Credit cards are a powerful financial tool. In addition to offering you unparalleled spending flexibility, they are also the single best way to build your credit score. The first step to getting the benefits of using a credit card is to find one that’s best suited for your need. But with so many credit cards available today, finding the best one for you can be challenging. There’s no one credit card that will work for everybody. The best credit card for you will depend on a few different factors. Before choosing a credit card for you, think about your spending habits, your current financial circumstances, and your long-term financial goals. This will help you make a more informed decision.
To make it easier for you, we’ve put together a list of the best credit cards to check out in 2022. As you go through the features, benefits and downsides of each of these cards, you’re sure to come across at least one that’s specifically designed for your lifestyle and your spending habits.
We rounded up the best credit cards of 2021 that can help you build credit, save on interest charges and earn you over $2,000 in five years.
Best Credit Card In 2022 For Building Credit With No Credit History – Petal® 2 “Cash Back, No Fees” VisaCredit Card
If you’ve applied for a credit card before, you know how difficult it is to get approved without a good credit score. Getting approved without credit history can be even more challenging. It’s a catch-22 situation- you need a credit card to build credit history but you can’t get a credit card without credit history.
Very few card issuers will approve your application with no credit history. Those who do, well, their cards will have higher interest rates, which can wipe out the benefits if you’re not careful.
The Petal2 “Cash Back, No Fees” Visa Credit Card is the best card available for those who are just starting out and have zero credit history.
Features
- No minimum credit score requirement but you may be asked to link bank accounts during the application process
- No annual fee, which saves you money right at the outset
- 0% intro APR
- Regular APR is 12.99% – 26.99% variable
- No balance transfer fee
- No foreign transaction fee
- Credit limits range from $300 to $10,000
- No minimum credit score requirements
Rewards
- 1% cash back on eligible purchases starting right away
- 2% – 10% cash back at select outlets
- Up to 1.5% cash back on eligible purchases after making 12 on-time monthly payments
The Petal® 2 “Cash Back, No Fees” Visa® Credit Card is the best credit card for you if you want to get started with building credit in 2022. Use the card strategically and you’ll also benefit from the cash back rewards.
There are no major downsides to applying for this card except for the absence of a welcome bonus.
Best Cash Back Credit Card – Chase Freedom Unlimited® Card
Cash-back credit cards are extremely popular. That’s not surprising considering that getting cash back on purchases can reduce the cost price and add to your savings. This can add up to a substantial amount over the course of the year.
After comparing several cash-back credit cards, we found that the Chase Freedom Unlimited Card offers the best benefits.
Features:
- Generous welcome bonus of $200 cash back after spending $500 within the first 3 months of opening the account
- No annual fee
- 0% intro APR on purchases and balance transfers for the first 15 months of account opening
- Regular APR is 14.99% to 24.74% variable
- On transfers made within 60 days of account opening – balance transfer intro fee of $5 or 3% of the transfer amount, whichever is greater
- On transfers made after 60 days of account opening – balance transfer fee of $5 or 5% of the transfer amount, whichever is greater
- 3% of each foreign transaction fee in U.S. dollars
- Rewards can be transferred to a Chase Ultimate Rewards card
- Excellent to good credit required to get approved
Rewards:
- 5% cash back on travel purchased through Chase Ultimate Rewards,
- 3% on dining including takeout and eligible delivery services
- 3% on drugstore purchases and on dining (including takeout and eligible delivery services)
- 5% cash back on all other purchases
The Chase Freedom Unlimited Card is the best card for someone who has good to excellent credit and is looking to get maximum cash back on their purchases. The welcome bonus is among the most generous you’ll find.
An attractive feature is the ability to transfer rewards to the Chase Ultimate Rewards card. You save a further 5% cash back on travel when paid for with the Ultimate Rewards card. This feature make this the best credit card for travel in addition to the best credit card for cash back.
The downsides are the high 3% fee on foreign transactions and the low 1.5% cash back on purchases from the non-bonus category.
Best Grocery Rewards Credit Card – American Express Blue Cash Preferred® Card
Grocery rewards credit cards are also very popular. Groceries are an essential purchase and depending on the size of your family, grocery bills can mount up very quickly. Getting rewards on your grocery purchases can help to offset those expenses. With an array of attractive features and bonuses, the American Express Blue Cash Preferred card emerged as the best grocery rewards credit card in 2022.
Features:
- Welcome bonus of $300 in statement credit on purchasing groceries worth $3,000 within 6 months of account opening
- No introductory annual fee for the first year, then $95 a year
- 0% intro APR for first 12 months on purchases
- Regular APR 13.99% to 23.99% variable
- Balance transfer fee is not applicable
- 7% foreign transaction fee
- Excellent to good credit required for approval
Rewards:
- 6% cash back at supermarkets on purchases up to $6,000 annually
- 1% cash back at supermarkets on purchases above the initial $6,000
- 3% cash back at gas stations
- 6% cash back on select U.S. streaming subscriptions
- 3% cash back on a wide range of transit related expenses including buses, trains, taxis/rideshare, tolls, parking, and more
- 1% cash back on purchases other than supermarkets
- Cash back is received in the form of Reward Dollars that can be redeemed as a statement credit
The American Express Blue Cash Preferred card is the best credit card in 2022 for you if you have a large family and have substantial grocery bills. It offers the highest cash back rate of 6% on $6,000 annually at U.S. supermarkets, which results in significant savings every year. The additional cash backs on gas stations, streaming services, and transit adds to those savings.
The only downside is the 2.7% fee on purchases made outside the country but this only affects you if you travel abroad frequently. Apply for this card today if you want to maximize cash back on your large grocery bills.
Best Secured Credit Card – Discover it® Secured Credit Card
A secured credit card is an excellent option for someone who wants to use a card to boost their credit score but would like to limit their spending. The downside of carrying a credit card is the temptation to spend beyond your budget. The problem with spending money that you don’t have it that it can lead to credit card debt. This is very difficult to get out of. One way to curb this temptation is by getting a secured card and the Discover it Secured Credit card is the best one we’ve found.
Features:
- No annual fee
- As a welcome bonus, all cash back you’ve earned at the end of the first year will be matched by Discover
- Intro APR not applicable
- Regular APR – 22.99% Variable
- 3% intro balance fee
- Up to 5% fee on future balance transfers, subject to conditions
- No foreign transaction fee
- No minimum credit score requirements
- Requires a $200 deposit
Rewards:
- 2% cash back at gas stations and restaurants on combined purchases of up to $1,000 per quarter
- 1% automatic, unlimited cash back on all other purchases
The generous welcome bonus and attractive cash back program are just part of what makes the Discover it Secured Credit card the best unsecured credit card. The unique feature of this card is that it offers you a definite path to eventually upgrading to an unsecured credit card and getting your $200 deposit back.
The downside of this card are its limited cash-back earning potential and the low credit line which may prevent you from being able to charge big-ticket items.
Best Travel Rewards Credit Card – Chase Sapphire Reserve® Card
If you travel a lot, whether on business or pleasure, a travel rewards credit card can offset some of those costs. Traveling is expensive. Add in hotel stay and car rentals and the cost increases drastically. Getting rewards in any form for travel-related expenses can help a lot. The best credit card for frequent travelers is the Chase Sapphire Reserve card.
Features:
- Get 50,000 bonus points on spending $4,000 on purchases in the first 3 months after of your account
- Annual fee $550
- No intro APR
- Regular APR 16.99% to 23.99% variable
- 5% balance transfer fee
- No foreign transaction fees
Rewards:
- $300 annual travel credit for travel purchases
- After spending the first $300 on travel purchase annually through Chase Ultimate Rewards, you earn 10X points on hotels, 5X points on air travel, and 10X points on car rentals
- Earn 3X points on all other travel and dining
- Earn 10X points on Lyft rides through March 2022
- Earn 1 point per $1 spent on all other purchases
- Priority Passâ„¢ Select lounge access at more than 1,000 VIP lounges in over 500 cities worldwide
- Special benefits at The Luxury Hotel & Resort Collection
- 1-year complimentary membership of Lyft Pink
- Global Entry or TSA PreCheck application fee credit up to $100 every four years
- Points are worth 50% more when redeemed for travel via Chase Ultimate Rewards®
The Chase Sapphire Reserve card is the best credit card for you if you’re a frequent traveler and enjoy luxurious perks such as complimentary hotel room upgrades and free airport lounge access. With this card, you get an array of unique and very attractive benefits on travel-related purchases. The generous 3X points on travel and dining worldwide makes the rewards so much sweeter.
The high $550 annual fee can be a downside, but you can more than make up for it if you avail of all the perks that this card offers.
Best For College Students – Discover it® Student Cash Back
As a college student, chances are you’re just starting out on your independent financial journey. One of the top priorities at this time is to find a card that’s specially designed for a student’s lifestyle. The Discover it Student Cash Back does just that. It offers several perks aimed at helping you get started with building your credit history.
Features:
- As a welcome bonus, Discover will match all the cash back earned at the end of your first year
- No annual fee
- 0% intro APR for 6 months on purchases
- Regular APR 12.99% – 21.99% Variable
- 3% intro balance transfer fee
- Up to 5% fee on future balance transfers subject to conditions
- No foreign transaction fee
- No minimum credit score requirements
Rewards:
- 5% cash back on purchases at a wide range of stores including grocery stores, Amazon.com, gas stations, and restaurants
- 5% cash back on online purchases when you pay using PayPal
- Unlimited automatic 1% cash back on all other purchases
The generous welcome bonus and cash-back program make this the best credit card in 2022 for college students. In addition to the attractive cash back rewards, this card will give you a great start to build your credit score while enrolled in college. The introductory 0% APR for six months on new purchases works especially well for purchasing textbooks and other classroom and dorm room essentials. There are no foreign transaction fees so you can use it to earn rewards and build credit when you travel abroad as an exchange student.
Best Gas Rewards Credit Card – PenFed Platinum Rewards Visa Signature® Card
If you drive around a lot, gas prices can make a huge dent in your wallet. One way to offset this cost is with a credit card that rewards you for your gas purchases. After comparing several cards, we found that the PenFed Platinum Rewards Visa Signature Card offers the highest rewards rate for gas purchases at the pump.
Features:
- Welcome bonus of15,000 points when you spend $1,500 in the first 3 months of opening the account
- No annual fee
- 0% promotional balance transfer rate for 12 months on transfers made until March 31, 2022
- Regular APR 13.49% to 17.99% variable
- 3% balance transfer fee
- No foreign transaction fees
- Must have excellent to good credit to get approved
Rewards:
- 5X points on gas purchases at the pump and electrical vehicle charging stations
- 3X points on supermarket purchases
- 1X points on all other purchases
The high 5X points on gas at the pump make PenFed Platinum Rewards Visa Signature Card the best credit card in 2022 for anyone looking for gas rewards. The 3X on supermarket and $0 annual fee are great additional bonuses. If you spend a lot of time in your car on the road, you’ll maximize your savings with this credit card.
How To Choose the Best Credit Card for You In 2022
When looking for a credit card, it’s most important to choose one that best suits your lifestyle. For example, if you travel a lot, look for a card that offers the best rewards on travel-related purchases. This will help you reduce the cost of travel. Using a card that offers attractive grocery rewards may not help you as much. However, that grocery rewards credit card can be tremendously beneficial if you’re looking for a way to save money on your huge monthly grocery bills.
Choosing the right card is key to maximizing the benefits while helping you build your credit score.