The Best Credit Cards of 2018

Best Credit Card for Travel Rewards: Chase Sapphire Preferred® Card

The Chase Sapphire Preferred® Card is the best card to keep in your wallet if your goal is to earn free flights and hotel stays and to live the travel rewards lifestyle. This card's rewards program—called Ultimate Rewards—is extremely flexible. It allows you to transfer points into nine frequent-flyer programs, including United MileagePlus and Southwest Airlines Rapid Rewards. You can also transfer your points to hotel loyalty programs including World of Hyatt, IHG Rewards Club, Marriott Rewards and The Ritz-Carlton Rewards. By providing these options, the Chase Sapphire Preferred® Card gives cardholders even more rewards value. Out of the dozens of rewards cards we examined, reward flexibility was a rare element. For example, the Barclaycard Arrival Plus® World Elite Mastercard®—another top-tier rewards card—is only worthwhile if you exchange miles for a travel statement credit. When selecting the best rewards credit card, we prioritized how many points you can earn with a card coupled with how easy it is to turn those points into meaningful savings and experiences. The Chase Sapphire Preferred® Card is outstanding on both counts.

With that said, the Chase Sapphire Preferred® Card is primarily useful for individuals who spend heavily on dining out and travel. If most of your budget consists of other types of purchases, like gas or groceries, we recommend checking out other rewards cards. The Chase Sapphire Preferred® Card awards 2 points per dollar spent on dining out and travel and 1 point on all other purchases. Unless you spend mostly in the 2-point categories, you won't earn enough points to justify this card's $95 annual fee (waived the first year).

Drawback: From a purely rewards-earning perspective, the Chase Sapphire Preferred® Card isn't the top travel rewards card anymore. That honor goes to its brother, the Chase Sapphire Reserve®. This card comes with the same flexible Ultimate Rewards program—but with supercharged rewards. Cardmembers get 3 points per dollar spent on dining and travel, 1 point per dollar spent elsewhere, and a $300 annual travel credit. However, the Chase Sapphire Reserve® also has a $450 annual fee, which keeps it from the top of our list. For most people, that $450 is a huge investment, especially since it's not waived the first year. If you know you can use the Reserve's travel features every single year, including the $300 travel credit, we recommend you get that card. However, if you want to play it safe, the Chase Sapphire Preferred® Card is still a fantastic option.

Highlights

• Rewards: Earn 2 points per dollar spent on dining out and travel and 1 point per dollar spent everywhere else. That's up to a 2.5% rewards rate.
• Sign-up bonus: Earn 50,000 bonus points—worth $625 when you redeem for travel through Chase Ultimate Rewards®—when you spend $4,000 on purchases in the first three months from account opening.
• Points can be transferred directly to 13 hotel and airline loyalty programs at a 1:1 ratio.
• Chase Sapphire Preferred® Card Review.

Best Credit Card for Cash Back: Discover it® ­- Cashback Match™

Few cards out there can provide cardmembers with as much cash-back earnings as the Discover it® ­- Cashback Match™. If you're less interested in travel and you're entirely focused on getting cash back in your pocket, then this is the way to go. The Discover it® ­- Cashback Match™ is one of the few rotating-category cash back cards. The Discover it® ­- Cashback Match™ rewards cardholders 5% cash back in select categories for up to $1,500 in purchases each quarter. That's one of the highest cash-back rates around. The only catch is that your spending has to be compatible with the types of merchants that fall into these 5% bonus categories. Below is the 2018 bonus calendar for the Discover it® ­- Cashback Match™. If it lines up with the types of places you tend to shop at, we highly recommend this option.

If the Discover it® ­- Cashback Match™ was just a rotating-category cash back card, it wouldn't be so high up on our list. But this card also has a bonus that supercharges your savings during the first cardmember year. Discover will double all the cash-back rewards you've earned at the end of your first year. Therefore, during those initial 12 months, your cash-back rates will effectively be between 2% and 10%.

Drawback: Discover isn't as widely accepted in stores as Visa or Mastercard. Therefore, you may run into cases where you can't use your Discover it® ­- Cashback Match™. Always carry a Visa or Mastercard as a backup just in case. This is especially true if you travel abroad. While Discover has some strategic partnerships that allow you to use their cards in some countries on other networks, some blind spots still exist. For example, people will have difficulty using Discover credit cards in Mexico and Italy.

Highlights

• Earn up to 5% cash back in categories like gas stations, grocery stores, restaurants, Amazon.com or wholesale clubs, up to the quarterly maximum (each time you activate).
• Discover doubles all your cash back at the end of the first year.
• Pay no annual fee.
• Discover it® ­- Cashback Match™ Review

Best Co-Branded Airline Credit Card: Southwest Rapid Rewards® Premier Credit Card

The Southwest Rapid Rewards® Premier Credit Card is one of our favorites because of the value it delivers. Southwest's Rapid Rewards program is one of the few revenue-based systems, which makes it easy to turn their points into flights. With this type of system, the point cost of a flight is directly tied to the dollar price of that same itinerary. This means award seats are far more abundant, giving you the opportunity to book flights whenever you please. Other airlines may offer up few, if any, seats for customers paying with miles—especially on holidays or popular flight paths.

The card itself gives you 2 points per dollar spent with Southwest Airlines and 1 point per dollar spent everywhere else. We estimate each point can be worth as much as 1.5 cents, so that translates to a rewards rate between 1.5% and 3%. There's also a 6,000-point anniversary bonus that kicks in every year. It's worth around $90, so it cancels out most of this card's annual fee. This card is also outfitted with one of the best bonuses: Cardholders earn 40,000 points after spending $1,000 on purchases in the first three months. For perspective, here are a few flights that fit within the bonuses parameters.

Drawback: Getting a co-branded credit card means you're limited in what you can do with your rewards. Southwest is primarily a domestic airline. Furthermore, it's not part of any of the big three airline alliances, which would expand its options. If you're more interested in international flights, we recommend looking at the Delta Air Lines credit cards instead. However, if you don't mind being tied to the Rapid Rewards program, this card packs in the most value.

Highlights

• Rewards: Earn 2 points per dollar spent at Southwest Airlines and 1 point per dollar spent everywhere else.
• Bonus: Earn 40,000 points after spending $1,000 on purchases in the first three months.
• Get 6,000 anniversary points.
• Southwest Rapid Rewards® Premier Credit Card Review

Best Credit Card with No Annual Fee: Chase Freedom®

The Chase Freedom® is an excellent credit card for those who want high savings while at the same time avoiding pesky annual fees. It also makes for a good supplementary card when paired with either the Chase Sapphire Preferred® Card or the Chase Sapphire Reserve®.

Like the Discover it® ­- Cashback Match™—our pick for top cash back credit card—the Chase Freedom® is a rotating-category cash back card. That means you save 5% on up to $1,500 in combined purchases in bonus categories each quarter you activate. There's also a $150 bonus after you spend $500 on purchases in your first three months from account opening. That's one of the highest bonuses on cards with no annual fee. Here's a list of the spending categories for 2018.

Even though this card is marketed as a cash back card, it awards users Ultimate Rewards points. This subtle fact is what allows the Chase Freedom® to be used alongside other Ultimate Rewards credit cards to amplify its value. On its own, the points you earn with this card can mainly be used toward cash back. However, if you use it alongside the Chase Sapphire Preferred® Card or the Chase Sapphire Reserve®, you can pool your rewards together and transfer them to airline and hotel loyalty programs. Because the Chase Freedom® has no annual fee, it won't cost you anything extra to do this. If you already have the Chase Sapphire Preferred® Card or the Chase Sapphire Reserve®, we highly recommend you also apply for the Chase Freedom® to maximize your rewards potential.

Drawback: The 5% category bonuses only work if you activate them. Therefore, if you're not a diligent planner and you forget to activate, you'll only get 1% cash back on all your purchases. This would really dampen the card's rewards potential. Carefully consider whether you can remember to activate this card's rewards categories every three months. If you'd rather have a simple card with a rewards program that you never have to maintain, consider applying for a fixed-rate cash back card like the Citi® Double Cash Credit Card.

Highlights

• Earn 5% cash back on up to $1,500 in combined purchases in bonus categories each quarter you activate (each time you activate).
• Get a $150 bonus after you spend $500 on purchases in your first three months from account opening.
• Get rewards in the Ultimate Rewards program.
• Chase Freedom® Review

Best Credit Card for Paying Down Debt: Chase Slate®

The Chase Slate® offers plenty of ways to get some debt relief. When you move balances to this card, you'll get a 0% APR for the first 15 billing cycles your account is open. The same 0% rate applies to new purchases as well. Anyone who has had to pay interest on a credit card knows how big of a deal this type of feature is. Credit cards can have high interest rates that make paying down debt extremely costly. Skipping those charges for 15 months can save you hundreds, if not thousands, of dollars. Moreover, by forgoing interest charges with the Chase Slate®, you can pay more toward your principal balance—getting rid of your debt faster.

While most balance-transfer credit cards charge a 3% to 5% fee for each transfer, the Chase Slate® gives you some breathing room. You pay no balance-transfer fees if you make the transfer during the first 60 days your account is open. Think about how much debt you carry. If you owe around $15,000—the average household credit card debt—then the Chase Slate® could save such you as much as $750 by skipping the transfer fee.

Drawback: The Chase Slate® will pretty much just help you pay down debt; it doesn't come with any other noteworthy features like rewards or bonuses. Therefore, once you're done paying off your debt, this card will no longer have much of a purpose. If you don't mind dealing with transfer fees, we suggest looking into cards that offer both rewards and balance transfers. They will be a little bit more expensive in the short term, but the rewards program will eventually make up for it. One such card is the Chase Freedom®.

Highlights

• Enjoy a 0% introductory APR for 15 months from account opening on purchases and balance transfers.
• Pay no balance-transfer fee.
• Pay no annual fee.
• Chase Slate® Review

Best Credit Card for Students: Discover it® for Students

What makes the Discover it® for Students one of the best credit cards for students is that it doesn't pull any punches and delivers above-average rewards—even when we compare it to ordinary nonstudent credit cards. Most banks tend to give their student cardholders lower rewards or charge higher fees than they would other customers. The Discover it® for Students bucks that trend and offers 5% cash back on different categories throughout the year, up to a quarterly maximum—just like its older brother, the Discover it® ­- Cashback Match™.

While the Discover it® for Students card doesn't have a traditional sign-up bonus, it makes up for that in two ways. First, the card offers cash-back incentives for students with good grades ($20 each year your GPA is a 3.0 or higher, for up to five years). Second, new cardmembers will have their total cash-back rewards doubled at the end of their first year, which ranks it above most cards, at least for that first year.

Drawback: As with all credit cards issued by Discover, it's worth pointing out some merchants may not accept this card. Visa and Mastercard are far more popular card networks. Therefore, we recommend you at least keep a Visa or Mastercard debit or credit card with you whenever you leave your home. The same is true if you travel abroad. Discover isn't accepted in some popular tourist spots, like Mexico or Italy. If you study abroad and want a credit card to use while away, we recommend checking out our study before applying for a Discover card.

Highlights

• Earn 5% cash back in different categories each quarter, up to the quarterly maximum, each time you activate.
• Get a dollar-for-dollar match of all the cash back you've earned at the end of your first year.
• Pay no annual fee.
• Discover it® for Students Review

Best Credit Card for Small Businesses: Capital One® Spark® Cash for Business

Among all business credit cards we surveyed, the Capital One® Spark® Cash for Business has the best mix of high rewards and versatility. This card is well-suited for companies that have a wide array of expenses and want a card that will help them save money through cash-back rewards. Most other business cards target specific expenses for their rewards—such as travel or office supplies. But most small-business owners will face expenditures that don't always fit a particular mold. The Capital One® Spark® Cash for Business offers one high cash-back rate of 2% on all purchases, instead of one particular category.

The Capital One® Spark® Cash for Business also currently features one of the best cash-back bonuses we've seen. Cardholders receive a one-time $500 reward once they spend $4,500 on purchases within three months from account opening. If you normally don't spend that much, it may be helpful to time your application right before you'll have higher expenses.

Drawback: The card has a $95 annual fee (waived in the first year). Unless your business spends at least $19,000 each year, this card isn't worth the fee. Businesses that spend less are better off applying for the Capital One® Spark® Cash Select for Business instead. This card has no annual fee and awards 1.5% cash back instead of 2%. However, what you will lose in cash-back rewards, you'll gain in skipping that $95 fee.

Highlights

• Enjoy a $0 introductory annual fee for the first year and $95 a year after that.
• Earn 2% cash back on all purchases.
• Get a one-time $500 cash bonus once you spend $4,500 on purchases within three months from account opening.
• Capital One® Spark® Cash for Business Review

Best Credit Card for Bad Credit: Discover it® Secured Card ­- No Annual Fee

You should get the Discover it® Secured Card ­- No Annual Fee if you have poor credit and want to build up your FICO score while earning cash back at the same time. Most secured credit cards come with high annual fees and no reward programs. The Discover it® Secured Card ­- No Annual Fee treats its secured credit card holders just like it would its traditional cardholders, which is what makes it one of the best options for people with poor credit. Cardholders can receive 2% cash back at restaurants or gas stations on up to $1,000 in combined purchases each quarter, plus an unlimited 1% on all other purchases. This is a rare feature among secured credit cards.

As with all secured credit cards, to apply you need to put down a security deposit. The minimum is $200. After eight months, Discover will automatically review your account. If you've been making on-time payments, you may be transitioned to an unsecured account. That means your deposit will be returned back to you.

Drawback: The Discover it® Secured Card ­- No Annual Fee has a high interest rate (24.49% Variable). You should avoid it at all costs if you tend to carry a balance month to month. The high interest charges will far outweigh any of the benefits you'd receive from cash back.

Highlights

• Earn 2% cash back at restaurants and gas stations on up to $1,000 in combined purchases each quarter.
• Get 1% cash back on all your other purchases.
• Get a dollar-for-dollar match of all the cash back you've earned at the end of your first year.
• Discover it® Secured Card ­- No Annual Fee Review

Best Credit Card for Average Credit: Capital One® QuicksilverOne® Credit Card

The Capital One® QuicksilverOne® Credit Card is one of the few good rewards cards targeted at people with average credit. Cards that are geared toward this market typically provide meager cash-back rates and charge extremely high fees. While this card isn't as strong as other offers on our list, the fact that it breaks from the pack and provides consumers decent earnings—1.5% cash back on all purchases—is what makes this card worthwhile.

Don't confuse this card with the Capital One® Quicksilver® Cash Rewards Credit Card. The two have a similar name—but the Capital One® Quicksilver® Cash Rewards Credit Card has lower interest rates a sizable cash-back bonus and no annual fee. Unfortunately, the card is also only available to those with excellent credit. If your credit score improves with the Capital One® QuicksilverOne® Credit Card, you may eventually upgrade your account to the Capital One® Quicksilver® Cash Rewards Credit Card.

Drawback: The chief downside of the Capital One® QuicksilverOne® Credit Card is its $39 annual fee. You'll need to spend at least $2,600 a year to just break even.

Highlights

• Earn 1.5% cash back on all purchases.
• Pay a $39 annual fee.
• No bonus.
• Capital One® QuicksilverOne® Credit Card Review

Compare The Best Credit Cards for Your Budget

In order to find out which credit card is truly best for the way you spend, use our tool below. Enter your estimated monthly spending per category, and we'll calculate which credit cards will yield you the highest returns. Note that this tool compares rewards cards. If you want to compare low-interest and balance-transfer credit cards, head to our other comparison tool here.

Keep in mind that there is more to credit cards than their rewards. Use our tool to narrow down your choices, but follow it up with your own research. Each card may have a surprising number of extra perks that aren't quantifiable. One of those perks may mean one credit card is especially valuable to you.

How to Find the Best Credit Card for You

If you want to consider cards other than those listed above, this guide will help you choose the best one for your financial lifestyle. There are many types of credit cards, but the easiest way to narrow your options is to consider your creditworthiness and whether you carry a balance from month to month.

• If You Have Poor or No Credit
• If You Carry a Balance
• If You Always Pay Off Your Card
  • Compare Key Features of Rewards Cards
  • Consider How Much You Spend
  • Which Rewards Cards Do You Qualify For?

If You Have Poor or No Credit: Secured or Student Card

If you have a poor FICO credit score (below 600) or if you are a student with no credit, your options are limited to a secured credit card or student credit card.

Secured Credit Card: These cards require an upfront security deposit to guarantee the credit line on the card. The deposit is typically equal to the credit line. For instance, putting down a $500 deposit means you'll get a $500 credit line. But a few secured cards allow you to put down a nominal security deposit in exchange for a higher credit line. You may also make additional deposits on the card to increase your line of credit. After providing the deposit, a secured credit card works just like a regular unsecured credit card. The deposit is returned if you close the account with a good payment record and a paid balance. For more information on secured credit cards, see our recommendations.

Student Credit Card: Most major issuers, except American Express, offer at least one student credit card. Typically, you must be enrolled in college and have income. These generally don't come with annual fees and usually include a rewards program. But student credit cards have high APRs; the average on these cards is 19.8%, about 5 percentage points higher than the average for all credit cards. Many student credit cards often forgive the first late fee and provide free FICO scores that helps you monitor and improve your credit profile. Find out more about our recommendations for the best student credit cards here.

If You Carry a Balance: Low Interest vs. Balance Transfer

If you tend to carry a balance but have good to excellent credit with a FICO score of 680 and above, you may want to consider balance-transfer or low-interest credit cards. It doesn't make sense to get a rewards card if you carry a balance; the interest you pay will offset any benefit of rewards. Instead, your financial priority should be minimizing interest payments using a balance-transfer or low-interest credit card. It's important to note that these cards aren't mutually exclusive: A balance-transfer credit card can also have a low interest rate and vice versa.

Low-interest Credit Cards: There are two types of low-interest cards: those with a 0% APR on purchases for a limited time, and those with a permanently low APR. If you need to make a big purchase, then look for a card that offers a long interest-free period—about 12 months to 21 months. But if you won't be able to pay off your expense within the interest-free grace period, consider opening a card with a permanently low APR. Look for cards that have APRs below 14%, the average rate on credit cards.

Balance-transfer Credit Cards: If you are trying to pay down credit card debt, a balance-transfer credit card allows you to move your balance to a card with a 0% APR for a limited period of time. The grace period is typically from 12 to 21 months, and most of these cards charge a transfer fee of 3% to 5% of the outstanding balance. Do the math to see if paying that fee is worth it, compared to the money you'll save from paying no interest. Before you take out a balance-transfer card, check what the APR will be when the 0% promotional period ends, in the event you can't pay off the entire balance. Keep this in mind: Most banks won't let you transfer a balance between cards from the same issuer, so find a card from a different issuer.

If You Always Pay Off Your Card: Consider a Rewards Credit Card

If you consistently pay off your balance every month, you're a good candidate for a rewards credit card. There are three types: cash-back, generic travel, and co-branded airline and hotel cards. Each type of card provides different rewards, bonuses and perks. Familiarize yourself with these cards to help you determine which would benefit you most.

Cash back Credit Cards

Cash back cards are the simplest rewards cards, giving money back on each purchase. There are cash back cards with a fixed cash-back rate and ones with rotating categories. Those with a fixed cash-back rate are the most common and provide one cash-back rate on all purchases. Rotating-category cards give cash back at different types of merchants each quarter. For example, a card may offer 5% back on grocery store purchases from January to March and then on restaurant purchases from April to June. But the cash-back rate on other purchases outside the rotating categories may not be very generous. Chase, Discover and U.S. Bank all offer rotating-category cards.

Cash back credit cards are best if you want:

• To avoid annual fees.
• Easy rewards redemption.
• Higher rewards rate for everyday purchases.

Generic Travel Rewards Cards

These cards award points for your purchases that can be redeemed for cash back, flights, hotel stays or statement credits. But you generally receive the best value if you use points for travel-related expenses. Some rewards programs—like Chase Ultimate Rewards and American Express Membership Rewards—allow you to transfer points to airline and hotel loyalty programs.

Generic travel rewards cards are best if you want:

• To maximize their rewards value.
• Flexible rewards redemption.
• Higher rewards rate for entertainment, travel and restaurant purchases.

Co-branded Airline and Hotel Rewards Cards

These rewards cards are co-branded with a specific airline or hotel chain and allow you to earn loyalty points with that brand. These cards are the least flexible for rewards, but they offer extra perks such as early boarding on flights, late checkout at hotels, free companion tickets and free checked bags, which are all typically unavailable with generic travel cards or cash back cards. Co-branded cards are best if you are:

• An avid traveler.
• Loyal to a particular airline or hotel.

Compare Key Features of Rewards Cards

When selecting the best rewards credit card for yourself, prioritize which features are the most important to you. Here are the major ones to consider:

Rewards Rate. It's important to compare the rewards rates of multiple cards to find one that maximizes your spending. To calculate a card's rewards rate, multiply the value of the points or miles by the number of points or miles you get for a specific purchase. For instance, if the value of your points is 1 cent and you get 2 points for every dollar spent, the rewards rate is $0.01 x 2 = 2%. The rewards rate makes it easier to compare cash-back, co-branded and travel rewards cards.

Bonuses. Many reward credit cards offer two types of sign-up bonuses. The first and most common requires you spend a minimum amount on the card in the first few months before getting the bonus, usually between $500 and $5,000 depending on the card. Typically, the more you must spend, the higher the bonus you get. The less common bonus is awarded when you make your first purchase. These are generally lower amounts between $25 and $50.

Foreign Transaction Fees. Most credit cards will charge a 3% fee when you charge outside the U.S. But some rewards cards don't charge this fee at all, which is useful if you travel often and want to earn rewards while abroad.

Consider How Much You Spend

How much you spend on a card generally determines if it's worth paying an annual fee. If you charge less than $12,000 a year, you may want to stick with a credit card with no annual fee. But if you plan to charge more, you could consider it. Cards with large sign-up bonuses often offset the annual fee in the first year. Other card benefits may have dollar values, such as a fee credit, that can also compensate for an annual fee. We recommend using our comparison tool above to determine the net rewards value per card, given how you spend. Otherwise, try this formula: Estimate how much you'll spend and multiply it by the card's rewards rate. Factor in other long-term benefits, such as airport lounge access and travel credits. We suggest ignoring the card's bonus because that won't accurately reflect its long-term value. Subtract the annual fee from the estimated value to get a card's net worth. Compare what you would get back with another card. A quick shortcut is to compare a rewards card with an annual fee to a 1.5% cash back card that charges no annual fee. Multiply your annual spending by 1.5%. If the final result is higher than the net value of your rewards card, then the cash back card with no annual fee is the better option.

Example Calculation

Card A has a 2% rewards rate and charges a $50 annual fee. Card B provides 1.5% cash back but charges no annual fee. How much do you have to spend each year for Card A to be the better choice? The table below shows a few scenarios.

What Cards Do You Qualify For?

If you have excellent credit with a long credit history, you'll likely qualify for any card we recommend. If your credit is good or you have a short credit history, it may be harder to qualify for these cards, depending on each credit card issuer's underwriting requirements. If you have poor or no credit, your choices are limited for rewards cards. We recommend Discover it Secured for people with bad credit and the Discover it Student for students.

Methodology: How We Picked the Best Credit Cards and Why You Can Trust Our Analysis

Our credit card experts examined more than 300 credit card offers to find the best ones. We approached the task with the core belief that there is no one-size-fits-all credit card. Your spending habits and financial situation is unique. That's why we built a variety of consumer profiles and tested how each card performs under various stress tests. We considered rewards rates, sign-up bonuses, continuing bonuses, airport lounge access benefits, interest rates, transaction fees and more. We used these factors to discover the top-performing cards in 12 common categories. We recognize, though, that we may still not have the right answer for everyone, so our comparison tool above can provide you more customized results. Our credit card experts have years of experience covering the card industry, following new developments, deals, consumer complaints, and major industry and consumer trends. We're proud to offer credit card picks that have been thoroughly vetted, debated and tested.

How Do The Best Credit Cards Compare to Each Other?

We pitted our top picks against each other to see how they perform for two types of consumers by looking at spending, rewards and interest. We considered consumers with two levels of spending: low spenders who charge $12,000 annually and medium spenders who charge $24,000 each year. We broke down each consumer's spending into major rewards categories using data from the Bureau of Labor Statistics. Each year, the bureau examines what U.S. consumers spend their money on, such as travel, dining and groceries. Based on the spending, we determined how much a consumer would earn back in rewards over two years, minus the annual fee.

If you want to determine how rewarding a card is based on your spending, use our tool above to approximate the net two-year return of each card listed here.

Comparing Interest Rates

A credit card's interest rate should be a top factor if you carry a balance month to month. You should consider a card's promotional rate, usually a low teaser rate, and ongoing APR. Most of the best rewards credit cards don't offer promotional rates, except for cash back cards. For example, the Citi® Double Cash Card offers a 0% APR on balance transfers for 18 months. If you're shopping for a credit card with low interest, don't settle for a promotional 0% APR period that's shorter than 12 months or has an ongoing APR above 14%, the average for all credit cards.

Your monthly payments are applied in descending APR order, with a few exceptions around promotional periods. That means if you do a balance transfer, try not to charge any new purchases to the card; your payments will be applied toward the new purchases and not the balance you originally wanted to eliminate.