Our editors’ picks for the best credit cards are based on a thorough analysis of key WalletHub Rating components, such as credit standing required, user type, type of rewards, 0% APR introductory periods and initial rewards bonuses. Picks are selected based on the lowest two-year cost.
WalletHub’s Key Rating Components
Two-Year Cost: 38% – We calculate the estimated total cost or potential savings associated with each card over a two-year period by accounting for fees, interest charges, and rewards. Negative figures represent net savings for the cardholder.
Rewards: 29% - We evaluate each card’s full rewards framework, from any initial bonus to ongoing earning rates by category and anniversary bonuses, to determine the overall earning potential.
Editor’s Rating: 12% – WalletHub editors assign ratings based on a comprehensive assessment of each card’s terms, features, and overall value compared to competing offers.
Fees: 11% – We consider all fees associated with each credit card, including one-time, annual, and monthly charges, to determine the overall cost of ownership.
User Reviews: 7% – We incorporate customer feedback to reflect real-world experiences, satisfaction levels, and usability.
Other Features: 3% – We consider additional benefits such as concierge services, access to exclusive events, airport lounge access, travel and purchase protections, and other supplemental perks that may increase cardholder value.
A couple of the selections address different needs and may have slight variations in score distribution depending on the core requirement. These include cards chosen for their long introductory APRs and for individuals with below-average credit scores.
How Two-Year Cost Is CalculatedTwo-year cost is used to calculate the monetary value of cards for better comparison and is calculated by combining annual and monthly membership fees over two years, adding any one-time fees or other fees (like balance transfer fees), adding any interest costs, and subtracting rewards. Negative amounts indicate savings. When fees or other terms are presented as a range, we use the midpoint for scoring purposes.
Rewards bonuses and credits have been taken into account for two-year cost calculations. However, bonuses applicable to only a very small portion of cardholders are not considered. For example, credits and bonuses awarded for spending or redeeming rewards through a company portal with non-co-branded cards have not been taken into account. Similarly, bonuses and credits related to spending with specific merchants using a non-co-branded card have not been taken into account (for example, if Card A offers credits with DoorDash, this feature would not be factored into calculations because it is hard to assess how many cardholders would use the benefit or exactly how much value they'd get from it).
Cardholder Spending Profiles
Given that different users have different goals and are likely to use their credit cards differently, we identified spending profiles that are representative of different users’ financial priorities and behaviors. For each cardholder type, we have assumed a specific amount of monthly spending by purchase type (e.g., groceries, gas, etc.), as well as an average balance, balance transfer amount, amount spent on large purchases and average monthly payment. Spending assumptions are based on Bureau of Labor Statistics data for consumers and PEX data for businesses.
Credit Card Landscape Analysis
To make it onto WalletHub’s best credit cards list, a card must have truly stand-out terms compared to the competing options. Staying on the list is even more difficult, considering how competitive the credit card landscape has become. For points of reference, WalletHub’s latest Credit Card Landscape Report has updated averages for the most important credit card features, from fees and interest rates to rewards.
Sources
WalletHub actively maintains a database of 1,500+ credit card offers, from which we select the best credit cards for different applicants as well as derive market-wide takeaways and trends. The underlying data is compiled from credit card company websites or provided directly by the credit card issuers. We also leverage data from the Bureau of Labor Statistics to develop cardholder profiles, used to estimate cards’ potential savings.
