In this economy, the best way to buy things is with credit. You can often get extra rewards or cash back when you do so. Thus, you can keep your capital free and spend less money in the long run.
However, with so many credit cards out there offering different interest rates, fees, and rewards, choosing the best one can be a difficult task. Ultimately, the right choice depends on who you are, what you need, and what your financial situation looks like.
The same credit card that is good for a middle-aged man at the height of his career is going to be the poor choice for a young woman right out of college. Each person’s credit score is different and will have different factors affecting it.
As you continue reading, you will be able to determine what type of credit card you need, whether that is a secured credit card, one with no fee, a low APR card, or a high rewards card for big spenders. Use the categories and card descriptions to determine what will work best for your financial situation.
Secured Credit Cards
One of the best ways to build credit, if you’re just starting out, is with a secured card. This means that your line of credit comes from an investment that you made up front. You are being given credit based upon the initial deposit that you make. Thus, if the account requires $300 upon opening, you would then have a $300 credit line.
This ensures that the bank or financial institution takes no risk in allowing you to have credit. If you don’t pay it back, they can just take your deposit and not return it.
This is a great way to build credit, though, because you will have to pay a bill on time each month. When you do, your score will go up because you are seen as a trustworthy borrower. Financial institutions will become more and more convinced that you are able and willing to pay back any money you owe them. Check out the best secured credit cards below.
Discover It Secured
Whether you need to rebuild your credit or get it for the first time, this card will allow you to do it while also offering great cash-back rewards. With every purchase, you will be able to earn 1-2% back.
As a bonus, Discover will match all of the cashback you have earned at the end of your first year. If you are just starting out and need a secured credit card, then this is a great way to build your credit and still get some great rewards that will save you money in the long-run.
Wells Fargo Business Secured
This secured card also allows you to earn cash back while building your credit. Wells Fargo will offer 1.5% back on every purchase. You don’t need good credit to get the card and they understand that you may be starting out or trying to rebuild.
One of the best parts about this card is that they review your usage and credit each month. If you are responsible then you will have the opportunity to upgrade to one of their unsecured business cards that no longer requires a deposit.
Best Travel Rewards Credit Cards
One of the best ways to redeem credit card points is through travel rewards. Some cards are optimized for this and give you good redemption ratios. Whether they are general travel cards with points that can be redeemed for flights or hotels or airline-branded cards, you’ll be glad you have one.
The credit cards below understand how important your next adventure is. You can make purchases that contribute to your next vacation through flights or hotel rooms. Don’t let the money you spend go to waste. Get a great credit card that gives you good travel rewards.
Chase Sapphire Preferred Card
This card allows you to earn double points on all dining and travel purchases. It also gives you the most flexibility when it comes to redeeming. You can transfer points to leading airline and hotel loyalty programs at a rate of 1 to 1.
That means you can fly with whatever airline you use most and stay at your favorite hotels. Plus, if you spend $4000 within your first three months, you’ll get a huge 50,000 point bonus. That will put you well on your way to a vacation.
Capital One Venture Rewards Credit Card
This credit card is especially good if you frequent hotels. You can earn 10 miles per dollar on hotel visits and then earn flat-rate rewards for future hotel stays. The rest of your purchases will earn you 2 miles.
The Capital One Venture Rewards Credit Card also includes a 50,000-mile bonus after you spend $3000 in the first three months. While it may not be great for flights, it is the perfect card for earning hotel rewards.
Chase Sapphire Reserve
Although this card has an annual fee it provides great rewards. This is the perfect card for you if you have excellent credit and spend quite a bit of money. You will automatically get $300 of statement credit to use for travel purchases each year.
You will earn triple points on travel and you will have no fees when you make foreign transactions. You will even get a fee credit for enrolling in Global Entry or TSA PreCheck. This card makes traveling easier and cheaper.
Wells Fargo Propel American Express Card
If you don’t spend enough for an annual fee to make sense, then this card is great for you. It charges no foreign transaction fees and offers a 30,000 point sign-up. Plus, the card offers a 12-month introductory period with 0% APR.
Cardholder benefits include
travel accident insurance, auto rental collision, and liability insurance. You’ll always be protected when you are traveling abroad in cars, planes, or trains. It is a great card that will allow you to earn rewards at a rate of three points per dollar.
United MileagePlus Explorer Card
With double mile rewards on United purchases, this card is great if you are a frequent United traveler. Whether you use them for business trips or personal vacations this is the card that you’re going to want. It will allow you to save the most money on United flights.
As an added benefit, you will get two United Club passes on your anniversary of becoming a cardholder. This will allow you to sit in the United Club at the airport while you wait on your flight. You’ll have a great flying experience if you make United your favorite airline and get their Explorer Credit Card.
Cash-Back Credit Cards
If you don’t travel often or it just doesn’t make sense for you to get a high-fee travel rewards card, you can also get a credit card that provides cash-back. This means that you get a percentage of your money as a statement credit each month.
Many cash-back credit cards even offer match programs to add extra incentives to use your card. Essentially, using these cards will put free money back into your bank account. Why wouldn’t you want a credit card that will help you spend less money in the long run?
Bank of America Cash Rewards Credit Card
With no annual fee and a 0% introductory APR, this card is great if you have a lower level of spending or if gas makes up a large percentage of your budget. You get extra rewards on gas purchases and will get a sign-up bonus after spending only $500 during the first 90 days.
This credit card is especially good for you if you have a Bank of America checking or savings account. Customers with these accounts get an extra 10 percent on every purchase for being a loyal customer.
Discover It Student Cash Back
This card is perfect for students who are trying to build credit or rebuild their credit score. It allows you to get a cash-back reward on every purchase and you will get a match on everything you earn at the end of your first year.
There is no annual fee and the Discover It credit card even gives you a bonus for having good grades in school. Once you’ve graduated, you will have built your credit score enough to upgrade to the regular Discover It card. You’ll be rewarded for being loyal to Discover.
Citi Double Cash Card
This credit card allows you to earn flat-rate rewards on all purchases with no limits on how much you earn. You will get 1% cashback on every single purchase, will not pay an annual fee, and will not be charged a late fee the first time that you miss your payment.
This is also a great card if you need to make a balance transfer. These transactions will have 0% APR for 18 months, which means this card is great if you have racked up debt on a higher interest card.
Blue Cash Preferred Card from American Express
If most of your spending comes at supermarkets, department stores, or gas stations, this card is perfect for you. Supermarket spending, up to $6000, will earn you 6% cash back. Gas station and department store purchases will earn you 3% cash back while all other transactions will earn 1%.
The introductory APR is at 0% and you’ll get a great bonus after making $1000 in purchases during the first three months. If you travel, this card is also a great way to get car rental loss and damage insurance.
Business Credit Cards
These credit cards are specifically offered to business owners so that they can earn some money back on the purchases they make each and every month. From inventory to unexpected costs, you’re sure to rack up a large bill each quarter.
Don’t let that money go to waste. Earn rewards on all the money you are spending so that you can build your business with your profits.
Ink Business Unlimited Credit Card
This credit card has no limits on the amount of cash-back you can earn and is specifically designed to give great benefits to business owners. You can even make balance transfers with this card.
There is no annual fee and every purchase earns 1.5% cash back. You’ll get a great reward after spending $3000 in the first three months and won’t have to worry about interest for the first year of having your business credit card. Increase the bottom line of your company by using the Ink Business Unlimited Credit Card.
Business Platinum Card from American Express
If you do a lot of traveling for your business then this is the perfect credit card for you. The welcome offer bonus includes 75,000 points when you spend the required amount. Each year, you will also get a $200 airline fee credit along with a host of other travel offers.
You will get an early check-in at many hotels and will be able to access global lounges with flying internationally. This is a great credit card for a business owner that travels across the US and the globe. It is even handy if one of your employees needs to travel. Don’t let your money go to waste. Get great travel rewards that will help out your business.
Choosing the Right Credit Card
There are many factors that go into choosing the right card. You may want travel or cash-back rewards, you may have a credit that limits what you can get, or you might even own a business that will benefit the most from a certain type of credit account.
Whatever your needs are, it is imperative that you get the perfect credit card. It will allow you to keep the money in your bank account free for unexpected expenses and it will allow you to spend less in the long run.
Use this article as a guide for understanding what card is best for you and ensure that you get a credit account that fits your financial situation. Don’t shy away from credit just because you have a bad score or have had bad experiences.
Take advantage of these great offers and rewards so that you can enhance your financial stability and maintain financial freedom for years to come. You’ll be impressed with whatever card you choose from this list.