What’s the Best Credit Card for Online Shopping?

Online shoppers tend to be savvy, often comparing product features and prices, searching for coupon codes, or looking for special shipping offers before checking out. They want their credit card to do double duty, earning rewards as they shop, or even triple duty by layering on a rewards shopping portal associated with the credit card. Rewards programs vary from card to card, some earning you cash back or points.

If you fall into this camp, it’s wise to select a rewards program that matches the kind of spending you do. Maybe you shop online for everyday items, rather than large, one-time purchases. Or maybe you prefer to buy from particular online vendors with rewards programs attached to associated credit cards, similar to a store’s own credit card in the offline world. Either way, a rewards program should make sense for your lifestyle. For more on this, read “Earning Rewards and Cash Back While Shopping Online.” 

If you plan to pay off a large purchase over time, examine credit card interest rates and fees when selecting a credit card for online shopping. Credit card interest rates average close to 17% per year, which can lead to interest charges that offset even generous rewards programs.² Look for cards with a low annual percentage rate (APR) or even a 0% intro APR credit card.

Some basic credit card features become even more critical for online shopping – namely, security and customer service. Experts agree that using a credit card is safer for online shopping than using a debit card tied to a bank account. Some enhanced security features of credit cards that may be especially beneficial for online shopping include:

• $0 liability for unauthorized purchases.
• Alerts for unusual activity.
• Ability to freeze your account.
• Virtual card numbers. 

For more credit card safety tips, read “Holiday Credit Card Security: Keeping Your Credit and Identity Safe.”

Online forms make most applications pretty straightforward. You’ll be asked for typical personal profile information like your name, address, and date of birth; basic financial data like income, bank accounts, and housing costs; and security facts such as your Social Security number and mother’s maiden name.

• Secured credit cards: Getting your application approved might depend on your credit history. If you have a minimal or less than stellar credit history, a secured credit card may smooth the approval process.
• Instant approval credit cards may be another way to get online shopping fast. The benefit of this type of card is that your application is evaluated in real time, letting you know right away if you’re approved. A disadvantage is that instant approval credit cards sometimes – but not always – carry higher fees and lower credit limits. For more, read “How to Get an Instant Approval Credit Card—and Use it Instantly!”