Explore the best credit card options, understand how to maximize rewards, improve your credit score, and avoid common pitfalls. Gain the knowledge you need to make informed financial decisions and move towards financial freedom.
What Are Credit Cards?
A credit card is a payment card that allows the cardholder to borrow money from a bank or credit union to pay for goods and services. Credit cards are typically made of plastic and have a magnetic stripe or chip that stores the cardholder’s account information. When a cardholder uses a credit card to make a purchase, the card issuer pays the merchant directly and the cardholder is billed for the purchase later. Credit cards can be used to make purchases in person, online, or over the phone.1
There are many different types of credit cards available, each with its own unique features and benefits. Some of the most common types of credit cards include:
- Rewards cards: These cards offer rewards such as cash back, points, or miles for every dollar spent.
- Balance transfer cards: These cards allow cardholders to transfer debt from other credit cards with high interest rates to a card with a lower interest rate.
- Student cards: These cards are designed for students with limited credit history.
- Secured cards: These cards require a security deposit, which is typically equal to the credit limit.
How Credit Cards Can Help You
Credit cards can be a helpful financial tool when used responsibly. Some of the benefits of using credit cards include:
- Convenience: Credit cards allow cardholders to make purchases without having to carry cash.
- Rewards: Many credit cards offer rewards such as cash back, points, or miles for every dollar spent.
- Protection: Credit cards offer protection against fraud and unauthorized charges.
- Credit building: Using a credit card responsibly can help cardholders build their credit score.
Credit Cards: Top Options With Perks
Credit cards are a convenient and versatile payment method that can offer a number of benefits to cardholders.2 Here are some of the top credit cards available:
1. Chase Sapphire Reserve®
- Perks:
- 3x points on travel and dining
- Annual travel credit
- Access to over 1,000 airport lounges worldwide
- Comprehensive travel and purchase protections
- 50% more value when redeeming points for travel through Chase Ultimate Rewards®
2. The Platinum Card® from American Express
- Perks:
- 5x points on flights booked directly with airlines or with American Express Travel
- Access to the Global Lounge Collection, including Centurion Lounges
- Annual airline fee credit
- Annual Uber credit
- Complimentary elite status at Hilton and Marriott hotels
3. Citi® / AAdvantage® Executive World Elite™ Mastercard®
- Perks:
- Admirals Club membership for cardholder and immediate family or up to two guests
- 2x miles on eligible American Airlines purchases
- Global Entry or TSA PreCheck application fee credit
- Priority boarding and first checked bag free on American Airlines flights
4. Capital One Venture Rewards Credit Card
- Perks:
- 2x miles on every purchase
- Credit for Global Entry or TSA PreCheck application fee
- No foreign transaction fees
- Transfer miles to over 15 travel loyalty programs
- Travel accident insurance and 24-hour travel assistance services
5. Chase Freedom Unlimited®
- Perks:
- 1.5% cash back on every purchase
- 5% cash back on travel purchased through Chase Ultimate Rewards®
- 3% on dining at restaurants, including takeout and eligible delivery services
- 3% on drugstore purchases
- Purchase protection and extended warranty coverage
Learn More About Credit Cards
There are many resources available to help cardholders learn more about credit cards. Some of the best resources include:
- The Consumer Financial Protection Bureau (CFPB): The CFPB is a government agency that provides information and resources on credit cards and other financial products.
- Credit card issuers: Credit card issuers can provide information about their specific credit cards, including interest rates, fees, and rewards.
- Financial advisors: Financial advisors can help cardholders create a budget and manage their debt.