TOP 10 USA CREDIT CARDS

In this cashless era, credit card is an essential thing to carry wherever you go. Therefore, you need to choose carefully based on what you need. Whether you are a traveller, student, or businessman, you can get all the necessary information in this article. For instance, the APR (Annual Percentage Rate), the bank interests up to their deals and benefits. In other words, everything will be compared in details here.

What is a credit card?

Credit card is a payment card issued for users that can be used to pay for goods and services. Just like debit card, credit card lets you pay right when you purchase something. However, with the debit card you spend the money directly from your bank account, where the credit card lets you borrow money from the issuer. In other words, you are in debt for what you buy using the card.

The provider usually sets a limit on how much you can spend using the card issued. Further, the limit depends on what type of card you are eligible to. The higher your limit means the higher your payment capability.




You can apply for a credit card online or at a bank. After that, when your card is ready to use, you are obligated to pay an interest. It is called APR (Annual Percentage Rate). However, not all banks charge you APR. Some banks also have no APR that will let you pay the right amount of what you’ve spent. That is to say, there’s no additional fees. Therefore, it’s important to compare every credit card wisely to ensure you get the best rates.

How credit cards work

In terms of credit cards usage, you need to pay off the borrowed money in arrears. For instance, you pay for January’s bill in February, February’s bill in March and so on. However, this doesn’t mean you have to pay the full amount of what you use within the month. In other words, you have to make some kind of repayment each month at least in minimal amounts. But, paying in minimal amounts means you will stay in debt for a long period.

It is also important to pay in time to avoid any additional fees because of the late payment. The lack of payment consistency will give you a negative impact. It won’t only give you a bad reputation, but also make you harder to borrow money in the future. So, it’s best to use your card wisely.




Types of credit cards

There are many types of credit cards, vary from the standard to the specialty ones. For instance, standard type usually has the ability to transfer card balance onto the other card with low interest.

This type is the most common and are universally available from most banks and financial groups.

The other type like rewards credit card offers you cashback and reward points. This type allows users to earn a bonus for making purchases with the credit card. There are seven major types including cash back, general reward, hotel or travel point, retail rewards and gas cards. Each of them gives rewards for users who use the credit card often which will be accumulated to get redeemed.

For travellers, airline mile credit cards are also very engaging. This because the card type offers reward points that can be redeemed for plane tickets.

On the other hand, if you had bad credit in the past, you can still apply for a credit card. This usually happens because your credit score is less than satisfactory, so you need to rebuild the poor histories. This type of credit cards require collateral for a security approval.

Further, there’s also a special credit card that is made for business and student with many enticing rewards and features. For example, the business credit cards offer special business rewards, expense management reports and higher credit limits. On the other hand, student credit cards are mostly used to help them build a credit history.

All of them are available in three biggest providers : Visa, MasterCard and American Express. The three of them act as the bridge between the retailer and the bank. You can use those three networks in almost everywhere.




How to compare the credit cards

  • Make sure you choose the right type of card. There are three major classes : secured cards, regular cards and premium cards. Secured cards require a security deposit while the regular cards have additional features with no security deposit needed. Lastly, premium cards offer higher limits with extra beneficial features like travel insurance and more.
  • Do a thorough research about the card grace period. It is the number of days you have to pay for your bill in full.
  • Learn about how the finance charge calculated. Companies usually use several methods to calculate your amount due and this can make a big difference for users.
  • Keep in mind about the card annual fees, balance transfer fees, late payment fees, over the limit fees and more.
  • Check if the card has a low interest in cash advance feature. Who knows if you need an emergency money but has no one to ask for.
  • Note the credit limit that will be given for each card. It will be determined by your credit history or it may be a standard for everyone.
  • Look for the best bonuses and rewards programs. These will surely benefit you in some way.
  • Pay attention to the interest rate (APR). Every credit card has a different interest rate and you can choose based on your capabilities. Avoid a fixed rate card if you don’t have a stable economy condition. To clarify, the federal law allows card issuer to change the rate with just 15 days prior notice. Whether it will go high or low, you don’t have the authority to control the change.




What are the requirements to get a credit card?

You must be at least 18 years old to apply for a student credit card or 21 years old for the standard ones

You need to proof that you are part of the country citizens by showing your Social Security number

Make sure that you have a source of income and you can proof your finance responsibility

To apply for the standard credit cards, you need to have a positive credit history. If you can’t proof this, you can still apply for credit cards but with the secured type. This type need a collateral to secure your payments.





TOP 10 US CREDIT CARDS

No.

Credit Cards Name

Short Descriptions

What They Offer

Advantages & Disadvantages

1.

Chase Sapphire Reserve

Chase Sapphire Reserve is a credit card that is good for luxury travelers because they offer bonuses that are very enticing. For instance, they give annual travel credit, 3x points for travel and dining and many more.

  • 16.9% – 23.9% APR variable
  • Sign up bonuses up to 50.000 points upon spending $4.000 in the first three months
  • $300 annual credit for travel purchases
  • One of the flexible travel credit for flights, hotels, toll, taxi and public transportation

Advantages :

  • No expiration dates and no point limits
  • Points can be redeemed for gift cards, merchandise, travel and cashback
  • Get travel rewards up to 50% bonus on Chase website
  • Combining points with the other Chase cards are also possible
  • No foreign transaction fee
  • 24/7 customer services anywhere

Disadvantages :

  • High annual fee of $550
  • High regular APR with no intro offer
  • Needs excellent credit score to apply

2.

Chase Sapphire Preferred Card

Chase Sapphire Preferred Card is a credit card that was designed for travelers. Unlike the Reserve ones (refer to no. 1), this card offers lower annual fee with 2x points for travel and dining purchases.

  • 15.9% – 22.9% APR variable
  • Get 80.000 points after you spend $4.000 in the first three months.
  • Get 2 points for every $1 spent in public transportation, taxi, parking, tolls or even campgrounds

Advantages :

  • No expiration dates and no point limits
  • Get 25% more bonus through Chase Ultimate Rewards
  • 24/7 customer services anywhere
  • No foreign transaction fee
  • Travel and shopping protections available. For instance, trip delay and cancellation protection, rental car collision insurance and baggage delay insurance
  • Combining points with the other Chase cards are also possible

Disadvantages :

  • There’s annual fee of $95
  • No intro APR for purchases and balance transfers
  • Bonus rewards are limited to travel and dining purchases only

3.

Citi Double Cash Card

Citi Double Cash Card is a credit card that tops the Forbes list because of their cashback rate on all purchases with no annual fee.

  • 13.9 % – 23.9% APR variable
  • Get 2% cashback for every purchase
  • No annual fee

Advantages :

  • 0% intro APR on balance transfers for the first 18 months
  • Flat rate cashback is unlimited to all categories
  • Converting rewards to airline miles are also possible

Disadvantages :

  • High balance transfer fee of either $5 or 3% whichever is greater
  • 3% charge of foreign transaction fee
  • No cashback for balance transfer

4.

Blue Cash Preferred From American Express

Blue Cash Preferred is a credit card issued by American Express. This card is highly recommended for everyday use because of the huge rewards rate.

  • 13.9 % – 23.9% APR variable
  • Easily get cashback up to 6% at U.S. supermarkets and for select U.S. streaming subscriptions
  • 3% cashback for public transportations, taxis, parkings, tolls as well as any purchases made at U.S. gas stations
  • Get $250 intro bonus after you spend $1.000 within the first three months

Advantages :

  • 0% APR for the first 12 months
  • Excellent 24/7 customer services and online chat
  • Rewards can be redeemed for gift cards or merchandise
  • Automatic cashback without any enrollment required

Disadvantages :

  • 6% cashback at U.S. supermarkets are limited to only $6.000 per year, after then you’ll only get 1% cashback
  • There’s 2.7% foreign transaction fee
  • Cardholders need to pay annual fee of $95
  • High cash advance fee of either $10 or 5% whichever is greater
  • Since the card was issued by AmEx, some small stores may not accept it (AmEx has smaller range than Visa or Mastercard)

5.

Discover It Cashback

Discover It credit card is best for people who likes to get big rewards on everyday purchases in few categories. For instance, in Amazon online shop platform, grocery stores, gas stations, restaurants and the others.

  • 11.9% – 22.9% APR variable
  • Intro offer available : unlimited dollar-for-dollar cashback match with no minimum spending at the end of the year
  • 5% cashback for everyday purchases in Amazon.com, grocery stores, gas stations and restaurants
  • 1% cashback on all other purchases
  • No annual fee

Advantages :

  • Cashback can be redeemed as gift cards, donations, direct deposit and credit account in any amount (no minimum) without expired date
  • Rewards can be used at Amazon.com upon checking out
  • Free activation for data protection
  • 0% intro APR both for purchases and balance transfers within the first 14 months

Disadvantages :

  • High cash advance fee of either $10 or 5% whichever is greater
  • Enrollment required to get cashback
  • 5% cashback is limited to $1.500 purchases only

6.

Citi Diamond Preferred Card

Citi Diamond Preferred Card is the best card for balance transfers. You can get 0% intro APR for balance transfers and purchases within the first 18 months which is one of the longest than the others.

  • 14.7% – 24.7% APR variable
  • Get special access to Citi Entertainment and purchase tickets to thousands of events and dining experiences easily
  • No annual fee

Advantages :

  • Long period of 0% intro APR : 18 months
  • Payment protection along with Citi Identity Theft Solutions
  • 24/7 customer services and online chat available
  • Low balance transfer fee : either 3% or $5 whichever is greater

Disadvantages :

  • There’s 3% charge for foreign transaction fee
  • High cash advance fee of either $10 or 5% whichever is greater
  • No rewards, cashbacks or miles

7.

Blue Cash Everyday From American Express

Unlike the Preferred ones (refer to no. 4), Blue Cash Everyday card offers standard cashback for daily use at U.S. supermarkets, gas stations, select department stores and the others with no annual fee. Therefore, the card is recommended for people who shops often because it gives you captivating perks to begin with.

  • 13.9% – 23.9% APR variable
  • $150 intro bonus after you spend $1.000 within the first three months
  • Get 3% cashback at U.S. supermarkets, 2% cashback at U.S. gas stations and at select U.S. department stores, 1% cashback for any other purchases
  • No annual fee

Advantages :

  • 0% intro APR for purchases within the first 15 months
  • No expired date for cashback
  • No limit on 2% or 1% cashback categories
  • Low minimum rewards redemption ($25)
  • No enrollment required to get cashback

Disadvantages :

  • 3% cashback at U.S. supermarkets is limited to $6.000 only per year
  • Rewards can’t be combined or transferred to another card
  • There’s 2.7% foreign transaction fee
  • High cash advance fee of either $10 or 5% whichever is greater

8.

Chase Freedom Unlimited

The best feature that is kind of appealing from Chase Freedom Unlimited card is their cashback rewards. This because they give many bonuses and cashback offers including grocery stores, travels, dining at restaurants, drugstores and the other purchases.

  • 14.9% – 23.7% APR variable
  • Get $200 bonus after you spend $500 on purchases within the first three months
  • Get 5% cashback for grocery stores and travels purchases, 3% for dining at restaurants and drugstores purchases and unlimited 1.5% on the other purchases
  • No annual fee

Advantages :

  • 5% cashback on grocery stores purchases is not available at Target or Walmart and is limited to $12.000 spent per year
  • 0% intro APR for the first 15 months
  • No minimum amount to redeem for cashback (with no expired date as well)
  • Combining points with another Chase’s cards is possible

Disadvantages :

  • There’s 3% foreign transaction fee
  • You need at least good credit scores to apply
  • High balance transfer fee : either $5 or 5% whichever is greater
  • High cash advance fee of either $10 or 5% whichever is greater

9.

U.S. Bank Cash+ Visa Signature Card

U.S. Bank Cash+ is a Visa credit card that offers cashback up to 5% in wide variety of categories. So, this card is best for everyday spending.

  • 13.9% – 23.9% APR variable
  • Get $200 rewards bonus after you spend $500 within the first 90 days
  • Get 5% cashback on two categories that you choose, 2% on one everday category such as restaurants, grocery stores and gas stations and 1% on the other purchases
  • No annual fee

Advantages :

  • Low balance transfer fee : either 3% or $5 whichever is greater
  • 0% intro APR for balance transfer (the first 12 billing cycles)
  • Low convenience check cash advance fee : either 3% or $5 whichever is greater

Disadvantages :

  • There’s 2% foreign purchase transaction fee and 3% charge for foreign ATM advance transaction in a foreign currency
  • You can only choose your preferred categories once per quarter to get cashback
  • The 5% cashback on your choice category is limited to $2.000 spent only, after then it’ll drop to 1%

10.

Capital One Quicksilver Cash Rewards Credit Card

Capital One Quicksilver is the best cashback card because it offers no categories and limitations which make everything become simple.

  • 15.5% – 25.5% APR variable
  • No annual fee
  • Get 1.5% cashback for everyday purchase
  • Get $150 cash bonus after you spend $500 within the first three months

Advantages :

  • 0% intro purchase APR for the first 15 months
  • No foreign transaction fee
  • Unlimited cashback
  • Rewards can be redeemed anytime without minimal amount to statement credit, check or gift cards
  • Travel accident, delayed luggage and trip cancellation insurance
  • Data protection guaranteed using CreditWise tool

Disadvantages :

  • No 0% intro APR for balance transfer
  • Requires at least good credit score to apply
  • Low cashback for everyday purchase : 1.5%
  • Limited redemption options beyond cashback (no travel transfer opportunities)
  • Transferring rewards to another card isn’t possible