The Petal® 1 "No Annual Fee" Visa Credit Card is no longer available to new applicants.
While new doesn't always equal better, some of the credit cards that launched in 2020 are top of their class, whether you're looking for a lucrative rotating cash-back program (Chase Freedom Flex®) or want to redeem rewards to pay off loans, save or invest (SoFi Credit Card).
This year also saw many big businesses dive into the credit card space, including Verizon, Venmo and Hotels.com. There's also cards for credit newbies and frequent fliers.
Select covered a dozen new credit card launches, and below, we've rounded up some of our favorites.
Best new credit cards of 2020
The Chase Freedom Flex® is an excellent cash-back card with generous rotating quarterly categories. In additional the rewards, you also can take advantage of the intro APRs for purchases and balance transfer for more than a year.
- Long intro APR for purchases and balance transfers
- Rewarding quarterly bonus categories
- No annual fee
- Bonus categories are capped each quarter
- Has a foreign transaction fee
Rewards
- 5% cash back on up to $1,500 in combined purchases in bonus categories each quarter you activate (then 1%)
- 5% cash back on travel booked through Chase Travel℠
- 3% on drugstore purchases and on dining (including takeout and eligible delivery services)
- 1% cash back on all other purchases
Balance transfer fee
Intro fee of either $5 or 3% of the amount of each transfer, whichever is greater, on transfers made within 60 days of account opening. After that, either $5 or 5% of the amount of each transfer, whichever is greater.
Foreign transaction fee
3%
- High rewards rate for dining and delivery
- Intro APR for purchases and balance transfers
- Streaming credit has complicated requirements
- Quarterly dining bonus category is capped
Venmo Credit Card
Rewards
3% cash back on the eligible category in which you spend the most, 2% back on the second-highest eligible category and 1% back on all other purchases
Welcome bonus
None
Annual fee
$0, see terms
Intro APR
N/A
Regular APR
19.99%, 28.99%, 31.99% variable as of October 1, 2024
Balance transfer fee
N/A
Foreign transaction fee
None
Credit needed
N/A
Terms apply.
Pros
- No annual fee
- Rewards program that adapts to your spending habits
- No foreign transaction fees when traveling outside the U.S.
Cons
- Currently available to a random percentage of Venmo customers who’ve had a Venmo account for at least 30 days and who’ve been active in the last 12 months
- No welcome bonus
- No introductory APR offer
SoFi Credit Card
Rewards
Earn up to 3% cash back for a year when you set up direct deposit with SoFi. After that, earn 2% unlimited cash back on purchases when redeemed toward investing, saving, or paying down an eligible loan with SoFi.*
Welcome bonus
Once you apply and get approved for the SoFi Credit Card, you can tap to play for a chance to win a welcome bonus between $10–$10K in rewards points.**
Annual fee
$0
Intro APR
N/A
Regular APR
17.24% to 29.24% variable
Balance transfer fee
Either $10 or 5%, whichever is greater
Foreign transaction fee
0%
Credit needed
Good/Excellent
*Terms apply. See offer details here.
**Bonus distributed as reward points; see terms and conditions here.
Pros
- Simple cash-back program that helps you pay down debt, save or invest for the future
- Opportunity to get a reduction in APR
- Access to World Elite Mastercard® benefits, Mastercard’s Priceless® Experiences and security features like Mastercard ID Theft Protection™ and Price Protection
Cons
- Limited cash-back categories
Our methodology
To determine which credit cards offer the best value, Select analyzed popular credit cards available in the U.S. We compared each card on a range of features, including rewards, welcome bonus, introductory and standard APR, balance transfer fee and foreign transaction fees, as well as factors such as required credit and customer reviews when available. We also considered additional perks, the application process and how easy it is for the consumer to redeem points.
Select teamed up with location intelligence firm Esri. The company's data development team provided the most up-to-date and comprehensive consumer spending data based on the 2019 Consumer Expenditure Surveys from the Bureau of Labor Statistics. You can read more about their methodology here.
Esri's data team created a sample annual budget of approximately $22,126 in retail spending. The budget includes six main categories: groceries ($5,174), gas ($2,218), dining out ($3,675), travel ($2,244), utilities ($4,862) and general purchases ($3,953). General purchases include items such as housekeeping supplies, clothing, personal care products, prescription drugs and vitamins, and other vehicle expenses.
Select used this budget to estimate how much the average consumer would save over the course of a year, two years and five years, assuming they would attempt to maximize their rewards potential by earning all welcome bonuses offered and using the card for all applicable purchases. All rewards total estimations are net the annual fee.
While the five-year estimates we've included are derived from a budget similar to the average American's spending, you may earn a higher or lower return depending on your shopping habits.
Petal 1 Visa Credit Card is issued by WebBank.
Information about the SoFi Credit Card and the U.S. Bank Altitude® Go Visa Signature® Card has been collected independently by Select and has not been reviewed or provided by the issuer of the card prior to publication.
