Last December I wrote this post entitled the “best credit cards for young people in 2007.” I decided to update it for 2008/2009, as things have changed dramatically in the credit card lending market. Many of the cards that were the best deals a year ago have jacked their rates–or stopped accepting new cardmembers altogether. A few cards, however, really stand out today.

The best credit cards in today’s market come from Discover and Capital One, who continue to approve new cardmembers and provide products with exceptional rewards and value…if you know which card to pick. That said, it is harder to get a credit card today than it was a year ago. You’ll need good credit to be approved for most of these cards. Now more than ever, I recommend you check your credit history and/or invest in credit monitoring to help you recognize the behaviors that will help you build your credit in the long run.

Here are my latest credit card picks, with further information available at Arrive Financial: Credit Card Intelligence:

  • Best overall credit card
  • Best credit card for carrying balances
  • Best credit card for travel
  • Best cash rewards credit card
  • Best credit card for poor/average credit

    • Best overall credit card: Discover More Card

    If you’ve never had a Discover Card, you might not understand why you would pick one over a Visa or MasterCard, for example. The reason is simple: the best combination of regular interest rates, unlimited cash back rewards, and 0% interest rates. Put simply, no other credit card offers all three at once. Most cards make you sacrifice one to get the other. (For example, many cards give you great cash rewards but a high regular APR and no 0% intro APR).

    The Discover More Card features a regular 10.99% APR, a 0% intro APR for six months on purchase and one year on balnace transfers, and unlimited 1% cash back on every purchase.

    Learn more about the Discover More Card or apply for this card now »

    Best credit card for carrying balances: Capital One Platinum Prestige

    If you want to make a big purchase and pay the balance off over time, a low APR is more important than rewards. (You can only make money from credit card rewards if you always pay the balance in full every month).

    The Capital One Platinum Prestige card features a low fixed APR (currently 8.9%) and a 0% introductory APR on balance transfers, all with no annual fee. This card will save you money over other credit cards if you plan to pay a purchase off over time.

    Learn more about the Capital One Platinum Prestige credit card »

    Best credit card for travelers: Capital One No Hassle Miles Rewards

    With most mileage rewards cards carrying annual fees or imposing complex earning and redemption rules, Capital One lives up to its advertisements with its “No Hassle” miles rewards card.

    With a competitive regular APR, 1.25 miles earned per every dollar spent, miles redeemable on any airline with no blackouts or restrictions, and no foreign currency transaction fee, this is the card to get if you want to bank your credit card rewards for a sweet vacation.

    Learn more about Capital One No Hassle Miles Rewards »

    Best cash rewards credit card: Capital One No Hassle Cash Rewards

    The no hassles cash rewards card from Capital One pays 2% cash back at grocery stores and gas stations and 1% back on everything else—with no limits on how much cash you can earn.

    While American Express Blue Cash is a great cash back card, you have to spend $6,000 on the card before you earn it’s highest level of cash rewards. Capital One pays 2% cash on purchases most of us make every month anyway—in the grocery store and at the pump.

    Learn more about Capital One Cash Rewards »

    Best credit card for poor credit: Capital One Standard Platinum

    Building good credit can be a catch-22. You can’t get a decent credit card without good credit, and you can’t get good credit without a credit card! There are a lot of credit cards marketed to people with poor credit that are absolute rip offs. Often, they charge hundreds of dollars in fees before you can even use the card.

    The Capital One Standard Platinum Card has no annual fee, set up fees, or anything like that, and may be available to borrowers with limited or average credit. Like most credit cards available for those with less-than-perfect credit, this card features a higher than average regular APR, but does not carry the outrageous fees of so-called “bad credit credit cards”.

    Learn more about Capital One Standard Platinum »

    Not decided yet? Review, compare, and apply for over 75 leading credit cards at our sister site Arrive Financial.

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