Best Credit Card 2021 that Serves the Best Purposes for You
If you need the Best Credit Card for 2021, then you should know that there’s no “one size fits all” credit card. There are so many credit cards available to consumers that it can be hard to choose the best card. You might find one for the best credit cards for travel, cashback, balance transfers, and other categories.
In this article, we are going to give you a list of the best 2021 credit cards for different services.
2021 Best Credit Card for Travel Rewards
Capital One Venture Card
- Reward rates: 2x miles on everyday purchases
- Annual fee: $95
- Welcome bonus: 60,000 miles
- Bonus redemption threshold: Spend $3,000 in the first three months
- APR: 17.24% to 24.49% variable
- Foreign transaction fees: None
- Credit requirement: 720 to 850
The Capital One Venture is a straightforward, easy-to-use credit card for booking travel with rewards points. And those rewards points are generated whenever you spend — so there’s no need to worry whether a particular category is eligible.
2021 Best cash-back credit card
Chase Freedom Unlimited®
- Rewards: Earn 5% cash back on travel purchased through Chase Ultimate Rewards®, 3% on dining (including takeout) and drugstores and 1.5% on all other purchases
- Welcome bonus: $200 cash back after you spend $500 on purchases in your first 3 months from account opening
- Annual fee: $0
- Intro APR: 0% for the first 15 months on purchases
- Regular APR: 14.99% to 23.74% variable on purchases and balance transfers
- Balance transfer fee: Either $5 or 5% of the amount of each transfer, whichever is greater
- Foreign transaction fee: 3% of each transaction in U.S. dollars
- Credit needed: Excellent/Good
Consumers who want a robust rewards card with no annual fee should consider the Chase Freedom Unlimited® Card. Cardholders earn 5% cash back on travel purchased through Chase Ultimate Rewards®, 3% on drugstores and dining (including takeout) and 1.5% on all other purchases.
If you’re looking to maximize your rewards, there’s also a generous welcome bonus with a low spending requirement: Earn $200 cash back after you spend $500 on purchases in your first three months from account opening.
This card has no annual fee, and you can benefit from a 0% APR for the first 15 months on purchases (then 14.99% to 23.74% variable APR).
This card also offers 5% cash back on Lyft purchases through March 2022 and complimentary three months of DashPass with 50% off for the next nine months. Simply activate by December 31, 2021.
2021 Best Credit Card for Students
Discover it Student Chrome
- Standard APR: 12.99% to 21.99% variable (0% intro APR on purchases for the first 6 months)
- Penalty APR: None
- Late payment fee: Up to $40
- Annual fee: $0
- Cash back rewards: 2% on gas stations and restaurants, up to $1,000 in combined purchases each quarter; 1% on all other purchases
- Foreign transaction fee: 0%
- Standout feature: No late fee for first late payment (up to $40 thereafter)
- Eligibility requirements: No credit history required, proof of income
The Discover it Student Chrome offers a winning combination of cash back and other rewards as well as lenient terms for first-time credit card holders. You won’t get dinged for a late payment — at least the first one — or have to deal with an exorbitant penalty APR. And getting 1 to 2% back in rewards each month is a welcome bonus. Note that Discover offers another similar card, the Discover it Student Cash Back credit card, but the rotating bonus categories make things overcomplicated, especially for first-time cardholders.
2021 Best Credit Card for Balance Transfers
US Bank Visa Platinum
- Introductory APR: 20 months of 0% APR for balance transfers and purchases
- Standard APR: 13.99% to 23.99%, variable
- Penalty APR: None
- Introductory balance transfer fee: N/A
- Standard balance transfer fee: 3% or $5, whichever is greater
- How long you have to make transfers: 60 days
- Credit requirement: 680 to 850
- Annual fee: $0
Paying down credit card debt can be exhausting. A balance on an account with a high interest rate can take years to pay off — or worse, balloon out of control. A balance transfer credit card, used properly, can offer you a relatively cost-efficient opportunity to catch up.
The US Bank Visa Platinum offers one of the longest zero percent introductory APR periods — 20 months — combined with one of the lowest fees, 3%.
Apple Card
- Reward rates: 3% on Apple, Uber and Walgreens purchases; 2% on Apple Pay purchases; 1% on everything else
- Annual fee: $0
- New member bonus: $0
- Bonus redemption threshold: None
- Credit requirement: 580 to 850
- Intro APR: None
- APR for purchases: 12.49% to 23.49% variable
- APR for balance transfers: Not offered
- Balance transfer fee: Not offered
The Apple Card is a beautiful but odd duck. Crafted out of sleek titanium, the credit card looks like it was birthed from a slot on a MacBook Pro. But it’s the iPhone that unleashes its true potential: When you use Apple Pay — the company’s digital wallet and touchless payment feature — you get 2% cashback on all purchases. (The Citi Double Cash Card offers up to 2% on everything, no matter how you pay.) Otherwise, the Apple Card’s rewards program is a mish-mash of cash rewards: 3% cashback on eligible purchases of Apple gear and services, Uber and Walgreens purchases, and 1% cash rewards on everything else.
But there are a few other noteworthy features. The Apple Card’s privacy policy states that it will “never share or sell your data to third parties for marketing or advertising” — a commitment that’s rare in an ordinarily mercenary industry. Apple delivers your cash-back rewards at the end of each day, instead of the usual month-long billing cycle. And Apple does not charge late fees, an annual fee, or foreign transaction fees.
2021 Best Credit Card for Amazon and Whole Foods Shoppers
Amazon Prime Rewards Visa Signature Card
- Reward rates: 5% on Amazon, Whole Foods; 2% at restaurants, gas stations, drugstores; 1% on everything else
- Annual fee: $0
- New member bonus: $100 Amazon Gift Card
- Bonus redemption threshold: Card approval
- Credit requirement: 580 to 850
- Intro APR: None
- APR for purchases: 14.24% to 22.24% variable
- APR for balance transfers: 14.24% to 22.24% variable
- Balance transfer fee: 5% (minimum of $5)
This rewards card is a must-have for anyone who shops regularly on Amazon. And given that you can buy just about anything on Amazon — 5% back on all eligible purchases there is pretty sweet.
The rewards card also features 2% cash back at restaurants, gas stations and drug stores and 1% on everything else. (Note that Amazon offers a basic, non-Prime member card that features 3% cash back on Amazon purchases; but if you’re spending more than $250 per month at Amazon or Whole Foods, you should be a Prime member.)
2021 Best credit card for Apple Pay super-users (and privacy enthusiasts)
2021 Best no annual fee credit card
Citi® Double Cash Card
- Rewards: 3X points on dining out and ordering in; gas, rideshares and transit; flights, hotels, homestays and car rentals; and popular streaming services. 1X points on all other purchases
- Welcome bonus: 20,000 bonus points when you spend $1,000 in purchases in the first 3 months
- Annual fee: $0
- Intro APR: 0% APR for 12 months on purchases and qualifying balance transfers
- Regular APR: 14.49% to 24.99% variable on purchases and balance transfers
- Balance transfer fee: Introductory fee of 3% ($5 minimum) for 120 days, then 5% ($5 minimum)
- Foreign transaction fee: None
- Credit needed: Excellent/Good
Who’s this for? The Citi® Double Cash Card is a straightforward rewards card that continues to offer one of the best flat-rate cash-back programs since it launched in 2014. Cardholders earn 2% cash back on all purchases — 1% when you make a purchase and an additional 1% when you pay your credit card bill.
There is no limit to the amount of cash back you can earn and you don’t have to worry about activating bonus categories. Cash back can be redeemed for a statement credit or direct deposit.
This card is also a good choice for debt consolidation. There’s a 0% APR for the first 18 months on balance transfers (then 13.99% to 23.99% variable APR). Just make sure you transfer balances within four months from account opening. There is a 3% balance transfer fee (minimum $5), which can be outweighed by the amount you save on interest. (See more on how to make the most of a balance transfer.)
