Category: Best Reward Credit Card

WHY WE CHOSE THIS CARD

This is a stand-out secured card, particularly because of how it rewards those who are building credit. Each purchase made earns cash back, and Discover will generously match your earnings at the end of the first year, too. The cash-back earning rates are good, even compared with some unsecured, entry-level rewards cards. Better yet, there’s no annual fee, which is uncommon for a card like this. This secured card can grow with you, too. Once you’ve had it for eight months, Discover will start reviewing your account to see if you qualify for an upgrade to an unsecured version.

PROS & CONS

Pros

• Ability to earn cash-back rewards while building credit
• Responsible use can lead to automatic unsecured card upgrade
• No foreign transaction fee
• Cash-back match as a first year bonus

Cons

• Low cap on highest rewards earning rate
• Mediocre maximum credit limit compared to other secured cards

HIGHLIGHTS

• No annual fee, earn cash back, and build your credit with responsible use.
• It’s a real credit card. You can build a credit history with the three major credit bureaus. Generally, debit and prepaid cards can’t help you build a credit history.
• Automatic reviews starting at 8 months to see if Discover can transition you to an unsecured line of credit and return your deposit.
• Get 100% U.S.-based customer service and get your free Credit Scorecard with your FICO Credit Score.

WHY WE CHOSE THIS CARD

There’s a good reason we picked this as the best rewards card for earning cash back in different purchase categories. You’ll get 3 points per $1 spent on a long list of expenses: not just flights and hotel stays, but day-to-day bills, including takeout food, dining out, rideshares, and streaming services. Then 1 point per $1 on everything else. Plus, the points are surprisingly versatile. You can always redeem them for cash, or you can book travel or buy merchandise.

PROS & CONS

Pros

• Generous rewards rate on many common expenses
• No annual fee

Cons

• Longer 0% APR offers on purchases and balance transfers exist
• Cash back can only be redeemed in $20 or $25 increments
• If you’ve received the bonus or interest deal before, you may not be eligible again

HIGHLIGHTS

• 20,000 bonus points when you spend $1,000 in purchases in the first 3 months – a $200 cash redemption value.
• Earn 3 points on the following: eating out/ordering in, gas, rideshares, transit, flights, hotels, homestays, car rentals, and popular streaming services.
• $0 annual fee.
• No limit to points you can earn, and points don’t expire as long as your account remains open.
• Cell phone protection offers insurance against your cell phone from damage or theft.

WHY WE CHOSE THIS CARD

This card has a little bit of everything in abundance, and that’s why it’s our best overall pick. To kick things off, you’ll earn a flat 3% cash back on up to $10,000 worth of all purchases in the first year. That translates into a bonus worth up to $300, which is superior for a no-annual-fee cash-back card. After that, you’ll earn a flat 1.5% cash back on all purchases, which is respectable and makes tracking reward earnings easy. You’ll also get a decent 0% APR offer on purchases and balance transfers for 12 months, and some stand-out extras like cellphone protection and secondary rental car insurance.

• Superb bonus that doubles the already-solid rewards earning rate on eligible purchases during the first year
• 0% APR deals give you a full year to pay off purchases and balance transfers
• Includes cellphone insurance coverage, which is uncommon

Cons

• No short-term new cardholder bonus for those seeking a quick stash of cash back
• Above-average balance transfer fee can chip away at the cost savings of moving large balances to this card

HIGHLIGHTS

• 1.5% Unlimited Cash Back – on all purchases after the intro period
• No Annual Fee
• No Foreign Transaction Fees