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Credit cards are one of the most widely used financial instruments in the United States, with nearly 84% of the adult population owning at least one card. However, choosing the best one, in a credit card market as broad as the United States, can be overwhelming.
In this article we tell you everything you need to know about credit cards, we also mention the best credit cards in the US market and some alternatives so you can save money with cards without commissions or handling fees.
What are the best credit cards in the USA 2024
What is a credit card and what is it for?
A credit card offers you a personal line of credit. This line of credit has a limit that the issuing bank grants according to your financial behavior and credit score. It is important to clarify that as its name indicates, the credit card is a credit and therefore using it involves costs and commissions.
Here are some important things about credit cards:
- The card allows you to spend money up to a limit set by the bank .
- Your card is billed monthly, so if you want to have your entire credit line available you must pay the card in full each month , otherwise you must pay interest.
- Credit cards have an established minimum payment , which is calculated each month and arrives on your bill. This value already includes interest, handling fees and the minimum amount of money you are paying to your line of credit.
- When you pay off your credit card in full the month after you use it, you won’t pay interest .
- The cards charge an APR , which is the interest for lending you money, however there are many options on the market that exempt you from that charge for almost two years and some for life. More information about interest-free credit cards here .
- Avoid credit card cash advances at all costs , not only will you pay much more money than you originally took out, but this is also a red flag for banks or entities that lend money.
What does it take to have a credit card?
Purchasing a credit card should not be a hasty decision. That is why we invite you to analyze your financial situation to determine which product best suits your needs.
To apply for a credit card, the requirements are generally:
- Updated credit history.
- Social security number or ITIN.
- Official identification with photo.
- Proof of monthly income.
Each bank has its own way of operating, so it is important that you enter the website and check the different requirements, as well as how you should apply, online or in person.
The best credit card depends on each person’s particular needs. The recommendations in this article do not at any time constitute financial advice, we always recommend that you seek advice from an expert on the subject.
Steps to have a credit card in the United States
Step 01
Evaluation of your credit history:
Knowing the status of your credit history should be the starting point before thinking about purchasing any financial product. Not just a credit card, this will allow you to identify opportunities for improvement, as well as filter the type of cards you will be able to have access to. The better your credit score, the better access to cards, with better interest rates and benefits.
Step 02
Purpose of use:
What do you want the credit card for? It is important that you have a clear answer to this question, because there is a wide variety of cards on the market. However, always try to look for a card that has low interest rates, and a low or no handling fee.
Step 03
Analysis and selection of the bank:
Choosing the bank or financial institution where you want to have a credit card is important, and although taking out a credit card with the bank where you have a bank account will be much easier, you should not leave aside the possibility of ask for a card with another bank.
Last step
Card application:
Whether by telephone, online, or in a physical office, applying for the card is the final step to obtaining a card. To do this, you must meet certain requirements that depend on each entity.
Credit card fees
| Bank | CHASE | CAPITAL ONE | CAPITAL ONE | WELLS FARGO | BANK OF AMERICA |
| Card | Chase Freedom Flex | Capital One Venture X Rewards | Capital One Quicksilver Secured Cash Rewards | Wells Fargo Active Cash | BankAmericard |
| Guy | cash back | Travel rewards | fair credit | 0% APR | 0% APR |
| Annuity | $0 | $395 | $0 | $0 | $0 |
| APR for purchases | 20.49% – 29.24% | 19.99%, 26.24% or 29.99% | 30.74% | 20.24% – 25.24% – 29.99% | 16.24% – 26.24% |
| Foreign transaction fee | 3% | 0% | 0% | 3% | 3% |
| Cash Advance APR | 29.99% | 29.99% | 30.74% | 29.99% | 29.24% |
The top best credit cards in the United States
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In this brief ranking, we compare the best credit cards in the USA.
Note that neither option is completely free (there are always fees to pay somewhere), but below you’ll get a summary of its most important points:
Chase Freedom Flex: Best Everyday Rewards Card
- Annuity: $0
- APR for purchases: 20.49% – 29.24%
- Foreign transaction fee: 3%
- Cash Advance APR: 29.99%
- Notes: With this cash back credit card you will get 5% cash back up to $1,500 in categories that change every three months, 5% on travel purchased in Chase Ultimate Rewards, 3% at restaurants and pharmacies and 1% on other purchases .
Capital One Venture X Rewards: The best travel rewards card
- Annuity: $395
- APR for purchases: 19.99%, 26.24% or 29.99%
- Foreign transaction fee: 3%
- Cash Advance APR: 29.99%
- Notes: With this credit card you’ll earn two miles per dollar on eligible purchases, five miles per dollar on flights booked on Capital One Travel, and 10 miles per dollar on hotels and rental cars. Additionally, miles do not expire and you earn a bonus of 60,000 miles if you spend $3,000 during the first 3 months and you can transfer miles to some loyalty programs.
Capital One Quicksilver Secured Cash Rewards: The best first card to build credit
- Annuity: $0, but requires a minimum deposit of $200
- APR for purchases: 30.74%
- Foreign transaction fee: 0%
- Cash Advance APR: 30.74%
- Observations: With this credit card you will get unlimited 1.5% cashback on daily purchases. In six months you can qualify for a higher line of credit. Offers unlimited 5% cash back on hotels and rental cars booked with Capital One Travel.
Wells Fargo Active Cash: Best Flat Rate Refund Card
- Annuity: $0
- APR for purchases: 20.24% – 25.24% – 29.99%
- Foreign transaction fee: No information
- Cash Advance APR: 29.99%
- Observations: With this card you get a 0% APR for the first 15 months, plus you will earn 2% in cash on your purchases. These rewards do not expire as long as you have your account open.
BankAmericard: Best introductory offer at 0% APR
- Annuity: $0
- APR for purchases: 16.24% – 26.24%
- Foreign transaction fee: 3%
- Cash Advance APR: 29.24%
- Observations: With this card you get a 0% APR for the first 21 months, and it also allows you to access your FICO score for free through the mobile application.
Frequently asked questions about credit cards in the United States
What is the best way to get credit in the United States?
There are many ways, and without a doubt acquiring and being responsible with a credit card is one of them. However, we leave you some tips that will help you when it comes to maintaining positive credit:
- Pay your bills on time every month
- Spend what is necessary, ideally no more than 30% of your credit capacity, it is not good to approach credit limits (at least not regularly)
- Start as soon as possible, a long positive credit history will help you add points quickly
- Only apply for the credits you need and can afford.
- Review your credit report regularly.
Can you explain the distinction between a credit card and a debit card?
The difference is the source of the money, when you use a debit card, the purchase funds are taken from your checking account almost instantly. However, if you pay with a credit card, the amount will be charged to a line of credit, meaning you will pay for the purchase at a later date. This gives you more time to pay, but may incur interest and fees.
What is the limit of a credit card?
The limit of a credit card is the maximum limit of your line of credit, this will depend exclusively on your borrowing capacity. The bank is in charge of providing this limit according to an evaluation it makes of your income and credit history.
What advantages does the credit card have?
Having a credit card has some advantages such as:
- Improve or start your credit history.
- Pay for products in installments.
- Help with expenses that arise from unforeseen or emergencies.
- Obtain rewards, discounts and exclusive benefits depending on the issuing bank.
- Open the door to other financial products such as mortgage loans, car loans and more.
What are the disadvantages of the credit card?
Not everything is rosy with credit cards, there are some disadvantages such as:
- High interest charges.
- Excesses in the credit limit.
- Risks of fraud and plagiarism.
- Payment of additional fees.
- Expenses for emotional withdrawal and more.
If you leave a credit card unused, what happens?
Banks are in the business of making money, so the issuing bank can cancel a credit card if it hasn’t been used in over a year, eventually they will close the account as well.
What is the grace period for a credit card and how does it work?
The grace period for a credit card is the time between the card closing date and the payment due date. During this period, which is usually between 21 and 25 days, no interest is charged on your purchases.
How to cancel a credit card?
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In order to cancel a credit card you must take into account the following:
- You must pay the card balance in full. Also, be sure to redeem your rewards.
- You must then call the card issuer or go to the online portal to cancel the card.
- The issuing company must confirm the cancellation by email or in writing.
- Check the credit report to verify that the card has been canceled before destroying the card.
What options are there for small loans without using a credit card?
There are several apps that can give you a “loan” by making a cash advance, for example Dave , Albert , Current , Varo , Brigit , Empower and Cash App . We invite you to read the full article on the best apps for cash advances.