Best Credit Cards of January 2021 – Top Cards

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There is no one-size-fits-all credit card. The best credit card for you depends on your budget and requirements. Your monthly expenses, credit records, income, and the number of people in your family are a few factors that must be taken into consideration when you are selecting a credit card. In other words, the most suitable credit card for a budget-conscious user will be different from the best credit card for an individual who loves to spend money on traveling and shopping. 

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Best Cashback Credit Cards of January 2021 – Top Cards

Best Credit Cards With No Annual Fee of January 2021

Credit Cards: Types And What You Need To Know About Them

The benefits of credit cards go beyond the money you get to spend on grocery shopping and traveling. The best credit card comes with a range of built-in rewards and some great offerings that let you make the most of your purchase. You could purchase cash-back credit cards if you want to save some bucks on shopping. 

Research shows that most Millennials and Gen-z people have more than one credit card. So, if you too are looking for the most reliable credit card for 2021, you have come to the right place. Below we have presented a list of the best credit cards based on the cash-back offers,  reward rate, annual fee, APR, and credit score. 

Read too:

Credit Cards: Types And What You Need To Know About Them

Chase Freedom Unlimited

Chase Freedom Unlimited
Chase Freedom Unlimited

People who are on the lookout for a credit card that offers exciting rewards with no annual fees must consider applying for Chase Freedom Unlimited. The card comes with zero APR for up to 15 months (the variable APR is applicable after 15 months of your account opening). 

The company has recently improved its offering, making Chase Freedom Unlimited the most lucrative credit card for families and individuals. You can use it as a standalone card for all your purchases or in conjunction with other credit cards. The card offers you the best rewards when it is paired with the Chase travel and other credit cards.

Reward rate: The card allows 5% cashback on all your grocery purchases, 3% on food and drugs, and 1.5% rewards on other products. With zero annual fees and a whopping welcome bonus of up to $200 for all new users, Chase Freedom Unlimited is an ideal option for shopaholics. 

Welcome Bonus: Earn up to a $200 welcome bonus on buying products worth $500 within the first three months of getting this credit card.

Redemption: Chase offers multiple ways for you to redeem the rewards. You can get the rewards deposited into your bank account or convert them into the statement credit. The points can also be redeemed for online shopping at Amazon. 

Pros

  • 0% APR for 15 months
  • $0 annual fee
  • Whopping welcome bonus
  • Exciting rewards
  • Multiple redemption options
  • Flexible policy

Cons

  • You need a solid credit score to get eligible for Chase Freedom Unlimited
  • It charges a hefty 3% fee on international transactions
  • The reward is below 1.5% on the products that are not from the bonus category

Citi Double Cash Card

Citi Double Cash Card
Citi Double Cash Card

Citi Double Cash Card is another cash-back card that’s known for the generous rewards and some exciting cash-back offers on grocery, travel, drugs, dining, and other purchases. The only drawback of this product is the zero welcome bonus. The company has been offering flat rewards and cash-back offers ever since it launched back in 2014. Regular shoppers can save up to $443 on shopping every year with Citi Double Cash Card. 

Reward rates: It offers a flat 2% cash-back offer on all kinds of products – 1% is credited to your account when you buy the product on credit and another 1% when you pay the bill. Unlike other credit cards, the Citi Double Cash Card comes with no reward limits. To get the cash-backs, the borrower must make timely payments. If you fail to pay the credit bills on the due date, your 1% reward on the bill will be canceled for that month.

Redemption: You can redeem the reward points into cash that’s deposited into your account or utility or credit card bill.

APR: APR is applicable on balance transfers for up to the first 18 months of your credit account opening. While that sounds a great deal, APR isn’t available on purchases and the borrower has to pay a flat 3% fee on each balance transfer transaction (at least $5). After this period, the APR will be charged based on your credit score.

Credit Score: The card requires an excellent credit score.

Pros

  • Zero annual fees
  • 2% cash-back on all products
  • No limit on cashback
  • The best intro duration for balance transfers
  • No qualification or minimum expenditure required for activating cashback offers 

Cons

  • The $40 penalty fee on late payment is very high 
  • No exciting APR offers on purchases
  • Requires an excellent credit score

Cash Rewards Credit Card by Bank of America

Cash Rewards Credit Card by Bank of America
Cash Rewards Credit Card by Bank of America

This credit card is for online shoppers that spend over a hundred bucks on monthly online purchases. It can be used as your only credit option for dining, travel, and other purchases, but this is highly recommended for those who prefer online shopping. That’s because the card gives you a golden opportunity to choose your favorite category on which you can earn up to 3% cashback. Cash Rewards Credit Card doesn’t cost any annual fee, making it a cost-effective option for budget-conscious users.

Rewards: Up to 3% on your chosen category from online shopping, medicines, gas, dining, home renovation, and travel. In addition to that, you get 2% cashback on grocery shopping and 1% on other purchases. For grocery, the cashback limit is $2,500 per four months. 

Welcome Bonus: Earn up to a $200 welcome bonus on this card. You can claim the bonus after spending a thousand dollars using the credit card within 90 days of opening the Bank of America credit card account.

Credit Score: Anyone with a good credit score is eligible.

APR: The intro APR offer on this card is zero percent on all kinds of purchases as well as balance transfer for one year from the card opening date. The variable APR (up to 23.99%) will be applied to the purchases and transfers. The balance transfers charge a fee of 3% and at least $10.

Redemption: Redemption options for the reward points include statement credit and direct deposit. The reward money can be deposited into the Bank of America.

Pros

  • Easier to stack up rewards as the card doesn’t rotate categories
  • Flexible redemption options
  • 3% reward on your chosen category
  • No annual fee
  • People with a good credit score are eligible
  • No APR for purchases and balance transfers for the first 12 months 
  • Generous welcome bonus 

Cons

  • Not recommended for people who make lots of international transactions as it comes with a 3% fee on foreign transactions.
  • Complex bonus redemption condition

Wells Fargo Propel Card by American Express

Wells Fargo Propel Card by American Express
Wells Fargo Propel Card by American Express

Wells Fargo Propel is the best choice for those who are looking for reward-based credit cards. It offers a whopping reward of up to $200. In addition to the rewards, the Wells Fargo Propel offers an exciting intro APR offer. The best part is it doesn’t charge any currency conversion fee and is thus an ideal option for people who spend a lot on foreign transactions. 

The card does not rotate or change the reward categories, which means you can earn lots of reward points on each purchase. If you are using this card for no-bonus category product shopping, then pair it with Chase Freedom Unlimited.

Rewards: You could earn up to 20,000 reward points ($200 cash value) after spending a thousand bucks on goods and services within the first 3 months of your account opening. The card offers 3 points on dining, gas, accommodation and car rentals, online streaming services. For other purchases, you get a 1% reward. The rewards are not associated with any limits, giving you an opportunity to get cash back as long as you have an active credit account.

Redemption: You can redeem the rewards into cash deposits or statement bills. You must have at least 2,500 points on your credit account for redemption. This will give you $25.

APR: Zero APR for the first year of your account opening on both balance transfers and purchases. 14.49 to 24.99 percent of APR is applicable to all your purchases and transfers after 12 months of account opening. 

Credit Score: You need a good to excellent credit score to qualify for this card.

Pros

  • No annual fee
  • Great APR intro offer
  • No currency conversion fee
  • No limits on reward points
  • Require a decent credit score
  • Whopping welcome bonus
  • Flexible redemption plans
  • Reward points do not expire

Cons

  • The welcome bonus can be claimed only when you spend up to $1000 on purchases within 3 months using the Wells Fargo Propel card.
  • High interest after the APR intro expiration

Blue Cash Preferred Card

Blue Cash Preferred Card
Blue Cash Preferred Card

Blues cash preferred is another reward-based credit card by American Express. It is for retailers and families that spend a lot of bucks on grocery shopping. While the reward offers are excellent, the card comes at an annual fee of $95. But, the generous grocery cash-back offer will compensate for the annual fee. This credit card is a lucrative option for those who spend $200 on grocery shopping and movie streaming services every month.

Rewards: It offers 6% cashback on grocery shopping at US supermarkets. However, you can only get a cashback up to $6,000 per year, which shouldn’t be a problem unless you have a big joint family. 6% of cashback is available for streaming services and 3% on gas. For the rest of the purchases, you get a flat 1% cashback. For the streaming service, you could make as much as $35 of cash back annually, and higher if you spend a lot on streaming services.

Welcome Bonus: Each new member gets a welcome bonus of $250, which can be redeemed once you purchase products and services worth $1000 within the first three months of your card opening. 

Credit Score: You must have an excellent credit score (725 and more) for the blue cash preferred card.

APR: American Express offers a 0% APR intro offer for the first 12 months of your account opening. The offer is available for balance transfers and purchases. After the intro expiration, you are supposed to pay 13.99 to 24.99 percent interest (depending on your credit score).

Redemption: Redemption terms are not very flexible. The company allows you to redeem the reward points for statement credits only. You can’t redeem your bonus for gift cards, coupons, travel, and bank deposits.

Pros

  • Zero APR fee for the first 12 months
  • Amazing rewards and welcome bonus offers
  • Roadside assistance and auto rental insurance
  • Best for grocery shopping

Cons

  • High annual fee
  • High APR 
  • Complex bonus redemption requirements
  • Limited redemption options

So, these were the best credit cards for 2021. Consider the bonus offers, redemption plans, and APR and annual fees when making a selection.

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