Anyone who's applied for a new credit card knows this much is true: When it comes to finding the right one, nothing is simple. Comparing the welcome bonuses, APR interest rates, special offers, perks and points is downright dizzying -- plus, details and promos change all the time. So how do you know which credit card is best for you?
That's where we come in. CNET rigorously evaluates 5 major credit card categories -- including travel rewards cards and balance transfer credit cards -- to help you compare the fine print so you can pick the best credit card for your needs.
We choose our credit card recommendations using our editors' ratings and based on our knowledge of credit card features and interest rates. Here's a look at what makes up CNET's credit card rating methodology.
How CNET rates credit cards
| Score | Card quality |
|---|---|
| 8.1 - 10 | Excellent |
| 6.1 - 8 | Good |
| 4.1 - 6 | Average |
| 0 - 4 | Below Average |
Note that on Google's results pages, these scores render in 5-star scale.
We rate credit cards on a ten-point scale, categorizing each card based on its most prominent feature:
- Rewards/travel.
- Balance transfer/0% APR.
- Business.
- Credit building.
Each card category has its own subcategories that we evaluate to calculate a weighted, composite score.
Rewards/travel credit cards
Credit cards that primarily focus on earning rewards fall into this category. This could include flat-rate rewards cards, tiered-rewards cards, retail-specific rewards cards, general travel credit cards, and airline or hotel partner cards.
Here's how we evaluate cards that fall into this category:
Welcome offer
A one-time bonus typically earned by spending a certain amount of money in a set period of time -- aka a welcome offer -- can be one of the most lucrative aspects of a rewards or travel credit card. It can help cover a card's annual fee for a time or even help reduce a statement balance.
Rewards program
The card's specific rewards program is heavily weighted in our ratings. The highest-rated cards will have a competitive rewards rate, useful redemption options or ways to increase a rewards redemption value.
Value for money
This subcategory is all about the value you can get from the card based on its cost. We weigh the value of the card's benefits and rewards against its annual fee to calculate how valuable a card offering is.
Benefits
The card's perks are extra features that increase its value. Though this category isn't weighed as heavily, some cards offer helpful benefits that can save you money or protect your purchases. We also factor annual credits into this category for traditional travel credit cards.
Fees and APR
We look at any fees you might incur and the card's current annual percentage rate, which would determine how much interest accrues on your card balance.
Balance transfer/Low APR credit cards
Credit cards with an introductory 0% APR can have offers for balance transfers, new purchases or both.
A balance transfer credit card is designed to let cardholders transfer the balance from a credit card that's charging interest to one that offers an introductory 0% APR for a limited time. During this specified introductory period, your payments can go toward paying down the balance, since it's not accruing interest. When used responsibly, a balance transfer card can help if you're struggling with existing credit card debt.
A card that provides an introductory 0% APR for new purchases allows cardholders to make purchases that don't accrue interest during the specified introductory period. If you're making a large purchase and want to spread out the payments, an introductory 0% APR card could be helpful.
Offer length
The length of time you get to pay down your transferred balance or large purchase is the most important thing to consider about these credit cards. If you aren't able to pay down the card balance before the promotional period ends, your balance will begin to accrue interest at the card's standard variable rate.
Offer terms
If there are specific terms with the offer -- like if the clock starts ticking on the introductory period as soon as you get your card, or there's a small window of time for you to take advantage of the promotional period -- they'll impact the card's overall rating.
Balance transfer fee
A balance transfer fee is charged by the credit card company for facilitating the transfer. It's typically 3% to 5% of the transferred balance and is added to the card's new balance. The lower the fee, the better the rating.
Ongoing value
This subcategory defines how useful the card is once the promotional period is over. A balance transfer credit card with a rewards program, for example, might rank higher here than one without.
Regular fees and APR
The card's standard fees and variable APR outside of its promotional period play a role in the card's overall rating.
Credit building credit cards
As the name suggests, credit building cards, with responsible use, are meant to help you establish better credit scores. They're credit cards with more-lax credit requirements, including student credit cards and secured credit cards.
Accessibility
One of the factors we consider the most for a credit building card is how easy it is to be approved for the card. Considering that the card's purpose is to help you build up your credit score, the credit requirements to qualify for the card shouldn't be too restrictive.
Effectiveness
The card's effectiveness -- how good it is at building your credit and supporting you along the way -- also determines how high we rate the card. If the card has additional tools, like educational resources and credit monitoring capabilities, that's reflected in the ranking.
Cost
We also consider how expensive the card is. If it has an annual fee, monthly fee or requires a higher-than-average security deposit, it may not be rated as highly as other credit building options.
Other perks
If the card offers additional perks or rewards, that'll contribute to a higher overall rating. A credit building card that also earns rewards and offers consumer protections, for instance, will get a higher ranking than one that doesn't.
Fees and APR
A lower APR and fewer fees make the card a more enticing choice.
Business credit cards
Business credit cards are designed to help business owners earn rewards for expenses, offering useful perks like budgeting tools and employee cards. They're typically travel cards with business-focused rewards.
Welcome bonus
Just like their reward card counterparts, business credit cards often offer a welcome bonus for new cardholders to earn. It's one of the main selling points for business travel and business reward cards alike.
Rewards program
The business card's rewards program is evaluated in a way that's similar to how we judge consumer rewards credit cards. The more rewarding and versatile the program is, the higher the card will be rated.
Value for money
The value you're able to squeeze from the card's rewards, benefits and features is weighed against the cost of its annual fee.
Benefits
The additional card perks attached to the card -- like employee cards, spend-tracking tools and airport lounge access -- contribute to its overall rating. We consider things like how valuable they are, how easy they are to use and how often they're available.
Fees and APR
If the card has a low interest rate and fewer punitive fees, it'll rank better compared to its competitors.
The editorial content on this page is based solely on objective, independent assessments by our writers and is not influenced by advertising or partnerships. It has not been provided or commissioned by any third party. However, we may receive compensation when you click on links to products or services offered by our partners.
