Best Credit Cards of December 2022

Whether you want to earn airline miles, get cash back, build credit, or something else -- there's a great card out there for everyone.

But how do you find the best credit card for you? (After all, there are literally hundreds of credit cards out there!)

Enter: Our experts. They searched through offers, crunched numbers, and came up with a list of their top credit card recommendations. Below, we've listed the credit cards that are -- in our opinion -- the best credit cards for 2022.

Read on to learn more about the best credit card offers that we would (and often do!) recommend to our closest friends and family.

A credit card allows you to pay for purchases by borrowing money. The maximum amount you can borrow at one time is called your credit limit. The money you've already borrowed is your balance, and the amount you have left to borrow is your available credit.

At the end of each billing cycle, the card issuer will send you a statement listing the transactions you made. It will list your total balance, as well as the minimum payment due during that billing cycle. You must pay at least the minimum amount by the due date to avoid a late fee -- although it's a good idea to pay more than the minimum if you can afford it.

Credit cards are most often used for purchases, but many of them can also be used for other types of transactions, such as cash advances and balance transfers.

Credit card interest is the fee a card issuer can charge when you borrow money with your credit card. The amount of interest charged depends on the card's annual percentage rate (APR). Many credit cards have different APRs for purchases, balance transfers, and cash advances. Most credit cards have a variable APR. A variable APR is an interest rate that can change over time.

The type of transaction also determines when your card issuer starts charging you interest. For example, cash advances almost always start racking up interest immediately. Purchases are different. Just about any top-rated credit card will only charge interest for purchases that aren't paid off by the payment due date. Savvy consumers take advantage of this, pay in full, and never have to deal with credit card interest.

Though there are many different types of credit cards, they all fall into certain categories based on their features and rewards programs. Here are the different types of credit cards and the best credit cards and credit card deals right now within each category.

Travel credit cards

With travel cards, you can redeem your points or miles for free or discounted travel. There are also quite a few top travel credit cards that offer extra travel perks, such as free access to airport lounges, hotel upgrades, and travel insurance. An airline credit card, hotel credit card, and general travel credit card would all fall under this category.

• Chase Sapphire Preferred® Card: 3 points per $1 on dining, 2 points to 5 points per $1 on travel

Compare more picks: Check out The Ascent's best travel rewards credit cards

Rewards credit cards

This category includes every credit card that earns purchase rewards. With so many cards to choose from, you'll find a diverse mix of rewards credit cards that earn cash back, travel points, and store rewards.

Compare more picks: Check out The Ascent's best rewards credit cards

Cash back credit cards

With this type of rewards card, you earn rewards that can be redeemed as cash or a statement credit. Depending on the card, you may be able to redeem your cash back as a statement credit towards your credit card balance, a deposit to a bank account, or as a check. You'll find cards that earn the same flat rate on purchases as well as cards that earn extra in bonus categories among the best cash back cards.

• Discover it® Cash Back: 5% back in rotating quarterly bonus categories you activate up to $1,500 quarterly spending cap, 1% back on other purchases.
• Blue Cash Preferred® Card from American Express: 6% cash back at U.S. supermarkets up to $6,000 annual spending cap and on select U.S. streaming subscriptions, 3% cash back at U.S. gas stations and on transit, 1% back on other eligible purchases. Terms apply.
• Chase Freedom Unlimited®: 5% cash back on travel purchased through Chase Ultimate Rewards, 3% cash back on dining at restaurants and on drug store purchases, 1.5% cash back on other purchases.
• U.S. Bank Cash+® Visa Signature® Card: Earn 5% cash back on your first $2,000 in combined eligible net purchases ($100 per quarter) on two categories you choose.
• Wells Fargo Active Cash® Card: Unlimited, no hassles 2% cash rewards.
• Capital One SavorOne Cash Rewards Credit Card: 3% cash back on dining and entertainment.

Compare more picks: Check out The Ascent's best cash back credit cards

Balance transfer credit cards

This type of card offers a lower, introductory APR on balance transfers. Many of the top balance transfer cards have a 0% intro APR on balance transfers and intro periods can last for well over a year. If you want to refinance credit card debt and save money on interest, a balance transfer card is ideal.

• U.S. Bank Visa® Platinum Card: 18-billing-cycle 0% intro APR on balance transfers and purchases.
• Discover it® Balance Transfer: 18-month 0% intro APR on balance transfers. The go-to variable rate applies after the 0% intro APR expires.
• Citi® Diamond Preferred® Card: 0% intro APR for both purchases and balance transfers.
• Wells Fargo Reflect® Card: A leading 0% intro APR for both purchases and balance transfers.

Compare more picks: Check out The Ascent's best balance transfer credit cards

Best credit cards for beginners

The best credit cards for beginners accept applicants with no credit history, don't charge unnecessary fees, and have educational features to help you improve your credit, such as free credit score monitoring. For those who are enrolled at college or university, student credit cards are a great first step into the world of credit.

Compare more picks: Check out The Ascent's best starter credit cards

High limit credit cards

Some credit cards tend to offer higher credit limits than most. These high limit credit cards let you spend more, and they can also help you protect your credit by making it easier to keep your credit utilization ratio low. You typically need excellent credit to qualify.

Compare more picks: Check out The Ascent's best high limit credit cards

0% intro APR credit cards

Cards in this category have a 0% intro APR that applies to purchases. They're a smart choice if you need to buy something expensive, but you can't afford to pay in full upfront. The most popular 0% intro APR credit cards also often have those intro deals for a year or longer.

Compare more picks: Check out The Ascent's best 0% intro APR credit cards

Credit cards for building credit

You need to pay a security deposit to open a secured credit card, which is typically used for rebuilding or building credit. The security deposit is often (but not always) equal to your starting credit limit. High-quality secured credit cards can usually graduate to unsecured cards, meaning you get your deposit back if you make enough on-time payments.

Discover it® Secured Credit Card: A lucrative rewards program plus Discover matches all the cash back earned in the first year.

Compare more picks: Check out The Ascent's best secured credit cards

Looking to rebuild credit?: Check out The Ascent's best credit cards for bad credit

Student credit cards

If you're in college, you can get started on building your credit with a student credit card. Even though these cards are for students, there are some excellent perks to be found with the best student credit cards. Some cards include free credit score tracking and money back for good grades.

Bank of America® Customized Cash Rewards Credit Card for Students: A rare student credit card pick with a long 0% intro APR, big sign-up bonus, and rich rewards program.

Compare more picks: Check out The Ascent's best student credit cards

Business credit cards

Business credit cards are designed with business owners in mind. These cards usually offer higher credit limits than consumer credit cards to accommodate business spending. Many of them also have bonus categories to fit typical business spending habits. For example, a business card may offer bonus rewards on advertising, shipping, or office supply store purchases.

In addition, a business card can help you build your business credit score. Just like your own credit score is a rating of your personal creditworthiness, businesses have credit scores that rate their creditworthiness. By using a business credit card and paying on time, you can raise your business credit score. That can help you qualify for business financing in the future.

Your business doesn't need to be a separate entity to qualify for a business credit card. It's possible to open a business credit card with a sole proprietorship. No matter what type of business you have, it's smart to compare offers.

Compare more picks: Check out The Ascent's best business credit cards

Want cashback on business purchases? Check out The Ascent's Blue Business® Plus Credit Card from American Express review.

Store credit cards

Many chain stores, from Macy's to Target to Lowe's, offer their own credit cards. Sometimes these credit cards are accepted everywhere, but often they're only for use in-store. Store credit cards usually come with exclusive discounts and rewards that can only be used at that store. Make sure to read the fine print on any 0% intro APR offers from store credit cards, as they can involve deferred interest, which is tricky and can lead to hefty surprise interest charges.

Compare more picks: Check out The Ascent's guide to store credit cards.

Ready to do some shopping? Check out The Ascent's Macy's Credit Card review.

Although a credit card isn't a necessity, there are several ways it can help you financially:

• Improving credit: A credit card can help you build or rebuild your credit. When you use your credit card and pay the bill on time, your credit score will go up. This can help you qualify for financing, such as a car loan or mortgage, at a low interest rate.
• Earning rewards: With rewards credit cards, you can earn cash back or travel points on purchases.
• Fraud protection: Legally, you're only liable for up to $50 in losses if your credit card is used fraudulently. But most credit card companies go even further. Many credit cards offer zero-liability policies -- meaning you aren't responsible for any fraudulent charges. You also don't need to worry about a thief draining your bank account through your credit card (which could happen if your debit card was stolen).
• Extra perks and discounts: Credit cards can offer all kinds of benefits, such as extended warranty coverage on purchases or complimentary rental car insurance. Many of the best credit cards have features that can be worth hundreds of dollars or more.

Your credit score plays a large role in which credit cards you can get. If you have a low credit score and you work on raising it, that will open up more credit card options for you.

Here's the best advice you can follow to improve your credit score.

Review your credit report

You're legally entitled to a free annual credit report from each credit bureau (Equifax, Experian, and TransUnion). Go to AnnualCreditReport.com to request it.

Once you have your credit reports, review them for errors that could be damaging your credit score. If you find any errors, visit the website of the credit bureau that issued the report to file a dispute.

Get a credit card

The easiest way to improve your credit is by using a credit card and paying the bill on time. If you don't have a credit card, look for cards aimed at consumers in your position.

Starter credit cards are ideal if you don't have much credit history yet. If you're rebuilding credit from issues on your credit history, then secured credit cards are the most suitable option.

Stay below 30% of your credit limit

The amount of your credit that you use impacts your credit score. Say you have a card with a $1,000 credit limit. If the balance is $500, that would put your credit utilization ratio at 50%.

A lower credit utilization helps your credit score. As a rule of thumb, aim to stay under 30% credit utilization at all times. It's good for your credit, and as an added perk, it helps you stay out of credit card debt.

Follow good payment habits

Learn your credit card's due date and always make your payment on time or early. Each on-time payment improves your payment history, which is the biggest factor in your credit score. You may want to set automatic payments so you don't miss any.

It's also recommended that you pay off your credit card every month. While this isn't necessary for your credit score, it's a way to avoid interest charges on your credit card purchases.

The right number of credit cards for most people is one. That's particularly important for cardholders using credit cards for rewards, since the juice may not always be worth the squeeze when carrying multiple cards and using each to optimize rewards for each spending category. It's even more true for cardholders carrying debt. The best credit cards help you earn big on your everyday purchases while avoiding fees.

But this isn't necessarily the right mantra for everyone. There's no doubt that savvy cardholders carrying multiple cards can wring out a good amount of value. With the right strategy and a financial discipline, having a few of the best cards for different uses can be worthwhile.

When should I have one credit card?

You should stick to one credit card if:

• You want to keep your finances as simple as possible.
• You've never had a credit card before, or you've been using credit cards for less than a year.
• You've had problems with missed credit card payments or overspending.
• You value simplicity in managing your finances and don't want to worry about tracking multiple bills.

When should I have multiple credit cards?

You should carry multiple credit cards if you want more card benefits and you're confident in your ability to manage everything. There are some big advantages to having multiple cards:

• You can carry cards that earn more in different areas, such as one flat-rate cash back card and another with bonus categories. This is a simple way to maximize your rewards.
• You can use features from each of your cards and get more value overall. Instead of choosing between two of the best credit card deals, you can have both.
• You'll have more available credit, which helps you maintain a lower credit utilization ratio. This can result in a higher credit score.

The best credit card for most people is the Wells Fargo Active Cash® Card. It earns a 2% cash back rate on purchases, making it one of the most lucrative and flexible credit cards. This card also has a $0 annual fee, a generous sign-up bonus, and a lengthy 0% intro APR offer.

Every consumer has different spending habits and needs in a credit card. The best credit card to have will depend on your unique situation.

We've chosen the Wells Fargo Active Cash® Card as the best credit card of 2022 for the following reasons:

• 2% cash rewards on purchases is the highest rate we've seen. Other cards offer more in select bonus categories, but 2% across purchase categories is the best deal for the typical consumer.
• Cash back is flexible. While some people find travel points valuable, everyone can use cash back.
• $0 annual fee. It's always a plus when you won't need to pay anything extra for your credit card.
• $200 cash rewards bonus. New cardholders earn this welcome bonus after spending $1,000 on purchases in the first three months.
• A long 0% intro APR offer. Adding to this card's versatility is a 0% intro APR on purchases and qualifying balance transfers for the first 15 months.

Any time you're going to apply for a credit card, you want to make sure you choose the right one. Here's how to pick a credit card:

Decide which type of card you want. This will narrow down your credit card offers considerably, so it makes sense to do this first. If you're most interested in, for example, earning travel points, then there's no need to look at the best credit card offers for a 0% intro APR.

Compare credit cards in that category. Once you've chosen a type of card, it's time to compare credit cards side by side. Find the best credit cards in that category and then decide which is best for you. Here's how to compare credit cards:

• Figure out the features that are most important to you. This will depend on the type of card you're choosing. Let's say you need a balance transfer card. The features to look at would be the length of each card's balance transfer offer and its balance transfer fees.
• Check for any annual fees on the cards you're comparing. If you're stuck between two credit cards that work for you, one of them may have a cheaper annual fee.
• Use secondary features as your tiebreaker. These are the features that aren't quite as important but still have value. Secondary features could include sign-up bonuses or a FICO® Score for free.
• Read the fine print. All credit cards display common card features in a standardized format, including an outline of the APRs and lineup of fees. Keep an eye out for the following fees and compare them to other cards: Annual, balance transfer, cash advance, late payment, and foreign transaction.

The simplest way to apply for a credit card is online, where you can complete an application in minutes. Here's how to apply for a credit card online:

1. Choose a credit card and click "Apply Now": You'll find this link on the credit card page.
2. Fill out the required information: Card applications ask for your personal information, including your name, mailing address, date of birth, and Social Security number. They also ask for financial information, including your income. Some companies might ask about your net worth.
3. Submit the application: You may receive an instant decision of either an approval or a denial (hopefully approval). The card issuer could also put your application under review, meaning it needs more time to decide.

Whether your credit card helps or hurts you all depends on how you use it. To ensure that your credit card provides value and doesn't get you in debt, here are a few key guidelines:

• Use your credit card regularly: To build your payment history and increase your credit score, you need to use your credit card for at least one purchase per month. That's just a minimum, though. If you have a rewards card, consider putting your purchases on your credit card to earn as much back as you can.
• Only charge what you can afford: It's safest to only purchase what you can afford with the money you have your bank account. This will help you avoid overspending and debt. The exception is when you have a card with a 0% intro APR on purchases, since those are designed for financing expenses.
• Pay on time and in full: Late payments can lead to fees, interest charges, and a lower credit score. Missing a payment does not help your credit score; carrying a balance does not help your credit score. It's important to always pay on or before the due date. Once again, 0% intro APR credit cards are an exception. You can carry a balance on those during the intro period without interest (though you still need to make the minimum payment).
• Take advantage of your card's perks: All of the good credit cards have their share of benefits. Spend some time learning what your card's benefits are so that you can use them when you need them.

Annual percentage rate (APR): The annual percentage rate is charged for carrying a balance on a credit card, expressed as an annual percentage. With credit cards, the APR is the same as the interest rate.

Balance: The amount owed on a credit card, including all unpaid transactions and fees. The balance at the end of a statement period is called the statement balance.

Balance transfer: Moving a balance from one credit card to another. This is usually done when the new card offers a lower APR. Not every credit card offers balance transfers, and many of the cards with this feature charge a balance transfer fee.

Cash advance: Withdrawing cash from a credit card, most often through cash advance checks, using the card at an ATM, or by wiring money with the card. Cash advances usually have a higher APR and start accruing interest immediately, so it's a poor way to use a credit card.

Credit card: A credit card is a revolving line of credit issued by a bank and connected to a revolving line of credit. The cardholder can use their credit card for purchases and possibly other types of transactions, although this depends on the card.

Credit limit: The credit card's spending limit. This can vary based on the type of transaction. On credit cards that offer cash advances, there is typically a lower credit limit for cash advances than for purchases. A transaction that would exceed a card's credit limit will be declined unless the cardholder has opted to allow over-the-limit transactions (and any potential fees that come with them).

Credit score: A credit score is a rating of a consumer's creditworthiness. The score indicates how likely it is that they will make bill payments on time and repay what they borrow. Credit scores are calculated based on the consumer's financial history.

Interest: A fee charged for borrowing money. The APR determines how much interest a credit card company can charge on balances. Use our interest rate calculator to get a sense of how much interest adds to your monthly bill.

Minimum payment: The minimum amount a cardholder can pay by the due date to remain current on their credit card bill and avoid a late fee.