Wouldn’t it be great if your boring grocery and gas bills could help you pay for that tropical vacation you dream of? If he’s spending most of his spending on credit cards, he might as well recoup some rewards while he’s at it. However, knowing which credit card is best for you can be challenging with the changing credit card landscape.
It seems like new credit card deals are being announced every day, and it’s hard to keep track of all the pros and cons of different cards. Dive into this easy breakdown of the five best credit cards for 2023.
Different types of credit cards
0% APR credit cards
A 0% introductory APR credit card carries no interest, typically for a set number of months, and can be a great option if you carry a balance on your credit card from month to month. You’ll save on interest charges when you transfer your balances to a 0% APR credit card, but you may have to pay a balance transfer fee.
Rewards Credit Cards
A rewards credit card can work with various rewards programs, like hotels and airlines, or offer cash back on popular spending categories like groceries and gas. Rewards credit cards allow you to earn cash back or reward points on everyday purchases.
Credit cards to build credit
Credit builder credit cards are designed for people with bad credit or no credit. These cards help you build your credit by reporting your payments to the credit bureaus and building a credit history.
Business credit cards
Business credit cards are great options for business owners. These cards offer additional rewards and cash back for business-related expenses like office supplies, travel, and fuel. However, these cards are not available to the average consumer.
The list: the best credit cards for 2023
When looking for the best credit card in 2023, you should consider what type of card works best for your spending habits. The best credit cards combine rich rewards, 0% intro APR, substantial welcome bonuses, and convenient terms and conditions.
cash back cards
American Express Blue Cash Preferred Card
The American Express Blue Cash Preferred Card is a great option for families with its streaming, grocery and transportation rewards. It allows you to get cash back and there is no annual fee for the first year.
The American Express Blue Cash Preferred Card allows you to earn 6% back on up to $6,000 on grocery and streaming purchases per year, 3% back at US gas stations, and 1% back on everything the rest. If you spend $3,000 on purchases in the first 6 months of account opening, you’ll get $300 back.
The American Express Blue Cash Preferred Card has an annual fee of $95 after the first year. There are also spending limits on bonus rewards.
Find Out Student Cash Back
The Discover It Student Cash Back Credit Card is a great alternative to a secured credit card for students with little or no credit history.
The Discover It Student Cash Back Credit Card has no annual fee and provides up to 5% cash back on expenses in various categories. Plus, they’ll double the amount of cash back you earn in your first year.
One downside to the Discover It Student Cash Back credit card is that the 5% cash back bonus rate is capped at $1,500 in purchases per quarter. Also, depending on your credit score, you may only be eligible for a small credit limit at first. In addition, there is no welcome bonus for spending a certain amount in the first months that you have the card open.
travel credit cards
Chase Sapphire Preferred Card
The Chase Sapphire Preferred Card is a popular reward credit card for frequent travelers, offering great redemption offers for travel purchased through the Chase Ultimate Rewards portal. Plus, if you spend $4,000 in the first 3 months of account opening, you’ll earn 60,000 Chase Ultimate Rewards points.
With the Chase Sapphire Preferred card offers, you’ll earn 5x points on travel purchases and 1x points on all other everyday purchases. When you redeem Chase Ultimate Rewards points through the portal, your points are worth 25% more.
The Chase Sapphire Preferred card has an annual fee of $95. You will also need a good or excellent credit score to be approved for this card.
Capital One Venture X
The Capital One Venture X is a great rewards credit card, though it comes with a hefty annual fee of $395.
With Capital One Venture X, earn 10 miles per dollar on hotels and rental cars, 5 miles per dollar on flights, and 2 miles per dollar spent on all other purchases. You can also earn 75,000 bonus miles for the first three months after account opening when you spend $4,000. Also, there are no foreign transaction fees.
To earn 5x and 10x miles on travel purchases with the Capital One Venture X Rewards Credit Card, you must purchase your flights, hotels or rental cars through Capital One Travel.
American Express Platinum Card
The American Express Platinum Card is designed for frequent travelers who want to take advantage of Platinum Concierge service and a wide range of premium travel features.
The American Express Travel Benefits Platinum Card includes 5x points on airfare booked with airlines or through American Express Travel. You can also get a $200 hotel credit and a $200 airfare credit on qualifying purchases.
The Platinum Card also offers access to airline lounges and restaurants around the world, plus nearly $1,500 in credits to spend on various services, including Uber and Netflix. By spending $6,000 within the first 6 months of account opening, you can earn 100,000 Membership Rewards points.
The American Express Platinum Card has a high annual fee of $695, though you may be able to offset the fee with the various credits offered.
How many credit cards should you have?
You must have at least two credit cards, one for everyday purchases and one for emergencies. If you spend a lot, consider adding a third card that offers rewards or cash back for your spending. The typical American has about four credit cards in their wallet.
Are the annual fees worth it?
Annual fees may be worth it if the card offers rewards or cash back that exceed the cost of the annual fee. However, avoid cards with annual fees if you spend little and won’t be able to spend enough to take advantage of the card’s benefits.
What is the best card for everyday purchases?
The American Express Blue Cash Preferred Card is the best card for everyday purchases, offering 6% cash back at grocery stores, 3% at gas stations, and 1% on all other purchases. Another great card for everyday purchases is the Citi Double Cash Card, which offers 2% cash back on all purchases and has no annual fee.
How to apply for a credit card?
You can apply for a credit card by going to the issuer’s website and filling out an application with your personal information, including your income. The bank will then run a credit check to make sure your credit score is high enough to approve the credit card. Your credit score can affect your interest rate, your credit limit, and whether you are approved.
What is a credit score?
Your credit score is a number that represents your creditworthiness, or the likelihood that you will repay a loan. A credit score has to do with your financial history and factors in the timeliness of your payments, how long your credit history is, what percentage of your available credit you are using, among other factors.
The average American credit score is 698 in the range of 300 to 850. A higher credit score is better when it comes to getting approved and getting favorable credit card terms.
Final Thoughts: Choosing the Best Credit Card for You
The best credit cards for 2023 are those that offer cash back, reward points, or travel rewards. Choose the best card for you by looking at the things you typically spend money on and see which card offers the best benefits for those categories.
Regardless of the card you choose, be sure to read the fine print and understand the terms and conditions to get the most out of your card. And it’s always a good idea to pay off your balances in full each month to maintain a good credit score.
Tags: credit cards, money