Money prides itself on recommending not only the best products possible, but also those that are ideal for our readers’ specific financial circumstances and lifestyles. The same goes for our credit card choices.
To find the best credit cards for our wide range of readers, we take several factors into consideration.
Transparency
Let’s first evaluate the offers of each card and delve into the terms and conditions. This helps us evaluate whether the issuer is transparent about fees and whether its rewards truly deliver the value advertised.
We exclude issuers that disclose important information only through numerous clicks and/or in fine print. (We encountered, for example, hidden maintenance costs, disclaimers about a lower advertised reward value, and much more.)
Instead, we favor issuers that have no hidden fees and offer high rates of return with clear requirements and few caveats.
Commissions
Annual fees are the most significant and can range from as low as $0 to as high as $700. We weigh these annual fees against the rewards offered and calculate the value consumers can actually get from the card.
Foreign transaction fees, which are a percentage added to purchases made in non-U.S. currency, are also important factors, especially when evaluating travel credit cards. However, some credit cards offer great travel benefits even if they charge a fee for foreign transactions. We do not completely discard these options, but recommend them, for example, for domestic travel.
Other notable fees include balance transfer fees (particularly when evaluating credit cards for balance transfer) and late fees, which can range between $20 and $40.
Press
Rewards, whether in the form of cash back, points or statement credits, are, for many consumers, the main appeal of credit cards. While there are many useful credit cards that don’t offer much in the way of rewards (for example, some balance transfer or credit building cards), in most cases these will play an important role in our decision making.
We evaluate the amount of points, cash back or miles offered, as well as the different categories in which the highest reward rates are offered, making sure they are affordable for most or meet a particular type of consumer needs.
We also look at the value of points and miles in an issuer’s rewards system, comparing how much they’re worth and what you can use them for.
This includes considering whether they can be used to refund the card, whether transfer partners are available (large hotels or airlines, usually), and/or whether there are specific cases where the value increases or decreases significantly.
For example, with some cards, points may be worth less when redeemed for certain types of travel expenses, such as prepaid hotel bookings, but points may be worth up to 50% more when redeemed for travel through their portals online.
Additional benefits
In addition to points or cash back, many credit cards offer additional benefits like free subscriptions to popular services like Uber or Instacart, access to airport lounges, statement credits for TSA Precheck or similar programs, discounts at specific retailers, and much more.
That said, though, more isn’t necessarily better. We carefully evaluate what these benefits actually offer potential cardholders and, if the card charges an annual fee, whether these benefits are worth it.
Insurance and protection
While rewards get most of the attention, insurance coverage can be one of the most valuable benefits provided by credit card issuers. While virtually all major consumer cards offer fraud protection (meaning they will reverse charges if made by an unauthorized user), some will also offer rental car coverage, some type of travel insurance, and extended warranties for eligible purchases.
Let’s take a look at all the insurance coverage offered by each card and compare it to competitors with similar annual fees.
In some cases, insurance policies can be essential to our decision making. It is important, for example, that travel passes have travel-related insurance, such as trip cancellation coverage, lost baggage reimbursement and/or rental car insurance.
Reading the fine print is once again crucial in these cases. We compare the coverage requirements, the refund amount, and whether it covers family members, other flyers with the same booking, or just the cardholders themselves.
Introductory offers
Introductory offers tend to last a limited time and are usually one-off, so they shouldn’t be your primary reason for applying for a credit card. However, a good initial offer can give a card an edge over a competitor or provide the specific services and benefits someone is looking for.
Balance transfers with a 0% introductory APR, for example, are a popular reason to apply for a credit card. Welcome bonuses are also valuable and can sometimes be enough to get you a free flight, hotel stay, or savings on a large purchase.
In this regard, we consider how long the submission period is, the points or cash back offered, as well as any spending requirements to receive the bonus.
Reliability and customer service
We look at customer satisfaction surveys like the J.D. Power US Credit Card Satisfaction Study to find out whether issuers are giving their customers what they need and what they advertise. We also evaluate customer review sites such as the Better Business Bureau to evaluate an issuer’s customer service approach.
We carefully analyze the reviews and any legal claims we encounter against the banks. Some customers allege that some banks, for example, had problems honoring benefits or insurance, overcharged customers, or repeatedly incorrectly reported late payments. We take these statements into consideration when making our choices to ensure we recommend reputable issuers.
We also analyze customer service, how easy it is to access representatives, and how available the issuer is to resolve any issues.
Annual Percentage Rates (APR)
Because the APRs of most credit cards fluctuate and the rate assigned to each consumer will depend on their credit history, most issuers provide a range of possible APRs for each card. We evaluate these ranges and compare them to the average APR nationwide. (In 2023 the average was around 22.8%.)
If the bottom of the range provided by the issuer is much higher than average – some issuers offer, for example, 30% or more – they will most likely not make our lists.
There are times when a reasonable APR can be one of the determining factors, particularly when it comes to credit cards and balance transfers. These types of cards tend to have higher-than-average APRs overall, and we will favor those that offer cardholders the lowest rates possible.
For more information on the methodology we use for each particular paper type, please see our pages below.