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Have you been using the same credit card for years and wondered what else exists? No matter your spending habits or preferences, there’s a credit card for you.
With so many options on the market, it can be hard to figure out which one to choose. Each credit card offers unique features and benefits tailored to different needs and lifestyles.
Whether you’re looking for a card with travel perks, cash back rewards, or no annual fees, we’ve got you covered. Here are four types of credit cards to consider as you shop around for your next card.
Best credit cards to consider
- American Express® Gold Card
- Chase Sapphire Reserve®
- Wells Fargo Active Cash® Card
- Chase Freedom Unlimited®
- Citi® / AAdvantage® Platinum Select® World Elite Mastercard®
- Marriott Bonvoy Brilliant® American Express® Card
- Citi® Double Cash Card
1. Rewards credit cards
Rewards credit cards give you perks for using them. Every time you make a purchase with a rewards credit card, you can earn points or miles. You can use these rewards to get benefits like travel perks, gift cards, or even money off your bill.
Some cards offer extra rewards for specific types of spending, like dining out or shopping at certain stores. Others offer credits for delivery services, rideshare companies, and streaming services.
Certain reward cards have welcome bonuses after spending a certain amount within a specific time.
Pros of rewards credit cards:
- Ability to earn points, miles, or cash back on your purchases
- You can often redeem rewards in more ways than one, giving you flexibility
- Many cards offer sign-up bonuses
- Extra perks such as travel insurance, airport lounge access, or concierge services
- Higher rewards in specific spending categories like dining, groceries, or gas
Cons of rewards credit cards:
- The best rewards cards often require high credit scores
- Some cards come with high annual fees
- Rewards cards have higher interest rates than other types of cards
- It can be time-consuming to navigate complicated rewards structures
If you’re a regular card user and can pay your balance off in full each month, a rewards credit card can be a great way to earn as you spend. Some examples of rewards credit cards include:
American Express Gold Card
The American Express Gold Card is a popular rewards card known for its robust rewards program and premium benefits.
You can earn points on everyday purchases, with higher earning rates for dining at restaurants and U.S. supermarkets. This card gives you access to the American Express Membership Rewards program, allowing you to redeem those points for travel rewards, statement credits, merchandise, gift cards, and more.
The Amex Gold Card also offers travel perks such as airline fee credits, hotel benefits, and access to exclusive events. It also often comes with an impressive introduction bonus if you spend a certain amount within the first six months.
This card does come with a pretty hefty annual fee of $250. See rates and fees. But if you’re a regular traveler and dine out frequently, the Amex Gold may be worth it.
Chase Sapphire Reserve
Chase Sapphire Reserve is a premium rewards card targeting frequent travelers seeking exclusive perks and benefits.
Cardholders can earn points on their daily purchases with higher earning rates for travel and dining expenses. You can redeem these points for travel through Chase Ultimate Rewards or transfer them to airline and hotel loyalty programs.
The card also offers a range of travel perks, such as airport lounge access, travel insurance, annual travel credits, and a Global Entry or TSA PreCheck fee credit. You’ll also get travel insurance coverage and baggage insurance.
The Chase Sapphire Reserve comes with a $550 annual fee, but if you utilize the travel credits and other rewards perks, the value may outweigh the annual cost.
2. Cash back credit cards
If you’re not a frequent traveler or want more straightforward rewards, cash back credit cards may be a better choice.
With a cash back credit card, you earn a percentage of eligible spending back as a cash reward. The cash back is usually applied as a statement credit or deposited into your account.
Some cash back cards also offer sign-up bonuses and higher cash back rates for specific spending categories like groceries, gas, or dining.
You can use the cash for anything, from paying your balance to saving for something special. There are no restrictions on how you can use your cash back rewards.
Cash back cards often have a lower redemption threshold than cards offering points or miles, so you can start redeeming your rewards sooner.
Pros of cash back credit cards:
- Straightforward rewards that are easy to understand and use
- Flexibility to use cash back on whatever you want
- Rewards won’t expire as long as your account is open
- Low redemption threshold
Cons of cash back credit cards:
- Lower rewards value compared to points or miles
- Little or no travel benefits
Examples of cash back credit cards include:
Wells Fargo Active Cash Card
With the Wells Fargo Active Cash Card, you can earn unlimited 2% cash rewards on purchases. Unlike other cards, you can redeem cash rewards as a statement credit, deposit it into your bank account, or use it for other rewards, such as travel or gift cards.
The card also often includes an introductory offer where you can earn a bonus cash reward after spending a certain amount in the first couple of months.
Chase Freedom Unlimited
The Chase Freedom Unlimited allows you to earn a flat-rate 1.5% cash back on all types of expenses. You also get increased cash back rates on specific spending categories, including 5% cash back for Lyft purchases, 5% cash back on travel purchased through Chase Ultimate Rewards, 3% cash back on dining, and 3% cash back on drugstore purchases.
This card often includes a sign-up bonus for new cardholders and an introductory 0% APR for a certain period. The Freedom Unlimited doesn’t come with an annual fee and offers cardholders added perks, like purchase protection and extended warranty coverage.
3. Co-branded credit card
If you’re loyal to a specific airline, retail store, or hotel chain, you may want to consider a co-branded travel card. These cards are a partnership between a financial institution and a specific brand and offer benefits and rewards tailored to customers of that brand.
For example, a co-branded retail credit card may offer discounts or extra points on purchases made at that retailer, while an airline card may provide benefits such as complimentary checked bags or priority boarding.
One downside is that the rewards you earn with a co-branded credit card are typically restricted, and you may not be able to redeem rewards how you want. Some co-branded cards also come with annual fees.
Pros of co-branded travel credit card
- Higher rewards or points for purchases made with the affiliated brand
- Brand-specific benefits and perks
- Sign-up bonuses
- Get rewarded for being a loyal customer
Cons of travel credit cards
- Limited flexibility in how you redeem points
- Can come with high annual fees
- Lower rewards rates on non-brand spending
Examples of co-branded credit cards include:
Citi / AAdvantage Platinum Select World Elite Mastercard
If you’re a frequent flier with American Airlines, consider the Citi / AAdvantage Platinum Select World Elite Mastercard.
The card allows you to earn AAdvantage miles on your everyday purchases. It offers various travel benefits, like preferred boarding on American Airlines flights, complimentary checked bags, and discounts on inflight food and beverage purchases. This card also has no foreign transaction fees, making it a good option for international travelers.
The card often offers a sign-up bonus for new cardholders if they spend a certain amount of money in the first year. While the first year is free, you’ll have to pay a $99 annual fee going forward.
Marriott Bonvoy Brilliant American Express
The Marriott Bonvoy Brilliant American Express Card is ideal for regular Marriott guests. The card allows you to earn Marriott Bonvoy points for purchases made at Marriott hotels and resorts and on other eligible purchases. The rewards earning rate varies depending on the type of purchase.
Though the card has a high $650 annual fee, cardholders get automatic Marriott Bonvoy Gold Elite status. See rates and fees. This provides benefits such as room upgrades, late checkout, and bonus rewards points earning rates. Terms apply.
The card also comes with many added credits, perks, and other travel benefits, including up to $300 in annual statement credits for dining at restaurants worldwide, airport lounge access, and Global Entry or TSA PreCheck application fee credits.
4. No annual fee credit cards
No-fee credit cards let you enjoy the convenience and benefit of using a rewards credit card without the additional cost.
Most no annual fee cards are cash back cards, allowing you to earn a percentage of your spending back as cash. While these credit cards may not offer as many premium perks as their fee-based counterparts, they still provide some benefits (and you don’t have to worry about spending enough to justify the annual fee).
Plus, these cards generally require a lower credit score, making them easier to get approved for. If you have a lower credit score and are looking to build credit, no-fee cards can help you avoid added costs and build up your credit.
Pros of no annual fee credit cards:
- Inexpensive
- Easier to qualify for
- Can help you build credit
- Offer points and cash back for free
Cons of no annual fee credit cards:
- Typically fewer rewards, perks, and benefits compared to cards with annual fees
- Low or no introductory offers
- May include fees like foreign transaction fees
An example of a credit card with no annual fee includes:
Citi Double Cash
The Citi Double Cash Card is another card that doesn’t have an annual fee and allows you to earn cash back on every purchase you make.
You’ll earn 1% cash back when you make a purchase and an additional 1% cash back when you pay off your balance, totaling up to 2% cash back on all purchases.
This card typically offers an introductory 0% APR on balance transfers for a specific period of time, helpful if you have existing high-interest credit card debt that you want to consolidate or pay off.
What should I consider when looking for a new card?
As you shop around for a new credit card, there are a few things to keep in mind based on your personal financial situation and preferences:
- Your credit score: It’s smart to only apply for cards you have a good chance of qualifying for. Limiting the number of credit card applications can reduce the impact on your credit score. Check the credit requirements for the card you’re interested in. If your score isn’t where you’d like it to be, there are ways to boost it.
- Where you spend money: Consider whether you prefer cash back, travel rewards, points, or other benefits. Look for a card offering rewards in categories where you spend the most.
- Fees: If you’re considering a card with an annual fee, compare the fee against the potential rewards and benefits you would receive. Review any other fees, including late payment fees, foreign transaction fees, balance transfer fees, and cash advance fees.
- Annual Percent Rate (APR): Understand the interest rates associated with the card, including the standard APR and any introductory or promotional rates. If you plan to carry a balance, look for a card with a lower interest rate to minimize interest charges.
- Introductory offers: Look out for cards with attractive introductory offers such as bonus points or cash back. Ensure you can meet the spending requirements to earn the bonus before applying.
- Credit limit: Every credit card comes with a credit limit, known as the maximum amount you can spend, but you won’t know how much you qualify for until you apply. If you anticipate higher spending or want to maintain a low credit utilization ratio, choose a card that provides a suitable credit limit.
- Other perks: Consider other card features and benefits, such as travel insurance, purchase protection, extended warranty coverage, rental car insurance, airport lounge access, or concierge services. Determine which perks are most valuable to you.
The bottom line
Finding the right credit card takes time and lots of research — but having the right card can really pay off (literally).
Once you do have your new card, make sure you practice smart credit card habits to maximize your rewards and stay out of debt. With the right approach, you can profit from your plastic.
*Eligibility and Benefit level varies by Card. Terms, Conditions, and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by Amex Assurance Company
Opinions expressed are author’s alone, not those of any bank, credit card issuer, or other entity. This content has not been reviewed, approved, or otherwise endorsed by any of the entities included in the post.