Editor's Choice Awards: Best Credit Cards of 2009, Part I

December 29, 2009
By: Curtis Arnold

Hundreds of new credit card products launch every year, taking their place alongside trusted veterans. Only a handful of cards made our list of the very best credit cards of 2009.

Best Cashback Credit Cards of 2009:

In a year when banks pulled out all the stops to preserve profit margins, cash back and reward cards took some of the hardest hits. However, we found two membership-based cards that still provide some of the best incentives to pay with plastic:

Schwab Bank Invest First^® Visa^® Credit Card

You'll need to be on a first name basis with Chuck to get one of the industry's best cash back credit cards. Open a Schwab One brokerage account and you may qualify for this Visa Signature card that offers a straight, 2% cash rebate on all purchases. With no limits and no restrictions, this card that targets folks with good credit provides real savings all year long.

TrueEarnings^® from Costco and American Express

Costco members earn a dollar for spending $100 at most merchants who accept American Express. Cashback rewards grow 3% for annual gasoline purchases of up to $3,000 (1% thereafter), 3% for restaurants, 2% for travel, and 1% for other purchases making this a great charge card for road warriors.

Best Airline and Travel Credit Cards of 2009:

Our favorite travel reward programs can still help cardholders earn enough incentives to make free trips truly rewarding:

Citi Premier^® Pass

This credit card travel rebate program awards roughly equivalent to 1% of purchases as credit toward future flights on partner airlines. Earn one point per dollar spent on the card and one point for every three miles flown. Expedia runs the reward redemption program, allowing customers to track low fares using points instead of dollars. Earn up to 100,000 points per calendar year with no annual fee.

PenFed Premium Travel Rewards American Express^® Card

Members of the Pentagon Federal Credit Union can qualify for this extraordinary travel rewards credit card, offering up to five bonus points per dollar spent. PenFed rewards its cardholders with special deals on hotel upgrades and discounted access to airport executive lounges worldwide. Enrollment in the National Military Family Association qualifies any American to join this credit union, not just veterans.

Best Low Interest Rate Credit Cards of 2009:

The Credit CARD Act spooked many lenders into hiking overall interest rates in 2009. We found two cards that kept finance charges reasonable:

Simmons Visa^® Platinum

Simmons First attracted major attention in 2009 by attracting online customers from around the country. The bank, actually a collection of community banks in Arkansas, offers straightforward customer service along with some of the industry's lowest APRs.

Iberiabank Visa^® Classic

Along with keeping interest rates low, Iberiabank was among the first credit card issuers in the industry to eliminate overlimit fees. It's no coincidence that low rate credit cards come from the same banks that uphold strong customer service standards.

Best Low Introductory Interest Rate Credit Cards of 2009:

New banking regulations may mean the end of "low introductory rate" credit cards in 2010. Fortunately, a handful of credit cards still reward new customers with special offers.

PenFed Visa Gold Credit Card

Simple terms, no annual fee, and a 4.99% interest rate on balance transfers for 24 months make this Visa one of the strongest competitors on the market. PenFed also has a low 2.5% balance transfer fee with a $10 minimum and $100 maximum which sets it apart from most competitors.

Citi^® Platinum Select^® MasterCard^®

Citibank keeps the 0% APR tradition alive, for at least a little while longer. New cardholders pay no interest for 18, 12, or 7 months on purchases and balance transfers, with permanent rates from 9.99 - 19.99% variable depending on your credit score. 3% balance transfer fee applies.

Stay tuned for part two where we'll announce the winner for most innovative new program, best rewards points credit card, and more!

Important Note! The information in this article is believed to be accurate as of the date it was written. Please keep in mind that credit card offers change frequently. Therefore, we can not guarantee the accuracy of the information in this article. Please verify all terms and conditions of any credit card prior to applying.

About the Author

Curtis Arnold, a nationally recognized consumer educator and advocate, has been educating consumers about credit cards since 1998. New! Curtis is the author of "How You Can Profit from Credit Cards: Using Credit to Improve Your Financial Life and Bottom Line" (FT Press, 2008). He is also the co-author of the upcoming Complete Idiot's Guide to Person-to-Person Lending (Alpha Books/Pengiun Group USA, April 2009), a contribitor to The Ultimate Allowance (InnerWealth Publishing, 2008) and is extensively featured in 42 Rules^TM for Driving Success With Books (Super Star Press, January 2009).