Best credit cards of September 2024

Your understanding of certain credit card terms is essential when choosing a credit card. The terms and phrases listed below should be top of mind when you begin shopping:

• Interest rate: Interest is the daily-compounding fee a card issuer charges for carrying a credit card balance from month to month, one of the main ways that credit card companies make money. Rates are influenced by your credit score and the prime rate set by the Federal Reserve.
• Annual Percentage Rate (APR): In the world of credit cards, your interest rate and your APR are interchangeable. Your credit card’s annual percentage rate is the interest you’re charged for carrying a balance on the credit card in a billing cycle. The potential APR range is listed in your card’s terms (17.99 percent to 29.99 percent, for example).
• Credit limit: This is your credit card’s spending limit and will vary based on your credit score. You’ll likely have different credit limits for different transactions. For example, your cash advance limit (if your credit card offers cash advances) will be lower than your credit limit for purchases. If you go over your credit limit, the drawbacks can be severe, so it's important to know your limit and keep your balance beneath it, if you plan to carry a balance.
• Credit card balance: Your credit card’s statement balance is the amount owed at the end of a billing cycle. This amount will include all unpaid transactions made on your credit card and any unpaid fees.
• Credit card issuer: Often confused with credit card networks — like Visa or Mastercard that facilitate transactions between merchants and card issuers — credit card issuers provide credit cards directly to consumers. Cardholders can receive credit cards from financial institutions like credit unions or banks.
• Co-branded: Co-branded cards typically earn rewards and offer perks with a particular merchant or brand they’re partnered with, such as an airline, hotel or retail store. However, these cards are also part of a major credit card network, so they can be used wherever that network is accepted.
• Private-label: “Private-label” (or “closed loop”) cards aren’t branded with a credit card network at all, so they can only be used with the partnered merchant. Many of these products are store credit cards and gas station credit cards. Private label cards usually aren’t recommended since they carry weak features and high APRs and fees.

Bankrate’s review scores can also highlight especially great cards. Review scores are calculated on a scale of 1 to 5 and based mainly on a card’s rewards value, perks, introductory offers, APR and other fees. Although several fantastic cards hold a score of 4 and above, scoring a perfect 5/5 is quite an accomplishment. 

Here are the exceptional cards that currently hold a 5/5 Bankrate review score:

5/5 Rewards Cards:

• Chase Sapphire Reserve®
• Capital One Venture X
• American Express® Business Gold Card
• Capital One SavorOne

5/5 Credit-building cards:

• Petal® 2 “Cash Back, No Fees” Visa® Credit Card 

5/5 Student cards:

• Discover it® Student Cash Back

5/5 Business cards:

• American Express® Business Gold Card

The annual J.D. Power credit card satisfaction study details the major credit card industry trends each year, and the 2023 study added individual card rankings to the survey. For an extra vote of confidence, here are the top three credit cards according to consumers in the 2023 survey’s five categories (scored on a 1,000-point scale):

Rewards cards (Premium)

1. Bank of America® Premium Rewards® Elite Credit Card (712)
2. American Express Gold Card (693)
3. The Platinum Card from American Express (687)

Category Average: 611

Rewards cards (No annual fee)

1. Capital One SavorOne (666) (See Rates & Fees)
2. Discover it® Student Cash Back (658)
3. Blue Cash Everyday® Card from American Express (655)

Category Average: 626

Co-branded cards (Airline)

1. JetBlue Plus Card (643)
2. Southwest Rapid Rewards Plus (628)
3. American Airlines AAdvantage® MileUp® (614)

Category Average: 612

Co-branded cards (No annual fee)

1. Apple Card (655)
2. Hilton Honors American Express Card (638)
3. Prime Visa (636)

Category Average: 617

Cards with no rewards (No annual fee)

1. Capital One Platinum Secured (620) (See Rates & Fees)
2. BankAmericard® credit card (569)
3. Citi Simplicity® Card (559)

Category Average: 598

J.D. Power’s annual credit card satisfaction survey is perhaps the definitive gauge of the best credit card issuer. The 2023 survey ranked 16 credit card issuers — major and regional — on a 1,000-point scale based on their customers’ satisfaction with their experience. American Express ranked first in the 2023 survey with Bank of America in second place, which is a departure from Amex and Discover’s typical neck-and-neck battle for the top two spots. It’s also worth noting the average score was 609, which means only American Express, Bank of America, Discover and Capital One achieved an above-average customer satisfaction rating.

Here are how the 16 issuers rank based on J.D. Power’s 2023 survey results, as well as how many Bankrate Awards the issuer’s cards have won since 2022 and an estimated point or mile value for their top rewards cards:

It’s also worth noting that the study’s seven midsize issuers — mostly regional banks and credit unions — offer cards that have earned Bankrate Awards or carry rewards that Bankrate includes in its point valuation database. Of these midsize issuers, TD Bank won “Best Bank for Sign-Up Bonuses” and PNC won “Most Trusted Bank” in the 2023 Bankrate Awards for banking. Several of the Navy Federal Credit Union cards are featured in Bankrate’s list of the best credit union cards as well.