Travel credit cards
Travel cards are best suited to people who travel at least a few times per year. Many of these cards charge annual fees, so you want to make sure you're earning enough in rewards to at least make up for what you're paying to own it
With travel cards, you can redeem your points or miles for free or discounted travel. There are also quite a few top travel credit cards that offer extra perks, such as free access to airport lounges, hotel upgrades, and travel insurance. The best airline credit cards, hotel credit cards, and general travel credit cards would all fall under this category.
Rewards credit cards
This category includes every credit card that earns purchase rewards. With so many to choose from, you'll find a diverse mix among the best credit cards for rewards. There are cards that earn cash back, travel points, and store rewards.
Cash back credit cards
Cash back cards are best for those who want a versatile card you can use for everyday spending. If you want a card with bonus categories, look for one that aligns well with your spending habits.
With the best cash back credit card, you earn rewards that can be redeemed as cash. Depending on the card, you may be able to redeem your cash back as a statement credit towards your credit card balance, a deposit to a bank account, or as a check. You'll find cards that earn the same flat rate on purchases as well as cards that earn extra in bonus categories among the best cash back cards.
No annual fee credit cards
Lots of people don't want to pay anything for a credit card, and fortunately, you don't need to. There are many no annual fee cards you can add to your wallet without adding to your yearly bills. This type of card is a good choice if you're new to credit or rebuilding your credit. And even though these cards don't have quite as many perks as those with an annual fee, they can still offer valuable benefits, including rewards and welcome offers.
Balance transfer credit cards
These credit cards are best suited for those who are trying to pay off credit card debt. Ideally, you can find one with an introductory APR that's long enough to enable you to pay off your full balance. But you should note that you can't transfer a balance to a new card with the same issuer. And any balance transfer card will charge you a one-time fee for making the transfer.
Many of the best balance transfer credit cards have a 0% intro APR on balance transfers and intro periods can last for well over a year. If you want to refinance credit card debt and save money on interest, a balance transfer card is ideal.
Best credit cards for beginners
The best credit cards for beginners accepts applicants with no credit history, don't charge unnecessary fees, and have educational features to help you improve your credit, such as free credit score monitoring. For those who are enrolled at college or university, student credit cards are a great first step into the world of credit.
High limit credit cards
Some credit cards tend to offer higher credit limits than most. These best high limit credit cards let you spend more. They can also help you protect your credit by making it easier to keep your credit utilization ratio low. You typically need excellent credit to qualify for one.
0% intro APR credit cards
Cards in this category have a 0% intro APR that applies to purchases. They're a smart choice if you need to buy something expensive, but you can't afford to pay in full upfront. The best 0% intro APR credit cards often have those intro deals for a year or longer.
Secured credit cards
These best secured credit cards cards can be a good starting point for those trying to establish a credit history for the first time or rebuild their credit score if they've managed credit poorly in the past. Annual fees are more common with these cards and rewards are rare, so they're generally not a good fit for those who wouldn't have any trouble applying for credit cards that fall into the categories listed above.
You need to pay a security deposit to open a secured credit card, which is typically used for rebuilding or building credit. The security deposit is often (but not always) equal to your starting credit limit. Even with the best credit cards for bad credit, high-quality secured credit cards usually graduate to unsecured cards. This means you get your deposit back if you make enough on-time payments.
Student credit cards
If you're in college, you can get started on building your credit with the best student credit cards. Even though college students are the primary audience for these credit cards, there are some excellent perks to be found with them. Some cards include free credit score tracking and big cash back bonuses.
Adults who aren't in college who are looking to build a credit history should check out secured credit cards.
Business credit cards
The best business credit cards are designed with business owners in mind. This type of credit card offers higher credit limits than consumer credit cards to accommodate business spending. Many of them also have bonus categories to fit typical business spending habits. For example, a business card may offer bonus rewards on advertising, shipping, or office supply store purchases.
In addition, a business card can help you build your business credit score. Just like your own credit score is a rating of your personal creditworthiness, businesses have credit scores that rate their creditworthiness. By using a business credit card and paying on time, you can raise your business credit score. That can help you qualify for business financing in the future.
Your business doesn't need to be a separate entity to qualify for a business credit card. It's possible to open a business credit card with a sole proprietorship. No matter what type of business you have, it's smart to compare credit card offers.
Store credit cards
Many chain stores, from Macy's to Target to Lowe's, offer their own credit cards. Sometimes these credit cards are accepted everywhere, but often they're only for use in-store.
Store credit cards usually come with exclusive benefits that may include discounts, rewards that can be used in stores, and 0% APR promotional offers. Make sure to read the fine print on those 0% APR offers, as they often have deferred interest. If you don't pay off the balance within the promo period, you're charged interest going back to the purchase date.
Opening a store credit card could be worth it if you frequently shop at that retailer. But a cash back card or travel card with more flexible benefits is a better choice for most consumers.