Last updated Jul. 30, 2024 by Okechukwu Nkemdirim
As we dive into 2023, the landscape of credit cards continues to evolve with lenders introducing attractive offers, benefits, and perks to cardholders. From generous cash-back rewards to travel perks and low-interest rates, choosing the right credit card can significantly enhance your financial health. Here, we present an in-depth review of the best credit cards of 2023, along with our award categories.
Award Categories
- Best Overall Credit Card
- Best Travel Credit Card
- Best Cash-Back Credit Card
- Best Credit Card for Balance Transfers
- Best Student Credit Card
- Best Business Credit Card
Best Overall Credit Card: Chase Sapphire Preferred® Card
Highlights:
- Points System: 2x points on travel and dining, 1x on others.
- Sign-Up Bonus: 60,000 points after spending $4,000 in the first 3 months.
- APR: Variable 16.99%-23.99%
- Annual Fee: $95
Chase Sapphire Preferred® remains the go-to option for many due to its versatile rewards program. Given its robust benefits such as travel insurance, no foreign transaction fees, and access to premium experiences, it well-deserves the title of the best overall credit card. This card offers significant value whether you are traveling abroad or dining out locally.
Best Travel Credit Card: American Express® Gold Card
Highlights:
- Points System: 4x points at restaurants and supermarkets, 3x on flights.
- Sign-Up Bonus: 60,000 points after spending $4,000 in the first 6 months.
- APR: Variable 15.99%-22.99%
- Annual Fee: $250
The American Express® Gold Card stands out in the travel category for its comprehensive earning potential, particularly at supermarkets and dining establishments. Cardholders also benefit from generous travel perks, including baggage insurance and complimentary lounge access.
Best Cash-Back Credit Card: Citi® Double Cash Card
Highlights:
- Cash-Back System: Offers 2% cash back — 1% when you buy, and 1% when you pay.
- Sign-Up Bonus: None
- APR: Variable 13.99%-23.99%
- Annual Fee: $0
If maximizing cash back is your priority, the Citi® Double Cash Card is unparalleled. The straightforward earning system eliminates the need for tracking rotating categories or registration. It is perfect for everyday spending, providing consistent and reliable rewards.
Best Credit Card for Balance Transfers: Discover it® Balance Transfer
Highlights:
- Introductory APR: 0% for 18 months on balance transfers.
- Regular APR: Variable 11.99%-22.99%
- Cash-Back System: 5% cash back on rotating categories, 1% on all other purchases.
- Annual Fee: $0
Discover it® Balance Transfer is the ideal card for those looking to manage debt through its extensive introductory 0% APR on balance transfers. Additionally, it offers a robust cash-back program that rewards everyday spending.
Best Student Credit Card: Bank of America® Cash Rewards for Students
Highlights:
- Cash-Back System: 3% cash back on a category of choice, 2% at grocery stores and wholesale clubs, and 1% on all other purchases.
- APR: Variable 13.99%-23.99%
- Annual Fee: $0
Designed for students, this Bank of America card provides a variety of rewards options and flexible quarterly earnings. It introduces young adults to the world of credit, equipping them with essential financial management tools.
Best Business Credit Card: Ink Business Preferred® Credit Card by Chase
Highlights:
- Points System: 3x points on travel, shipping, internet, cable, and phone services.
- Sign-Up Bonus: 100,000 points after spending $15,000 in the first 3 months.
- APR: Variable 15.99%-20.99%
- Annual Fee: $95
The Ink Business Preferred® Credit Card is a powerhouse for small business owners. The card’s impressive rewards system, tailored to business expenses, makes it the best option for maximizing business-related purchases and travel.
FAQs
What is an APR?
APR stands for Annual Percentage Rate. It is the annual rate charged for borrowing through your credit card and represents the yearly cost of funds over the term of a loan.
How do I choose the best credit card for me?
Consider your spending habits, priorities such as travel or cash-back rewards, and any fees associated with the card. Match these factors to the card’s features to find the best fit.
What is a sign-up bonus?
A sign-up bonus is an incentive offered by credit card issuers, typically in the form of points, miles, or cash back. To qualify, new cardholders usually have to spend a certain amount within a specified period.
What is the benefit of a balance transfer card?
Balance transfer cards help you consolidate debt into one card with a lower interest rate, often with a promotional 0% APR for a set time. This can be useful for paying down debt faster without accruing additional interest.
Are there fees associated with travel credit cards?
Many travel credit cards come with annual fees but calculating the value of the rewards and benefits against the fee is essential. Some cards might also charge foreign transaction fees, so be wary of this if you travel internationally frequently.
Do student credit cards help build credit?
Yes, student credit cards are designed to help young adults build a credit history. Using the card responsibly by paying at least the minimum payment on time each month contributes positively to your credit score.
Can I upgrade my credit card?
Many issuers allow you to upgrade or downgrade your credit card depending on your needs and qualifications. Contact your issuer to explore available options and any impacts it may have on your credit.
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<p>Choosing the right credit card in 2023 depends on your personal and financial needs. While the Chase Sapphire Preferred offers versatile rewards, the American Express Gold Card is perfect for travelers. For everyday cash-back, the Citi Double Cash stands out, while the Discover it Balance Transfer is best for managing debt. For students, Bank of America’s Cash Rewards card provides flexible rewards, and for small businesses, the Ink Business Preferred Card is a top pick.</p>
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