Best Credit Cards of January 2025

These cards "pay you back" for a portion of your spending by giving you cash, points or miles. See our roundup of the best rewards credit cards of 2025 for a range of options for different types of users. Or look into specific types of rewards cards:

These cards offer an introductory 0% APR period or a low ongoing interest rate. That can save you hundreds or even thousands of dollars in interest on a major purchase or on debt transferred from high-interest cards. Types of interest-saving cards include:

• Best balance transfer credit cards of 2025.

• Best 0% APR credit cards of 2025.

• Best low-interest credit cards of 2025.

The credit cards with the richest rewards, plushest perks, lowest interest rates and longest 0% periods are available only to those with good to excellent credit. If you're still building your credit (or rebuilding it after a misstep), you'll want to hold off on applying for these cards until your score improves. However, banks have designed cards specifically for people working to improve their credit:

• Best credit cards for fair credit of 2025.

• Best credit cards for bad credit of 2025.

• Best secured credit cards of 2025.

• Best alternative cards for no credit for 2025.

• Best college student credit cards of 2025.

Some people are dead-set against paying a fee just for the privilege of carrying a credit card. But paying an annual fee is worth it in certain circumstances. With any annual fee, the math comes down to whether the value you get from the card exceeds the dollar amount you pay. Still determined not to pay? See our best credit cards with no annual fee of 2025.

Other fees

Depending on what you plan to do with the card, you'll want to take these other fees into account:

• Balance transfer fee. See our best credit cards with no balance transfer fee of 2025.

• Foreign transaction fee. See our best credit cards with no foreign transaction fee of 2025.

• Cash advance fee. Using your credit card to get cash is expensive.

• Late fees and returned-payment fees. These fees can be steep, but they are avoidable.

Credit card companies drum up business by offering people with good credit a low introductory interest rate.

The ongoing rate is what you pay after any introductory rate expires. Some cards charge a single rate for all cardholders; others allow for a range of rates depending on your creditworthiness. In general, the better your credit, the more likely you are to qualify for a low rate. That said, if you pay your balance in full every month, your interest rate doesn't actually matter because you're never charged interest.

Cash-back cards refund a certain percentage of the purchase price. Other cards give you a certain number of points or miles per dollar spent. Every card sets its own rewards structure, so apples-to-apples comparisons can be difficult. But when comparing rewards programs, think in terms of:

• Earn rate. What do you get for every dollar spent?

• Redemption value. How much do you get for your rewards when it comes time to use them?

• Redemption options. How much flexibility do you have in using your rewards?

The sign-up bonus or welcome offer is a sum of cash (say, $150 or $200) or a batch of points or miles (say, 40,000 points or 50,000 miles) that you can earn by spending a certain amount of money in your first few months with a card. The purpose is to get you in the habit of using the card. The bonuses on many travel cards are often big enough to cover the card's annual fee for the first few years. See our best credit card sign-up bonuses of 2025.

Unlike rewards, which are what you receive for using a credit card, perks are benefits you get just for carrying a card. With some cards, particularly travel credit cards, it may be the perks that provide the bulk of the value. Premium credit cards, which have annual fees of $450 and up, tend to offer the cushiest perks. Airline credit cards and hotel credit cards can easily pay for their annual fee with their perks. A full list of potential perks would be too long to include here, but common examples include:

• Airline/airport benefits. Lounge access. Free checked bags. Priority boarding. Elite status.

• Hotel benefits. Free nights. Automatic room upgrades. Early check-in/late check-out. Free amenities. Elite status.

• Statement credits. Automatic credit for such things as travel expenses, purchases from selected merchants or the application fee for trusted traveler programs such as TSA PreCheck and Global Entry.

• Rental car coverage. Supplemental coverage on top of your own auto insurance policy, or even primary coverage in place of your own policy. Learn about credit card rental coverage and see our best cards for rental car coverage.

• Cell phone insurance. Coverage in case of loss or damage. You usually have to pay for your service with your card to qualify. See our best cards for cell phone insurance.

• Credit tracking and security. Free credit score. Credit monitoring services. Ability to "lock" your card.

When you're looking to build or restore credit, several features are more important for you than for people who already have good credit.

• Reporting to credit bureaus. If you're using your card responsibly, you want your credit score to reflect that. Make sure that your card reports payment activity to all three credit bureaus, the companies that assemble credit reports.

• Deposit requirements. If you're getting a secured credit card, you'll need money for a security deposit. Minimum deposits are usually in the $200 to $300 range.

• Upgrade opportunities. As your credit improves, it's nice to be able to upgrade your account to a better card.

• Incentives for responsible behavior. Some cards might boost your rewards rate if you pay on time, or give you access to a higher credit line.