In the past years, there has been a tighter competition in the credit card market in the United States. Credit card companies are now stepping up their game in terms of rewards and perks, and the borrowers are not complaining.
These credit cards have pros and cons, but some give better value for specific lifestyle choices. Here, we find out which suits you best based on what matters most for you when it comes to credit cards.
TRAVEL REWARDS — CHASE SAPPHIRE RESERVE
If you’re a frequent traveler, you may be elated to know that this card offers travel credits worth $300, which you get to earn yearly. These credits can be used for your hotel and airline booking, including add-on fees for baggage and upgrade.
For every dollar spent on travel and dining, the cardholder gets three points. This excludes purchases made using travel credits. Cardholders also get up to $100 worth of credits every four years. These can be used to pay for Global Entry application fees or TSA PreCheck.
CASH BACK — ALLIANT CASHBACK VISA SIGNATURE
This card offers a cashback of 2.5% on all your purchases. Under its current sign-up promotion, the new cardholder will get a 3% cashback in the maiden year.
BALANCE TRANSFER — CITI DOUBLE CASH
Deemed as the best balance transfer credit card, the Citi Double Cash has 0% Annual Percentage Rate on purchases and balance transfers. After paying the full amount, cardholders get to enjoy a 2% cashback. Although it has a 3% balance transfer fee, the rate is just around the average. According to MagnifyMoney’s stats, cards usually have as high as 5%.
WEAK CREDIT — AFFINITY SECURED VISA
This card’s $250 minimum initial deposit is just around the median for those who have bad credit scores, and it’s an amount that a lot of people can probably access easily. Affinity also helps you increase your credit score by reporting your favorable activity, like on-time payments, to the major credit bureaus. Joining is also easy. Just donate $5 to either New Jersey Coalition for Financial Education or Connecticut Jump$tart—and you don’t even need to reside in those states.
SMALL BUSINESS — CAPITAL ONE SPARK CASH
This card offers a 2% cashback on all spending. But what makes this even more appealing for small businesses is the ability to give cards to your employees. Aside from your own, their spending activities can also earn you rewards.
STORE REWARDS — AMAZON PRIME REWARDS
Cardholders get bigger rewards for Amazon-related purchases using this card, but it doesn’t mean that it’s only limited to Amazon. It also offers other perks like 2% cashback when you use it at restaurants and gas stations. There are also no foreign transaction fees. Since most Americans have a growing concern for healthcare, this perk will probably give them a sigh of relief: you can also get the cashback from drugstores.
STUDENTS — CAPITAL ONE JOURNEY STUDENT REWARDS
After five months of owning this card, the issuing company will review your account and give a higher credit line if you’ve been diligently paying on time. An added value is the company’s suite of tools, Credit Wise, which helps students learn and practice financial literacy and money-management
LOW INTEREST — VISA TITANIUM SIGNATURE
According to MagnifyMoney, this card has the lowest non-teaser Annual Percentage Rate (APR). It initially has 0% APR on purchases and balance transfers for the first 12 months. Although, it has a balance transfer fee of 1.5%.
NO ANNUAL FEE — WELLS FARGO PROPEL AMERICAN EXPRESS
Aside from the obvious perk, this card also has other benefits that were not available in the past. You get triple points for purchases involving airlines, hotels, gas, and car rentals. What’s better is that it includes things that were not part of the category in the past like homestays, public transit, and ride-sharing. It also gives triple rewards on streaming services and protection of $600 for damaged or stolen mobile phones.