Best Credit Cards for December 2022 – CNET

The “best credit card” can take many forms depending on your personal financial goals and situation. 

If you have good credit and want to reap as much cash back and other rewards as possible, you’ll likely want a cash-back credit card or rewards credit card. If you have some credit card debt you’d like to do away with as quickly as possible, a balance transfer credit card or introductory APR credit card can help you avoid interest charges as you pay off your debt. Otherwise, you might want to find the best credit card to start building your credit, protect your online purchases or make your travel more comfortable.

Below we review the most widely applicable credit cards for a variety of popular financial goals.

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Intro OfferEarn a $200 cash rewards bonus after spending $1,000 in purchases in the first 3 months

APR19.24%, 24.24%, or 29.24% Variable APR

Intro Purchase APR0% intro APR for 15 months from account opening

Recommended Credit Excellent, Good

Reward Rates

• Earn unlimited 2% cash rewards on purchases

Annual Fee$0

Intro Balance Transfer APR0% intro APR for 15 months from account opening on qualifying balance transfers

Balance Transfer APR19.24%, 24.24%, or 29.24% Variable APR

Balance Transfer Fee up to 5%; min: $5

Foreign Transaction Fees 3%

Penalty APR None

• Earn unlimited 2% cash rewards on purchases

Our Take

The Wells Fargo Active Cash Card offers most people the most helpful benefits overall. The lack of an annual fee makes this card accessible and low maintenance. The 2% cash rewards across your purchases is a competitive rate: While it’s not the highest you’ll find for some major shopping categories like groceries and gas, it gives you one of the best rates on more obscure spending categories like online shopping, services and bills. The introductory APR gives you an opportunity to finance a large purchase or to prevent interest charges with a qualifying balance transfer, and the welcome offer has one of the best spending-to-rewards ratio.

For more details on this card’s benefits, see our full review of the Wells Fargo Active Cash Card.

Read our Wells Fargo Active Cash Card review.

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Best for balance transfers

Intro OfferN/A

APRSee Terms

Intro Purchase APRSee Terms

Recommended Credit Excellent/Good

Reward RatesN/A

Annual Fee$0

Intro Balance Transfer APRSee Terms

Balance Transfer APRSee Terms

Balance Transfer Fee Either $10 or 3% of the amount of each transaction, whichever is greater.

Late Payment Fee See Terms

Foreign Transaction Fees 3%

Penalty APR none

Our Take

This online only offer may not be available if you leave this page or if you visit a Bank of America financial center. You can take advantage of this offer when you apply now.

The BankAmericard® credit card offers cardholders a good opportunity to mitigate some of their existing credit card debt. It features an introductory (see terms) APR for balance transfers and purchases for 21 billing cycles (then see terms variable), one of the longest offers on the market.

That’s about 21 months, or nearly two years, to pay down a transferred balance. Just keep in mind that any balance transfers need to be completed within the first 60 days of account opening, and there is a balance transfer fee of 3% ($10 minimum). While it does have the same offer for new purchases, there are no rewards offered by the card.

If you’re suffering from high interest charges from another credit card balance, consider using a balance transfer to the BankAmericard. Both your bank account and your credit score will thank you.

See our full review of the BankAmericard credit card for more details.

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Best credit card for less than average credit

Intro OfferN/A

APR16.74% – 30.74% (Variable)

Intro Purchase APRN/A

Recommended Credit Limited/Fair/Good/Excellent

Reward Rates

• Up to 1.5% cash back on eligible purchases after making 12 on-time monthly payments.
• 1% cash back on eligible purchases right away.

Annual Fee$0

Foreign Transaction Fees $0

• Up to 1.5% cash back on eligible purchases after making 12 on-time monthly payments.
• 1% cash back on eligible purchases right away.

Our Take

Credit card options may be more limited for people with limited or fair credit. The Petal® 2 “Cash Back, No Fees” Visa® Credit Card, issued by WebBank, offers people with a wide array of credit scores the ability to earn cash-back rewards without the hassle of a security deposit or an annual fee. You can get a credit limit between $300 and $10,000 depending on your credit score and other factors. This card also works to incentivize good credit card behavior by rewarding you with more cash back if you make your monthly payments on time.

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Intro OfferN/A

APR18.74% – 28.74% (Variable)

Intro Purchase APR0% intro APR for 18 billing cycles on purchases

Recommended Credit Good/Excellent

Reward RatesN/A

Annual Fee$0

Intro Balance Transfer APR0% intro APR for 18 billing cycles on balance transfers

Balance Transfer APR18.74% – 28.74% (Variable)

Balance Transfer Fee Either 3% of the amount of each transfer or $5 minimum, whichever is greater

Foreign Transaction Fees 2% of each foreign purchase transaction or foreign ATM advance transaction in U.S. Dollars. 3% of each foreign purchase transaction or foreign ATM advance transaction in a Foreign Currency

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Our Take

The U.S. Bank Visa Platinum Card offers a whopping 18 billing cycles at 0% introductory APR for purchases and balance transfers (18.74% to 28.74% variable APR thereafter). Though there is no sign-up bonus or rewards program, there is also no annual fee, making this a low-maintenance option. 

Not only is this a great card if you’re making a large purchase or want to prolong your interest-free payments, but it’s an excellent emergency credit card in case you need to cover a large expense unexpectedly. Other 0% APR credit cards may have a shorter period of time with the 0% introductory rate, but you may receive other benefits and rewards.

Check out our full review of the U.S. Bank Visa Platinum Card for more information.

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Intro OfferEarn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That’s $750 when you redeem through Chase Ultimate Rewards®.

APR19.74% – 26.74% Variable

Intro Purchase APRN/A

Recommended Credit Excellent/Good

Reward Rates

• 5x on travel purchased through Chase Ultimate Rewards®
• 3x on dining.
• 2x on all other travel purchases, plus more.

Annual Fee$95

Balance Transfer APR19.74% – 26.74% Variable

Balance Transfer Fee Either $5 or 5% of the amount of each transfer, whichever is greater.

Foreign Transaction Fees $0

Penalty APR Up to 29.99%

• 5x on travel purchased through Chase Ultimate Rewards®
• 3x on dining.
• 2x on all other travel purchases, plus more.

Our Take

The Chase Sapphire Preferred® Card is arguably the best travel card on the market. It’s hard to rival its rewards program — it expands to everyday categories and has competitive rates on travel. Points are worth $0.01 when redeemed for statement credit, but you get a 25% boost in redemption value if you redeem your points for travel through Chase Ultimate Rewards. The welcome bonus — 60,000 points when you spend $4,000 in purchases within the first three months of account opening — is worth $750 toward travel booked through Chase Ultimate Rewards, as well. 

You also get a slew of travel-related perks. There are no foreign transaction fees, a one-to-one point transfer with airline and hotel partners, baggage delay insurance, trip delay insurance and trip cancellation/interruption insurance. In combination, this is a standout offer for a $95 annual fee. 

Read more details in our full review of the Chase Sapphire Preferred.

Read our Chase Sapphire Preferred review.

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Unlimited Cashback Match at the end of your first year

Intro OfferIntro Offer: Unlimited Cashback Match – only from Discover. Discover will automatically match all the cash back you’ve earned at the end of your first year. There’s no minimum spending or maximum rewards. You could turn $150 cash back into $300.

APR15.74% – 26.74% Variable APR *Rates as of December 15, 2022

Intro Purchase APR0% for 15 months

Recommended Credit Good/Excellent

Reward Rates

• Earn 5% cash back on everyday purchases at different places each quarter like Amazon.com, grocery stores, restaurants, and gas stations, up to the quarterly maximum when you activate.
• Earn 1% unlimited cash back on all other purchases – automatically.

Annual Fee$0

Intro Balance Transfer APR0% for 15 months

Balance Transfer APR15.74% – 26.74% Variable APR *Rates as of December 15, 2022

Balance Transfer Fee 3% intro balance transfer fee, up to 5% fee on future balance transfers (see terms)*

Late Payment Fee None the first time you pay late. After that, up to $41.

Foreign Transaction Fees None

• Earn 5% cash back on everyday purchases at different places each quarter like Amazon.com, grocery stores, restaurants, and gas stations, up to the quarterly maximum when you activate.
• Earn 1% unlimited cash back on all other purchases – automatically.

Our Take

Discover it® Cash Back* offers a unique sign-on bonus: an unlimited cash-back match at the end of your first year. You don’t even have to reach a minimum spending threshold, like with most other sign-up bonuses — but you can outearn other credit cards with such bonuses if you spend enough. 

You will enjoy 5% cash back up to the quarterly maximums (then 1%) on rotating quarterly categories as you activate them. Some of these quarterly categories include purchases from Amazon.com, grocery stores or gas stations. Discover will also give you 1% cash back on all other purchases. We’ve also collected a few other credit cards with generous sign-on bonuses.

Check out more details in our full review of the Discover it Cash Back.

How do credit cards work?

A credit card is a personal credit account that allows you to make purchases upfront with the credit card issuer’s money. Once you apply, the issuer determines the size of the credit line you’re able to access based on your credit score and income. Basically, you’re using borrowed money to fund your expenses. The credit card issuer makes money by charging you fees and interest.

You have to pay back any charges you put on your credit card. If you don’t pay off your credit card in full by the due date, your remaining balance will start accruing interest.

How credit card interest works

Most credit card balances accrue interest at a variable rate. A variable rate means it can change depending on certain factors. 

A credit card’s interest rate is called the annual percentage rate, or APR. It’s affected by the federal benchmark interest rate which is set by the Federal Reserve based on macroeconomic factors. You can find your credit card’s APR outlined in the terms and conditions your issuer provided to you with your card.

Despite an APR being measured annually, most credit card balances actually accrue interest at a daily rate. 

Interest only applies to balances left over after your payment due date, so it’s important to pay your balance in full and on time. Each day the unpaid remainder collects charges that will show up on your next billing statement. To find the daily interest rate, you can divide the card’s APR by 365. Overtime, interest charges can do considerable damage to your finances, so it’s best to avoid them whenever possible.

How credit card rewards work

Some credit cards offer rewards for your spending. Rewards come in three camps — cash back, points or miles — but they all work generally the same way. You earn a preset reward rate on your spending which you can later redeem for cash back, travel or other benefits.

Cash back can typically be redeemed as a statement credit or deposited directly into a bank account. Statement credits lower the overall balance of your credit card account while depositing them into your bank account will increase your account balance. Unlike with points and miles, the redemption value of cash back is pretty straightforward: 1% cash back is worth 1 cent per dollar spent.

Points and miles usually have more flexibility. Points can be redeemed for a myriad of things including statement credits, merchandise, gift cards, travel or donated to charity. Miles can often be used for much of the same. However, they may not always be worth 1 cent. They could be worth more or sometimes less.

Types of credit cards

There are a wide variety of different types of credit cards. Here’s how they break down.

Rewards credit cards

Rewards credit cards — as the name suggests — reward you for spending with them. There are cash-back credit cards, travel credit cards, co-branded credit cards with hotels and airlines, bonus category credit cards and credit cards with rotating bonus categories. Each one rewards you for spending within the categories outlined in the card’s reward program.

Balance transfer credit cards

Balance transfer credit cards are designed to help you eliminate existing credit card debt by taking advantage of an introductory APR. These cards provide a window of time — usually between nine and 21 months — where a balance you transfer from another card won’t accrue interest. During that time, you can pay it down while not having to worry about interest charges.

However, these cards typically include a one-time balance transfer fee. The industry standard fee is 3%, but some cards may have a higher fee of 5%. That said, paying the fee will typically be less expensive than paying continuous interest charges on a credit card that carries a high interest rate.

There are cards without balance transfer fees, but they typically have shorter introductory offers.

Low interest and 0% APR credit cards

Low interest and 0% APR credit cards are designed to either avoid interest charges completely or to lessen their impact by providing lower-than-average interest rates. 0% APR cards offer a limited time to make new purchases pay down the balance over time without interest.

Student credit cards

Student credit cards were created for college students. As such, they’re easier to qualify for as most college students don’t have an extensive credit history. They may not offer competitive terms or rewards, but they’re great for establishing a credit history and learning the basics.

Business credit cards

Business credit cards bolster business spending by providing rewards and perks designed to make managing payments easier or providing travel amenities to business people who travel often.

Pros and cons of credit cards

There are a number of pros and cons to consider when using credit cards:

Pros

• Build credit through responsible use
• Earn rewards for essential purchases
• Additional card perks like shopping and travel protections
• Shop more securely with virtual cards
• Annual statement credits
• Gain access to funds in case of emergency

Cons

• Fees
• Could damage credit with irresponsible use
• Temptation to overspend
• Could be hard to manage
• Interest charges

Should you get a credit card?

If you’re 18 or older, a credit card can help you earn rewards, prevent identity theft and start building your credit..

Building credit early will set you up for success in your financial life. Your credit score will determine what kind of terms and conditions you get when asking to borrow money from a lender, whether it be for a home, a car or for college. If you’re going to college for the first time, it’s also a good way to have access to emergency funds in a pinch. 

Credit cards do take some work, however. It’s important not to get enticed to spend on unnecessary purchases. A good way to do so is to treat it like cash. If you don’t have the money to pay it off immediately, it’s not a good idea to make the purchase.

How to choose the right credit card

Ultimately, the right credit card is individual to each person and their goals and preferences. Decide what features you’re looking for: maximized rewards, spaced-out payments on a large purchase, credit building, an emergency credit card or other benefits. From there, you can decide the type of card you’re looking for. You can then use online reviews like those at CNET to further narrow down what terms will work best for you.

How to get the most out of your credit card

The first step will be to choose a credit card that matches your spending habits. Choose a credit card that bolsters how you spend without having to change your habits to fit a credit card.

Make sure you understand the rewards redemption rules, too, as the rewards rates themselves can be misleading on some credit cards. For example, some travel credit card miles are worth more when used for airfare rather than as statement credits. There are some rewards credit cards where it’s better to redeem for gift cards rather than statement credits for the same reason.

You can also take advantage of all relevant benefits provided by the card — like if there are annual statement credits. If the card has an annual fee, they can be a great way to offset the cost.

The most important thing is to pay your bill on time and in full to avoid any interest charges. That way you won’t have to worry about expensive interest that would otherwise bog down your finances. Try not to get enticed into spending on something you normally wouldn’t, even if you have an introductory APR offer. You want the credit card to work for you, rather than the other way around.

What is a credit score?

A credit score reflects your debt history and habits to potential creditors. A higher credit score indicates you’re responsible with debt management and are likely to pay back anything you borrow. Besides guiding approval decisions, your credit score helps determine  the interest rate you’ll pay.

Your credit score is determined by a number of different factors including payment history, age of credit accounts, the number of credit accounts, how much of your overall credit you’re using and a handful of others.

There are three major credit bureaus that are responsible for generating your credit score based on your credit reports – Equifax, TransUnion and Experian. Your credit card issuer will report your behavior to these bureaus..

Who qualifies for a credit card

You’ll need to be 18 in order to qualify for a credit card. Each credit card has different credit requirements depending on the issuer and the level of the card.

Generally speaking, the better the benefits, the more hoops you’ll need to jump through to be eligible for certain credit cards. Credit cards with attractive rewards programs or cash-back rewards require better credit than more basic credit card varieties.

If you have poor or fair credit, you might only qualify for credit builder or secured credit cards. If you have good to excellent credit, you may easily qualify for any credit card you want. But if you don’t have the right score, you can always work to improve your credit for better odds of approval.

How to apply for a credit card

Follow these steps to apply for a credit card:

• Choose a credit card that matches your needs and individual budget
• Follow one of the links above to be directed to a secure application with the credit card issuer
• Fill out the application with all of the necessary financial and personal information
• Use the credit card responsibly and pay your bill on time each month

By paying on time and in full every month, your credit and your finances will thrive

FAQs

Our methodology

CNET reviews credit cards by exhaustively comparing them across set criteria developed for each major category, including cash back, welcome bonus, travel rewards and balance transfer. We take into consideration the typical spending behavior of a range of consumer profiles — with the understanding that everyone’s financial situation is different — and the designated function of a card. 

*All information about the Discover it Cash Back has been collected independently by CNET and has not been reviewed by the issuer.

The editorial content on this page is based solely on objective, independent assessments by our writers and is not influenced by advertising or partnerships. It has not been provided or commissioned by any third party. However, we may receive compensation when you click on links to products or services offered by our partners.