremely flexible. They can be redeemed for travel either by transferring them to airline and hotel partners or by booking through the Bilt Travel Portal at a fixed rate of 1.25 cents per point. Other redemption options include using them to shop online, book fitness classes, pay rent and even make a down payment on a home.

Best entertainment rewards credit card

Capital one savor cash rewards credit card.

4% cash back on dining and entertainment, 4% on eligible streaming services, 3% at grocery stores and 1% on all other purchases

Earn a one-time $300 cash bonus once you spend $3,000 on purchases within the first three months from account opening

19.99% - 29.99% variable

4% for promotional APR offers; none for balances transferred at regular APR

• Unlimited 4% cash back on entertainment purchases
• Ability to redeem rewards at any amount, unlike some other cards with $25 minimums
• No introductory 0% financing offers for purchases or balance transfers

Who's this for? Sports fans, movie buffs and adventure seekers will all find a common reason to like the Capital One Savor Cash Rewards Credit Card* : unlimited 4% cash back on entertainment purchases. Compared to other rewards cards, this is the highest unlimited rewards rate on entertainment spending, whether you're buying movie tickets, taking a family trip to the zoo or spending the evening bowling with friends.

Cardholders can also benefit from exclusive access to entertainment events, such as the iHeartRadio Music Festival and the Capital One JamFest.

Beyond entertainment perks, there's also 10% cash back on Uber rides, 4% cash back on dining and popular streaming services, 3% at grocery stores and 1% on all other purchases. Plus, you can enjoy an Uber One membership through Nov. 14, 2024 and foodie-centric perks through Capital One Dining.

This card does come with a $95 annual fee, but can be offset by the cash back you earn.

Check out CNBC Select's best credit cards for entertainment spending .

Best credit card for Global Entry and/or TSA PreCheck credit

Capital one venture rewards credit card.

5 Miles per dollar on hotel and rental cars booked through Capital One Travel, 2X miles per dollar on every other purchase

Earn 75,000 bonus miles once you spend $4,000 on purchases within 3 months from account opening

$0 at the Transfer APR, 4% of the amount of each transferred balance that posts to your account at a promotional APR that Capital One may offer to you

• 5 miles per dollar on hotel and rental cars booked through Capital One Travel
• Global Entry or TSA PreCheck application fee credit up to $100 every 4 years
• There’s a $95 annual fee

Who's this for? The Capital One Venture Rewards Credit Card offers excellent rewards rates: Earn 5X miles per dollar on hotel and rental cars booked through Capital One Trave l and 2X miles per dollar spent on all other spending. While Venture does come with a $95 annual fee, that's low compared to some other rewards cards, with some annual fees of up to $550.

In addition to rewards, every four years cardholders receive a credit for a Global Entry or TSA PreCheck application, up to $100. Cardholders now also get two free visits to Capital One airport lounges per year . If you travel often, these are great perks that can save you time and money.

This card has no foreign transaction fees and comes with a bunch of additional travel perks, such as 24-hour Travel Assistance Services* and MasterRental Insurance*

*Benefit available to accounts approved for the World Elite Mastercard product, subject to terms, conditions, and exclusions in the World Elite Mastercard Guide to Benefits. See Account Terms or Application Terms for more details. Terms, conditions and exclusions apply.

Check out CNBC Select's best credit cards for Global Entry or TSA PreCheck .

Best for airport lounge access

The platinum card® from american express.

Earn 5X Membership Rewards® Points for flights booked directly with airlines or with American Express Travel up to $500,000 on these purchases per calendar year, 5X Membership Rewards® Points on prepaid hotels booked with American Express Travel, 1X points on all other eligible purchases

Earn 80,000 Membership Rewards® Points after you spend $8,000 on eligible purchases on your new Card in your first 6 months of Card Membership. Apply and select your preferred metal Card design: classic Platinum, Platinum x Kehinde Wiley, or Platinum x Julie Mehretu.

Credit Needed

Read our The Platinum Card® from American Express review .

• Up to $200 in annual airline fee credits
• $200 Uber Cash: Enjoy Uber VIP status and up to $200 in Uber savings on rides or eats orders in the US annually. Uber Cash and Uber VIP status is available to Basic Card Member only. Terms Apply.
• Get up to $200 back in statement credits each year on prepaid Fine Hotels + Resorts® or The Hotel Collection bookings, which requires a minimum two-night stay, through American Express Travel when you pay with your Platinum Card®.
• $240 Digital Entertainment Credit: Get up to $20 back in statement credits each 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, and The Wall Street Journal. Enrollment required.
• $155 Walmart+ Credit: Save on eligible delivery fees, shipping, and more with a Walmart+ membership. Use your Platinum Card® to pay for a monthly Walmart+ membership and get up to $12.95 plus applicable taxes back on one membership (excluding Plus Ups) each month.
• $695 annual fee
• No special financing offers on new purchases

Who's this for? The Platinum Card® from American Express is for those who want a luxury card with access to more airport lounges than any other credit card and a lengthy list of other benefits. Although best known for its travel perks, this card also offers a number of everyday benefits, including digital entertainment, shopping and wellness credits (enrollment required), so you don't need to be a road warrior to benefit from it.

To start, cardholders earn a respectable 5X Membership Rewards® points on flights booked directly with airlines or with American Express Travel (on up to $500,000 per calendar year), 5X points on prepaid hotels booked with American Express Travel and 1X points on all other purchases.

In addition, cardholders can enjoy over a dozen premium travel and lifestyle benefits, including:

• Up to $200 annual hotel credit. (Hotel Collection requires a minimum two-night stay)
• Up to $200 annual airline fee credit
• Up to $300 per calendar year Equinox credit
• Up to $100 annual Saks Fifth Avenue credit
• Up to $189 credit to enroll in CLEAR® Plus (subject to auto-renewal)
• Up to $240 annual digital entertainment credit (enrollment required)
• Up to $155 annual Walmart+ credit. (Plus Ups not eligible. Subject to auto renewal.)
• Worldwide airport lounge access, including Delta SkyClubs and Amex Centurion Lounges
• Enjoy Uber VIP status and up to $200 in Uber savings on rides or eats orders in the US annually. Uber Cash and Uber VIP status is available to Basic Card Member only. Terms Apply
• $100 fee credit for Global Entry (every 4 years) or up to $85 for TSAPreCheck (every 4.5 years)
• Automatic hotel elite status with Hilton Honors and Marriott Bonvoy
• Comprehensive travel insurance
• Complimentary Amex concierge service
• Terms apply

Its $695 annual fee (see rates and fees ) is higher than any other card on this list, but you can come out ahead if you take full advantage of the benefits. And that's before factoring in the card's welcome offer, which many rewards experts value at $2,000. (See more on how the value of points is calculated .)

Check out CNBC Select's best luxury and premium credit cards .

Best for premium perks

Capital one venture x rewards credit card.

Unlimited 2X miles on all eligible purchases, and 5 Miles per dollar on flights and 10 Miles per dollar on hotels and rental cars when booked via Capital One Travel portal

Earn 75,000 bonus miles once you spend $4,000 on purchases within the first 3 months from account opening

19.99% - 29.99% variable APR

$0 at the Transfer APR, 4% of the amount of each transferred balance that posts to your account at a promotional APR that Capital One may offer to you

Foreign transaction fees

Read our Capital One Venture X Rewards Credit Card review.

• Large welcome bonus
• No foreign transaction fees
• Up to $100 statement credits for either Global Entry or TSA PreCheck®
• Unlimited complimentary access for you and two guests to 1,300+ lounges, including Capital One Lounges and the Partner Lounge Network
• High annual fee
• No introductory 0% APR period

Who's this for? If you value simplicity and want one, strong standalone credit card, it doesn't get much better than the Capital One Venture X Rewards Credit Card . It offers a straightforward rewards structure, a myriad of valuable benefits and a lower annual fee than other high-end cards with similar features.

Cardholders earn 2X miles on everyday purchases, plus 5X miles on flights and a whopping 10X miles on hotels and cars booked through Capital One Travel. These miles can be transferred to airline and hotel partners, such as Accor Live Limitless, Air Canada Aeroplan and Etihad Guest. You can also redeem rewards toward travel through  Capital One Travel , cash-back, gift cards, experiences and more.

On top of that, the Venture X card offers up to $100 in statement credit for either  Global Entry or TSA PreCheck® , complimentary  cell phone insurance , special perks on hotel stays book through the Premier Collection  and access to  Capital One Lounges  as well as the extensive network of Priority Pass and Plaza Premium airport lounges worldwide. Every year, cardholders receive up to $300 back in statement credits each year for bookings made through Capital One Travel and a 10,000-mile bonus on each account anniversary (worth at least $100 for travel), making it easy to recoup the $395 the annual fee.

*Terms, conditions and exclusions apply. Refer to your Guide to Benefits for more details.

Things to consider before choosing a credit card

Having a credit card is an important piece of your financial profile, but with so many options available, it can be hard to find the best one for your needs. Here are some common questions to ask yourself so you can decide what's the best credit card for you.

Do you want to earn rewards?

There are hundreds of rewards credit cards out there, where you can earn cash back, points or miles on every purchase you make.

And if you want to earn rewards, what specific categories are most important to you?

Rewards credit cards come in all shapes and sizes. If you want to maximize rewards in specific categories, check out cards offering bonus rewards on gas , groceries , restaurants , entertainment , travel and more. Or keep it simple and opt for a flat-rate cash-back card .

Learn more: Are credit card points taxable? Here's when you may have to pay taxes on your rewards

Are you looking to get out of debt?

If you're carrying a balance on a high-interest credit card, consider transferring it to a balance transfer credit card offering no interest for up to 21 months. There are even cards with no balance transfer fees .

Do you want to build credit?

Experts agree the sooner you build credit, the better. Credit cards are a great way to do that. Check out secured cards for credit newbies or other cards for building or rebuilding credit .

Do you travel abroad?

A credit card with no foreign transaction fees is essential to save you the typical 3% fee per purchase made outside the U.S. Also, it can be a good idea to consider cards that waive Global Entry or TSA PreCheck application fees .

Find the best credit card for you by reviewing offers in our  credit card marketplace  or get personalized offers via  CardMatch™ .

What credit score do I need to get the best cards?

When you apply for a credit card, the bank or lender will review your credit report from one or more of the three major credit bureaus. It will also typically check your FICO credit score, the top credit cards usually require a very good or excellent credit score.

This is how FICO credit scores are classified according to myFICO :

• Poor/bad credit: Less than 580
• Fair credit: 580-669
• Good credit: 670-739
• Very good credit: 740-799
• Exceptional/excellent credit: 800 or higher

Building and maintaining a healthy credit score helps your personal finances in all sorts of ways outside of increasing your chances of getting approved for a great sign-up bonus. Your FICO score is calculated based on the following factors and each is weighted differently:

• Payment history: 35%
• Total debt: 30%
• Length of credit history: 15%
• New credit: 10%
• Credit mix: 10%

How many credit cards should I have?

Many people have multiple credit cards, and there are benefits to this. It can help increase your credit score by giving you more available credit and therefore a better credit utilization ratio.

At its most basic, having access to more credit can help you finance more purchases if you don't have enough cash to cover everything up front.

You can also earn more rewards by optimizing which card you use for certain spending categories. For instance, you may make all your dining purchases with a card that earns bonus rewards in that category, but another card with a bonus multiplier for grocery purchases.

Ultimately, it's up to you to decide how many credit cards you need. Make sure to evaluate your spending habits and research what card would be best for you.

What do I need to apply for a credit card?

Applying for a credit card is easy, and you'll often get an instant decision on whether you're approved or denied. To apply for a credit card, you'll generally need to provide the following:

• Full legal name
• Date of birth
• Social Security or Individual Taxpayer Identification Number
• Mailing address
• Email address and/or phone number
• Annual income
• Housing costs

How old do I have to be to get a credit card?

The minimum age to open a credit card on your own is 18. However, it is possible to get a credit card as a minor by being added as an  authorized user on someone else's account .

What is the easiest credit card to get?

Secured credit cards  are generally the easiest credit cards to be approved for. They are similar to traditional cards (they extend credit, can incur interest charges and in some cases can even earn rewards) but require you to put down a security deposit to access a line of credit. The amount you deposit usually becomes your credit limit.

Which type of card is most accepted?

There are four major credit card issuers: American Express, Discover, Mastercard and Visa.

Visa and Mastercard are the most widely accepted credit card networks globally. That said, American Express and Discover still have 99% acceptance rates among U.S. merchants who take credit cards and are increasing their international footprints.

What is a credit card's billing cycle?

When it comes to credit cards, most billing cycles are one month or 28 to 31 days. After your billing cycle ends, you typically have what is known as a grace period where you can pay off your full balance without incurring any interest charges. However, if you pay off your card balance before the billing cycle ends, it will help to keep your credit utilization down, which boosts your credit score.

Keep in mind that the grace period may not apply to all charges. Balance transfers and cash advances are usually charged interest starting on the transaction date.

Do I need a business credit card?

Having a separate credit card for your small business or side hustle is important so you can keep your personal and business activities separate. Business credit cards come in all shapes and sizes, there are business cards that offer cash-back rewards, travel rewards and everything in between.

The right business credit card for you should offer bonus rewards that align with your business spending. To keep it simple, you can start your business credit card search at the bank where you currently have your business bank accounts. If you bank with Wells Fargo, Bank of America or Chase, then it may be easiest to have all of your accounts with one institution.

Many of the banks that offer the best consumer cards also have top-notch business cards. For example, Chase has the Ink Business line of small business cards, which includes the Ink Business Unlimited® Credit Card and the Ink Business Cash® Credit Card . Both cards have no annual fee, hefty sign-up bonuses and generous bonus spending categories.

Bottom line

There are hundreds of different credit cards on the market to cater to every kind of consumer. The best card for you will ultimately depend on your personal spending habits, goals and credit history.

To get the most benefit from your card, you want to make sure you practice responsible credit behavior, such as paying off your balance on time and in full each month and avoiding overspending and falling into debt.

Why trust CNBC Select?

At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every credit card   review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of credit card   products .  While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics. See  our methodology  for more information on how we choose the best credit cards.

Our methodology

To determine which cards offer the best value, CNBC Select analyzed over 250 of the most popular credit cards available in the U.S. We compared each card on a range of features, including rewards, welcome bonus, introductory and standard APR, balance transfer fee and foreign transaction fees, as well as factors such as required credit and customer reviews when available. We also considered additional perks, the application process and how easy it is for the consumer to redeem points.

We also estimated how much the average consumer would save over the course of a year, two years and five years, assuming they would attempt to maximize their rewards potential by earning all welcome bonuses offered and using the card for all applicable purchases. All rewards total estimations are net the annual fee. Our final picks are weighted heavily toward the highest five-year returns, since it's generally wise to hold onto a credit card for years. This method also avoids giving an unfair advantage to cards with large welcome bonuses.

For balance transfer cards, we used a Bankrate calculator to tally the interest rates and fees you could incur if you transferred $6,028, the average balance Americans carry on their credit cards in 2019, before the pandemic, according to Experian .

If the average consumer with a $6,028 balance on their credit card pays $200 each month, they will spend $1,911 in additional interest, assuming the average 17.7% APR. And it will take them 40 months — more than three years — to pay off that debt.

With four of the five cards featured on this list, if you take full advantage of the intro APR period and pay $200 per month, you'll pay less than $450 in interest and cut your repayment time in half to 20 months. That's a significant savings.

For the cards that offered a rewards program, we also estimated how much cash back you might earn over a five-year period. CNBC Select teamed up with location intelligence firm Esri . The company's data development team provided the most up-to-date and comprehensive consumer spending data based on the 2019 Consumer Expenditure Surveys from the Bureau of Labor Statistics. You can read more about their methodology here .

Esri's data team created a sample annual budget of approximately $22,126 in retail spending. The budget includes six main categories: groceries ($5,174), gas ($2,218), dining out ($3,675), travel ($2,244), utilities ($4,862) and general purchases ($3,953). General purchases include items such as housekeeping supplies, clothing, personal care products, prescription drugs and vitamins, and other vehicle expenses.

CNBC Select used this budget to estimate how much the average consumer would save over the course of a year, two years and five years, assuming they would attempt to maximize their rewards potential by earning all welcome bonuses offered and using the card for all applicable purchases. All rewards total estimations are net the annual fee.

It's important to note the value of a point or mile varies from card to card and based on how you redeem them. When we calculated the estimated returns, we assumed that cardholders are redeeming points/miles for a typical maximum value of 1 cent per point or mile. (Extreme optimizers might be able to achieve more value.)

When choosing the best balance transfer card, we focused on the card that provides consumers with the cheapest way to pay off their debt rather than the number of rewards they could potentially earn. When you're in credit card debt, your primary focus should be repayment. Earning rewards should be seen as a bonus, and you don't want to spend beyond your means in order to earn points.

The five-year rewards total and the interest rate and fees estimates are derived from a budget similar to the average American's spending and debt. You may earn a higher or lower return depending on your spending habits.

The editor's choice card is independently chosen by CNBC Select's editorial team. While it may not have ranked as the number-one card in any given category, it consistently ranks highly across multiple categories and we believe offers some of the best value overall for a stand-alone card. Its rewards, welcome bonus, APR, fees, ease-of-use and ongoing benefits were all taken into consideration.

Catch up on CNBC Select's in-depth coverage of  credit cards ,  banking  and  money , and follow us on  TikTok ,  Facebook ,  Instagram  and  Twitter  to stay up to date.

Money matters —  so make the most of it. Get expert tips, strategies, news and everything else you need to maximize your money, right to your inbox.  Sign up here .

For rates and fees of the American Express® Gold Card, click here .

For rates and fees of the Blue Cash Preferred® Card from American Express, click here .

For rates and fees of the Discover it® Secured Credit Card, click here .

For rates and fees of the Discover it® Student Cash Back, click here .

For rates and fees of the Discover it® Miles, click  here .

For rates and fees of The Platinum Card® from American Express, click here .

Petal 2 Visa Credit Card issued by WebBank.

For Capital One products listed on this page, some of the above benefits are provided by Visa® or Mastercard® and may vary by product. See the respective Guide to Benefits for details, as terms and exclusions apply.

* Information about the Capital One Savor Cash Rewards has been collected independently by Select and has not been reviewed or provided by the issuer of the card prior to publication.

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Determinants of consumers’ intention to use credit card: a perspective of multifaceted perceived risk

Asian Journal of Economics and Banking

ISSN : 2615-9821

Article publication date: 24 August 2020

Issue publication date: 18 December 2020

The purpose of this study is to develop a theoretical model for consumer behavioral intention by integrating the technology acceptance model (TAM) and the theory of perceived risk, which is tested on the intended use of credit cards in Vietnam.

Design/methodology/approach

The data were collected from 485 bank customers through a nationwide online survey. An exploratory and confirmatory factor analyzes were performed to validate the factor structure of the measurement items while structural equation modeling was used to validate the proposed model and testing the hypotheses.

The results of structural equation modeling reveal that perceived risk, perceived usefulness, social influence and perceived ease of use were significant determinants of consumer intention to use a credit card. Of them, only perceived risk discouraged the intended use of a credit card, which was synthesized from psychological, financial, performance, privacy, time, social and security risk.

Research limitations/implications

This study measured the first-order risk dimensions based on the payment function of the credit card only; these measurements missed potential losses relevant to credit function of credit cards.

Practical implications

This study can be beneficial to banks enacting policies to attract more consumers and to help decide how to allocate resources to retain and expand their customer base.

Originality/value

The study adds value to the literature on consumer behavior by confirming the impact of second-order perceived risk on the intended use of credit cards, which most previous studies have not demonstrated. The research also provides an empirical evidence to the academic research platform on e-banking services in Vietnam, especially related to the credit card industry.

• Perceived risk
• Behavioral intention
• Credit card

Trinh, H.N. , Tran, H.H. and Vuong, D.H.Q. (2020), "Determinants of consumers’ intention to use credit card: a perspective of multifaceted perceived risk", Asian Journal of Economics and Banking , Vol. 4 No. 3, pp. 105-120. https://doi.org/10.1108/AJEB-06-2020-0018

Emerald Publishing Limited

Copyright © 2020, Hoang Nam Trinh, Hong Ha Tran and Duc Hoang Quan Vuong.

Published in Asian Journal of Economics and Banking . Published by Emerald Publishing Limited. This article is published under the Creative Commons Attribution (CC BY 4.0) licence. Anyone may reproduce, distribute, translate and create derivative works of this article (for both commercial and non-commercial purposes), subject to full attribution to the original publication and authors. The full terms of this licence may be seen at http://creativecommons.org/licences/by/4.0/legalcode

1. Introduction

Credit cards, a combination of payment card and personal consumption credit, are widely used in around the world. Starting with a relationship between vendors and consumers, as well as a need to buy first and pay later, Franklin National Bank in New York, the USA, issued first-ever credit cards to market in 1951. Year after year, the rapid development of consumer demand for credit cards exceeded the bank’s responsibility and management capacity. Consequently, many international credit card organizations have been established and operated independently around the world with six famous brands including American Express, Diners Club, Japan credit bureau, Visa, MasterCard and Chinese union pay. Banks join these institutions and are licensed to issue and acquire credit cards. To expand the credit card market segment, banks are constantly issuing cards to new customers and encouraging existing customers using them in daily spending. Based on practical requirements, many researchers are interested in consumer intended and actual use of credit cards.

Studies of consumer behavior on credit cards have mainly focused on the decisive role of individual demographic characteristics, credit card attributes and personal perception about credit cards. Some authors proved that differences in demographics such as age, gender, occupation and financial status lead to differences in his intention to use credit cards (Dewri et al. , 2016 ; Foscht et al. , 2010 ; Porto and Xiao, 2019 ). Others have confirmed that consumers decide to use credit cards because of their advantages compared to other payment methods such as cash, e-money or debit card (Chahal et al. , 2014 ; Ooi and Tan, 2016 ; Qureshi et al. , 2018 ). Assuming consumers are always rational in their behavior (Fishbein and Ajzen, 1975 ), some authors believed that a person decides using credit cards because of their ability to finance his daily expenses effectively (Porto and Xiao, 2019 ; Tan et al. , 2014 ; Trinh and Vuong, 2017 ). Moreover, some empirical studies have highlighted that social groups such as family, friends and colleagues have a significant influence on consumer intended use of credit cards (Ali et al. , 2017 ; Amin, 2013 ; Tan et al. , 2014 ; Varaprasad et al. , 2013 ).

Reasonable consumers are not only interested in the benefits of using a credit card but also they care about their potential losses (Fishbein and Ajzen, 1975 ; Mitchell, 1999 ). Many authors agreed that perceived risk is a major barrier to the intended use of e-services (Roy et al. , 2017 ; Yang et al. , 2015 ). Similarly, perceived risk has been considered as a deciding factor for the intention to use credit cards (Nguyen and Cassidy, 2018 ; Tan et al. , 2014 ; Tseng, 2016 ; Varaprasad et al. , 2013 ). However, their outcomes were inconsistent; perceived risk had significantly negative impact (Nguyen and Cassidy, 2018 ), significantly positive influence (Varaprasad et al. , 2013 ) or insignificant effect on consumer intended use of credit cards (Tan et al. , 2014 ; Tseng, 2016 ).

As the credit card market becomes more competitive, a better understanding of consumer behavior becomes imperative for banks. However, unlike previous research studies, this study focuses on the impact of perceived risk on the intended use of credit cards. To achieve this goal, the study begins with a brief review of consumer behavior. As a result, a theoretical model and testable hypotheses are developed, followed by the methodology and data collected. The findings are described and discussed before making some conclusions, as well as future research directions.

2. Literature review and proposed theoretical model

2.1 literature review.

Several research frameworks have been developed over the years to explain consumer intended and actual behavior. Prominent among them, theory of perceived risk (TPR) (Bauer, 1960 ) focuses on how consumers are concerned about the potential losses that influence on their intention in a specific purchase situation. However, consumers are not only risk averse but also rational; they intent to do something when they find this behavior useful, easy to do or they are encouraged by influencers, which are inherited from theory of reasoned actions (Fishbein and Ajzen, 1975 ), technology acceptance model (TAM) (Davis et al. , 1989 ), theory of planning behavior (TPB) (Ajzen, 1991 ) or unified theory of acceptance and use of technology (UTAUT) (Venkatesh et al. , 2003 ). These theories are applied independently or together in many studies on consumer intended use of e-services (Alalwan et al. , 2017 ; Liu et al. , 2019 ; Pelaez et al. , 2019 ; Tam and Oliveira, 2017 ).

Credit card is a technology product, used on electronic devices with two basic functions, namely, payment and credit (Foscht et al. , 2010 ). Credit cardholder can buy first, pay later based on the bank’s commitment (Amin, 2013 ). Accordingly, the issuing bank will pay the biller on behalf of the cardholder, who is responsible for returning full and timely (Foscht et al. , 2010 ). In modern commerce, credit cards are becoming increasingly important and popular all over the world (Porto and Xiao, 2019 ). Studies on credit cards are conducted and published in prestigious scientific journals, in which perceived risk from TPR, perceived usefulness from TAM/UTAUT, perceived ease of use from TAM/TPB/UTAUT and social influence from TPB/UTAUT are frequently used to predict consumer intended use of credit cards. These concepts are briefly described as followed:

Perceived usefulness was proposed as the degree to which a person believes that using a particular system would enhance his/her performance (Davis et al. , 1989 ; Venkatesh et al. , 2003 ). Credit cards are appreciated for non-cash payments and personal consumer credit (Chahal et al. , 2014 ). Consumers prefer credit cards due to uncertainty when carrying cash (Khare et al. , 2012 ) or special discounts from famous brands (Dali et al. , 2015 ). They use credit cards as a source of revolving credit with long grace period (Chahal et al. , 2014 ; Khare et al. , 2012 ). They can even withdraw cash by credit cards as required (Chahal et al. , 2014 ). As a result, consumer appreciate the performance of credit card usage, so they are more likely to use it in their daily expenses (Amin, 2013 ; Nguyen and Cassidy, 2018 ; Ooi and Tan, 2016 ; Trinh and Vuong, 2017 ; Varaprasad et al. , 2013 ).

Ajzen (1991) and Davis et al. (1989) considered perceived ease of use as the degree to which a person believes that using a particular system would be easy. Ajzen (1991) assumed that this perception is determined by a total set of accessible control beliefs. Qureshi et al. (2018) stated consumers are easy to register a credit card with a quick and simple procedure. Chahal et al. (2014) and Dali et al. (2015) posited credit card’s non-stop usability in numerous electronic devices. Moreover, the credit card payment process is so simple that cardholders do not need much effort to learn and use it regularly (Khare et al. , 2012 ). Consequently, many studies have confirmed that consumers appreciate credit cards and tend to use them for daily (Ali et al. , 2017 ; Amin, 2013 ; Nguyen and Cassidy, 2018 ; Porto and Xiao, 2019 ; Trinh and Vuong, 2017 ; Tseng, 2016 ).

Social influence referred to a degree to which a consumer perceives that important people believe that he/she should or should not perform a particular behavior (Ajzen, 1991 ; Venkatesh et al. , 2003 ). Consumers are irresistible to observe and evaluate credit card features, they feel uncomfortable when their friends, colleagues always use and talk about them (Qureshi et al. , 2018 ). Amin, 2013 argued that consumers tend to acquire and imitate the financial attitudes behaviors of family members. Moreover, media, which is designed specifically to reach a large audience or viewers has contributed to raising consumer awareness about credit cards (Ali et al. , 2017 ). Empirical evidence suggested that social groups’ perspective may enhance one’s intended use of credit cards (Ali et al. , 2017 ; Amin, 2013 ; Nguyen and Cassidy, 2018 ; Trinh and Vuong, 2017 ; Varaprasad et al. , 2013 ). However, Leong et al. (2013) suggested that social influence only effects indirectly on the intended use of credit cards through perceived usefulness and perceived ease of use.

Perceived risk, in consumer behavior perspective, refers primarily to consumer subjective expectations for incident losses (Bauer, 1960 ; Featherman and Pavlou, 2003 ). Consumers are granted a credit line to pay their bills, and they must spend a lot of time, money and effort to use it safely and effectively (Chahal et al. , 2014 ; Yang et al. , 2015 ). However, their payments are not always successful because of operational breakdowns or system malfunctions (Varaprasad et al. , 2013 ). Meanwhile, the losses of personal privacy and system security are serious and consumers may be accounted until the authorities clarify the responsibilities of stakeholders (Tan et al. , 2014 ; Tseng, 2016 ). As a result, consumers are less like to use credit cards when they are deeply concerned about their uncertainty (Nguyen and Cassidy, 2018 ). However, some studies found that user’s credit card adoption is not from how they perceives the losses caused by its use (Tan et al. , 2014 ; Tseng, 2016 ). Varaprasad et al. (2013) argued that the bank’s efforts make consumers choose credit cards even if they are afraid of un-expectations caused by this type of payment instrument. Despite some differences, most of these studies have shared a one-dimensional approach to perceived risk on credit cards. This approach refers perceived risk as a common perception, defined by several observed variables, and therefore, does not reflect consumer valuation of different types of potential losses relevant to credit card use.

2.2 Proposed research model

Based on the above review about consumer behavior and prior studies on the intention to use credit cards, the study proposes a theoretical model of the intended behavior by integrating some prominent adoption theories. The model suggests perceived risk, usefulness, ease of use and social influence as exploratory factors to predict consumer intended use of credit cards. These constructs and their hypotheses are described below:

Perceived usefulness affects positively the intention to use credit cards.

Consumers are rational, who are not only interested in benefits but also in losses whenever they make decision, especially for those behaviors, which they cannot see or touch, just feel only how they work. These concerns are mentioned as the risk perceptions, which were first proposed in TPR (Bauer, 1960 ). Nowadays, this concept becomes more seriously in the context of e-services, where data are transferred between connected e-devices. Such e-transactions are invisible to consumers, who may be faced to unexpected outcomes and this may prevent them to perform behaviors. Some literature reviews about perceived risk are conducted in technology adoption, including e-shopping (Pelaez et al. , 2019 ), e-payment (Patil et al. , 2018 ) and e-banking (Mutahar et al. , 2018 ). Among many approaches of using perceived risk in studies on consumer intended use of technology, (Featherman and Pavlou, 2003 ; Hanafizadeh and Khedmatgozar, 2012 ) summarized perceived risk is situation specific and is considered as a second-order factor, which is commonly formed by performance, financial, social, time, psychological, security, privacy factors ( Table 1 ). This approach has been used in many empirical studies (Martins et al. , 2014 ; Mutahar et al. , 2018 ; Tandon et al. , 2016 ; Yang et al. , 2015 ). As such, this study hypothesizes that:

Perceived risk is a second-order construct of seven first-order risks, including financial, performance, psychological, social, time, security and privacy risk.

Financial, performance, psychological, social, time, security and privacy risk perception have positively related to perceived risk.

Perceived risk affects negatively perceived usefulness on credit cards.

Perceived risk affects negatively the intention to use credit cards.

Perceived ease of use affects positively perceived usefulness on credit cards.

Perceived ease of use affects positively the intention to use a credit card.

Social influence affects positively perceived usefulness on credit card.

Social influence affects positively intended use of credit card.

Based upon above discussions, a theoretical model is developed to predict consumer intended use of credit cards with four explanatory factors, including perceived usefulness, perceived risk, perceived ease of use and social influence, where perceived risk is a second-order construct related to seven first-order risk dimensions, including financial, performance, social, psychological, time, security and privacy risk ( Figure 1 ).

3. Methodology

The empirical data for this study are obtained through an online survey, which were based on our review of prior studies relevant to the proposed theoretical model. Some expressions were customized to fit the context of credit cards. The research was anchored on a five-point Likert-type scale measurement varying from “1 (strongly disagree)” to “5 (strongly agree).” A pre-test was also performed with five banking experts with a background on credit cards to ensure that the questionnaire has no semantic problems. Some modifications of content and structure were amended based on the provided feedback. The instruments were then further pilot-tested with 15 consumers, who have experienced in using credit cards for paying bills. Insignificant changes were made to the wordings resulted from the tests. A final questionnaire focuses on 11 first-order constructs corresponding to the proposed model with 46 questions asked ( Table 2 ).

The survey was conducted by using 724 respondents selected through convenient sampling of Vietnamese bank customers, who are potential customers encouraged by the bank to register and use credit cards. Only 485 responses were valid and usable, yielding a valid response rate of 67% among volunteered participants. With 46 observed variables, the required sample size is from 138 to 230 (Cattell, 1978 ). The data from 485 respondents are, therefore, compatible. Based on collected data, both exploratory factor analysis and confirmatory factor analysis (CFA) are conducted to select and arrange the significant variables to particular factors (Byrne, 2010 ; Hair et al. , 2014 ). Finally, structural equation modeling is used for building the model of determinants of the intention to use credit cards (Anderson and Gerbing, 1991 ; Byrne, 2010 ).

4. Findings

4.1 profile of respondents and intention to use credit cards.

The data presented in Table 3 provides the demographic details on a gender, marital status, occupation, age and highest level of academic qualification of the respondents. These controlled variables are considered in this study based on prior studies relevant to consumers’ intended use of credit cards. Prior studies supposed that the differences in these demographic characteristics may lead to the differences in the intention to use credit cards (Dewri et al. , 2016 ; Porto and Xiao, 2019 ; Qureshi et al. , 2018 ).

Of our samples, majority of the respondents are male (51.3%), married (61.4%) compared to female (48.7%) and single (38.6%). Survey participants are mostly young adulthood with 73% of them below the age of 45. The results also show that 20.5% of respondents have college education; 44.7% of them are graduated and 34.8% remaining are post-graduated. Regarding the respondents’ occupation, their largest proportion belongs to public services (30.5%), followed by trading services (26.4%), financial services (25.4%) and industries (15.1%). However, the one-way ANOVA tests in comparing means of intention to use credit card insist that there is no significant difference between independent groups divided by these demographic variables, which is inconsistent to prior studies (Dewri et al. , 2016 ; Porto and Xiao, 2019 ; Qureshi et al. , 2018 ).

4.2 Factor analysis

Applying exploratory factor analysis on data collected from survey questionnaires, 10 factors are extracted from 39 observed variables, except PU4, FIR1, SOR1, which are eliminated from the analysis because its loading factors are less than 0.5 (Hair et al. , 2014 ). These extracted factors are suitable to the proposal model ( Table 4 ). The Kaiser-Meyer-Olkin measure coefficient is 0.847 with a statistical significance of 0.000, indicates that the exploratory factor analysis (EFA) of the independent components is appropriate. A total extracted variance of variables is 62.944%, greater than 50% as required by (Anderson and Gerbing, 1991 ). Observed variables in intention to use credit cards (IU) have high loading coefficients (≥0.82) and its data variation is well-explained (≥78%). Therefore, the measurements are acceptable for CFA ( Byrne, 2010 ).

A CFA is applied for 11 first-order factors with 43 observed variables to examine the model-data fit. Empirical results are shown as follows: χ 2 /df = 2.301, comparative fix index (CFI) = 0.915, Tukey and Lewis index (TLI) = 0.904 and root mean square eror approximation (RMSEA) = 0.052 ( p = 0.000), so the measurement model is compatible with the data (McDonald and Ho, 2002 ). Next, the validity of convergence is achievable because all factor loadings are greater than 0.5 ( Table 4 ) and significant t -statistics (Anderson and Gerbing, 1991 ). Moreover, the average variance extracted (AVE) values ( Table 4 ) are between 0.519 and 0.788, which are greater than both 0.5 and squares of their correlation coefficients ( Table 5 ), respectively, then each construct is a distinct construct and discriminant validity is acceptable (Fornell and Larcker, 1981 ). Therefore, CFA results confirm that 43 observed variables are extracted into 11 first-order constructs, as well as the measurements are model-data fit, discriminant validity, uni-dimensionality, convergence validity and internal consistency reliability.

Due to the existing of second-order factor in the proposed model, the next CFA is needed to estimate the relative of seven first-order risk dimensions, including financial, performance, psychological, social, time, security and privacy risk, with the second-order reflective perceived risk on the measurement model. The results are shown as follows: χ 2 /df = 2.343, CFI = 0.91, TLI = 0.904 and RMSEA = 0.053 ( p = 0.000), so the model fit the data very well (McDonald and Ho, 2002 ). Thus, hypothesis H2 is supported.

4.3 Structural equation modeling

A structural equation model (SEM) is conducted to test the proposed model with 3 independent constructs (social influence, perceived ease of use and perceived risk) and 2 dependent constructs (perceived usefulness and intention to use credit cards), which are measured by 43 observed variables as mentioned in above factor analyzes. Figure 2 shows the whole SEM for the proposed model. All indicators (χ 2 /df = 2.340, CFI = 0.910, TLI = 0.904 and RMSEA = 0.053) show that the proposed model is appropriate for data collected from the market (McDonald and Ho, 2002 ). The result of SEM is described in Table 6 . Whereby, perceived usefulness, perceived risk, social influence and perceived ease of use accounted 50.1% of the variance in intention to use credit cards with coefficients of 0.320, −0.539, 0.141 and 0.089, respectively. Moreover, perceived risk, social influence and perceived ease of use are determinants of perceived usefulness on credit cards. Finally, perceived risk on credit cards is a multi-dimensional construct, which is synthesized from psychological, financial, performance, privacy, time, social and security risk in decreased contribution, respectively. Therefore, all hypotheses are accepted.

5. Discussion

The purpose of this study was to examine the effect of perceived risk on the intended use of credit cards. By integrating popular technology adoption theories, the study assessed the relationships among three exogenous variables (perceived risk, perceived ease of use and social influence) and two endogenous variables (perceived usefulness and behavioral intention). Table 6 and Figure 2 present the results of hypothesis testing for the research model including the path coefficients and their significant values.

First, perceived risk was considered as consumer’s subjective expectations for incident losses relevant to credit card use, which was compared with previous research studies (Nguyen and Cassidy, 2018 ; Tan et al. , 2014 ; Tseng, 2016 ; Varaprasad et al. , 2013 ). The CFA results indicated that perceived risk was a second-order reflective construct related with seven first-order risk dimensions, including financial, performance, psychological, social, time, security and privacy risk. With this finding, the study became very different from prior studies, where perceived risk was conceptualized as one-dimensional construct (Nguyen and Cassidy, 2018 ; Tan et al. , 2014 ; Varaprasad et al. , 2013 ) or two one-dimensional constructs (Tseng, 2016 ). The SEM analysis illustrated that psychological risk (PSR) dimension had the strongest related with the perceived risk, followed by financial risk (FIR), performance risk (PER), privacy risk (PRR), time risk (TIR), social risk (SOR) and security risk (SER).

Subsequently, perceived risk was found to have a negative effect on the intended use with the largest level of impact ( β = −0.539), which was almost equal to the total of impact level from three remaining factors in the model. This finding had contributed to the TPR (Bauer, 1960 ) by insisting the negative impact of perceived risk in behavioral research on credit cards, which Tan et al. (2014) , Tseng (2016) and Varaprasad et al. (2013) could not. Furthermore, this result was better than those of previous studies (Nguyen and Cassidy, 2018 ) with its impact level of −0.18. The results insisted the significant relationship between perceived risk and perceived usefulness, which Nguyen and Cassidy (2018) , Tan et al. (2014) and Varaprasad et al. (2013) did not mention or Tseng (2016) failed to prove. These findings made the present study different from previous works.

Finally, the SEM analysis confirmed the relationships among perceived usefulness, perceived ease of use, social influence and behavioral intention. The findings showed that perceived ease of use and social influence have positive impact on both perceived usefulness ( β EOU = 0.428, β SI = 0.218) and the intended use ( β EOU = 0.089, β SI = 0.141). In turn, perceived usefulness also affected on the intention to use. Thus, this study demonstrated all hypotheses related to perceived usefulness, perceived ease of use, social influence. These findings were consistent with prior studies (Leong et al. , 2013 ; Nguyen and Cassidy, 2018 ; Tan et al. , 2014 ).

6. Conclusions

This study is a pioneering effort in context of credit card adoption by proposing a theoretical model to determine factors affecting consumer intention to use credit cards, including perceived risk from TPR (Bauer, 1960 ), perceived usefulness, perceived ease of use and social influence from TRA, TAM, TPB and UTAUT. Based on collected data from 485 bank customers, this study reveals that perceived risk is a reflective second-order factor related to seven first-order risk dimensions – psychological, financial, performance, privacy, time, social and security risk. The results show that the intended use of credit cards is affected by perceived risk, followed by perceived usefulness, social influence and perceived ease of use in decreased ranking. All these factors encourage consumer to use credit cards, except perceived risk. Moreover, perceived risk, perceived ease of use and social influence are antecedents of perceived usefulness on credit cards.

This study has both theoretical and practical contributions. The first theoretical contribution of this work was to conceptualize perceived risk as a reflective second-order construct, that was modeled and decomposed into the seven first-order risk dimensions, including psychological, financial, performance, privacy, time, social and security risk. Second, the research contributed to the literature on consumer behavior by confirming the impact of perceived risk on the intended use of credit cards, which most previous studies have not demonstrated. Finally, the research findings provided an empirical evidence as theoretical contribution to the academic research platform on e-banking services in Vietnam, especially related to the credit card industry.

This study can be beneficial to banks enacting policies to attract more consumers and to help decide how to allocate resources to retain and expand their customer base. Based on factors influencing consumer intended use of credit cards, banks may encourage them to own and use credit cards for paying goods and services. As the findings imply, banks should focus their resources on overcoming the risk aspects, which can help motivating potential consumers. Banks should advertise that credit card is not a risky service by providing positive reviews at point of sales or in mass media. The publicity of loss protection policies and service-level agreements may reduce potential losses of performance or finance. Additional effective risk preventing policies may include money back guarantees, so that consumers feel more comfortable and safe with the system. Other whence, the positive impact of perceived usefulness, perceived ease of use and social influence on credit card acceptance can be exploited by banks in framing or refining the transactional procedures or relevant services. In the constantly changing business world, banks and related stakeholders should add more useful features and services to credit cards and they should simplify the procedures in making payment via credit cards. Therefore, they will be ready to accept the offers made by credit card issuers and encourage others to use credit cards.

Although this study provided substantive explanations for perceived risk and its effect on consumer intention to use credit cards, it still has several limitations. First, the first-order risk dimensions were measured based on the payment function of the credit card only; these measurements missed potential losses relevant to credit function of credit cards. Second, the present study focused on perceived risk and other factors as the antecedents of the intention to use credit cards while these relationships might be moderated by age, gender, experience, etc. Finally, the empirical data are collected randomly from only Vietnamese bank customers; this limited data may mislead to the accuracy and explain the ability of the proposed theoretical model. Thereby, future studies may perform a multi-national survey on both payment and credit functions of credit cards, as well as integrating reasonable moderators into the proposed model to address these shortcomings.

Proposed theoretical model

Proposed research model and the result of SEM

Multi-dimensional perceived risk

Descriptive statistics and mean comparative analysis

Factor analysis

Correlation coefficients matrix

Results of the structural equation model

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Nearly one-fifth of Americans have ‘maxed out’ their credit cards as inflation and high interest rates push delinquencies to 3-year high

Amid high inflation and higher interest rates, Americans are continuing to pack on debt at troublingly high levels . Even more worrying, new research finds an increasing number of borrowers are falling behind on debt payments, putting their long-term financial health at risk.

While overall credit card debt fell in the first quarter of 2024—typical after the holidays—the number of borrowers behind on credit card payments actually increased, according to the New York Federal Reserve’s Quarterly Report on Household Debt and Credit. In fact, the delinquency rate has been steadily rising since 2021, and is now above pre-pandemic levels.

To explain the increase, the Fed’s researchers zeroed in on credit utilization rate, or how much of one’s credit a borrower is currently using (someone with a $10,000 limit and $4,000 in charges would be using 40%). Utilization rate is highly correlated with delinquency, according to the Fed—the higher the rate, the more likely a borrower will be late on payments.

While the nationwide utilization rate is around 23%, almost one-fifth of borrowers, 18%, are using at least 90%. And for those borrowers—whom the Fed calls the “maxed out” group—about one-third of balances have gone delinquent in the past year. Before the pandemic, the share was less than a quarter.

This shows how stressed out households have become, particularly those with tight cashflows. The Fed’s research shows younger borrowers and those who live in lower-income areas are much more likely to be maxed out than those who tend to keep a lower utilization rate: 15.3% of Gen Z borrowers and 12.1% of millennials have maxed out their cards, compared to 9.6% of Gen X and 4.8% of baby boomers. Of course, Gen Z card holders tend to have lower limits due to shorter credit histories.

Separate research from the credit bureau TransUnion finds that Gen Z is starting out their adult lives with more credit card debt than previous generations. The average balance for 22- to 24-year-olds was more than $2,800 in the last quarter of 2023, compared with an average inflation-adjusted balance of around $2,250 in 2013, according to that report .

Debt growing at an ‘alarming’ pace

While the Fed’s research doesn’t necessarily get into the reasons for the rise in utilization rate and delinquencies, a new report from Achieve, a digital personal finance company, also looks at why credit card debt continues to grow. The company surveyed 2,000 consumers with active accounts across the consumer debt categories the Fed also tracks: mortgages, student loans, credit cards, auto loans, and home equity lines of credit.

The top reasons cited by respondents for making delinquent payments included inflation (21%) and a reduction in work and income (20%). Another 11% simply forgot to pay at least one bill over the past six months. TransUnion’s report also points to inflationary pressure for the increased debt.

“It’s no surprise that in this economic climate, one in which the cost of living is significantly higher relative to a decade ago, younger consumers are increasingly turning to credit products to bridge their financial needs,” Jason Laky, executive vice president and head of financial services at TransUnion , said in a press release for the report. “As long as inflation remains elevated and the cost of goods remains so as well, balances…are likely to continue to grow.”

In Achieve’s report, consumers also pointed to the increase in credit card interest rates—a side effect of the Federal Reserve’s campaign to reign in inflation—as making it more difficult to pay down debt.

Nearly one-third of consumers, 31%, said it is very difficult or difficult for them to pay recurring debts on time. As a result, a quarter of consumers reported reducing their spending over the past three months. That’s starting to show in other data, with consumer goods giants including PepsiCo  and  Kraft Heinz  reporting high inflation and interest rates as harmful to lower-income customers .

“We know that household debt and credit are growing at an alarming pace,” Andrew Housser, Achieve’s cofounder and co-CEO, said in a press release. “For many consumers, money is going out the door as quickly as it’s coming in, if not faster.”

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Using AI, Mastercard expects to find compromised cards quicker, before they get used by criminals

FILE - A sign indicating MasterCard credit cards are accepted is posted at a New York business, Jan. 21, 2015. Mastercard said Wednesday, May 21, 2024, that it expects to be able to discover that your credit or debit card number has been compromised well before it ends up in the hands of a cybercriminal. (AP Photo/Mark Lennihan, File)

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NEW YORK (AP) — Mastercard said Wednesday that it expects to be able to discover that your credit or debit card number has been compromised well before it ends up in the hands of a cybercriminal.

In its latest software update rolling out this week, Mastercard is integrating artificial intelligence into its fraud-prediction technology that it expects will be able to see patterns in stolen cards faster and allow banks to replace them before they are used by criminals.

“Generative AI is going to allow to figure out where did you perhaps get your credentials compromised, how do we identify how it possibly happened, and how do we very quickly remedy that situation not only for you, but the other customers who don’t know they are compromised yet,” said Johan Gerber, executive vice president of security and cyber innovation at Mastercard, in an interview.

Mastercard, which is based in Purchase, New York, says with this new update it can use other patterns or contextual information, such as geography, time and addresses, and combine it with incomplete but compromised credit card numbers that appear in databases to get to the cardholders sooner to replace the bad card.

The patterns can now also be used in reverse, potentially using batches of bad cards to see potentially compromised merchants or payment processors. The pattern recognition goes beyond what humans could do through database inquiries or other standard methods, Gerber said.

Billions of stolen credit card and debit card numbers are floating in the dark web, available for purchase by any criminal. Most were stolen from merchants in data breaches over the years, but also a significant number have been stolen from unsuspecting consumers who used their credit or debit cards at the wrong gas station, ATM or online merchant.

These compromised cards can remain undetected for weeks, months or even years. It is only when the payment networks themselves dive into the dark web to fish for stolen numbers themselves, a merchant learns about a breach, or the card gets used by a criminal do the payments networks and banks figure out a batch of cards might be compromised.

AP AUDIO: Using AI, Mastercard expects to find compromised cards quicker, before they get used by criminals

AP correspondent Donna Warder reports on efforts to stop credit card fraud before it happens - using A.I.

“We can now actually proactively reach out to the banks to make sure that we service that consumer and get them a new card in her or his hands so they can go about their lives with as little disruption as possible,” Gerber said.

The payment networks are largely trying to move away from the “static” credit card or debit card numbers — that is a card number and expiration date that is used universally across all merchants — and move to unique numbers for specific transactions. But it may take years for that transition to happen, particularly in the U.S. where payment technology adoption tends to lag.

While more than 90% of all in-person transactions worldwide are now using chip cards, the figure in the U.S. is closer to 70%, according to EMVCo, the technological organization behind the chip in credit and debit cards.

Mastercard’s update comes as its major competitor, Visa Inc., also looks for ways to make consumers discard the 16-digit credit and debit card number. Visa last week announced major changes to how credit and debit cards will operate in the U.S., meaning Americans will be carrying fewer physical cards in their wallets, and the 16-digit credit or debit card number printed on every card will become increasingly irrelevant.

Presale Report

Eagle Credit Card Trust, Series 2024-1 (Canada ABS)

Tue 28 May, 2024 - 1:08 PM ET

Receivables’ Performance and Collateral Characteristics: Underlying collateral characteristics play a vital role in the performance of a credit card ABS transaction. Fitch closely examines such collateral characteristics as credit quality, seasoning, geographic concentration, delinquencies and utilization rate on credit cards. As of the April 2024 collection period, ECCT’s collateral performance metrics have followed the general trends within Fitch’s Canadian Credit Card Index, with the exception of chargeoffs. Net chargeoffs increased slightly over the past 12 months to 3.88% as of April 2024, compared to 3.80% one year prior, and continue to remain higher than the trust’s pre-pandemic level, whereas the index remains below its pre-pandemic levels. 60+ day delinquencies were 1.14%, up from 0.98% one year ago and also above pre-pandemic levels. Gross yield has remained robust at 28.21% versus 25.50% one year ago, and the monthly payment rate (MPR) has also increased, to 70.85% from 59.81% the year prior, trending above the 12-month average. Overall, performance for the trust has remained within Fitch’s steady state assumptions. CE continues to be sufficient, with robust loss multiples that are in line with the current ratings. The Stable Rating Outlook on the notes reflects Fitch's expectation that performance will remain supportive of these ratings.