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There are so many credit cards available to consumers that it can be hard to choose the best one. There’s no “one size fits all” credit card, but instead options for different types of people — whether you’re a foodie, road warrior, traveler, student or someone looking to build credit. A little research can help you find a card that’s specifically designed for your lifestyle.
To determine which cards offer the best value, each month, CNBC Select analyzes over 250 credit cards available in the U.S. When comparing rewards cards, we use a sample budget based on spending data available from the location intelligence firm Esri to break down how much money each card could net you over the course of five years. (See our methodology for more information on how we choose the best cards.)
The cards we select also provide numerous additional benefits, such as annual statement credits, sign-up bonuses, discounts at select retailers, insurance and more that make using a credit card truly worthwhile. These cards can be a great way to save money, especially since the average American spending budget is around $22,126 a year, according to the spending data from Esri.
Below, CNBC Select rounded up the best credit cards of October 2023 that can help you build credit, save on interest charges and earn you over $2,000 in cash back over five years.
The best credit cards of October 2023Best cash-back credit cardChase Freedom Unlimited®
Rewards
Enjoy 5% cash back on travel purchased through Chase Ultimate Rewards®, our premier rewards program that lets you redeem rewards for cash back, travel, gift cards and more; 3% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery service, and 1.5% on all other purchases
Welcome bonus
Earn an extra 1.5% on everything you buy (on up to $20,000 spent in the first year) – worth up to $300 cash back. That’s 6.5% on travel purchased through Chase Ultimate Rewards®, 4.5% on dining and drugstores, and 3% on all other purchases.
Annual fee
Intro APR
0% for the first 15 months from account opening on purchases and balance transfers
Regular APR
Balance transfer fee
Intro fee of either $5 or 3% of the amount of each transfer, whichever is greater, on transfers made within 60 days of account opening. After that, 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
Pros
No annual fee
Rewards can be transferred to a Chase Ultimate Rewards card
Generous welcome bonus
Cons
3% fee charged on foreign transactions
Who’s this for? The Chase Freedom Unlimited® Card is ideal for consumers who want a robust rewards card with no annual fee. Cardholders earn 5% cash back on travel purchased through Chase Ultimate Rewards®, 3% on drugstores and dining at restaurants (including takeout) and 1.5% on all other purchases.
If you’re looking to maximize your rewards, there’s also a generous welcome bonus: On up to $20,000 spent in the first year, cardholders earn an additional 1.5% on all categories. That translates to 6.5% on travel purchased through Chase Ultimate Rewards®, 4.5% on dining and drugstores, and 3% on all other purchases.
This card has no annual fee, and you can benefit from a 0% intro APR for the first 15 months from account opening on new purchases and balance transfers (after, 20.49% – 29.24% variable). This card also offers 5% cash back on Lyft purchases and complimentary three months of DashPass with 50% off for the next nine months. Simply activate by December 31, 2024.
Best travel rewards cardAmerican Express® Gold Card
On the American Express secure site
Rewards
4X Membership Rewards® points at Restaurants (plus takeout and delivery in the U.S.) and at U.S. supermarkets (on up to $25,000 per calendar year in purchases, then 1X), 3X points on flights booked directly with airlines or on amextravel.com, 1X points on all other purchases
Welcome bonus
Earn 60,000 Membership Rewards® points after you spend $4,000 on eligible purchases within the first 6 months of card membership
Annual fee
Intro APR
Regular APR
Balance transfer fee
Foreign transaction fee
Credit needed
Pros
Up to $120 dining credit annually ($10 a month) for purchases made with Grubhub, Goldbelly and other eligible restaurants (after a one-time enrollment)
Up to $120 Uber Cash annually ($10 a month) for U.S. Uber Eats orders and U.S. Uber rides (card must be added to Uber app to receive the Uber Cash benefit)
Strong rewards program with 4X points earned at restaurants and 3X points earned on flights booked directly with airlines or amextravel.com
Baggage insurance plan covers up to $1,250 for carry-on baggage and up to $500 for checked baggage that is damaged, lost or stolen
No fee charged on purchases made outside the U.S.
Cons
No introductory APR period
$250 annual fee
Estimated rewards earned after 1 year: $1,074
Estimated rewards earned after 5 years: $2,969
Rewards totals incorporate the points earned from the welcome bonus
Who’s this for? If you love food and travel, the American Express® Gold Card could be the ideal rewards card for you. Whether you dine out or cook at home, this card earns a competitive 4X points per dollar spent at restaurants and 4X points at U.S. supermarkets (on up to $25,000 per year in purchases, then 1X). Plus, travelers can benefit from the 3X points on flights booked directly with airlines or on amextravel.com.
The value of Membership Rewards points varies depending on how cardholders redeem them. You can use them in a variety of ways, from paying with points at checkout at sites like Amazon to redeeming for gift cards or a statement credit to booking travel. See more on how points are calculated.
Cardholders also receive an annual dining credit of up to $120 ($10 in statement credits a month) at participating partners, including Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, Milk Bar and select Shake Shack locations. Terms apply. Enrollment required. There are also *no foreign transaction fees.
This card does have a *$250 annual fee, but it can be reduced to effectively $130 if you take advantage of the $120 dining credit each year. Then, the rewards you earn help further “pay” for the card.
Gold Card members can also participate in Amex Offers, where you can earn statement credits or bonus Membership Rewards® points at select retailers. These limited-time offers are location-based and additional terms apply.
*See rates and fees.
Best credit card welcome bonusChase Sapphire Preferred® Card
Rewards
$50 annual Ultimate Rewards Hotel Credit, 5X points on travel purchased through Chase Ultimate Rewards®, 3X points on dining, 3X points on select streaming services and online grocery purchases (excluding Target, Walmart and wholesale clubs), 2X points on all other travel purchases, and 1X points on all other purchases
Welcome bonus
Earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That’s $750 when you redeem through Chase Ultimate Rewards®.
Annual fee
Intro APR
Regular APR
21.49% – 28.49% 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
Credit needed
Pros
Points are worth 25% more when redeemed for travel via Chase Ultimate Rewards®
Transfer points to leading frequent travel programs at a 1:1 rate, including: IHG® Rewards Club, Marriott Bonvoy™ and World of Hyatt®
Travel protections include: auto rental collision damage
Foreign transaction fee
Credit needed
Pros
Points are worth 25% more when redeemed for travel via Chase Ultimate Rewards®
Transfer points to leading frequent travel programs at a 1:1 rate, including: IHG® Rewards Club, Marriott Bonvoy™ and World of Hyatt®
Travel protections include: auto rental collision damage waiver, baggage delay insurance and trip delay reimbursement
No fee charged on purchases made outside the U.S.
Cons
$95 annual fee
No introductory 0% APR
Who’s this for? If you want to get a lot of value right out of the gate, consider the Chase Sapphire Preferred. The card is currently offering new cardholders the chance to earn 60,000 points after spending $4,000 on purchases within three months of account opening. Those points are worth $750 toward travel booked through the Chase Ultimate Rewards® Travel portal. You can even potentially get more value if you transfer Chase points to Chase’s travel partners, like Hyatt hotels and United Airlines, and book business-class flights and luxury hotels.
The Sapphire Preferred is also a great travel rewards credit card and has strong earning categories for those who spend on travel and dining. It earns 5X points on travel booked through the Chase Travel Portal, 3X points on dining (including takeout and delivery), 3X points on select streaming services, 3X points on online grocery purchases (excludes Target, Walmart and wholesale clubs), and 2x points on all other travel.
The card also offers a $50 annual credit that can go towards booking a hotel in the Chase Travel Portal — this can help offset the already modest $95 annual fee.