Best Credit Cards January 2023

There is no one-size-fits-all credit card, but rather different credit cards that suit different types of consumers. This is why our team of experts has reviewed dozens of cards issued by traditional banks, online lenders, and fintech companies to create a list of the top choices.

While some are excellent for frequent travelers, others offer 0% APR on purchases or balance transfers or generous welcome bonuses. Compare various credit card offers to make the right choice for you.

Best Credit Cards 2023

What Makes a Good Credit Card?

There’s no single credit card that’s suitable for everyone. Each person or household has unique spending needs and a different amount of money at their disposal.

That’s why we’ve conducted comprehensive research on various credit card issuers to create a list with the best-rated credit cards that can satisfy the largest number of consumers.

If you are on the hunt for your first credit card or want to add another one to your wallet, here’s what you need to know before you make the final step and apply for a card. 

1. Choose a Card With Low Fees and Affordable APR

Each credit card comes with a certain cost, and that’s the first thing you should have in mind when applying for it. Of course, some credit cards are more affordable than others, and some issuers offer fee-free credit cards.

Generally, you can expect annual fees and higher interest rates if you want a credit card with lucrative bonus rewards and additional perks. But, if you are a first-time credit card holder, you should look for a low-cost credit card, even though that will probably mean limited rewards. 

Here’s what to consider when looking for a new credit card: 

Annual Fee

Many consumers think that a top credit card shouldn’t have an annual fee. And they are only half-right. If a credit card has an annual fee, it will significantly increase the credit limit.

On the other hand, zero-annual-fee credit cards sometimes don’t offer any special reward program or access to additional credit card benefits, like cell phone insurance or travel benefits. 

Other Fees

Although some credit card providers offer credit cards with no fees attached, most have standard credit card costs. You can successfully avoid many of them if you pay your bills in full and on time. 

• Balance transfer fee. This fee is charged when you move a balance from one credit card to another. This fee is usually 3% (5% after the intro period) or $5. 
• Cash advance fee. If you plan to use your credit card for a cash advance, note that this fee can be rather steep. 
• Penalty fees. Penalty fees usually apply if you are late with payments. Regardless of the credit card issuer, this fee is usually very high and goes up to $40. 
• Foreign transaction fee. This is a fee you must pay for credit card transactions made abroad. Only rare credit card companies won’t charge you foreign transaction costs. 

Intro APR 

An introductory zero-APR period that lasts for at least a year is what differentiates an excellent credit card from an average one. It’ll give you more time to pay off your balances without interest, especially if you make big purchases with the card. 

Regular APR 

After the introductory period is over, you’ll pay a regular rate. In most cases, the credit card rate you get is based on your creditworthiness. To assess that, the bank will check your credit score and payment history. Your income and spending habits can also determine whether you get a low interest rate or not. 

2. Apply for a Card With a Generous Rewards Program

When creating this list of credit cards, we considered their reward programs. As you probably already know, some credit cards allow you to earn money while using them. The rewards typically come in two forms – cash backs or miles/points.

With cashback rewards, you’ll get money directly deposited into your account or in the form of a paper check. Cashback rewards can be also used to reduce your balance. The points/miles you collect can also be redeemed for credit, or you can convert them into gift cards or use them for travel. 

What else makes a good credit card is a welcome bonus. You can’t expect that from all credit card issuers, but many cards have bonus offers for new clients. The welcome bonus or signup bonus comes in two forms.

You can either get free cash or free points or miles, usually after you spend a certain amount of money on purchases within the first several months from account opening.

3. Seek a Credit Card Issuer That’ll Help You Build Your Credit Score

You can benefit from your credit card as long as you use it wisely and pay your balances on time. Your credit card issuer should inform the consumer reporting agencies about your payments.

It’s always good to find a credit card issuer that reports to all major consumer reporting agencies – Equifax, Experian, and TransUnion – because not all financial institutions use credit scores from the same credit bureau. 

The top credit card issuers also help you rebuild your credit score and track changes in your credit history. The credit score monitoring tools are especially useful if you want to improve your score quickly and apply for some other financial product, such as a credit card with a higher credit limit or a personal loan. 

4. Find a Credit Card With Additional Perks

The credit card market is one of the most competitive ones, and that’s why credit card issuers strive to provide financial products that come with additional benefits to make them more attractive.

Aside from lucrative signup bonuses, they offer a wide range of other features, including cell phone or car insurance, travel benefits in the form of free checked bags or priority boarding, hotel benefits, and more. 

Other features include tools for tracking credit scores and free credit checks from time to time. There is also an option to set up spending limits or lock your credit card via the bank’s mobile app. 

5. Think About Security

All providers on our list of credit card companies offer zero-liability protection, regardless of the credit card you apply for. It guarantees you won’t be held responsible for unauthorized transactions on your credit card, provided that you report such transactions on time. 

Additional security features are also important and not available with all credit cards. Only the best ones offer above-average security tools, such as cell phone protection, two-factor authentication, or voice recognition.

Fraud monitoring and identity theft protection usually come with credit cards for consumers with excellent credit scores.