Credit cards that are actually good

How do I know which credit card is best?

Even though there's no one "best" credit card for everyone, there are a few things that have universal appeal, including:

• Low fees and interest rates to help you save on credit card costs
• A long 0% balance transfer period if you want to pay off debt without interest
• Rewards, travel perks or other extras that you can use to get more value
• A bank you want to deal with (think good service, a cool app or mobile payments)

How important each of these are to you will help you decide which card will best fit your wallet.

Common questions about finding the best type of card for you

Sometimes people will look at 2 or more types of credit cards – or even another payment method – when they're trying to find the best one for them. So we've answered some of the most common "which is better" questions to help you decide.

Which is better: Rewards or frequent flyer credit cards?

If you're focused on getting rewards through Qantas Frequent Flyer or Velocity Frequent Flyer, a card that earns those points makes the most sense. With some cards, the bonus points alone could be enough for you to get a reward flight in business class, overseas or both.

On the other hand, a rewards credit card gives you better options if you're a member of a few loyalty programs and want to transfer points between them. Rewards credit cards also give you more choice with gift cards, cashback and retail goodies.

Which is better: A low interest rate or no annual fee on your credit card?

Low rate credit cards are better if you don't pay your bill in full every month. You'll still have to pay more than what you borrowed, but it will usually cost you less than a card with no annual fee (and a higher interest rate).

A $0 annual fee card is great if you pay as you go or repay everything when it's due. This means you won't be paying interest charges anyway, so paying no annual fee means you effectively pay nothing to use your card.

Which is better: A 0% balance transfer credit card or a personal loan?

If you want to pay off existing debt, a 0% balance transfer credit card works well for credit card debt you can pay off within 2.2 years. This is because the 0% introductory rate typically lasts for between 6 and 30 months.

If you want smaller repayments spread out over a longer period of time, personal loans offer terms from 1 to 5 years – and some offer up to 10 years to repay debt. So you'll pay interest, but it could make it easier to chip away at what you owe. Personal loans also let you consolidate credit card debt, buy now pay later (BNPL) debt and other types of loans.

Which is better: No interest, flat monthly fee cards or a buy now pay later plan?

A no interest credit card with a flat, monthly fee might be good if you want to pay off what you buy over time without being limited to selected retailers, which you sometimes are with Afterpay, Klarna and some other BNPL plans. These credit cards don't typically have late fees and are also better if you want to build up your credit history because most BNPL plans don't add to your credit report.

But if you mostly shop with the partnered brands and can make all of your payments on time (to avoid late fees), you could use a platform like Afterpay without any costs. And if you already have an account that you're happily using, there's probably no reason to get a credit card – unless you want to build your credit history.

Finder Score methodology: How we chose our top picks

Finding a great credit card is confusing. But the Finder Score makes it easy.

We score all the credit cards in our database (that's hundreds!) and crunch the numbers on rates, fees, points and more to find the true best in market credit cards.

We judge cards based on several categories. Because different people need a good credit card for different reasons.

Here are our Finder Score credit card categories and their methodologies:

• Balance transfer credit cards
• Frequent flyer credit cards
• Rewards credit cards
• Low rate credit cards
• Cashback credit cards
• No annual fee credit cards
• 0% interest credit cards

Some cards might score highly in one category but not as highly in others. We only score cards that meet the eligibility criteria for a given category.

What the Finder Scores mean

• 9+ Excellent - These cards offer the best value in their category. That means low interest rates, long 0% balance transfer offers, low fees, plenty of points and good value for money.
• 7+ Great - These cards offer decent value and may be a really good choice depending on what you're looking for.
• 5+ Standard - These are average cards that get the job done. You probably won't get the most points, the lowest rates or the best deal possible.
• Less than 5 – Basic - These aren't the best value cards on the market. Some of them may be higher scoring in another category but are not strong offers for the category being scored.

What's next?
Get more value from a credit card by comparing the latest offers and applying now.

Written by

Richard Whitten

Editor

Richard Whitten is a money editor at Finder, and has been covering home loans, property and personal finance for 6+ years. He has written for Yahoo Finance, Money Magazine and Homely; and has appeared on various radio shows nationwide. He holds a Certificate IV in mortgage broking and finance (RG 206), a Tier 1 Generic Knowledge certification and a Tier 2 General Advice Deposit Products (RG 146) certification. See full bio

Richard's expertise

Richard has written 562 Finder guides across topics including:

• Home loans
• Property
• Personal finance
• Money-saving tips