Best Credit Cards of May 2024 | Bankrate (2024)

A credit card is a financial product similar to a personal line of credit: Credit cards allow you to borrow money from a bank to make purchases. You're then expected to pay back what you owe, either in full by a set due date or in partial payments over time. When you’re approved for a credit card, you're assigned a credit limit that determines the maximum dollar amount you can charge to your card. As you make purchases, your available credit decreases; when you pay your bill, your available credit increases.

With a credit card, you can carry a balance (in other words, debt) from month to month. This means you can make partial or minimum payments rather than paying off your balance in full. The downside to carrying a balance is that you'll face interest charges based on your credit card’s APR, or annual percentage rate. Your credit card’s APR is effectively the cost of borrowing money. But remember: Credit card interest is only relevant if you carry credit card debt from month to month, and it’s best to pay your balance on time and in full whenever possible.

Learn more:Should you get a credit card?

Credit card rewards programs are another major advantage of credit cards. Cards typically earn one of three types of rewards: cash back, travel miles or points.

• Cash back is the simplest form of rewards. With a cash back card, you earn back a percentage of your purchase cost, so if your card earns 3 percent back in a certain spending category, spending $100 in that category would net you $3 in cash back.
• Credit card points and miles work similarly, but the value of points and miles varies based on how they’re redeemed. Miles are generally best used to book travel (typically airfare) while points may offer more flexibility, allowing you to redeem for different types of travel as well as cash back, gift cards and more.

Learn more:How to maximize your rewards' value

No one card will be “the best” for everyone, but certain cards will likely stand out based on your goals, spending habits, credit score and more.

The 2024 Bankrate Award winners are a great place to start if you want to see which cards we've highlighted as among the best on the market for different types of cardholders.Every year, Bankrate’s credit card experts research, rate and compare hundreds of cards and crown the best in each major category as Bankrate Award winners based on their outstanding features, rewards value and more.

Several of the cards on this month's "Best of" list were winners in 2024 year, including:

• American Express Gold Card — Best credit card for foodies (three-time winner*)
• Capital One Venture X Rewards Credit Card — Best credit card for jet-setters (three-time winner*)
• Capital One SavorOne Cash Rewards Credit Card — Best credit card for entertainment, Best credit card for families (two-time winner*)
• Discover it® Student Cash Back — Best credit card for students (two-time winner*)
• Wells Fargo Active Cash Card — Best credit card for flat-rate cash back
• Chase Freedom Unlimited® — Best credit card for cash back fans (three-time winner*), Best credit cards for stacking (two-time winner* with the Chase Freedom Flex℠ and Chase Sapphire Reserve® cards)

Stay tuned for our next batch of winners when we announce the 2025 Bankrate Award winners later this year.

Previous years: *2022 Bankrate Awards, 2023 Bankrate Awards

Bankrate data indicates that, regardless of the type of credit card, users prefer straightforward rewards programs, no-annual-fee cards and solid zero-interest periods.

These fan-favorite cards often carry flat rewards rates or strong rates in a mix of everyday bonus categories like groceries, dining and gas. The cards that received the most applications also tended to offer convenient cash back redemption options. We found that even among premium travel cards, the most popular cards were those that came at a low cost and offered a cash back redemption option. Most only had a $95 annual fee and let you redeem for cash back or statement credits that cover past travel purchases.

Considering how credit cards can help fight inflation and more cardholders are carrying balances, it makes sense to apply for easy-to-manage cards that help you save on everyday expenses and pay off debt at a minimal cost. And if you’re planning summer travel, well-rounded cards that can either rack up travel rewards or save you money on your usual expenses are a safe bet.

If you're debating which type of card is best for you, deciding whether you're willing to pay an annual fee is a great starting point. Check out credit card expert and editor Reena Thomas' recent essay on why she avoids annual fees, and why — despite recognizing the potential value of high-fee cards — she's prefers no-annual-fee rewards cards. Credit cards writer Ryan Flanigan (who holds a literal binder full of credit cards) also chimes in, trying to convince her to reconsider.

Credit card issuers offer different types of credit cards to meet a variety of consumer needs. For example, some cardholders don’t see the appeal of a premium travel card or won’t use the card enough to justify its annual fee, while others may primarily use their card while traveling abroad. The former type of cardholder would likely benefit from a no-annual-fee card, while the latter would benefit from a no-foreign-transaction-fee card with plenty of travel features.

But there’s no such thing as a one-size-fits-all credit card, and the sheer number of options can make it difficult to choose a credit card that’s best for your unique situation. That’s why it’s good to consider which card best matches your spending habits.

Here are the major credit card types and the ideal cardholder they’re suited for:

• What’s your credit score?

  The better your credit score, the better your chance of qualifying for a credit card with excellent perks and terms. Check your credit score before applying for a new card, and, if your credit score isn’t where you’d like it to be, work on improving your credit.

• Are you looking to pay off debt or upcoming purchases?

  If you only need 12 to 15 months to pay off your balance, a no-annual-fee rewards card with a short intro APR period may be your best choice long term. Otherwise, cards designed specifically for balance transfers or financing new purchases will be a better fit since they tend to offer 0 percent APR periods of 18 to 21 months.

  It’s best to pay your balance in full each month so you avoid paying interest, but a card with a low interest rate or alternate payment plan may be wise if you think you may need extra time to pay off unexpected purchases after intro zero-interest APRs typically end. Low-interest cards tout APRs that are lower than the average credit card interest rate, which has been hovering around a high 20 percent. Credit union cards often offer especially low rates, with low-end APRs sometimes ranging from 8 percent to 14 percent.

• What are your spending habits?

  Start your research by deciding what type of rewards you’d like to earn: cash back, points or miles. If your spending is concentrated in certain categories — like groceries, dining or travel — look for a card that carries a high rewards rate on those purchases. If you don’t spend a lot in one particular category, consider a card that earns rewards at a flat rate on all purchases.

  Flat-rate rewards cards typically offer a maximum of 2 percent cash back or 2X miles on purchases, while cards with rotating or year-round bonus categories can offer anywhere from 2 percent to 6 percent back on certain purchases (sometimes with a few restrictions on how much you can earn).

• Can you earn a sign-up bonus?

  Many credit cards carry a sign-up bonus for new cardholders. No-annual-fee rewards cards typically offer sign-up bonuses worth $200 to $250 after you spend $500 to $1,000 in the first three months. Meanwhile, premium rewards cards generally offer bonuses worth $500 to $800 after you spend $4,000 to $6,000 in your first three or six months. Business cards often offer even more valuable sign-up bonuses with a bigger spending requirement to match.

Although I knew which cards carried the highest rewards rates, most impressive sign-up bonuses and most valuable perks, I started my search by considering what I wanted most out of my card. I knew I wanted a versatile card that could reward my biggest expenses and remain a valuable staple in my rewards strategy even after I added more cards to my wallet.

APRs weren’t a huge concern since I already had a low-interest card from my credit union and I avoid carrying a balance. So I focused on rewards. While a cash back card would be a good fit, I didn’t want to close the door to more valuable travel rewards and transfer partners in the future.

My biggest expenses tend to be bills and everyday purchases like groceries, gas and dining, but I also shop at Walmart and online in a rush. I love to cook, too, so I’d probably lean on a card with a grocery rewards category more than one with a restaurant category. On paper, my spending habits meant a card with a high rewards rate at grocery stores would be helpful. But in practice, I’d likely rack up more rewards with a flat-rate card. Knowing I wanted a future-proof, flat-rate rewards card with diverse redemption options and plenty of pairing opportunities helped me quickly narrow my search to the Chase Freedom Unlimited.

Although it doesn’t carry the highest flat cash back rate, its combination of both 1.5 percent back on general purchases and 3 percent back on dining and drugstore purchases gives it an extra layer of rewards value.

Down the road, I can even boost the value of the Freedom Unlimited card’s rewards by adding the Chase Sapphire Preferred to my wallet and redeeming points for travel. I can also shore up my rewards earning with the categories from a card like the Capital One SavorOne or Blue Cash Everyday.

Until then, the Freedom Unlimited gives me a stellar foundation on which to build my rewards strategy.

— Garrett Yarbrough — Writer, Credit Cards

Editor Reena Thomas , Ph.D. keeps it even simpler:

Many of today’s best credit cards carry annual fees, and for many cardholders, the cost is more than worth it.

But not for me.

Premium cards offer perks like travel and shopping credits, lounge access and numerous other benefits that can easily justify their cost, but I don’t travel frequently and I’m not a big spender, so a no-annual-fee card has always seemed like a much better fit for my lifestyle...

Rewards strategists may enjoy the thrill of redeeming a card’s perks, but for me, the best card doesn’t need a game plan — it’s effortless, yet rewarding.

— Reena Thomas — Editor, Credit Cards

Ask the experts: What is the best feature you look for in a credit card?

Erica Sandberg

Contributor, Credit Cards

I gravitate to the perks the credit card offers. For example, I have a United℠ Explorer Card. It's great for the miles, and since there is a United Airlines hub in San Francisco, where I live, I tend to fly with them frequently. But the perks are where it really stands out.The “basic” United fare is substantially less than other classes, but you have to pay for overhead and checked baggage. Since this card offers complimentary checked bags, I come out ahead. I get the cheapest airfare plus free bag check! These are the kind of things I recommend that people look for when they're considering new credit cards — perks that make your life easier and save you money.

Once you’ve decided which credit card is best suited for your needs, it’s finally time to apply for your new card. You’ll have the best approval odds if you pursue a card that welcomes applicants with your credit score or if you’ve received a prequalified card offer.

Although it’s straightforward on paper, here’s a bit more information to guide you through how to apply for a credit card and get approved:

Learn more:What to do when your credit card application is denied

When evaluating the best credit cards, we take into account several factors, including how cards score in our proprietary card rating system and whether they offer features that fit the priorities of a diverse group of cardholders, from earning rewards to saving on interest. Whenever possible, we also feature cards that are available at various credit levels and price points.

We analyzed over 250 of the most popular credit cards in each of our primary card scoring categories, including Cash Back, Rewards, Balance Transfer, Low Interest, Business, Credit-Building, and Student, as well as in a few popular subcategories like Travel, No Annual Fee, Airline and Hotel.

We scored each card based on the factors most relevant to its primary category, including its rewards rate, estimated annual earnings, intro APR period length, ongoing APR, fees, perks and more to determine whether it belonged in this month’s roundup.

Here’s a quick look at how our card ratings are distributed as of May 2024, as well as some of the key factors that we considered in selecting this month’s Best Cards.

• 5 stars 2%

• 4 - 4.9 stars35%

• 3 - 3.9 stars39%

• 2 - 2.9 stars22%

• 1 - 1.9 stars2%

Bankrate expert Garrett Yarbrough strives to make navigating credit cards and credit building smooth sailing for his readers. After regularly featuring his credit card,…

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Nouri Zarrugh is a writer and editor for CreditCards.com and Bankrate, focusing on product news, guides and reviews. His areas of expertise include credit card strategy, rewards…