You should know that not a single credit card is best for any person. A credit or debit card is good for you depending on your income status, expenditure of your family, travel, dining, shopping habits, etc.
A credit card that is best for a traveler who loves to fly frequently might not be a good option for those who travels nationwide mostly, or his/her primary goal is shopping & dining locally.
In this post, we are going to list some of the best credit cards that you should consider. Our primary goal is to help you determine which one you should take.
Credit Cards vs. Debit Cards: What’s the Difference?
There are specific differences between credit cards and debit cards. Debit cards are generally linked with your savings account in a bank. When you pay with your debit card it is paid from your bank account.
Debit cards are treated like a plastic check. You can spend only the amount that is present in your bank account. Like if you have $1500 in your savings account, you can’t pay for goods more than $1500 with your debit card. The balance in your bank account should be equal to or greater than the amount you want to pay with your debit card.
Credit cards are on the other hand a card that has a certain limit given to you by a bank. You are spending the bank’s money and you are liable to repay it within the due time. In simple terms, it’s a quick loan card. You do not need a bank account to get a credit card, but most of the time if you have a credit card from the same bank you have an account with, they are linked.
Each credit card has a limit imposed by the issuing bank. You can’t spend more than this limit. Sometimes they have transaction limits and other rules too. It all depends on the specific bank rules. Once you reach the limit you need to pay the due amount fully or partially. After that, you can use the credit card again. Otherwise, your payment will be declined.
The credit limit depends on simply how much the bank trusts you. More income and clean credit/debt history will make you eligible for a higher credit limit.
There are other types of cards called prepaid-debit cards. You load money in these cards and then spend it. It gives you the comfort of hassle-free cash moving. It is popular among people who travel a lot or do not want to get a real bank account. Generally, they are re-loadable.
Advantage of using credit cards
- Credit cards offer better protection against fraud while purchasing online or offline.
- You can build up your credit score through credit card use.
- Earn points to redeem for coupons and cash gift card against your purchase.
- You are eligible for travel points/miles points with some credit cards focused on travelers.
- Foreign transaction ability and hotel/car booking are easier with credit cards.
Best Credit Cards
Already stated that your choice of credit card should depend on your lifestyle and earning. Here are some of the credit cards you can consider.
Credit card availability and service also depend on the country you are residing. A card issued from an Asian country will not have the same charge or services as issued from the USA or Europe.
The Blue Cash Preferred® Card from American Express is a great card to start with for US citizens. You can discount cashback all year round.
- $0 intro annual fee for the first year, $95 from the second year.
- 6% Cash Back at U.S. supermarkets on up to $6,000 per year in purchases (then 1%).
- 6% Cash Back on select U.S. streaming subscriptions.
- 3% Cash Back on transit including taxis/ride-share, parking, tolls, trains, buses, etc.
- 3% Cash Back at U.S. gas stations.
- 1% Cash Back on all purchases through cards.
The Amex Gold credit card is popular among users worldwide. The annual fee of the card is $250. There is no waiver. It works like a reward card where you accumulate points for your purchases.
- 4X points on dining at restaurants, including takeout and delivery.
- 4X points on dining at U.S. supermarkets on up to $25,000 in purchases per year.
- 3X points on flights booked directly with airlines or on amextravel.com.
- 1X points on all other purchases.
Chase Freedom is a good choice for those who love to dine in restaurants and are looking for cashback. The card has no annual fee.
- 5% Cashback on travel purchased through Chase.
- 3% Cashback on dining at restaurants and drugstores.
- 1.5% Cashback on all other purchases.
This is a good card for travelers who seek simplicity in spending. The annual fee is $ 95.
- Unlimited 2X miles per dollar on every purchase.
- Earn 100,000 bonus miles when you spend $20,000 on purchases in the first 12 months from account opening
- Earn 50,000 miles if you spend $3,000 on purchases in the first 3 months.
- Redeem rewards with PayPal
- No Foreign Transaction Fees
This is an excellent MasterCard from Citibank. You can get 2% cashback on all your purchase without any limitation.
- No caps on cashback earned
- Earn 2% on every purchase with unlimited 1% cashback when you buy, plus an additional 1% as you pay for those purchases. Applies to wherever you use your card.
- 0% Intro APR for 18 months on balance transfers; after that, the variable APR will be 13.99% – 23.99% based on your creditworthiness.
This can be an excellent choice for any business person. You can get cashback up to $50000 a year. There are zero annual fees for the card.
- Earn 2% cashback on all eligible purchases on up to $50,000 / year
- 1% cashback on all eligible purchases after spending $50,000/year
An excellent credit card for people who love freedom.
- 0% Introductory APR for 18 billing cycles for purchases, and any balance transfers made in the first 60 days. After the intro APR offer ends, 12.99% – 22.99% Variable APR will apply. A 3% fee (min $10) applies to all balance transfers
- No annual fee
- No penalty APR. Paying late won’t automatically raise your interest rate (APR). Other account pricing and terms apply
- Access your FICO® Score for free within Online Banking or your Mobile Banking app
- Contactless Cards – The security of a chip card, with the convenience of a tap
Best Debit Cards / Prepaid Cards
While credit cards are the best choices for domestic and international use, there are several options for debit card users too. You can choose the best-prepaid debit cards for you if you know where you are going to spend your money.
We recommend using a re-loadable debit card branded by MasterCard or Visa to get more acceptance worldwide.
Here is a list of debit cards that you can choose for your travel, shopping, or dining.
- Serve® Pay As You Go Visa® Prepaid Card
- Netspend® Visa® Prepaid Card
- Starbucks® Rewards Visa® Prepaid Card
- Bluebird® American Express® Prepaid Debit Card
- PayPal Cash Card
Unlike regular debit cards which are linked to your bank accounts, prepaid debit cards are hassle-free. You do not need a credit check or bank account to get one. They are a good alternative to your traditional bank account. All you need to do is reload the card before using it. Mostly these work like a secured credit card.
Some of these cards also offer cashback and some do not have annual fees for regular users. There are virtual re-loadable cards also, but we do not prefer them over physical cards. Virtual cards do not have the security or ease of use like plastic cards.
In today’s busy world it is always better to use cards instead of cash. Where a card is not available cash can be a second option. So, keep small cash with you and transact with cards wherever possible. This will keep your money safe and build a good credit line for you.