How We Choose the Best Credit Cards

Core Insights - The article discusses the methodology used to evaluate and score credit cards based on their rewards and benefits, focusing on various spending categories and the value of points or cash back earned [2][3][6]. Group 1: Reward Calculation Methodology - The annual reward value for each credit card was calculated using data from the Bureau of Labor Statistics' 2024 Consumer Expenditure Surveys, which detail average household spending in various categories [2]. - A quantitative model was developed to score credit cards across seven major categories, utilizing 56 criteria to assess their performance [3][6]. - The average earnings for cash-back cards were calculated based on household spending, with specific examples provided for categories like groceries, gas, and dining [7][8]. Group 2: Card Selection and Analysis - A list of popular and valuable credit cards was compiled from major issuers and credit unions, along with a competitive analysis of the credit card landscape [4]. - The research examined 165 cards across 56 criteria, totaling 9,240 data points, to determine the best credit cards for the 2026 awards [6]. Group 3: Reward Features and Benefits - The article highlights various criteria for evaluating credit card rewards, including welcome bonuses, bonus-spend proportions, and the value of points when redeemed for travel [13][15][19]. - Specific earning categories for travel credit cards were analyzed, including car rental earning rates and partnerships with airlines and hotels [10][41][42]. Group 4: Costs and Interest - The article discusses the costs associated with credit cards, including annual fees, average APR, and introductory offers for purchases and balance transfers [24][25][26][27]. - It emphasizes the importance of understanding these costs for average credit card users [24]. Group 5: Additional Features and Protections - Various benefits offered by credit cards were scored, including insurance and protection features like cellphone insurance, price protection, and trip cancellation insurance [48][49][59]. - The article also covers travel-related benefits such as airport lounge access and TSA PreCheck credits, which enhance the value of travel credit cards [38][40].