Best Credit Cards of 2021

Not all credit cards are created equal. The best card for you depends on your financial situation. Your spending habits, debt balances, and credit score are all important factors to compare against the tools and benefits any individual card offers. 

As a starting point, we’ve outlined a few of our favorite credit cards on the market across different categories and for a broad range of credit users, whether you’re looking for cash back savings on your regular purchases, a balance transfer tool to pay down debt, or travel benefits for your next vacation. These are the cards we believe can best help you maximize your dollars and add value back into your wallet.  

Our Picks for the Best Credit Cards

Best Credit Cards of 2021 Summary

Card Name	What It’s Good For	Intro Bonus	Rewards	Annual Fee	Credit Requirement
Chase Freedom Unlimited	Cash Back Value for No Annual Fee	• $200 after spending $500 within first 3 months	• 5% cash back on travel through Chase Ultimate Rewards • 3% cash back on dining and at drugstores • 1.5% cash back on all other purchases	$0	670 – 850 (good to excellent)
Blue Cash Preferred from American Express	Maximum Cash Back on Everyday Spending	• $250 after spending $1,000 within first 3 months	• 6% cash back at U.S. supermarkets (up to $6,000 spending per year, then 1%) and on select streaming services • 3% cash back at U.S. gas stations and on transit • 1% cash back on other purchases	$95	670 – 850 (good to excellent)
Capital One Venture Rewards Credit Card	Travel for Rewards Beginners	• 60,000 miles after spending $3,000 within first 3 months	• 2x miles on every purchase	$95	670 – 850 (good to excellent)
Chase Sapphire Reserve	Travel for Premium Rewards	• 50,000 Ultimate Rewards points after spending $4,000 within first 3 months	• 3x points on dining and travel purchases • 3x points on grocery store purchases (up to $1,000 spending per month through April 2021) • 1x points on all other purchases	$550	740 – 850 (excellent)
U.S. Bank Visa Platinum Card	0% Interest for Long Intro Offer	N/A	N/A	$0	670 – 850 (good to excellent)
Citi Double Cash Card	0% Interest and Value After Intro Period	N/A	• 2% cash back on all purchases, 1% as you buy, 1% as you pay them off	$0	740 – 850 (excellent)
Capital One QuicksilverOne Cash Rewards Card	Building Credit Starter Credit Card	N/A	• 1.5% cash back on every purchase	$39	580 – 740 (fair to good)
Capital One Spark Cash for Business	Business Everyday Spending	• $500 after spending $4,500 within first 3 months	• 2% cash back on all purchases	$95 (waived first year)	670 – 850 (good to excellent)
American Express Business Gold Card	Business Travel	• 35,000 Membership Rewards points after spending $5,000 within first 3 months	• 4x Membership Rewards points on 2 eligible categories in which your business spends most each month (on up to $150,000 in combined purchases each calendar year, then 1x) • 1x points on other purchases	$295	670 – 850 (good to excellent)

How Credit Cards Work

Credit cards are financial tools used to make purchases and build credit. You can use a credit card to buy something and pay it off at the end of your billing cycle (typically month-to-month) or over time. If you pay your balance over time, you’ll accrue interest at the rate of your assigned variable APR.

People make purchases using credit cards for a number of reasons, including rewards and other benefits, security protections, and payment flexibility. Credit cards are also a great tool for building credit. A great credit score can help you qualify for other cards and loans over time at competitive rates. But accumulating debt with a credit card can have a negative effect on your credit. Failure to pay your amount due, late payments, and overspending on your credit card can cause damage to your credit score that can take years to reverse.

How Credit Card Rewards Work

Credit card rewards can help you earn cash back, points, or miles on the purchases you make everyday — like groceries and dining out — or on big purchases you make only occasionally — like an international vacation. Matching your spending habits with a great rewards card can help you save hundreds of dollars each year on the purchases you already make.

But there is a catch to those great savings. If you carry a balance on your card, accruing interest over time, the interest you pay will far exceed any rewards value a credit card can offer. If you’re looking to maximize your spending with rewards, paying your credit card balances in full and on time each month is essential.

Types of rewards

• Cash Back Rewards: Cash back credit cards earn a percentage back on select purchases, which you can redeem for cash or statement credits toward other purchases. There are three main types of cash back rewards: a flat cash back percentage on every purchase, tiered cash back rewards on specific categories (like 3% on dining and groceries or 2% on travel), and rotating rewards categories that change quarterly (typically a 5% bonus rate).
• Miles and Points Rewards: Like cash back rewards, points and miles are earned as a portion of your purchases made in specific categories. You might earn 3 points per dollar spent on travel, for example, or 4x miles per dollar spent with streaming service providers. Options for redeeming points vary based on your issuer’s rewards program, and may include redemptions with specific retailers, travel or points transfers to partners, statement credits or cash back, and gift cards. Travel is often the most valuable of these redemption options, and co-branded rewards cards may only earn points or miles toward a specific loyalty program, like Delta SkyMiles or Marriott Bonvoy.

Tracking Your Rewards

If you have a single rewards card, you can keep track of your rewards balance through your online or mobile app account. You can also find a rewards summary on your credit card statement each month.

It can take a bit more time and effort to track rewards on multiple credit cards, especially if those cards are issued by different credit card companies. If you have multiple cards from the same issuer, you can often view them within the same account login; rewards may even pool together under a single account automatically. For cards across multiple issuers, regularly stay on top of the rewards you’re earning and your redemption options for each, so you can maximize all your cash back, points, and miles earned when it’s time to cash in.

The Rewards Process

• Earn Rewards: Use your rewards credit card to make purchases in eligible bonus categories, accumulating rewards points, miles, or cash back over time. 
• Evaluate Redemption Options: Log into your card account to view the redemption options your card issuer offers. If you value simplicity, straightforward statement credits might be your preferred choice, or maybe you want to transfer to your preferred airline loyalty program instead. Keep an eye on your inbox for limited time redemption offers from your issuer, and make sure you know when or if your points expire.
• Redeem Rewards: When you’re ready to redeem, log into your online account and choose your preferred method. You may redeem at regular intervals or save your points, miles, or cash back for a bigger return less frequently, like the next time you want to book a trip.

How Credit Card Interest Works

Credit cards can earn valuable savings on your spending, as long as you’re careful not to take on long-lasting, high-interest debt.

Credit cards carry extraordinarily high variable APRs (annual percentage rate, or your interest rate in yearly terms). Even in today’s low rate environment, average credit card APRs remain over 15%, with some reaching 24% and even beyond. Any balance remaining on your card after your monthly payment is due will accrue interest daily until the balance is paid.

Generally, the better your credit score, the lower your assigned variable APR. But you can avoid paying interest altogether — and forgo the risk of high-interest debt — by using your credit card like a debit card. Never charge more to your credit card than you can afford to pay off at the end of — or throughout —the month, and pay your balances in full (not just the minimum amount due) by the due date. This will help you avoid interest and, over time, build a strong credit score.

Different Types of Credit Cards

Credit cards are generally used in the same way no matter which one you choose, but picking the right type of credit card for you can help ensure your chances of approval and gain the maximum value from your card over time.

Cash Back

Cash back credit cards are rewards credit cards that offer a percentage back on eligible purchases. They may offer a flat cash back percentage on every purchase, a tiered rewards structure with bonus cash back on certain categories, revolving rewards that change quarterly, or some combination of these. Cash back credit cards typically have no annual fee and require good to excellent credit.

Rewards and Travel

Rewards and travel credit cards can offer some of the best savings, but they often come for a price. Cash back cards are rewards cards, as well as cards that earn points or miles on eligible purchases (often travel-related), which you can redeem for a number of options depending on the issuer, including travel booking, gift cards, statement credits, or online purchases. Some rewards and travel cards offer no annual fee, while more premium cards may charge $95, $250, or even $550 annually. These cards generally require excellent credit for approval.

Balance Transfer

Balance transfer credit cards can be a useful tool for debt payoff. These cards offer a reduced interest rate (generally 0%) over an introductory period (usually 12-18 months), during which you can transfer and pay down debt from other credit cards or loans. Some balance transfer cards also function as cash back or rewards cards after the intro period ends, while others are designed to be used solely as debt payoff tools. These cards generally require good to excellent credit for approval.  

0% and Low Interest

0% interest credit cards, like balance transfer cards, offer a reduced interest rate over an introductory period. But instead of transferring old debt, this reduced interest applies to new purchases you make with the card. This can be useful if you have a large purchase coming up and would like the flexibility to pay it off interest-free over time rather than upfront. 0% interest cards generally require good to excellent credit.

Student Credit Cards

Student credit cards are designed to help students with little or no credit history build a credit score and establish healthy credit habits. These cards work in the same way as regular credit cards and may offer rewards or cash back in everyday categories, but are marketed specifically to students. Student cards may have lower interest rates and credit limits and often carry no annual fee.

Credit Cards for Building Credit

Like student credit cards, credit cards for building credit can be used to establish credit and begin practicing healthy credit habits. These cards are for people with poor credit, so you can still get approved even without a good credit score, but they usually offer bare-bones benefits and no rewards. Many credit-building cards are secured credit cards, which require a security deposit upon approval. This deposit may act as your credit line, which is returned when you upgrade to a standard credit card or close your account in good standing.

Small Business Credit Cards

Business credit cards work the same as personal cards, but with rewards and benefits tailored to small business owners, freelancers, or other businesses. Not everyone can qualify for a business credit card — you must have some sort of business or sole proprietorship for approval. These can be helpful tools for separating your business expenses from personal spending, and saving on frequent purchases like travel, office supplies, internet services, and more.

How to Pick the Best Credit Card for You

After you’ve determined the type of credit card best suited for you, there are a few other factors to consider when choosing the card itself, including short-term benefits and ongoing card details. Here are a few to keep in mind:

• Annual Fee: The annual cost of card ownership. Many cards carry no annual fee, while premium rewards cards can charge more than $500 each year.
• Other Fees: Foreign transaction fees, balance transfer fees, late payment fees, cash advance fees and more all vary by card and can increase the cost of your card if incurred. 
• Interest Rate: Your card’s interest rate (expressed in yearly terms as APR) determines how much you’ll pay when you carry a balance month-to-month. There are two different APRs to know:
  • Introductory: Some cards offer an introductory APR on new purchases or balance transfers (or both) for a limited time. This is often a 0% APR offer and often lasts several months after account opening.
  • Ongoing: Your ongoing APR will likely be a variable interest rate based on the prime rate and determined by your credit score. Because it’s variable, it can change over time.
• Rewards: Rewards, whether cash back, points, or miles, are often a primary determining factor for prospective cardholders. Use your previous spending habits and preferred redemption methods to determine what rewards structures may best serve you.
• Welcome Bonus: A great welcome bonus can be a major perk of a new credit card, and boost your initial earnings by hundreds of dollars. But while it’s a good sign-up perk, a high-value welcome bonus offers no long-term value.
• Other Benefits: Many rewards cards (especially those with higher costs or that require excellent credit) offer ongoing benefits beyond rewards, such as annual credits toward certain purchases and merchants; access to events, lounges, and experiences; and additional savings on your spending. If they fit with spending you would have made anyway, these added benefits can help offset an annual fee on a new rewards card.

How the Application Process Works

• Check your credit report and credit score: Once you’ve determined the card you’d like to apply for, view your credit score to ensure you have solid chances of approval. Also check your credit report for any errors before applying; you can check your own report for free using AnnualCreditReport.com.
• Apply: You can complete your card application online. Make sure you have all the relevant information you may need, including your address, Social Security number, and current income. 
• Review: If you’re approved, some issuers may allow you to begin using your new card online immediately, or wait until the card itself arrives by mail. If your application is rejected, consider the reasons for your denial. Have you applied for too many cards within a short time? Is your credit not quite where it should be for approval? Take time to build your credit score and practice paying your bills and other debts in full and on time before submitting a new application.

*All information about the Capital One Venture Rewards Credit Card, U.S. Bank Visa Platinum Card, Citi Double Cash Card, Capital One QuicksilverOne Cash Rewards Credit Card, Capital One Quicksilver Cash Rewards Credit Card, Capital One Spark Cash for Business, and Capital One Spark Cash Select for Business has been collected independently by NextAdvisor and has not been reviewed by the issuer.

Frequently Asked Questions

Methodology

To determine our best credit card picks, we evaluate credit cards within popular card categories. Our criteria includes details specific to each category (redemption value for travel cards, for example, or credit requirements for beginner credit cards) along with standard details across cards — rewards earned, welcome bonus, annual fee, introductory offer, interest rate, and more. Most importantly, each of the cards on our list delivers on its marketed purpose, whether that’s great travel rewards, business savings, or everyday value. We believe the cards on this list offer a mix of high rewards value, simplicity, and relevance for the broadest range of consumers.