Best Credit Cards for March 2024 | The Motley Fool (2024)

Simplify picking one of the best credit cards

There are many card options listed below, so here are the standouts we want to highlight.

• Wells Fargo Active Cash® Card (see rates and fees): our pick for best credit card overall.
• Discover it® Cash Back (see rates and fees): our pick for the highest cash back potential.
• Bank of America® Travel Rewards credit card: our pick for travel.

Our pick for best credit card overall

Wells Fargo Active Cash® Card

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Earn 2% cash rewards on your spending. No juggling cards, no figuring out rewards systems. Spend at the grocery store: 2%. At the vet: 2%. Paying for Netflix: 2%. It’s really that easy. The perks on the card aren’t as extensive, but hey, we like no annual fee.

Apply for the Wells Fargo Active Cash® Card (on Wells Fargo's website)

The 2 best credit cards for travel rewards

Our top pick: Bank of America® Travel Rewards credit card

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The Bank of America® Travel Rewards credit card is proof that you can have a great travel rewards card with no annual fee. If you are a Bank of America Preferred Rewards member, the rewards rate bumps up between 25% and 75%.

I don't use this card specifically, but have a very similar Bank of America card and wouldn't give it up. Especially for those that already bank with Bank of America and qualify for Preferred Rewards, these cards have to make the list to consider.

Apply for the Bank of America® Travel Rewards credit card (on Bank of America's website)

Also good: Capital One Venture Rewards Credit Card

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The Capital One Venture Card is our top pick and was the anchor card in my wallet for a long time. (See rates and fees.) It’s simply a great card that allows you to earn a solid 2 miles per $1 spent across all of your spending, plus 5 miles per $1 on hotels and rental cars booked through Capital One Travel.

I mentioned above that this used to be in my wallet. Why not anymore? It was a lifestyle change. We had kiddos enter the picture, which meant less travel, which meant less utility from the card. But this will be top of my list when that changes again, especially if it has a welcome bonus like the current one.

Apply for the Capital One Venture Rewards Credit Card (on Capital One's website)

Who shouldn’t get these cards

Travel cards typically aren’t set-it-and-forget-it credit cards. Many have annual fees, so you should make sure you’re actually making the most of them if you’re paying that fee. If you want a simple credit card experience, it’s hard to say that these would be the best credit cards for you.

Our top pick: Chase Freedom Flex℠

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The Chase Freedom Flex rewards program isn’t as simple as the flat cash rewards, but some people may actually like it more. There are rotating categories each quarter like gas, grocery stores (excluding Walmart and Target), and Amazon and Lowe's. If you activate the category for your card, you earn 5% back on purchases in that category for the period that it’s active. But on a regular basis, you’re also earning 3% on dining at restaurants, takeout, eligible delivery services, and drugstores. And then it’s 1% back on everything else.

Apply for the Chase Freedom Flex℠ (on Chase's website)

Who shouldn’t get these cards

If you don’t have a need for a 0% introductory offer, you are probably well served to look at other card categories, rather than being limited to cards that have a 0% intro offer.

And if you have significant credit card debt or you just don’t think that you can realistically pay down your debt in the length of time offered by these cards, then you may be better off opting for the cards with the longest 0% intro offers.

Our top pick: Wells Fargo Reflect® Card

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The Wells Fargo Reflect® Card also makes this list because of its matching 0% introductory offers for 21 months from account opening on balance transfers and purchases. This is another card with no annual fee, which is ideal when you’re trying to pay down credit card debt or generally avoid interest.

Apply for the Wells Fargo Reflect® Card (on Wells Fargo's website)

Another good alternative: Citi Simplicity® Card

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The Citi Simplicity® Card also offers 21 months of 0% introductory interest on balance transfers. There is no annual fee nor is there a fee for late payments – a nice complement to the no penalty rate feature. Where the card lags is the intro 0% purchase offer that's considerably shorter than the 21 months of the balance transfer offer (again, the go-to regular APR applies to purchases after the introductory offer).

This content is not provided by the issuer. Any opinions expressed are those of The Ascent alone, and have not been reviewed, approved or otherwise endorsed by the issuer.

Apply for the Citi Simplicity® Card (on Citi's website)

Who shouldn’t get these cards

If you don’t have credit card debt and you’re not in a position where you need a period of 0% interest on new purchases, then these aren’t the cards for you. If you don’t need a 0% offer, focus on other card categories instead.

The 2 best credit cards for cash back rewards

Our top pick for tiered and bonus category cash back: Discover it® Cash Back

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Leading the pack for these cards is the Discover it® Cash Back. This card has a rotating bonus category, which means that it has a different category each quarter that earns a high 5% cash back rate on spending (up to $1,500 in purchases, and note that you have to activate the bonus category). These categories include grocery stores, restaurants, and gas stations.

Apply for the Discover it® Cash Back (on Discover's website)

Also good for simple cash back: Citi Double Cash® Card

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The Citi Double Cash® Card card is nearly as simple and worth checking out. The rewards program is just a wee bit more complicated – you get 1% cash back when you make a purchase and 1% when you pay your bill, rather than just getting the 2% all at once. But that isn’t a big deal.

Apply for the Citi Double Cash® Card (on Citi's website)

Travel credit cards

These cards are best suited to people who travel at least a few times per year. Many of these cards charge annual fees, so you want to make sure you're earning enough in rewards to at least make up for what you're paying to own it.

With travel cards, you can redeem your points or miles for free or discounted travel. There are also quite a few top travel credit cards that offer extra perks, such as free access to airport lounges, hotel upgrades, and travel insurance. The best airline credit cards, hotel credit cards, and general travel credit cards would all fall under this category.

Compare more picks: Check out The Ascent's best travel rewards credit cards

Rewards credit cards

This category includes every credit card that earns purchase rewards. With so many to choose from, you'll find a diverse mix of the best credit cards for rewards that earn cash back, travel points, and store rewards.

Compare more picks: Check out The Ascent's best rewards credit cards

Cash back credit cards

Cash back cards are best for those who want a versatile card you can use for everyday spending. If you want a card with bonus categories, look for one that aligns well with your spending habits.

With the best cash back credit card, you earn rewards that can be redeemed as cash. Depending on the card, you may be able to redeem your cash back as a statement credit towards your credit card balance, a deposit to a bank account, or as a check. You'll find cards that earn the same flat rate on purchases as well as cards that earn extra in bonus categories among the best cash back cards.

Compare cash back credit cards: Check out The Ascent's best cash back credit cards

Balance transfer credit cards

These credit cards are best suited for those who are trying to pay off credit card debt. Ideally, you can find one with an introductory APR that's long enough to enable you to pay off your full balance. But you should note that you can't transfer a balance to a new card with the same issuer. And any balance transfer card will charge you a one-time fee for making the transfer.

Many of the best balance transfer credit cards have a 0% intro APR on balance transfers and intro periods can last for well over a year. If you want to refinance credit card debt and save money on interest, a balance transfer card is ideal.

Compare more picks: Check out The Ascent's best balance transfer credit cards

Best credit cards for beginners

The best credit cards for beginners accepts applicants with no credit history, don't charge unnecessary fees, and have educational features to help you improve your credit, such as free credit score monitoring. For those who are enrolled at college or university, student credit cards are a great first step into the world of credit.

Compare more picks: Check out The Ascent's best credit cards for building credit

High limit credit cards

Some credit cards tend to offer higher credit limits than most. These high limit credit cards let you spend more, and they can also help you protect your credit by making it easier to keep your credit utilization ratio low. You typically need excellent credit to qualify.

Compare more picks: Check out The Ascent's best high limit credit cards

0% intro APR credit cards

Cards in this category have a 0% intro APR that applies to purchases. They're a smart choice if you need to buy something expensive, but you can't afford to pay in full upfront. The most popular 0% intro APR credit cards also often have those intro deals for a year or longer.

Compare more picks: Check out The Ascent's best 0% intro APR credit cards

Secured credit cards

These cards can be a good starting point for those trying to establish a credit history for the first time or rebuild their credit score if they've managed credit poorly in the past. Annual fees are more common with these cards and rewards are rare, so they're generally not a good fit for those who wouldn't have any trouble applying for credit cards that fall into the categories listed above.

You need to pay a security deposit to open a secured credit card, which is typically used for rebuilding or building credit. The security deposit is often (but not always) equal to your starting credit limit. Even with the best credit cards for bad credit, high-quality secured credit cards usually graduate to unsecured cards. This means you get your deposit back if you make enough on-time payments.

• Discover it® Secured Credit Card: A lucrative rewards program plus Discover matches all the cash back earned in the first year.

Compare more picks: Check out The Ascent's best secured credit cards

Looking to rebuild credit?: Check out The Ascent's best credit cards for bad credit

Student credit cards

If you're in college, you can get started on building your credit with the best student credit card. Even though college students are the primary audience for these credit cards, there are some excellent perks to be found with them. Some cards include free credit score tracking and money back for good grades.

Older adults looking to build a credit history should check out secured credit cards.

• Bank of America® Customized Cash Rewards credit card for Students: A rare student credit card pick with a long 0% intro APR, big sign-up bonus, and rich rewards program.

Compare more picks: Check out The Ascent's best student credit cards

Business credit cards

Business credit cards are designed with business owners in mind. This type of credit card offers higher credit limits than consumer credit cards to accommodate business spending. Many of them also have bonus categories to fit typical business spending habits. For example, a business card may offer bonus rewards on advertising, shipping, or office supply store purchases.

In addition, a business card can help you build your business credit score. Just like your own credit score is a rating of your personal creditworthiness, businesses have credit scores that rate their creditworthiness. By using a business credit card and paying on time, you can raise your business credit score. That can help you qualify for business financing in the future.

Your business doesn't need to be a separate entity to qualify for a business credit card. It's possible to open a business credit card with a sole proprietorship. No matter what type of business you have, it's smart to compare credit card offers.

Compare more picks: Check out The Ascent's best business credit cards

Want cashback on business purchases? Check out The Ascent's Blue Business® Plus Credit Card from American Express review.

Store credit cards

Many chain stores, from Macy's to Target to Lowe's, offer their own credit cards. Sometimes these credit cards are accepted everywhere, but often they're only for use in-store. Store credit cards usually come with exclusive discounts and rewards that can only be used at that store. Make sure to read the fine print when you apply for a credit card, especially with any 0% intro APR offers, as they can involve deferred interest, which is tricky and can lead to hefty surprise interest charges.

Opening one of these cards is best if you frequently shop at a particular retailer. But if you only shop there once or twice per year, it may not be worth it.

When should I have one credit card?

You should stick to one credit card if:

• You want to keep your finances as simple as possible.
• You've never had a credit card before, or you've been using credit cards for less than a year.
• You've had problems with missed credit card payments or overspending.
• You value simplicity in managing your finances and don't want to worry about tracking multiple bills.

When should I have multiple credit cards?

You should carry multiple credit cards if you want more card benefits and you're confident in your ability to manage everything. There are some big advantages to having multiple cards:

• You can carry cards that earn more in different areas, such as one flat-rate cash back card and another with bonus categories. This is a simple way to maximize your rewards.
• You can use features from each of your cards and get more value overall. Instead of choosing between two of the best credit card offers, you can have both.
• You'll have more available credit, which helps you maintain a lower credit utilization ratio. This can result in a higher credit score.

Compare the best credit cards