CNN Underscored Unveils Comprehensive Credit Card Ranking Methodology

CNN Underscored has detailed its methodology for ranking credit cards, emphasizing that there is no “one-size-fits-all” solution. The best credit card for an individual hinges on personal financial habits and priorities, whether that involves maximizing cash back, leveraging travel benefits, or minimizing fees. The organization continually monitors the evolving landscape of credit cards to provide recommendations that cater to various consumer needs.

To enhance the relevance of its rankings, CNN Underscored categorizes credit cards based on specific profiles. These include categories like “best for frequent travelers,” “best for cash back,” and “best for 0% APR.” This tailored approach helps readers quickly identify credit cards that align with their lifestyle and spending patterns.

Core Principles of Credit Card Use

Credit cards offer a range of rewards and perks, but these advantages can be negated if users carry a balance and incur interest charges. Financial institutions often provide generous rewards because many consumers end up paying high interest rates that exceed the value of those perks. Responsible use of credit cards involves paying off the statement balance in full each month to avoid interest charges.

Selecting a credit card should reflect individual spending habits. For instance, a card that offers rewards at restaurants may not be beneficial for someone who rarely dines out. Instead, consumers should focus on their primary spending areas—be it groceries, travel, or online shopping—and choose cards that provide optimal rewards in those categories. CNN Underscored also advocates for everyday credit cards that earn more than 1 point per dollar or 1% cash back on all purchases.

The credit card industry is dynamic, with new products and benefits introduced regularly. As financial situations and spending patterns change, consumers are encouraged to reassess their credit card portfolio every few years to ensure they are utilizing the most beneficial options.

Evaluating Credit Cards

The evaluation of credit cards takes into account both earning rates and the actual value of the rewards. CNN Underscored compares annual fees against the tangible benefits offered by a card. Travel perks, such as lounge access, statement credits, and insurance protections, are weighed against the card’s annual cost.

Several factors are also considered during the evaluation process, including the attainability of the spending required to secure welcome offers, the ease of redeeming rewards, and the strength of airline and hotel partnerships for cards with transferable points. While avoiding interest charges is crucial, the organization also assesses 0% APR introductory offers for those looking to manage debt strategically. Travel-focused cards may include additional protections like trip delay coverage, baggage protection, and rental car insurance, which add significant value.

The benchmark credit card identified by CNN Underscored is the **Citi Double Cash® Card**. This card serves as a standard against which all other credit cards are measured. An ideal benchmark card should be easy to use, with straightforward rewards and no annual fee. It should provide strong returns on all purchases, allowing cardholders to use it without concern for bonus categories.

The Citi Double Cash® Card stands out for its simplicity and reliability, but it is not without limitations. Other cards may offer more valuable perks, such as transferable travel points, yet these often require additional effort to maximize benefits. Premium cards can provide higher earning rates or travel benefits, but they may come with substantial annual fees.

CNN Underscored aims to ensure that any card recommended is at least as advantageous as the benchmark card. A card with exceptional travel perks but a high annual fee could be comparable in overall value to the benchmark, depending on the frequency of use of those benefits. For a card to truly excel, it must provide greater overall value than the benchmark.

Commitment to Transparency and Expertise

CNN Underscored is dedicated to refining its methodology to deliver accurate, data-driven credit card recommendations. By incorporating real-world experiences and a transparent ranking system, the organization aims to be a trusted resource for consumers seeking to maximize their financial benefits.

Each article in CNN Underscored Money is vetted by experts, including travel products editor **Kyle Olsen** and senior money editor **Alberto Riva**. Their extensive hands-on experience in testing numerous credit cards ensures that every recommendation is grounded in real-world value rather than marketing claims. With decades of combined reporting and industry knowledge, they aim to empower readers to make informed decisions about financial products that earn their place in consumers’ wallets.