Best Credit Cards in September 2024

Credit cards work in two main ways: as a form of payment and as a method of building credit.

• As a payment method, credit cards work as a type of currency between the cardholder and the merchant. When you use your credit card, a credit card network (Visa, Mastercard, Discover or American Express) confirms with the issuing bank that you have funds available and communicates that to the merchant.
• Credit cards work to build credit. Credit card issuers report your account activity to the major credit bureaus. Using your credit card regularly and paying the balance on time is essential to building an excellent credit score, as long as you aren’t using too much of your credit limit.

 

How does credit interest work?

Credit cards usually charge interest if you don’t pay your credit card statement balance in full by the payment date. Your interest for a billing period is based on the average daily balance of your credit card and the annual percentage rate (APR) associated with your account. Exceptions to this include cards that have introductory 0% APR rates on purchases and balance transfers.

Whenever you can, it’s best to pay in full, as the average credit card interest rate in the U.S. is 24.71%.

Learn how credit card interest is calculated.

What is a credit score?

Credit scores are a three-digit number ranging from 300 to 850 (the higher the better) representing your ability to handle your financial obligations — these include credit card payments, student loans, auto loans, personal loans and mortgages.

FICO Score and VantageScore are two common credit scores that lenders use to determine your creditworthiness. Credit scores are also used for insurance, housing and employment purposes, so building and maintaining a good credit score not only gives you access to credit, but also helps save money on insurance premiums, and may even factor into getting your next apartment or job.

What is a credit report?

A credit report is like a report card of your borrowing and payment history. Anyone who uses credit has three credit reports: one each with Equifax, Experian and TransUnion. It shows your loans and credit cards, as well as payments to each account.

The information in your credit report is used to create your credit score. Your credit report contains your personal information, account history, negative marks, credit inquiries and collections and bankruptcies.

• Cash back credit cards

  Cash back credit cards let you earn back a percentage of each purchase you make, effectively lowering the cost of everything you buy using the card. Cash back rewards are usually redeemed via statement credits, but can also be redeemed for direct deposits, gift cards and more.

• Travel credit cards

  Travel credit cards, in contrast, earn points or miles that can be redeemed for flights or hotel stay. Points and miles are typically worth around 1 to 2 cents each. Some cards are flexible and allow you to earn rewards on any travel purchase, while others only give you points or miles on purchases from a partner airline or hotel chain.

  Airline credit cards: Most airlines offer credit cards that give you points or miles for everyday spending, which you can redeem as credit toward your next flight. They may offer travel perks like free checked bags, early boarding and lounge access. Choosing an airline credit card depends on where your loyalties lie — so if you travel with one airline frequently, an airline credit card could be worth it, even if it comes with an annual fee. The Citi^® / AAdvantage^® Executive World Elite Mastercard^® is our top pick for best airline credit card. It lets you earn valuable miles at a fast pace and comes with plush perks, including airline lounge access.

  Hotel credit cards: Hotel credit cards are either general travel cards that let you earn rewards to use toward free hotel night stays, or co-branded ones where you stay with a specific chain. These cards also unlock a number of hotel benefits, including complimentary room upgrades, early check-in/late checkout, free Wi-Fi and more.

  The Hilton Honors Aspire Card from American Express is our pick for best hotel credit card. It has a high earning rate on travel, numerous travel credits, an annual free night reward and complimentary Hilton Diamond status (enrollment required).

  The information related to the Hilton Honors Aspire Card from American Express has been collected by LendingTree and has not been reviewed or provided by the issuer of this card prior to publication. Terms apply.

  Credit cards for international travel: Costs add up quickly when using a credit card with foreign transaction fees abroad. The best international travel cards have valuable travel benefits and don’t charge foreign transaction fees. Our current favorites are the Chase Sapphire Preferred^® Card, United℠ Explorer Card and The Platinum Card^® from American Express.

  *To see rates & fees for The Platinum Card^® from American Express, please click here.

• Credit cards for bad credit

  There are two kinds of cards for people with bad credit: unsecured credit cards (which may come with a lot of fees) and secured credit cards. Secured credit cards tend to be the more affordable option for rebuilding credit. You’ll need to put down a security deposit, but you’ll typically get your deposit back when you upgrade your card or pay it off and close your account.

• Credit cards for fair credit

  The best credit cards for people with fair credit may offer no annual fee, rewards programs, lower interest rates and introductory APRs that allow you to pay off a big purchase. While a card for good credit may have all these perks, cards designed for fair credit typically offer one or two. You’ll need to decide which features are most important to you while you build your credit to qualify for a better card.

• 0% APR credit cards

  The best credit cards for making and paying off a large purchase are cards that offer a long introductory 0% APR. You’ll have breathing room — typically between a year and 21 months — to pay off your purchase over time. Look for cards with sign-up bonuses and rewards programs that you can use to offset the cost of your purchase and continue using after the intro APR expires.

• Student credit cards

  A student credit card can help you build credit while also earning rewards if you’re enrolled in school. These cards typically earn cash back rewards, offer lower credit limits and are available to people with a limited credit history.

• Credit cards to build credit

  The best cards for building credit offer free access to your credit score and report to the credit bureaus monthly. Look for cards that don’t charge annual or late fees to keep costs down. Some of our top credit-building card picks even offer sign-up bonuses and rewards programs.

• Balance transfer credit cards

  Balance transfer credit cards allow you to save money by transferring your high-interest credit card debt to a card with a lower APR. The best balance transfer cards offer a 0% intro APR for a year or longer.

  But while it is possible to find a credit card with no balance transfer fees, those cards tend to offer shorter interest-free periods than ones that charge 3% to 5% of each transferred balance.

• Low-interest credit cards

  If you aren’t able to pay off your card in full every month, skip the rewards and travel cards and choose a low interest credit card. It’s simple math: The interest rates that credit card companies charge will always be higher than rewards rates. A low-interest card is the best way to save money if you regularly carry a balance.

• Business credit cards

  Knowing how to use a business credit card can help keep you out of the red. Look for cards with features that match your current business needs. For instance, look for a card with a 0% APR period if you want to finance a large purchase. Or, look for cards with good rewards programs to earn points or cash back on your most common business purchases.

1. What will you buy with the card? If you spend heavily on basic household expenses, a flat-rate cash back card may be right for you, whereas if you travel extensively for work, consider a travel card or gas card to earn rewards where you spend the most. If paying down debt is your goal, a credit card with a 0% intro APR on balance transfers is a great choice
2. Do you need a credit card for your business? Business cards offer perks like elevated points on common business expenses.
3. What is your credit score? If you have no credit score, or a low one because you’re just starting to use credit, opt for a beginner card or student credit card. Credit cards for bad credit are geared toward individuals with blemished credit reports.
4. Are you willing to pay annual fees or foreign transaction fees? Credit cards that offer luxury perks tend to come with annual fees which can be offset by taking advantage of the benefits. If you travel abroad frequently, choosing a card with no foreign transaction fee saves you money on every trip.

What is the best credit card?

The best credit card for you depends on a variety of factors. Ideally, it’s a card you’re able to obtain based on your credit score, offers the benefits that are important to you and is inexpensive to own. Any fees that it has should be avoided (like late fees and interest) or easily offset by card perks (like high rewards rates, statement credits and purchase protections).

To get a credit card, follow these steps:

1. Check your credit score to know which cards you’re likely to get approved for.
2. Learn key credit card terms to know what fees you’ll have to pay with your card.
3. Determine what type of card best fits your needs.
4. Compare credit card offers and see if you’re preaproved or prequalified.
5. Gather personal information, like your full legal name, address, Social Security number, annual gross income and employment status.
6. Prepare for an impact on your credit score.
7. Choose where you’ll apply for the card. This is typically done online.
8. Fill out and submit your application.
9. Wait for a response. This usually takes three to five minutes. If your application is denied, you’ll receive a letter.
10. If you’re denied, you can call the credit card reconsideration line for another chance at approval.

How long does it take to get a credit card?

Generally, you’ll have a decision within a few minutes of applying for a new credit card. If you are approved, you’ll likely receive the card within seven to 10 business days.

How many credit cards should I have?

The number of credit cards you should have will depend on your lifestyle and financial goals. You may use one credit card for cash back on your weekly grocery trips and another to finance a large purchase over an extended period of time, interest free. Having multiple cards will increase the amount of credit you have available, which can have a positive impact on your credit score.

Still, some people find it difficult to juggle several cards with different due dates and interest rates. If you struggle with credit card debt or managing payments, keep the number of credit cards in your wallet to a minimum.

1. Use your credit card often. Whether you’re using your card to earn rewards or build your credit, you should use it regularly. You won’t get rewards if your cards stay in your wallet, and your issuer may close your accounts if you don’t use them.
2. Don’t spend more than you can afford. Aim to pay off your credit card each month. Even if you have a high credit limit, you shouldn’t use more than 30% of it at a time. How much credit you use — also known as your credit utilization ratio — factors into your credit score. Keeping your credit utilization low will help improve your credit score.
3. Pay off your balance in full and on time. This is the most important factor in maintaining a good credit score. When you pay off your balance every month, you’ll boost your credit and avoid paying interest.
4. Don’t cancel your credit cards unless you have to. Canceling a credit card can temporarily hurt your credit score. Keep your credit cards — even the ones you don’t use — if they don’t cost you anything. Instead of canceling a card with an annual fee, call the credit card company and ask to have the fee removed or downgrade your card to one that doesn’t charge an annual fee.

To bring you the list of best credit cards, we use an objective rating and ranking system that compares features across a large set of credit cards (over 200 of them from over 50 issuers). We use calculations to estimate the value of each card for the average cardholder, based on LendingTree and U.S. Bureau of Labor statistics.

• Balance transfer cards: We calculate the savings on a balance transfer, based on the length of the introductory period. We assume a transfer amount of $6,000 and a monthly payment of $300. We subtract balance transfer fees, annual fees and the amount paid on interest for any amount left over after the introductory period expires.
• 0% purchase APR cards: We calculate the amount saved on interest given the length of the card’s introductory period. We assume a purchase of $6,000 and a monthly payment of $300. We subtract the card’s annual fee and interest paid on any amount remaining after the introductory period expires. We also add in the amount earned on rewards for the average cardholder, including the card’s sign-up bonus, minus the card’s annual fee. We look at the average rewards earned over two years to balance out a card’s ongoing value with its first-year value.
• Rewards credit cards: We calculate the rewards earned for the average cardholder using Bureau of Labor statistics data and an annual spend of $20,000, minus the annual fee. This value includes sign-up bonus and annual bonuses (including annual free night certificates). For travel cards, this value includes travel perks like lounge access and travel credits. We look at the average rewards earned over two years to balance out a card’s ongoing value with its first-year value.
• Credit cards for building credit: We calculate how much the average cardholder can save with the card on a yearly basis. If it is a rewards card, we use U.S. Bureau of Labor data and $300 in monthly spend (the typical starting credit limit for an introductory card) to calculate how much the average cardholder can earn in rewards. We then subtract fees — including annual fees and maintenance fees — from this amount.

 
Depending on the category, we also look at the flexibility rewards, features for building credit and how the card’s overall list of benefits compares to other cards.

Note that our ratings are a starting point for comparing and choosing the best credit card. However, your needs may be different from the average cardholder. You should consider the amount you’re likely to spend in a card’s rewards categories and which benefits you value to choose the best card for you.