It can be hard to choose the right credit card with so many options out there. Should you go with a points-based card? Cashback? Airline rewards? The options are endless. However, the choice doesn’t have to be hard, and we’re here to help. Here are the best credit card offers available in August 2020.
What are the different types of credit cards out there?
There are multiple different types of credit cards to choose from. My personal favorite is cashback, as they provide a simple reward structure that’s easy to redeem (as it’s just literal cash back.) However, depending on businesses you normally frequent and how often you eat out or travel, a points-based or travel reward card might be better for you. These types of cards accrue points based on how much you eat at a certain restaurant or type of restaurant, or how often you travel with certain airlines or stay in specific hotel chains. Points can be redeemed for gift cards, free flights, discounted or free hotel rooms, and more.
Points-based reward cards
Points-based rewards cards are just that — cards in which you gain credits for purchases and can redeem those points toward rewards through the card’s website. You’ll be able to redeem points for things like gift cards, airline travel, cruises, or sometimes even toward a cash value on your card’s statement. These can be great cards to have, but, unlike cashback cards, each company has its own value for a point, with sometimes one point equals a dollar, and other times you’d need 1,000 points to equal a dollar.
Chase Sapphire Preferred Visa
APR: 15.99% – 22.99% Variable based on credit score
Annual fee: $95
Recommended credit score: Good to excellent
The Chase Sapphire Preferred Card is a Visa Credit Card and is among the best out there right now for those who just want general points, with an emphasis on dining and travel. Currently, you’ll earn a bonus of 60,000 points after spending $4,000 on purchases in the first 3-months of opening your account. In total, that’s around $750 worth of travel when you redeem your points through Chase Ultimate Rewards.
Earning is simple, you’ll get 2 points per dollar spent on any travel and dining purchase worldwide and 1-point per dollar on all other purchases. Right now, you’ll earn 5 points per dollar spent on Lyft rides through March 2022, which is quite a bit more than the standard 2 points per dollar you already get with travel purchases. If you redeem your points toward airfare, hotels, car rentals, and cruises through Chase Ultimate Rewards, you’ll get a 25% increase in value. For a point breakdown, 60,000 points are worth $750 when redeemed this way for travel. If you want to further break it down, one point is worth 1.25% of each dollar spent when redeemed for travel through Chase Ultimate Rewards
However, the benefits don’t stop here for cardholders. You’ll have unlimited deliveries with a $0 delivery fee and reduced service fees on all orders of $12 or more for at least 1-year on qualifying purchases through DashPass, DoorDash’s subscription service. However, you’ll have to activate this feature by 12/31/2021 to redeem it.
Citi Rewards+
APR: 0% introductory on purchases for the first 15-months, then 13.49% – 23.49% variable based on credit score
Annual fee: $0
Recommended credit score: Good to excellent
Balance Transfer Offer: 0% for 15 months
Citi’s Rewards+ card is “the only credit card that automatically rounds up to the nearest 10-points on every purchase.” This means that if you’d normally earn 11 points, Citi will round that up to 20 points for the purchase, delivering more bang for your buck. Upon signing up, you’ll receive 15,000 bonus points after spending $1,000 on purchases within 3-months. Citi says this is redeemable for $150 in gift cards. 2 points per dollar are earned at supermarkets and gas stations for the first $6,000 per year and then 1 point per dollar thereafter, with 1 point per dollar being added to your account for all other purchases.
Plus, you’ll earn 0% interest on balance transfers within the first 15 months, as well as see 0% in interest on purchases for the same duration. This is great if you have a big purchase coming up that you need to pay off over a longer period of time, but are wanting to avoid high-interest charges.
Cashback reward cards
Cashback reward credit cards offer instant cash rewards for all purchases with varying percentages dependent on category. Some cards have a minimum requirement to redeem your cash back, and some even offer the ability to exchange cash into gift cards.
Chase Freedom Unlimited
APR: 0% introductory on purchases for the first 15 months, then 14.99% – 23.74% variable based on credit score
Annual fee: $0
Recommended credit score: Good, excellent
The Chase Freedom Unlimited is a great card for those who want to earn a bit of extra cash each time they swipe it. To start with, you’ll receive a $200 bonus after spending $500 on purchases within the first 3-months.
Another huge benefit of this card is that you’ll earn 5% back on grocery store purchases (excluding Target and Walmart) for up to $12,000 spent in the first year. All other purchases will net you 1.5% back, which essentially gives you $1.50 on each $100 that you spend.
Costco Anywhere
APR: 15.24% variable based on credit score
Annual fee: $0
Recommended credit score: Excellent
If you’re a Costco member, this is one of Citi’s best cashback rewards cards around. The biggest thing here is that you’ll score 4% back on eligible gas purchases for up to $7,000 in each year (with 1% being earned thereafter.) There’s also 3% back at restaurants and travel, 2% back on Costco/Costco.com purchases, and 1% back on everything else.
As long as you remain a Costco member, there is no annual fee and no foreign transaction fees. Each year, you’ll receive an annual credit card reward certificate, which can be redeemed for cash or merchandise at Costco warehouses within the U.S.
Citi Double Cash MasterCard
APR: 13.99% – 23.99% variable based on credit score
Annual fee: $0
Recommended credit score: Good, excellent
The Citi Double Cash MasterCard is a great way to earn at both ends. You’ll get 1% back whenever you buy something on the card, and then an additional 1% back on when you pay the card (as long as you pay the minimums.) This is great for those who keep their cards paid off, as it essentially gives you 2% back each month on all purchases. While there are some cards here that are higher percentages in certain categories, this is among the best you can get for a no-limit cash back card, so you can earn as much as you spend (and pay off.)
Other benefits include 0% balance transfers in the first 18 months, though you’ll be charged a $5 fee or 3% of the transfer, whichever is greater. If you already have a lot of balance on other cards, this can be a huge benefit as you’ll essentially earn 0% interest, and be charged nothing outside of the $5/3% fee as long as it’s paid off within 18 months. However, should you go over that, you’ll be charged a variable 13.99% – 23.99% based on your credit score, so be sure to pay it off before the 18 months expires.
Travel credit cards
Travel credit cards are generally geared toward giving you benefits for traveling, whether that’s in the form of flight discounts, free bags, priority boarding, or another perk. If you frequently travel, these cards could allow you to cash in on some major savings.
Chase Sapphire Reserve
APR: 16.99% – 23.99% variable based on credit score
Annual fee: $550
Recommended credit score: Excellent
The Chase Sapphire Reserve is what we would consider being a high-tier card. That’s partially due to the annual fee that’s charged, but, if you travel a lot, it’s well worth the asking price.
You’ll start with getting 50,000 bonus points after spending $4,000 on purchases within the first 3-months of opening the account. That gives you $750 toward travel when you redeem through Chase Ultimate Rewards.
You’ll also get a $300 annual travel credit as reimbursement for travel purchases charged to your card on each account anniversary, which helps to offset the $550 annual fee. Plus, there are 3 points on travel immediately after earning your $300 credit. You’ll also get 3 points per dollar spent on dining and 1 point per dollar on all other purchases. There are no international transaction fees, either.
Redeeming rewards is simple, if you choose to get travel credit through Chase Ultimate Rewards, you’ll get a 50% increase in value, which would make 50,000 points worth $750 instead of the normal $375 it’d be worth otherwise. One nice benefit to this card is that it has a 1:1 point transfer with leading airline and hotel loyalty programs, ensuring that you’ll be able to stay at or fly with your choice of businesses.
Also, the Chase Sapphire Reserve includes access to 1,000 or more airport lounges worldwide after you enroll in Priority Pass Select, which can make traveling much easier. Plus, you’ll even get up to $100 of your application fees for TSA PreCheck or Global Entry reimbursed with this card, and we would highly recommend enrolling in either program if you travel a lot.
The last huge benefit with the Chase Sapphire Reward is one year of Lyft Pink for free (a $199 value), as well as a complimentary DashPass subscription, which essentially includes a year of free DoorDash deliveries (a $120 value).
United Explorer
APR: 16.49% – 23.49% variable based on credit score
Annual fee: $0 intro, $95 after first year
Recommended credit score: Good, excellent
While the above United card offers some great benefits, there are some high minimums to get credits and points. That’s where the United Explorer comes in. You’ll get 60,000 bonus miles after spending $3,000 in the first three months of having the card. Plus, on all United purchases, you’ll get 2 miles per dollar spent.
When you go to a restaurant or hotel, you’ll get 2 miles per dollar spent and then 1 mile per dollar on every other purchase. There are two United Club one-time passes included here, a free bag, priority boarding, and 25% back on United inflight purchases. Should you have this card, United will give you the first bag for free on your flights when you use your card to purchase. This is a savings of up to $120 per trip, which can easily pay for the annual fee in a single flight.
However, this card offers up to $100 back on Global Entry or TSA PreCheck, which are programs that we highly recommend joining if you travel by air often. There are no foreign transaction fees, either, which make it a great card to use when traveling abroad.
United Club Infinite
APR: 16.49% – 23.49% variable based on credit score
Annual fee: $525
Recommended credit score: Good, excellent
United’s highest-end credit card is its Infinite tier. You’ll earn a bonus of 100,000 miles after spending $5,000 on purchases within the first 3-months. Plus, this option gives you 4 miles per $1 spent on all United purchases, 2 miles per dollar on other travel, 2 miles per dollar on all restaurants, and 1 mile per dollar on everything else.
Up to $100 of your Global Entry or TSA PreCheck fees will be covered, which is a crucial thing if you travel often at all. Plus, your first and second checked bags are completely free here, which can save you up to $320 per trip. Another huge benefit here is that you’ll get 25% back as a statement credit on purchases for food, beverages, or Wi-Fi when you’re on a United-operated flight and use your Club card.
Southwest Rapid Rewards Plus
APR: 15.99% – 22.99% variable based on credit score
Annual fee: $69
Recommended credit score: Good, excellent
Southwest is my airline of choice when it comes to flying anywhere that the company services. The Rapid Rewards Plus credit card is the lowest-cost annual fee card that Southwest offers, but the value in points is unmatched on any other airline. For starters, you’ll get 65,000 bonus points after spending just $2,000 on purchases within the first 3-months of having the card. Plus, you’ll get 3,000 bonus points on each cardmember anniversary.
2 points per dollar spent at Southwest and Rapid Rewards hotel and rental car purchases. Plus, 1 point per dollar on everything else. No blackout dates apply, and you can redeem points for flights, hotel stays, gift cards, and more.
Southwest often offers low-cost flights, which all include two bags plus your carry-ons at no additional charge. For example, most standard flights cost less than 10,000 points each, while you can sometimes find flights for as little as 2,500 points, meaning that your rewards can go further here.
Southwest Rapid Rewards Premier
APR: 15.99% – 22.99% variable based on credit score
Annual fee: $99
Recommended credit score: Good, excellent
Stepping up to the Southwest Rapid Rewards Premier Credit Card will net you the same 65,000 bonus points after you spend $2,000 in the first three months that the Plus card above provides. However, you’ll get 6,000 bonus points on your anniversary, and the same 2 points per dollar spent at Southwest and 1 point per dollar on everything else. The upgrade here is that there are no foreign transaction fees, which can be crucial if you travel out of the country often.
Southwest Rapid Rewards Priority
APR: 15.99% – 22.99% variable based on credit score
Annual fee: $149
Recommended credit score: Good, excellent
The Southwest Rapid Rewards Priority Visa is my personal credit card with the airline. It offers the same 65,000 points after you spend $2,000 in the first three months that the above two cards offer, however, there’s quite a bit more to enjoy here.
While you’ll get the same 2 points per dollar at Southwest and 1 point per dollar on everything else, on your cardmember anniversary you’ll get 6,000 bonus points. Plus, no foreign transaction fees make this a great card for traveling.
IHG Rewards Club Traveler
APR: 15.99% – 22.99% variable based on credit score
Annual fee: $0
Recommended credit score: Good, excellent
IHG might not be a name you recognize, but you’ll surely know some of its child companies. From Holiday Inn to Crowne Plaza, InterContinental, Regent, and more, IHG is bound to have hotels in your area. Right now, when signing up for the IHG Rewards Club Traveler MasterCard, you’ll get 75,000 bonus points after you spend $2,000 within the first three months of opening your account.
You’ll earn 15 points per dollar spent at IHG hotels, and 2 points per dollar spent at gas stations, grocery stores, and restaurants. Earn 1 point per dollar on every other purchase. Plus, you’ll enjoy a reward night whenever you redeem points for any stay of four or more nights at a time.
IHG Rewards Premiere
APR: 15.99% – 22.99% variable based on credit score
Annual fee: $89
Recommended credit score: Good, excellent
If you don’t recognize the IHG name, you’re sure to know some of its child companies. From Holiday Inn to Crowne Plaza, InterContinental, Regent, and more, IHG is bound to have hotels in your area or in the places you plan to travel to. Right now, you’ll earn 125,000 bonus points after spending $3,000 on purchases in the first three months of opening your new IHG Rewards Premier MasterCard.
After that, you’ll earn 25 points per dollar spent at IHG hotels, and 2 points per dollar spent at gas stations, grocery stores, and restaurants. Earn 1 point per dollar on every other purchase. Plus, you’ll enjoy a reward night whenever you redeem points for any stay of four or more nights at a time.
Citi AAdvantage MileUp
APR: 15.99% – 24.99% variable based on credit score
Annual fee: $0
Recommended credit score: Excellent
If you love flying American Airlines, then this card is a great one to have. You’ll earn 10,000 American Airlines AAdvantage bonus miles and get a $50 statement credit after your first $500 in purchases within three months of opening the card. Earning 2 miles for each dollar spent at American Airlines or grocery stores, the points should add up quite fast. Plus, you’ll also get 1 mile per dollar spent everywhere else.
Citi will also give you 25% off inflight food and beverage purchases when using your card, giving you even more ways to save.
Citi AAdvantage Business Platinum Select
APR: 15.99% – 24.99% variable based on credit score
Annual fee: $0 intro, $99 after first year
Recommended credit score: Excellent
This business-focused card will earn you 65,000 American Airlines AAdvantage bonus miles after your first $4,000 in purchases within four months of opening the account. This can bag you several flights, depending on the length you need to travel.
The first checked bag is free on domestic travel, which can help reduce overall costs. Plus, 25% in savings is available when you purchase inflight Wi-Fi. When it comes time to board, you’ll have access to a preferred line. Earning with this card is simple, as 2 miles will be added to your account per dollar spent on American Airline purchases, as well as at “telecommunication merchants, cable and satellite providers, car rentals, and gas stations.” 1 mile per dollar will be earned on all other purchases, and there are no foreign transaction fees here.
Citi AAdvantage Platinum Select World Elite
APR: 15.99% – 24.99% variable based on credit score
Annual fee: $0 intro, $99 after first year
Recommended credit score: Excellent
While the above card is focused on business users, this one is geared around normal purchasers. With 50,000 American Airlines AAdvantage bonus miles available after $2,500 in purchases within the first three months of opening your account, this card has easier to attain limits when compared to the business alternative.
The earnings are similar, giving you 2 miles per dollar spent on American Airline purchases as well as at gas stations and restaurants. If you manage to spend $20,000 or more within your first year and renew the card, you’ll even get a $125 American Airlines flight discount.
The first bag is checked free, and preferred boarding is still available just like the business-class version of the card.
Citi AAdvantage Executive World Elite
APR: 15.99% – 24.99% variable based on credit score
Annual fee: $450
Recommended credit score: Excellent
As one of the highest-ranking American Airlines cards around, the Executive World Elite has a hefty yearly fee to keep it going. 50,000 American Airlines AAdvantage bonus miles are available after you spend $5,000 in the first three months of having the card, and you’ll earn 10,000 AAdvantage Elite Qualifying Miles after spending $40,000 within one year.
The real benefit of this card is that you and up to two guests or immediate family members that travel with you will gain access to Admirals Club. This exclusive lounge in airports will be a place for you to kick back and relax while waiting for your next flight to take off, which can be the difference between a hectic and crazy or nice and relaxing journey.
Interest-free cards
While most of the cards above are designed to give you perks in the form of direct cash back or points, interest-free cards offer their benefit in giving you periods of time where no interest is charged. However, you’ll want to keep a close eye on these cards, as many will charge you the interest for the full purchase amount over the time it’s been on the card in one lump sum at the end of the term, which can be quite costly.
Citi Diamond Preferred
APR: 0% introductory on purchases for the first 18-months, then 14.74% – 24.74% variable based on credit score
Annual fee: $0
Balance Transfer Offer: 0% for 18-months
Recommended credit score: Excellent
You’ll find that Citi’s Diamond Preferred card doesn’t have many features or frills on it when compared to the other cards above. However, where it excels is in offering 0% interest for the first 12 months on any and all purchases. But, the big feature here is that you can get a 0% interest rate on the first 21 months of balance transfers. If you have a card that has a high-interest rate, this could save you thousands of dollars over time, as long as you get the card paid off before the introductory period ends.
Citi will charge you a balance transfer fee of $5 or 5%, whichever is greater with each transfer you make. To cash in on the 0% balance transfer promotion, you must complete the transfer within the first four months of having the card.
The one thing to keep in mind is that after your 0% intro APR expires, both new and unpaid purchase balances will accrue interest until all balances, including transferred balances, are paid in full. This is something to seriously keep an eye on because if you don’t have things paid off in the end, you could increase your balance by thousands.
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