Best credit cards for excellent credit in January 2025

We regularly monitor online discussion forums to see what people are saying about how they use their hard-earned excellent credit. Seeing how others use their credit can help you make informed decisions.

When you have excellent credit, there’s an old adage that applies: “With great power comes great responsibility.” Just because you’re able to get almost any credit card doesn’t mean you should go on a card application spree, as this Redditor says, “ … aggressive credit-seeking and addition of many accounts in recent months is a sign of elevated risk and one that will return denials from many, if not most lenders.” While you might know you aren’t a risk, the Redditor points out that if you apply for too many cards too fast, “That makes it look even more desperate since you've crammed so many into close succession having not done so previously. It looks like you could be experiencing financial strain.”

Instead of going for anything and everything, take the time to formulate a proper strategy, which can help you maximize your returns in the long run. What that means for you is based on your needs and preferences. Another Redditor says, “You’ll need to decide how much complexity you’re open to. Some people enjoy having a perfectly optimized setup, with maximum rewards for every category … but that could mean 10, 15, or more cards. Others prefer a simpler setup of 1-3 cards.” There are many questions to consider when evaluating card features, especially when looking at travel cards, as this Redditor lists. “Do you have a preferred airline? Hotel chain? Are you okay using a travel portal? Do you care about airport lounge access? What lounge options do the airports you frequently fly out of have? Do you find the credits … valuable? Do you want to also use this card for everything else? Are you focused more on cash back or points?” All of these are important decisions to make.

The general consensus is to take your time, evaluate your options and find the card or cards that will give you the greatest reward for your long-term credit-building efforts.

*The quotes and citations included on this page have been verified by our editorial team and are accurate as of the posting date. Be sure to check the issuer's website/terms and conditions for all up to date content. Outlinked content may contain views and opinions that do not reflect the views and opinions of Bankrate.

Your credit score indicates your creditworthiness. Lenders want to know if you'll pay your bills on time with credit cards. Your credit score can determine your risk level as a borrower. Having good to excellent credit usually leads to better terms and shows you are less of a lending risk.

If you're starting from scratch, be patient. Experian estimates that it takes three to six months just to develop a credit score. It can then take several years of good credit habits to build an excellent score.

There is no perfect number of credit cards you can or should have to maintain excellent credit. However, the more available credit you have, the easier it is to maintain low credit utilization. Keep in mind that applying for too many credit cards in a short period could temporarily lower your score. Only carrying as many cards as you can manage responsibly is your best bet.

Since many cardholders with excellent credit are eager to earn rewards, a key criteria for a card’s inclusion in our list is whether it offers impressive rewards value. This includes a card’s average rewards rate, estimated annual rewards earnings, sign-up bonus value and reward redemption value.

To estimate a card’s average annual rewards earnings, we calculate its average rewards rate based on how much it earns in different bonus categories, as well as how closely those categories match the average person’s spending habits. In other words: Does the card earn rewards at a high rate in the most popular spending categories?

We use consumer spending data from the Bureau of Labor Statistics (BLS) to get a reliable third-party measure of people’s spending habits. The most recent BLS data estimates average total spending in 2023 was $77,280 per consumer. We then narrow our focus to which purchases are likely to be put on a credit card and earn rewards, subtracting expenditures like housing, vehicle purchases and education. This gives us a total “chargeable” annual spend of around $22,500.  

Some of the major spending categories that contribute towards the annual spend include:

• Groceries: $6,000
• Dining out: $3,900
• Entertainment: $2,500
• Gas: $2,400
• Apparel and services: $2,000

Using this data, we assign a weighting to each of a card’s bonus categories. For example, a card’s grocery rewards rate receives a 26 percent weighting based on how much of the average person’s budget is spent on groceries. We also estimate the redemption value of points or miles from various issuer, airline and hotel rewards programs.

This weighting and rewards valuation allows us to estimate a card’s average annual rewards earnings — how many points or miles you’d earn with a given card if your spending was about average and you used the card for all of your purchases — as well as what those points are worth. We also use point valuations to determine a card’s sign-up bonus value.

With these calculations complete, we assign each card a score based on how its average rewards earnings, sign-up bonus value, rewards rate and redemption value stack up against other cards in its primary category.

The better these values, the higher its score will be, making it more worthy of inclusion in our list and increasing its potential ranking.

We also rate all cards based on how their ongoing average APR compares to the average APR you’ll find other cards in their primary category. However, the impact of an especially high or low APR on a card’s overall score depends on its primary category.

For rewards-earning cards, this factor has only a minor influence on the card’s score and whether the card is included in our list, since rewards card users generally try to avoid carrying a balance. That said, rewards-earning cards may get a solid boost in score and be more worthy of inclusion in our list if they also offer an intro APR on balance transfers or new purchases, since such offers aren’t always present on these cards.

More important to these cards’ scores and their inclusion in our list is how their annual fees influence their overall value. We consider a card’s annual fee in two ways — how it ranks relative to the fees you’ll find on other cards in the category and how it impacts a card’s overall rewards value. 

Cards with an annual fee will always be at a slight disadvantage in our scoring system since annual fees inherently cut into your rewards value. However, if a card offers terrific value via its ongoing rewards and perks, it can earn a high score and a spot in our list even if it carries a high annual fee. After all, the highest rewards rates and most valuable perks are often found on cards with annual fees.

Interest rates and intro APR offers play a much larger role in a card’s score and whether it’s included in our list when the card is designed specifically for users looking to save on interest charges, such as dedicated balance transfer or low-interest cards.

Other fees considered include cash advance and late payment fees, along with penalty APRs.

Along with rewards value and cost, we consider other factors that could give cards great long-term value, like flexible rewards redemption and especially unique and valuable perks.

We rate rewards-earning cards based on the restrictions they impose on earning and redeeming rewards and consider this when deciding on a card’s inclusion in our list.

These restrictions could include only allowing users to earn a high rewards rate on a small amount of spending or requiring users to meet a certain earning threshold before they can redeem rewards. We also examine whether points are worth less when you opt for some redemption options over others and whether a card gives you the flexibility to transfer rewards to airline and hotel partners.

We also evaluate each card’s perks based on their value, usefulness and uniqueness. Cards that offer top-tier benefits like airport lounge access or travel credits are likely to stand out, but we also aim to highlight cards that offer valuable under-the-radar perks, like cellphone protection or one-off credits for everyday expenses like dining and streaming services.