Sorting through the best credit cards on the market is easier said than done. There are literally dozens of options available, and for the average cardholder or first-time applicant, assessing all these options can be very intimidating.
One of the most important factors to consider when choosing between credit card providers is their rewards rate system. Different cards have different offers or rewards. Basically, the idea here is that cardholders may become eligible for various benefits, rewards, and promos the more they use their credit card for day-to-day expenses.
Generally, credit cards offer two types of rewards: cashback rewards and travel credit. Just as it sounds, the first is a system where the cardholder gets a chance to earn cashback on their spendings. The rebate rates will be quite meager at first. As you earn points and build credibility, however, your provider will likely upgrade you to a card that provides higher rebates.
Meanwhile, travel credits are points you can use for free flights. This type of rewards system is ideal for the active traveler who primarily uses their card to pay for plane tickets, public transportation fees, and restaurant bills, among other travel purchases.
Having trouble deciding what type of credit card would suit you? Our website helps guide readers on how to properly choose a credit card that complements their lifestyle best. Head over to AnyCredit today!
As we said, there's no one-size-fits-all credit solution. You need to find a card offering features, rewards, and incentives that fit your financial capacity and lifestyle so you can maximize the freebies.
So rather than rating the cards from good to excellent, we've decided to categorize them instead. We're explaining exactly what the most popular credit cards on the market offer and who would benefit from them the most.
The Wells Fargo Propel Amex card offers a 12-month 0% intro APR as well as a $0 annual fee. You also get a sign-up bonus of 20,000 bonus points (worth $200) if you spend at least $1,000 using your card within the first 3 months. On foreign transaction fees, travelers will appreciate that there is no conversion fee.
For the rewards, users can triple their points when they use their card to pay for restaurant bills (both dine-in and takeout orders), streaming site fees, gas, rideshare bills, public transit tickets, hotels, flights, and car rentals.
The Chase Sapphire Preferred card allows users to earn a whopping two points for every dollar they spend on restaurants and travel fares. For other expenses, you get one point. Also, you get 60,00o points (worth $750) if you spend $4,000 within three months of account opening.
What makes this one of the best cards for traveling is it also lets users transfer the earned points to their preferred hotel and airline loyalty programs.
Some of the downsides, however, are the high fees involved. There's no introductory period where clients get a 0% intro apr on purchases and you'll have to shell out $95 for annual membership fees.
The Discover It Cash Back is perfect for the wise shopper. It has a set intro APR 0% for the first 14 months from account opening, free annual membership, and competitively priced fees. Not to mention that you can get a 1% to 5% rebate on a wide range of spendings.
Apart from the multiple rebates, Discover offers the Cash Back Match. It's essentially a system where the card provider doubles the full amount of rebates you earned during your first year. The Cash Back Match is unlimited, so you can earn up to thousands' worth of rebates if you continuously use your Discover card on various expenses.
The Chase Freedom Flex offers one of the highest rebates at 5%. This rebate rate is applicable to a wide range of expenses and spendings. Note, however, that the cashback categories change regularly so you'll have to check their site for more detailed, up-to-date information.
Another great feature is that Chase Freedom Flex has a very long introductory period of 15 months where you get 0% purchase APR on all spending. They also have a competitively low minimum APR of 14.99%, which you can qualify for if you maintain status as a good-paying member.
The Discover It Student Chrome is ideal for the average college student. It follows a simple system where the cardholder earns a 2% rebate when purchasing from grocery stores, restaurants, and gas stations. A 1% rebate is given on other spendings.
Plus, it has a $0 annual fee, 0% intro fees on its APR for the first six months, and a fairly low required credit score of 630. It's perfect for first-timers.
Its most unique feature is the Unlimited Cashback Match. The idea here is the credit card provider doubles all the cash backs you have earned during your first year. And the best part is it's unlimited. There's no cap on how much worth of rebates the provider will match.
Perhaps the best advice we can give is not to rush your credit card application. Don't just go with what your friends are using. And please don't let that Mastercard, American Express, or Visa agent push you into signing up for anything you're not 100% sure of.
You need to objectively assess your lifestyle and financial needs then compare them to the top credit card rewards systems available. Take your time!
This study shows that nearly 80% of all credit card users in the country prioritize rewards when choosing between two or more card options.
Still on the fence about where to open a credit card account? To help you decide which rewards credit card best suits your financial needs and lifestyle, visit AnyCredit! We have multiple in-depth guides and reviews of the most popular credit cards in the country.