No single credit card is the best option for every family, every purchase or every budget. Your credit history, the composition of your family, how much you spend and on what, whether you travel abroad and whether you are comfortable having multiple cards could all affect the best card for you.
In short, the best credit card for an affluent single who splurges on foreign travel and eating out may be different than the best for a cost-conscious family that goes camping for vacation and mostly shops at Target.
For this reason, Forbes Advisor has chosen the best credit cards of 2020 in a way designed to be the most helpful to the widest variety of readers. Rather than simply selecting the “best rewards card” or “best cash back card,’’ we’ve attempted, with this list, to highlight the best cards for a variety of situations.
Keep in mind that most Americans have more than one credit card—according to Experian, Millennials have an average of 2.5 credit cards each, and Baby Boomers average 3.5 each. With that in mind, you can choose a card that rewards your spending in certain categories such as groceries or dining, then a flat rate rewards card to compliment it.
Methodology
In order to determine the best credit cards for each category we considered the costs and benefits of each credit card. Costs of each credit card include: the annual fee, foreign transaction fee and the required spend to qualify for the welcome offer. Benefits include the welcome offer, cash rewards or other rewards, bonus category offers, balance transfer offers, status benefits and other perks.
In addition, each category of credit card had its own criteria. For travel rewards cards we also evaluated the value of miles or points per brand based on how many miles or points are earned and how much they are worth when redeemed.
For cards meant for those who are trying to build credit or improve their credit score we focused on credit card offers that offer the most opportunities to improve your credit for the lowest net cost.
For business credit card offers we evaluated the earnings across categories in relation to the annual fee.
For balance transfer cards we looked at the length of 0% APR and the variable APR after the bonus period ended.
The Best Credit Cards of 2020
Blue Cash Preferred® Card from American Express
Cash back cards are some of the simplest rewards credit cards out there. The Blue Cash Preferred® Card from American Express lets cardholders earn as much as 6% cash back in two rare categories: U.S. supermarkets and U.S. streaming services. Most cards only grant such high amounts in one. This gives the Blue Cash Preferred the edge in the battle of the cash-back credit cards if you have regular expenses in these categories.
Rewards: Earn 6% cash back at U.S. supermarkets on up to $6,000 of spending per year (then 1% back afterwards); 6% cash back on selected U.S. streaming subscriptions; 3% cash back on transit (including taxis, rideshares, parking, tolls, trains and more); 3% cash back at U.S. gas stations and 1% cash back on everything else. Cash back is redeemed in the form of a statement credit.
Annual fee: Limited Time Offer: $0 introductory annual fee for one year, then $95. Offer Expires 12/10/2020
Welcome Bonus: Earn a $300 statement credit after you spend $3,000 in purchases on your new Card within the first 6 months. Offer Expires 12/10/2020.
Other Benefits and Drawbacks: The cash back rates on this card are generous and offered in a wide range of categories. However, one major drawback of this card is the cash back can only be redeemed as a statement credit. Other popular cash back cards, including the Discover it® Cash Back, let cardholders redeem cash back in a variety of ways, such as direct deposit into a checking or savings account. You can read our full review of Blue Cash Preferred® Card from American Express here.
Citi® Double Cash Card
If you want a simple cash back card, the Citi® Double Cash Card is a great choice. You’ll earn a flat rate of cash back on each purchase with no limits or categories to keep track of. With this card it’s also possible to convert your rewards to ThankYou points, which can be transferred to airline miles if you also hold a Citi Premier℠ Card* or Citi Prestige® Card*.
Rewards: Earn 1% cash back on all purchases and 1% cash back when you pay your bill. That’s effectively 2% cash back (hence the name double cash) on every swipe, tap, dip or online purchase.
Annual Fee: $0
Welcome Offer: None.
Other Benefits and Drawbacks: The more you use the Double Cash by Citi card, the more you earn. There are no limits, caps or restrictions on how much cash back you can earn. As long as you pay your card off every month and avoid fee-bearing activities like cash advances and balance transfers, you can use the Citi Double Cash card for your daily purchases and earn a generous amount of cash back without paying any fees or interest.
This Citi Double Cash gives new cardholders a 0% intro for 18 months on Balance Transfers completed within the first four months of opening a new account, and a variable APR after, based on your credit worthiness (currently 13.99% – 23.99% Variable). Balance transfers are subject to a fee of $5 or 3% of the amount of each transfer, whichever is greater.
Chase Sapphire Preferred® Card
Rewards: 2X points on travel and dining at restaurants worldwide, eligible delivery services, takeout and dining out & 1 point per dollar spent on all other purchases.
Annual Fee: $95
Welcome Offer: Earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $750 toward travel when you redeem through Chase Ultimate Rewards®.
Other Benefits and Drawbacks: Ultimate Rewards are both flexible and valuable, which is why the Sapphire Preferred card is our top travel card. You have the ability to transfer Ultimate Rewards to a variety of airline frequent flyer programs and hotel chains, such United Airlines and Hyatt.
An Ultimate Rewards point from your Chase Sapphire Preferred® Card is worth 1.25 cents per point when redeemed through the Chase travel portal or when using Pay Yourself Back, but if you are going to use the travel portal we would recommend considering the higher annual fee Chase Sapphire Reserve® instead because your points will be worth 1.5 cents each in the same instances.
The Chase Ultimate Reward cards are best taken as a family: partnering a Chase Sapphire Preferred with a Chase Freedom® card* and a Chase Ink business card allows you to earn Ultimate Rewards quickly. Rewards can also be combined between family members to really speed up the pace. You can read the entire review of the Chase Sapphire Preferred here.
The Blue Business® Plus Credit Card from American Express
The Blue Business® Plus Credit Card from American Express is interesting because you can earn Membership Rewards points without an annual fee. You can also save money on interest with 0% APR on purchases for 12 months, followed by a variable APR, 13.24% – 19.24%, based on your creditworthiness.
Rewards: Earn 2 Membership Rewards points per dollar spent on the first $50,000 you spend each year, then 1 Membership Rewards point per dollar on all other purchases.
Annual Fee: $0
Bonus Offer: N/A.
Other Benefits and Drawbacks: This card’s 0% APR offer can be enticing if you want to save money on interest at a lower APR. Another downside of this card is the fact that you won’t earn any kind of welcome bonus for applying and meeting a minimum spending requirement.
We do like the fact you can earn 2 Membership Rewards points for each dollar you spend up to $50,000 each year, and 1 point per dollar after that. Considering this card doesn’t have an annual fee, we think this makes it a good option to pair with the The Business Platinum Card® from American Express to use for all your non-bonus spending.
Southwest Rapid Rewards® Priority Credit Card
For ease of use and flexibility, the Southwest Airlines Rapid Rewards program beats the other airlines hands down. The airline also offers two free checked bags per passenger on flights, even without carrying a credit card, making Southwest a great choice for families.
Rewards: The Southwest Rapid Rewards® Priority Credit Card earns 2 Southwest Rapid Rewards points per dollar spent on Southwest flight and related purchases and 1 Southwest Rapid Reward point per dollar on all other purchases.
Annual Fee: $149
Welcome Offer: Earn up to 80,000 points. Earn 50,000 points after you spend $2,000 on purchases in the first 3 months. Earn an additional 30,000 points after you spend $10,000 on purchases in the first 9 months..
Other Benefits and Drawbacks: You could choose another airline card, but we like Southwest Airlines’ card because of its straightforward method of redemption: the cost of flights on points is pegged to the cost of flights in cash, with 1 Rapid Reward point being worth around 1.6 cents. This means you are not desperately searching for award flight availability on peak dates. You might pay more, but if a flight has open seats you should be able to book with points.
Southwest also doesn’t charge change fees and allows you to rebook your flights if the price goes down. However, Southwest’s lack of assigned seating is a turn-off for some.
The Southwest Priority Card also offers a $75 Southwest annual travel credit each year, 7,500 bonus Southwest points each year on your cardmember anniversary, four upgraded boarding opportunities per year and 20% back on inflight purchases.
If you are a business owner and can combine this card with a business card, you would be well on your way to earning the 125,000 Rapid Rewards point total needed to earn a Southwest Companion Pass. The ability to take someone with you on every flight without having to purchase a second ticket could save you thousands of dollars.
If you are looking for an airline credit card and are not a Southwest Flyer, check out our top airline cards.
Chase Sapphire Reserve®
Many trips have non-refundable elements that are tied to specific dates such as hotel or prepaid tour reservations. If you are interrupted or have to cancel your trip, you could be out a tremendous amount of money.
The Chase Sapphire Reserve offers trip cancellation and interruption insurance up to $10,000 per covered trip and a maximum limit of $20,000 per occurrence and a maximum benefit amount per 12-month period of $40,000. The trip must be charged to the Chase Sapphire Reserve Card in order to be eligible. This is one of the reasons why it’s our top pick for best premium travel card.
Rewards: Earn 3 Ultimate Rewards points per dollar spent on dining and travel purchases (after earning the $300 travel credit) and 1 point per dollar on all other purchases.
Annual Fee: $550
Welcome Offer: Earn 50,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $750 toward travel when you redeem through Chase Ultimate Rewards®.
Other Benefits and Drawbacks: The high $550 annual fee of this premium rewards card is partially offset by $300 in travel credits. The Chase Sapphire Reserve benefits include Priority Pass airport lounge membership that includes airport restaurant locations, which the American Express versions of Priority Pass do not include. This means that when you fly, you’ll be able to eat and drink at over 1,200 airport lounge locations worldwide, which could save your family a nice chunk of change.
Chase Ultimate Rewards points are transferable to a large number of travel partners including United Airline MileagePlus and World of Hyatt. Points are redeemable on Chase’s travel portal or using the Pay Yourself Back feature where they’re worth 1.5 cents each. Check out Forbes’ review of the Sapphire Reserve here.
Savor® Rewards from Capital One® *
Many cards offer bonuses for dining, but very few offer rewards for entertainment. The Capital One Savor is marketed to Millenials, who studies show prefer spending their money on experiences rather than stuff.
Rewards: Earn 4% cash back on dining and entertainment, 2% cash back on purchases at grocery stores, and 1% cash back on everything else.
Annual Fee: $95.
Welcome Offer: Earn a one-time $300 cash bonus once you spend $3,000 on purchases within 3 months from account opening.
Other Benefits and Drawbacks: If you don’t want to pay an annual fee after the first year, you could also consider the Capital One® SavorOne® Cash Rewards Credit Card*, which offers 3% cash rewards on dining and entertainment as opposed to 4%, but has $0 annual fee. You can read the entire review of the Captial One Savor here.
Hilton Honors Aspire Card from American Express
The Hilton Honors Aspire Card is the only card that offers top tier elite status by holding a credit card alone. The Aspire Card comes with Hilton Diamond status, which offers upgrades, breakfast, late checkout and other benefits.
Rewards: Earn 14 Hilton Honors Bonus Points per dollar spent on card purchases at participating Hilton hotels and resorts, 7 Hilton Honors points per dollar on eligible purchases for flights booked directly with American Express Travel, U.S. restaurants and car rentals through select rental companies, and 3 Hilton Honors points per dollar on all other purchases.
Annual Fee: $450
Welcome Offer: Earn 150,000 Hilton Honors Bonus Points after you spend $4,000 in purchases on the Card within your first 3 months of Card Membership.
Other Benefits and Drawbacks: The hefty $450 fee is more than offset with $250 in Hilton resort credit and $250 in airline incidental credit—provided you use the credits. The Aspire is the only hotel card that confers automatic top-tier status, which makes it worth holding for that reason alone if you stay at Hilton hotels often but not enough to earn status. Check out Forbes’ review of the Hilton Aspire Card here.
Amazon Prime Rewards Visa Signature Card
The Amazon Prime Rewards Visa Signature card has always been a good card. The recent increase in our reliance on Amazon for daily needs makes it a great one. If you’re spending most of your shopping budget with Amazon, you might as well get rewarded for it.
Rewards: Earn 5% back at Amazon.com and Whole Foods Market 2% at restaurants, gas stations and drugstores; and 1% on all other purchases
Annual Fee: $0 with Prime Membership, but requires $119 per year Amazon Prime membership to earn 5% reward rate listed above
Welcome Offer: Get a $70 Amazon.com Gift Card upon approval.
Other Benefits and Drawbacks: If you’re not an Amazon or Whole Foods shopper, this card probably doesn’t make sense for you. The $119 cost of prime membership effectively acts as an annual fee. If you’re already spending it, then the card has no additional cost to carry.
You can redeem rewards as an Amazon credit with no minimum. However, you can also redeem your cash back as a statement credit or direct deposit to a checking or savings account once your rewards balance reaches $20 or more.
The Amazon Prime Rewards Visa Signature Card has a number of benefits making it great for travel including no foreign transaction fees, travel accident insurance and baggage delay insurance. It also has perks like Visa Signature’s Luxury Hotel Collection and Concierge Service. Read our Amazon Prime Rewards Visa Signature Card full review to learn more.
If you are not an Amazon shopper, you might do better with either the Capital One® Walmart Rewards™ Card* or the Target REDcard™ Credit Card*. Both the Walmart Rewards and the RedCard credit card offer rewards at their respective outlets, but neither offers the perks of the Amazon Prime Card.
Target RedCard™ Credit Card
The Target RedCard saves cardholders money every time they spend at Target—plain and simple. That’s valuable for any consumer, but particularly for a family of four or more that might, depending on their shopping habits, be spending hundreds of dollars a month at Target. No matter how much you spend, if you’re a regular Target customer, it makes no sense to use any other payment option at Target.
Rewards: Earn 5% off all qualifying Target store purchases for RedCard holders in-store and online. Free shipping on all online orders—no minimum purchase required. This includes free 2-day shipping on most items. Any items purchased using the Red Card as your payment method can be returned for an additional 30 days past the normal return period for that item.
Welcome Offer: Get a coupon for $40 off a $40+ qualifying purchase when you are approved for a debit or credit RedCard in-stores and at Target.com between 9/13/20-10/10/20..
Annual Fee: $0
Other Benefits and Drawbacks: Cardholders receive additional benefits online such as free shipping. Therefore, on the shipping front, this card is akin to Amazon Prime. But it has no annual fee (Amazon Prime now costs $119 per year or $12.99 per month) and gives you access to brick-and-mortar stores. You do not have to live near a Target, however, to enjoy the benefits as Target treats in-store and online purchases essentially the same for RedCard benefits.
Additionally, pairing this card with universal Target savings options such as Cartwheel allows cardholders to increase their savings even more when shopping in-store. All of these savings options are also stored in the Target app, so you can shop at your local Target store with only your phone.
Discover it® Student Cash Back
Discover it® Cash Back offers both a standard and student credit card with similar benefits. Full-time students at a two-year or four-year college are eligible to apply for the student card. After graduation, the cardholder may be able to transition to the standard card, while still enjoying the same cash back rewards benefits.
Other credit cards may offer that type of transition, but this card’s welcome offer gives it a clear edge. The first year bonus puts the Discover it® Student Cash Back at the top of the student credit cards list.
Rewards: Earn 5% cash back on everyday purchases at different places each quarter like Amazon.com, grocery stores, restaurants, gas stations and when you pay using PayPal, up to the quarterly maximum when you activate. Plus, earn unlimited 1% cash back on all other purchases – automatically.
Welcome Offer: Intro Offer: Unlimited Cashback Match - only from Discover. Discover will automatically match all the cash back you've earned at the end of your first year! So you could turn $50 cash back into $100. Or turn $100 into $200. There's no minimum spending or maximum rewards. Just a dollar-for-dollar match.
Other Benefits and Drawbacks: If you don’t qualify for the Discover it® Student Cash Back, the Discover it® Secured might be a good fit. You’ll need a cash deposit in order to open the account, and keep in mind the rewards earning structure is different. The Discover it® Secured can help you improve your credit profile so that you can qualify for a more lucrative reward card in the future, as long as you use your new card responsibly.
Capital One QuicksilverOne Cash Rewards Credit Card
Rewards: Earn 1.5% cash back on all purchases with no maximum.
Current Welcome Offer: None.
Annual Fee: $39
Other Benefits and Drawbacks: The Capital One QuicksilverOne Cash Rewards Credit Card* provides a family with the ability to amass a large cache of cash back to divvy up as needed. The 1.5% cash back rate is higher than the baseline 1% cash back rate available for many other cards for those with average credit. And—this is key—the card comes with the unique benefit of None foreign transaction fees. The same benefit is currently not available on comparable cards that offer at least 1.5% cash back with no annual fee, namely the American Express Cash Magnet® Card and the Chase Freedom Unlimited® card.
A word of caution about the Quicksilver card: Capital One offers two versions. Make sure not to confuse the Capital One Quicksilver Cash Rewards Credit Card* with the Capital One QuicksilverOne Cash Rewards Credit Card option. The latter offers similar benefits but requires a $39 annual fee as a security for riskier cardholders (meaning those with lower credit scores). The Quicksilver Rewards card—the one without an annual fee— requires an excellent credit score.
How to Pick the Best Credit Card for You
With so many choices, finding the best credit card or cards can be overwhelming. Before applying, consider the data and do your research. Here are some questions to ask:
Are you loyal to a specific store, airline or hotel chain? If so, their co-branded card might make sense for you, even if it doesn’t have the strongest earnings rate.
Will you carry a balance? If so, you will want to lean towards a credit card that offers an extended 0% APR or balance transfer offer. The interest cost you save will easily outweigh the value of any travel rewards or cash back you might earn.
Will your rewards offset the fees? Annual fees eat into your rewards. Think about your annual spending to make sure you will earn enough bonus points or cash back to offset the fee.
Will you use the credit card’s benefits? Some cards come with benefits such as an annual travel statement credit, free checked bag or airport lounge membership. Before applying for a new card, think about your actual usage patterns. Does this benefit actually have value to you?
How easy are the rewards to spend? Some cards have strong welcome bonuses or earnings rates, but when it comes to redeeming the rewards, they fall flat. If you don’t have the time to research individual programs or to wait for a specific redemption date or amount, you might prefer a cash back rewards card or flexible rewards card.
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