With hundreds of credit cards available today, it’s difficult to find the best credit card for your particular situation. Whether you need a travel rewards card or a great cash-back card, the best offers are getting more difficult to find. The best credit cards of 2012 are just not as rewarding as they once were, but as the economy improves, credit card issuers are beginning to make a concerted effort to get your business back.

Credit cards, and in particular the type of credit card use that’s associated with maximizing rewards, is not the best option for people who do not pay the bill in full and on time each month. Be sure to read the note at the bottom of this article before changing your credit card situation.

These are the best credit cards available today, updated for February 2012. I’ve included a brief explanation as to why each credit card made the list. I update this page frequently, so check back often.

Citibank

Citi® Platinum Select® MasterCard®. The Citi® Platinum Select® MasterCard® offers a 0% introductory APR for 18 months on purchases and balance transfers. If you need to transfer a high balance, I recommend this card. The Citi® Platinum Select® MasterCard® has no annual fee and carries a very low APR of 11.99% to 21.99% variable. To obtain this card, you need good credit, but if you want to receive the best introductory offer and APR available, you need excellent credit.

Citi ThankYou℠ Premier Card. The Citi ThankYou℠ Premier Card includes a 30,000 bonus point offer after signing up and making $2,000 in purchases during the first three months. Those 30,000 points can be redeemed for a $300 gift card, and cardholders can also earn bonus points for signing up for an online account with paperless statements. Each year you own the Citi ThankYou℠ Premier Rewards Card, you earn an annual bonus. The card carries a hefty $125 annual fee, but the fee is waived for all first-year cardholders.

Citi® Diamond Preferred® Card. While the Citi® Diamond Preferred® Card does not include a rewards program, there is a 0% introductory APR on purchases and balance transfers for a full 18 months. The regular APR is 11.99% – 21.99% variable, depending on credit history, and this card includes no annual fee. The Citi® Diamond Preferred® Card provides cardholders a concierge service, which can be used for just about everything, from booking hotel rooms and flights to purchasing concert tickets and making restaurant reservations.

Citi ThankYou℠ Preferred Card. The cousin of the ThankYou Premier, the Citi ThankYou℠ Preferred Card is a scaled-down version of the card with slightly smaller bonuses and rewards. If you spend $1,000 within the first three months, Citi provides cardholders with 15,000 bonus ThankYou® points, good for a $150 gift card. Customers earn five rewards points for each dollar spent on gasoline, drugstore and supermarket purchases during the first 12 months and one rewards point for each dollar spent thereafter. The Citi ThankYou℠ Preferred Card does not carry an annual fee.

American Express

Starwood Preferred Guest® Credit Card. One of the leading credit cards for travel rewards, the Starwood Preferred Guest® Credit Card offers up to 25,000 bonus points in the first six months you are a cardholder, and has no annual fee for the first year ($65 thereafter). At the recent Financial Blogger Conference, there was a significant consensus at my dinner with a number of top bloggers that the rewards offered on this card and its business counterpart are the best. And your Starpoints can be redeemed for nearly any travel expense.

Blue Cash Everyday℠ from American Express. Blue Cash Everyday℠ from American Express offers $100 cash back bonus after spending $1,000 in eligible purchases in the first 3 months, as well a cash back tier of: 3% cash back on supermarket purchases, 2% cash back on gas and department store purchases and 1% cash back on everything else. There is an introductory 0% APR on purchases for 12 months and no annual fee associated with the card. A $25 referral fee is awarded if you sign up and recommend the Blue Cash Everyday℠ from American Express to a friend.

TrueEarnings® Card from Costco and American Express. Rounding out the best American Express cards, the TrueEarnings® Card from Costco and American Express offers 3% cash back for annual gasoline purchases of up to $3,000 (1% thereafter), 2% on travel and restaurants, and 1% on everything else. The card has a low comparable APR and an introductory offer of 0% APR on purchases for six months.

Disclaimer: This content is not provided or commissioned by American Express. Opinions expressed here are author’s alone, not those of American Express, and have not been reviewed, approved or otherwise endorsed by American Express. This site may be compensated through American Express Affiliate Program.

Chase

Chase Sapphire® Preferred Card. The Chase Sapphire® Preferred Card provides 50,000 bonus points if you make at least $3,000 in purchases during the first three months, worth $625 toward airfare or hotel accommodations. This card has a 1% standard reward rate on all purchases and 2% for all travel and dining purchases. There is a $95 annual fee associated with the Chase Sapphire® Preferred Card which is waived for the first year but all cardholders will receive a 7% anniversary bonus on points earned every year. For travelers, this card can really come in handy because there are no foreign transaction fees. This is a limited time offer.

Chase Freedom® Visa – $200 Bonus Cash Back. The best of all cash back credit cards, the Chase Freedom® Visa – $200 Bonus Cash Back offers cardholders a $200 statement credit after making just $500 in purchases during the first three months of card ownership. This card also includes 5% cash back on up to $1,500 spent on rotating categories throughout the year and 1% cash back on everything else. Cash earned never expires and the Chase Freedom® Visa – $200 Bonus Cash Back has no annual fee.

Capital One

Capital One® Venture℠ Rewards Credit Card. The Capital One® Venture℠ Rewards Credit Card is as straightforward as it gets. Earn two miles for every dollar you spend and an additional one-time bonus of 10,000 miles when you spend $1,000 in your first three months. There is a $59 annual fee, but it is waived the first year you have the card. The Capital One® Venture℠ Rewards Credit Card is a Visa Signature card, so the card offers the Signature set of extended benefits such as complimentary concierge services and travel upgrades.

Capital One® No Hassle Cash℠ Rewards Credit Card. The Capital One® No Hassle Cash℠ Rewards Credit Card offers unlimited 2% cash back on gas and groceries and 1% cash back on everything else. The card offers a 0% APR introductory offer on purchases until September 2012. The card carries a $39 annual fee and of all the cards that made this list, the Capital One® No Hassle Cash℠ Rewards Credit Card is the only one that is available for customers with average credit.

Discover

Discover® More® Card. The Discover® More® Card can be a strong cash back card if used properly. With the opportunity to earn 5% cash back on rotating categories throughout the year, up to the total purchase dollar amount specified in each program, the Discover® More® Card has been a customer hit for years. Category purchases in excess of the specified amounts will earn up to 1% cash back. In addition earn 1% unlimited cash back on purchases after your total annual purchases exceed $3,000; purchases that are part of your first $3,000 earn .25%. The card also carries a 0% APR introductory offer on balance transfers and purchases for 15 months. There is no annual fee to carry the Discover® More® Card.

Bank of America

BankAmericard Cash Rewards™ Card. The BankAmericard Cash Rewards™ Card offers 3% cash back on gas, 2% on groceries and 1% on all purchases thereafter. Cardholders have the opportunity to earn an additional 10% cash back if they redeem into a Bank of America® checking or savings account. The BankAmericard Cash Rewards™ Card does offer an introductory rate of 0% APR for the first twelve billing cycles on purchases and for any balance transfers made within 60 days of opening your account. This card does not carry an annual fee.

Bank of America® Accelerated Rewards® American Express® Card. Two issuers combine to form this great cash back credit card, currently offering up to $50 in statement credits. The Bank of America® Accelerated Rewards® American Express® Card offers 1.25% cash back for every $1 in net retail purchases and does not have an annual fee. The card also carries a 0% APR introductory offer for your first 12 billing cycles only for purchases and for balance transfers made within 60 days of opening your account. If you don’t pay your card off each month, you might discover this card’s one drawback: a purchase APR as high as 20.99%.

Simmons First

Simmons First Visa Platinum Rewards. The Simmons First Visa Platinum Rewards Card made the list because of its low standard purchase APR. At 9.25%, the only card with a lower standard purchase APR we could find was the Simmons First Visa card but that card didn’t have a rewards program. With the Simmons First Visa Platinum Rewards Card, you earn one point for every net dollar you spend, and the card carries no annual fee. If you’re planning to make a balance transfer onto this card, you’ll be happy to know there is no balance transfer fee either.

Reader favorite

Fidelity Investment Rewards Visa Signature Card. The Fidelity Investment Rewards Visa Signature Card offers a unique reward program. Earn 1.5 points for each $1 spent on the first $15,000 in purchases per year, and if you spend more than $15,000 annually that reward is increased to 2 points per $1 in purchases. When you reach 5,000 points they can be converted into deposits into your eligible Fidelity investment account. The card also participates in the WorldPoints program, so if you do not want cash back in your Fidelity account or if you don’t have an investment account, you can redeem for travel on major U.S. airlines with no blackout dates or for purchases from a selection of available merchandise.

Note: If you use credit cards as a tool for convenience, pay your bills in full every month, and are otherwise financially self-aware, consider some of these credit cards. If you use credit cards to pay for things you can’t afford, paying interest every month, then start thinking about paying off debt.

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American Express is consistently one of the highest rated credit card issuers. This could be because the customers are demographically different than average Visa and MasterCard customers. American Express customers are generally individuals and businesses with higher credit ratings, and they are more likely to make better financial decisions. Additionally, many American Express cards are charge cards. Charge cards don’t have associated interest rates, so every bill is due in full. As a result, American Express customers generally don’t buy what they can’t afford to pay back within 30 days.

In the J.D. Power and Associates 2011 credit card satisfaction survey, American Express received five out of five in all ratings categories: overall satisfaction, credit card terms, rewards, and benefits. This is the fifth consecutive year that AmEx has taken the highest honors. American Express also won the highest accolades from personal finance bloggers, taking home the Best Credit Card in the First Annual Plutus Awards last year, with the Blue from American Express card.

Here’s an overview of the major credit and charge cars from American Express and reviews for each.

The Platinum Card® from American Express is the flagship charge card, offering the best benefits American Express can offer. With this card, AmEx will reimburse the cardholder up to $200 in airline fees each year, including any fee from any airline. Members will be able to enter private lounge areas at airports to pass the time in comfort. When cardholders use AmEx’s travel services, they will benefit from free companion tickets. AmEx has a concierge available to tend to all customers’ needs. Businesses can receive similar features with the The Business Platinum Card® from American Express OPEN.

These benefits come at a significant cost. With an annual fee of $450, the Platinum Card is not for the faint of heart. The potential benefits could outweigh this annual fee, but this is a personal decision. This card would simply not be the best match for many consumers due to that annual fee.

Sitting in between the Platinum Cards and the regular Gold Card is the Premier Rewards Gold Card from American Express. New cardholders will receive 15,000 Membership Rewards points after spending $1,000 in the first three months of card membership. On purchases, you cardholders earn points quickly, with three points per dollar on airfare, two points per dollar on gas and groceries, one one point per dollar on all other purchases. These points can be used to fly anytime, anywhere, on any airline. Members receive exclusive access to buy tickets for popular events.

This card carries a $175 annual fee, much less than the Platinum Card, but the benefits are not as extensive. The annual fee is waived for the first year.

The American Express® Gold Card offers some of the same features as the Platinum card, but at a lower level. Today, this card offers a 10,000 Membership Rewards bonus when you spend $1,000 in your first three months of card membership. Benefits include 24-hour roadside assistance, and exclusive, early access to purchase tickets for events. With the business version, The NEW Business Gold Rewards Card® from American Express OPEN, you can earn points faster, get rewarded for what your business already spends.

Both versions of the charge card waive the annual fee for the first year. Thereafter the American Express Gold Card comes with an annual fee of $125, while the business version comes with an annual fee of $175.

For travelers that fly on Delta Airlines frequently, the Gold Delta SkyMiles® Credit Card from American Express is one of the best ways to earn relevant and valuable rewards. The introductory offer is up to 30,000 miles, which converts to $300 in Delta airfare. You can continue to earn miles at the rate of two miles per dollar spent on Delta flights and one mile per dollar for all other expenses. The Gold Delta SkyMiles card offers free checked bags on Delta flights for up to nine people in your reservation.

While the annual fee for this credit card is $95, American Express waives the fee for the first year.

For consumers with excellent credit, the Blue Cash Preferred from American Express offers one of the best cash back programs the issuer has to offer. After a $150 sign-up bonus after spending $1,000 within the first three months of card membership, earn 6% on supermarket purchases, 3% on gasoline and department store purchases, and 1% on everything else. This is the best cash back offer American Express has, and it is better than offers from many other issuers, as well.

The Blue Cash Preferred from American Express comes with a $75 annual fee, but you can eliminate this fee or even make more money by referring qualified customers to the card.

Consumers with good credit can consider the Blue Cash Everyday(SM) from American Express, offering consumers one of the best cash back programs the issuer has available. Earn 3% on supermarket purchases, 2% on gasoline and department store purchases, and 1% cash back on everything else as well as $100 cash back bonus after spending $1,000 in eligible purchases in the first three months. There are no spending thresholds to overcome before earning this cash back. Unlike the Gold and Platinum cards, Blue Cash Everyday is a credit card, so purchases are subject to interest fees if the bills are not paid in full.

There is no annual fee for being a member of Blue Cash Everyday.

The Blue Sky from American Express and the Blue Sky Preferred from American Express are credit cards, not charge cards, focused on travel rewards. With the Blue Sky card, spenders earn one point for every dollar spent on the card, but those points are about 33% more valuable than typical rewards programs. You need only 7,500 points to qualify for a $100 statement credit. The Blue Sky Preferred card has the additional feature of earning two points for ever dollar spent on hotels, dining and car rental purchases, as well as an annual $100 airline allowance to cover airline fees, like checked baggage.

The Blue Sky has no annual fee, and The Blue Sky Preferred Card comes with a $75 annual fee.

Without fail, the Starwood Preferred Guest® Credit Card from American Express is the readers’ favorite at Consumerism Commentary. This credit card currently features an introductory bonus of 25,000 Starpoints, receive 10,000 Starpoints after your first purchase and an additional 15,000 Starpoints when you spend $5,000 in six months. Starpoints can be used for free nights and hotels and free flights with many airlines (over 350). The business version of this card, the Starwood Preferred Guest Business Credit Card from American Express OPEN, offers the same features for small businesses and their owners.

The Starwood cards comes with a $65 annual fee, waived for the first year.

The TrueEarnings® Card from Costco and American Express is another favorite among Consumerism Commentary readers. There is no bonus offer with this credit card, but the cash back arrangement is solid. Approved applicants can immediately begin receiving cash back at the rates of 3% on gasoline purchases up to $3,000 (1% thereafter), 2% on restaurants and travel, and 1% on all other purchases, including purchases at Costco.

For Costco members in good standing, this credit card has no annual fee.

All the above American Express cards, both credit cards and charge cards, have the same security features, extended warranty benefits, and purchase protection.

This content is not provided or commissioned by American Express. Opinions expressed here are author’s alone, not those of American Express, and have not been reviewed, approved or otherwise endorsed by American Express. This site may be compensated through American Express Affiliate Program.

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