The best type of credit card is an unsecured credit card with rewards and no annual fee because it saves consumers a lot of money on purchases. The best credit card overall is Chase Freedom Unlimited®, which offers 1.5 - 5% cash back and an introductory APR of 0% for 15 months with a $0 annual fee.
For any individual person, though, the best type of credit card depends on their specific needs. Some people need cards that cater to low credit scores, while others need cards that give 0% financing on purchases or provide the best value at their favorite retailer. And some types of credit cards are the best for certain demographics only – like students or business owners.
Four major types of credit cards are Visa, Mastercard, American Express and Discover. These are the major credit card networks, which most credit cards belong to, and they dictate where cards can be used as well as what secondary benefits cards offer. Fundamentally, the credit cards on these networks work the same way, however.… read full answer
Overall, Visa and Mastercard credit cards have the greatest worldwide acceptance, but American Express and Discover cards still have very broad coverage. When it comes to benefits, different networks provide different perks like rental car insurance, travel insurance and purchase protection. But which network benefits a card has is often left up to the issuing bank or credit union.
There are other nuances to these four types of credit cards, too. For example, American Express and Discover are the only two networks that issue their own credit cards. All cards on the Visa and Mastercard networks are issued by separate banks and credit unions.
Other Types of Credit Cards
Aside from the four types of credit cards split up by network, there are a lot of other categories that could be considered “types” of credit cards. For example, there are secured cards that require a deposit and unsecured cards that don’t. Similarly, some cards offer rewards, some are partnered with specific merchants, some have special financing deals, and some are only available to students or businesses.
The best credit card overall is the Chase Freedom Unlimited®. This card has a $0 annual fee, a low introductory APR, and excellent rewards. Overall, Chase Freedom Unlimited has a rating of 5/5 from WalletHub editors.
Here’s What The Chase Freedom Unlimited Card Offers
$0 annual fee
0% for 15 months on purchases (19.24% - 27.99% (V) regular APR)
5% cash back on travel through Chase, 3% back at restaurants and drugstores, and 1.5% back on all other purchases (plus an additional 1.5% cash back on everything, up to $20,000 spent the first year)
There are plenty of other contenders for the title of best credit card overall, however. Credit cards are not one-size-fits-all, either. Which card is best really depends on your credit standing, current debt situation, and whether or not you’re going to pay your monthly bills in full.
Fortunately, there are some rules of thumb you can follow to find the best overall credit card for your needs.
Tips for Getting the Best Credit Card for Your Needs
The lower your credit score is, the more important it is to get a credit card with no annual fee.
If you have existing credit card debt or are planning a big-ticket purchase that will take months to pay off, try to find a card with a 0% intro APR and no balance-transfer fee, if applicable. Avoiding annual fees is important in this situation, too.
If you have good or excellent credit and plan to pay in full every month, your goal should be to find the best possible rewards for your spending habits.
No matter your specific situation, there are a few easy ways to find the right credit card. For starters, you can check out our editors’ picks for the market’s best overall credit cards right now, selected from more than 1,500 credit card offers.
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