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 May 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® 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 has an introductory offer of 40,000 bonus points if you make at least $3,000 in purchases during the first three months, worth $500 toward travel rewards booked through Ultimate Rewards. This card has a 1% standard reward rate on purchases and 2% for purchases made on travel and at restaurants. There is a $95 annual fee associated with the Chase Sapphire℠ Preferred Card which is waived for the first year but cardholders will receive a 7% annual dividend on all new points earned – even on points already redeemed. For travelers, this card can really come in handy because there are no foreign transaction fees.
Chase Freedom® Visa – $100 Bonus Cash Back. The best of all cash back credit cards, the Chase Freedom® Visa – $100 Bonus Cash Back offers cardholders a $100 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 – $100 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® Cash Credit Card. The Capital One® Cash Credit Card offers 1% cash back on all purchases. The card offers a 0% APR introductory offer on purchases until December 2012. The card carries a $39 annual fee and of all the cards that made this list, the Capital One® Cash 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 on purchases for the first twelve statement closing dates following the opening of the 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 points 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 statement closing dates 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.
Updated May 23, 2012 and originally published October 5, 2011. If you enjoyed this article, subscribe to the RSS feed or receive daily emails. Follow @flexo on Twitter and visit our Facebook page for more updates.
Rank: Platinum
{ 38 comments… read them below or add one }
I believe with the Amex Zync card, you are awarded Membership Express points, which are different and less valuable than regular membership points?
As for Citi, rather than the Diamond card, I think the Citi Forward card is a bit better because you continually receive 5 TY points even after the first year for certain categories (like Amazon). Also the Citi PremierPass card is good for those who like travel as you can rack up points quickly.
If you have “excellent” credit, the Capital One No Hassle Cash card doesn’t have an annual fee (the $39 fee is for “average” credit cardholders).
Never mind, they’ve added a twist to the “excellent” credit version. You get 1% for the first 6k, and then you get 3% on gas & groceries past the first 6k. That must be a relatively recent change.
Thanks for sharing the update!
I’m still not sure why people like the AmEx Zync card. I don’t see what it offers at all above the no annual fee AmEx Blue Card. Other than that I agree with your suggestions.
Unless you’re spending THOUSANDS of dollars, the annual fees on these cards kill any of the rewards. You have to spend $1950 in order to re-coup a $39 annual fee (assuming 2% cash back). After this $1950, you start earning rewards.
This post is actually very timely; I’ve been researching good rewards credit cards recently. I finally picked a Shell MasterCard that gives me 5% cash back on Shell gas and 1% on everything else. There is a $29 annual fee that is waived if you have 9 Shell gas purchases in the prior year. This is a GREAT card for me, as I only plan on using the card for Shell gas (which is the only gas I use). If I can find a separately good grocery/drugstore card, then I’d be all set.
Well try this American Express Blue cash back.
A friend of mine has had the Shell card for some time and he just mentioned that they are changing the program drastically. You have to spend a certain sum on non-gas purchases and then you get something like 10 cents a gallon rebate and if you spend an even larger amount on non-gas items then you get 20 cents back. Don’t remember the exact details but it greatly reduced the value of the card.
A warning with this card – I had one for 8 years and just had to cancel it. They just drastically changed the terms. You have to spend at least $500 a month to get any rewards. I can’t buy that much gas in a month. Also, I had paperless statements and they discontinued autopay as well as the previous terms (I think it’s a rotating reward program now) and notified me only through the mail, and not electronically. I got a late fee (first in 8 years) because I never received the letter. I called and asked to get it taken off because I never received the notice and they refused. At that point, I canceled the card.
Any possible way you can include which cards are considered a NPSL card, or signature visa, or a credit card that does not report your normal credit limit *but instead reports your current revolving balance only. e.g.Capital one.. And, also, people should know SImmonsfirst bank, the card issuer, requires documentation evidence of income (e.g. w2, or your 1040) to get aproved.
Capital One has been reporting credit limits for non-NPSL cards for several years (2+) now. My C1 Visa Platinum clearly shows my credit limit on all three credit reports.
My Chase Freedom in contrast, like Bonnie’s below, shows my highest balance since it is a Visa Signature. :-(
I just found out that my Chase Freedom is an NPSL card, although I don’t think they all are. I’m going to have to have that changed, though, for the sake of my FICO score. I’m surprised the PenFed cards weren’t listed, though, esp. the Promise VISA, w/ no fees and a flat 7.49% APR. Be cautious when applying for the PenFed cards b/c they’re ultra-conservative in accepting card-holders. I’d recommend reading some of the threads on the MyFICO forums that discuss applying for PenFed VISAs before trying to get approved.
A little note about the Citi American Airlines credit cards….they report your credit limit as $0. Consequently, you will be over your limit with every purchase. I learned this lesson recently when trying to refinance some investment property. Citi’s response about not reporting the limit: “Well, you can just not use it if you do not like it.” Nice. :-(
“Well, you can just not use it if you do not like it.”
I’ve received that level of concern and care each time I’ve called Citi. That is why my card has been relegated to a sock drawer and replaced by Amex SPG who has been nothing short of phenomenal. No hassle CLIs, no hassle charge dispute, extremely friendly customer service.
I learned of the Citi database debacle last night when I called a rep about an unrelated problem. Seems their databases was breached and the following was purged: Your name, credit card # and personal contact (email address). They swear your SS#, DOB , card expiration date and three digit security code on the card back were not comprised, nevertheless they are replacing all cards. I insisted to keep the same card number and they agreed as w/o the exp. date and digit code, no merchant can get an approval and THEY are liable. The rep was authorized to give compensation – miles and cash. Negotiate with them. And this month on all three credit bureaus my AA Citi credit limit (7500.00) was listed for the first time. My scores went up to an avg. of 740 from 703. It’s all a game and I basically look for huge bonus mile/point offers to join (50K from Amex Premier Rewards i.e.) with a 20% bump when points were converted into Delta miles. I’ve managed to get about 400K miles in 3 years without including miles for actual flight. Insofar as FICO is concerned – you must fight these people if you are legitimately in the right and they will eventually acquiesce, although after some excruciating amount of time has passed.
I’ve gone for points instead of best intro rate. For me the best card is the Fidelity Investment Rewards Visa Signature Card.
http://personal.fidelity.com/products/checking/content/investment_rewards_card.shtml.cvsr
1.5 points per $1 purchased on the first $15k
2 points per $1 purchased after that.
I know there are slightly better cards (including Fidelity Rewards AMEX) but this one was the best suited for me. It deposits the cash directly into my fidelity account.
Noone has mentioned Iberia Bank’s Visa. You have to have excellent credit, and the application process is a little longer, meaning that you have to send them a copy of your utility bill and proof of employment, but it is the best card by far, and it’s worth the extra effort to get it.
http://creditcards.iberiabank.com/
They recently took over Pulaski Bank out of Arkansas, which has anti-usury laws, and they’ve changed the terms of the credit card slightly, which I hated to see happen. Under Pulaski, cash advances carried the same interest rate as purchases. And I think they still the same terms now, the last time I checked they did, but if you make a late payment, the interest rate would go up to 15% for that month, and after you make your payment, it goes back down to the original interest rate, it doesn’t get jacked up and stay there. I wish there were more banks that operated like this.
Discover Card is a sham. Don’t count on collecting your cashback reward points. They have more excuses than a crooked politician. They should call their card the AGGRAVATION CARD!
I have never had a problem with getting my cash back from Discover. Can you be a little more specific with what the problem was?
I will never do business with Discover, like ever. They sent me the pre-approved offers 27 times in one year, literally as I counted them. When I opened the account, they gave me a credit line which was a couple of grands less than what I make in a WEEK. The reason they gave me, “it is Discover’s policy.” I told them keep your policy with you. I canceled the sham they sent me even before activating it. My credit score took a hit for immediately opening and closing the credit card but I dont give a damn. Immediately applied for American Express which didn’t even send me a pre-approved offer and got a 10 thousand limit with an excellent reward program. Next time if I ever hear from discover, I am going to shove up the offer in their – - -. Mind my french and have a good day. I cant even imagine what these robbers do to folks who have bad credit scores.
I saw that you noted some cards here need excellent credit. Which credit card would be best for someone with bad credit history who wants to start gaining good credit? We are looking to get a card just to put gas on and pay off immediately every month to boost our credit score. Any recommendations?
i am using the Captial One’s No hassle Credit Card. I have fair credit and was approved. I am using it primarily for gas because you get the 1-2% back. Plus it is helping me raise me credit score….hope this helps1
hii can anyone tell me about the blue cash from american express is this a good credit card or what is the best one american express has ! ?
The Costco Amex card shown above is excellent if you happen to live near a Costco store. In addition to gas prices that are usually the best in the area, you will receive 3% back. That’s not too shabby. Do be aware that your annual Costco membership renewal will be automatically charged to your card each year. I also have an Amex Blue card that is gathering dust most of the time. It’s OK but I like the annual Costco cash reward better than the membership rewards points.
I love my AmEx Blue Cash back, it is easy to redeem points and sometimes I’ve spent over my limit and have never been charged a fee for doing so…the only draw back about my AmEx is that many businesses do not accept it as a form of payment where I live but other than that I love it and the card looks pretty cool!
I have one credit card and I would like to get a second to use for all my work expenses. This way I can keep my personal separate from work expenses. I travel for a living, usually staying in Marriott properties or similar, often I travel on United Airlines, I shop for catering at Whole Foods or similar, and I often buy items from Target and Best Buy for work as well. I spend anywhere from $2k to $6k a month. I have good credit, 740ish, which rewards card is best for me?
Any suggestions??
I had good, Im not sure Id call it ‘great’ but definitely on the positive side of credit and was and have gone through identity theft issues in the past couple of years which are slowly but surely ironing out. As of now, i think im in the clear but god knows. My new job has me traveling a lot(hotel, gas and restaurant charges galore!) and I feel i should upgrade from my Bank of America Preferred Plus Worldpoints Visa to something that may be more beneficial whether it be cashback or rewards of miles, giftcards, etc. I dont know much about cred.cards but I feel like there must be better than what I have. I have a decent amount of money behind my name in bank accounts; money market, savings and checking as well as investments with mutual funds where I feel confident I should be able to get approved for something decent. Any suggestions on a card? Any feedback is appreciated. thanks
@InvestorJunkie – I like the Fidelity Amex card too, but you have to open a fidelity account to really take advantage of the point structure. The best card on the market right now is easily the british airways/chase card. Two free transatlantic flights once you open the card and spend $2500 in 3 months. Pretty low acceptance rate though…
Citi use to have a Home rebate Card (Paid your mortgage from the dollars earned), but recently discontinued it. It was a great rewards program because not only did you get the reward dollars but then the reduction in mortage interest and quicker principle paydown.
Does anyone know if anyone else has this type card?
Thanks,
I just found out that my credit union VISA points weren’t accumulating because I didn’t pay the annual fee upfront that no one told me about. I’m looking for a new card, credit score 738, I spend around $1,400 a month, $700 of that in travel, usually United or American, a hotel, and rental car, and I pay the balance off each month. Cash back is fine, and airline miles is fine, as long as they are usable. I usually can’t be flexible with my travel, as its for child visitation and I have a schedule to follow. Any recommendations? Thank you!
I love Amex blue, for each 7500 you spend, you get $100 to spend on travel. The travel item must be charged on the card and has to be $100 or more or you’ll lose some. It doesn’t expire and you can accumulate the credits. I have had this one several years and they have always treated me first class. Only problem is a few smaller businesses don’t take it, so I have a back up from Bank of America which I am looking to replace.
You have not mentioned that there is no foreign transaction fee involved in capital one, only low cost card to offer this service for free. Best for world travelers.
Is there any card i can get if i’m a 21 year old & i have no credit score/no co signer ?
Capital One does have decent rewards, but their customer support is horrible. The recent issue we have experienced with them is pulling double payments from our checking account (which resulted in overdraft fees). I’ve gotten to the point of closing the account.
I guess Citi had to add that $20 checking account fee so they could afford to give away all those credit card reward points!
Whoo hoo my good old capital one venture card mad the list. I use that card for everything.
The interest rates, the bonus points and the rewards are tempting. But sorry, I say pass for now. I would rather stick to my current credit card. One credit card is good enough at the moment.
I’m surprised that the ‘Capital One Platinum Prestige Card’ isn’t listed. It lacks rewards, but it offers a competitive 10.9% APR and 0% for 15 months. Great for carrying a balance…