What credit card should I get?

One of the questions I get asked the most is “Which credit card should I choose?”

There is no universal answer, but here’s how to narrow it down:

Which credit card to choose if you have a balance

If you have credit card debt, you need to prioritize the interest rate over fees. The average credit card interest rate is currently around 16.50%. It makes no sense to pay interest just to earn 1%, 2% or 3% cashback or travel points.

If you have credit card debt, forget about rewards for now. You can avoid interest for up to 21 months with the right balance transfer card. And some card issuers (especially credit unions) charge current (not promotional) rates of 6% to 9%. Do not chase rewards if you are scrolling through the balance.

If you have credit card debt, I recommend these cards:

• Citi Simplicity® Card: Initial balance transfer offer 0% for 21 months (transfers must be completed within the first four months), account balance transfer fee 5% (minimum $5), 0% APR on introductory purchase for 12 months and a regular variable annual interest rate from 15.49% to 25.49 per annum. %
• Wells Fargo Cash Wise Visa® Card*: 0% opening balance transfer offer with corresponding balance transfer within 15 months of account opening (transfer must be completed within 60 days of account opening), opening balance transfer fee of 3% or $5 (Whichever is greater, 0% APR on initial purchase). within 15 months of account opening, regular variable annual rate from 14.49% to 24.99%, regular balance transfer fee up to 5% or $5 (whichever is greater)
• BankAmericard® credit card: 18 billing cycles 0% initial balance transfer offer per annum (must complete transfer within 60 days of account opening), 3% or $10 transfer fee (whichever is greater), introductory 0% per annum when purchased over 18 billing cycles, typically variable annual rate from 13.24% to 23.34% on purchases and balance transfers

Which card to choose if you do not have credit card debt

Now we move on to the fun part! The key questions at this stage focus on how much effort you want to put in, how you spend your money, and what you want to get from the reward.

Some people treat credit card rewards like a game. It’s fun for them and they spend time looking for the best deals and juggling multiple cards. And some credit card holders prefer simplicity and prefer to use one or two cards as widely as possible.

You won’t get the best rewards with this approach, but you can still get good results. Here are my favorite fixed rate cashback cards:

• Alliant Visa Subscription Card*: 2.5% cashback per purchase (max $250 cashback per billing cycle) with no annual fee.
• Citi® Dual Cash Card: Virtually 2% cash back on everything (you get 1% when you buy and 1% when you pay), no annual fee.

Which card to choose if you are willing to work a little to get the best rewards

Splitting your spending across multiple cards is the best way to maximize your rewards. At this point, you need to think about how you spend your money. Different cards encourage different types of spending (eg travel, restaurants, groceries, entertainment).

You also need to think about how you want to use your rewards. Cashback has the widest appeal (after all, who couldn’t use a little more cash?), although trip rewards are usually the most valuable.

You can generally get the most out of general purpose travel cards with points transfer programs (such as the Chase Sapphire Reserve Card, American Express® Gold Card, Citi Premier® Card, and Capital One Venture Rewards Credit Card).

Each of these issuers has over a dozen partner airlines and hotels, and you can book an even wider range of flights and hotels directly through the issuers. These programs provide a lot of flexibility, and in terms of cents per point, they usually offer higher returns than cashback cards.

bottom line

As you can see, choosing the best credit card for you is a personal decision. I’ll leave you two more thoughts:

You’re doing well as long as you avoid credit card debt and trade rewards for something of value to you.

Not everyone wants to fly to the Maldives first class and live in an overwater bungalow. Even if it earns less cents per point, a free flight to grandma’s house or cash back on everyday purchases might make more sense in your situation.

You should definitely consider signup bonuses when evaluating credit cards, but don’t lose sight of the fact that your credit card strategy needs to be long-term. Especially if you’re new to lending, focus on constant value rather than card shuffling.

*All Wells Fargo Cash Wise Visa and Alliant Visa Signature Card information has been collected independently by CreditCards.com. The issuers did not provide details and are not responsible for their accuracy.

Ted Rossman is a senior industry analyst at CreditCards.com. He has spent the last decade in the personal finance industry, conducting consumer and industry research and providing commentary for the media and consumers. Its main focuses include credit cards, debt management and credit ratings. Ted regularly shares his advice through major media such as Good Morning America, Wall Street Journal, CNBC and Fox Business. He also writes a weekly “Wealth and Desires” column for CreditCards.com, which is mostly about cashback credit cards.