How to choose a credit card for everyday spending

Why use a credit card for everyday spending?

Using a rewards credit card for your day-to-day purchases means you’ll automatically earn points, miles or cash back for each and every purchase you make in person or online. As you rack up rewards on daily purchases, like groceries and gas, you can redeem those rewards for travel, a statement credit or other options depending on the card you have.

How do you choose a credit card for everyday spending?

Choose a card that matches your everyday spending and financial goals. If you travel a lot, for instance, you might consider a travel card that also has everyday bonus categories so you can use your rewards to help book your next vacation. Otherwise, a general cash back card might work better for you.

Check out these three features when you’re shopping around for an everyday credit card.

• Bonus categories

  Look over your monthly budget. Choose a card where you’ll earn high rewards on what you spend the most each month.

  For example, if your grocery bill tops the list, then a card that offers bonus rewards at grocery stores or wholesale clubs might be a good choice. You could earn hundreds of dollars in cash back or travel rewards every year.

• Annual fee

  Decide if you want an annual fee or a no annual fee card. Annual fee cards come with better rewards rates and perks. But if you opt for one, make sure you’ll earn enough rewards or you can take advantage of the card’s perks, like discounts or credits, to offset the cost every year and make the annual fee worth it.

• Rewards strategy

  Perhaps you prefer not to think about your card too much but still want to enjoy some rewards. Consider a flat-rate rewards card that earns the same rewards rate on all purchases, whether it’s rewards for gas or booking a hotel.

  If you don’t mind putting in some effort, a rotating bonus or tiered card can offer greater earning potential. However, you’ll need to keep track of any restrictions, such as spending caps or bonus categories that rotate every quarter (or both).

  You can also pair multiple cards and pool points from the same issuer for even more benefits and rewards.

Need extra help choosing a credit card for everyday spending? Check out our Credit Card Spender Type Tool where you can get personalized credit card recommendations based on your credit score, spending habits and daily needs.

What are the top credit cards for everyday spending?

Use this table to compare different types of cards for your daily shopping.

Dig deeper: Choosing a card for everyday spending

Discover more about using a card for your day-to-day purchases.

• Pros and cons of shopping with a credit card
• Cash back vs. travel points: How to choose credit card rewards
• Different types of credit cards
• Store cards you can use anywhere

*Information about the Costco Anywhere Visa® Card by Citi has been collected independently by Bankrate. Card details have not been reviewed or approved by the issuer.

*The information for Bilt Mastercard® has been collected independently by Bankrate.com. The issuer did not provide the content, nor is it responsible for its accuracy.