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Author: Barry Bridges
How to choose the right rewards card and maximize your returns
With a rewards credit card, you can unlock value from the spending you do every day. Whether you’re looking to earn rewards on travel, shopping, dining out, filling up at the pump or a more specific purchase, there’s a rewards credit card that can help you do it.
Bankrate’s picks for 2019 best rewards credit cards
| Card Name |
Best for |
Bankrate Review Score |
| Capital One® Venture® Rewards Credit Card |
Travel Rewards |
4.7/5 |
| Capital One® Quicksilver® Cash Rewards Credit Card |
Flat-rate cash back |
4.7/5 |
| Chase Sapphire Preferred® Card |
Points flexibility |
4.8/5 |
| Capital One® Savor® Cash Rewards Credit Card |
Dining and entertainment |
4.9/5 |
| Capital One® VentureOne® Rewards Credit Card |
Travel with no annual fee |
4.4/5 |
| Capital One® SavorOne® Cash Rewards Credit Card |
Dining and entertainment with no annual fee |
4.6/5 |
| HSBC Cash Rewards Mastercard® credit card |
Earning cash back in the first year |
4.3/5 |
| U.S. Bank Cash+™ Visa Signature® Card |
Personalized cash back rewards |
4.6/5 |
| USAA® Rewards™ American Express® Card |
Military families |
4.3/5 |
| Discover it® Cash Back |
First-year cash back bonus |
4.7/5 |
How we chose the list of top rewards credit cards
The selection is based on research by a team of Bankrate writers and editors with years of personal finance experience. Only the ones you see on this page made the cut, based on factors including:
- Rewards value — After all, the whole point of this type of credit card is to earn rewards. The cards on our list represent some of the U.S. market’s finest credit card rewards programs.
- Overall value — Apart from cash back, points or miles, does the card offer a good deal? Do the benefits outweigh any fees or restrictions? The answer to both questions had to be an emphatic “yes” for the card to make our list.
- Service — The cards we’ve chosen represent several credit card issuers rated among the highest for customer satisfaction, including Discover, Chase and Capital One.
A closer look at our top-rated rewards credit cards
Capital One® Venture® Rewards Credit Card
What sets it apart
When you book and pay for a hotel using the Hotels.com/Venture portal through January 2020, the 2X miles per $1 rewards rate jumps to 10X. There may be no better reason to add the word “quintuple” to your vocabulary. You’ll also enjoy having the freedom to transfer miles to more than a dozen travel loyalty programs, which makes the Capital One Venture even more useful and valuable.
Why it might not be for you
Look elsewhere if you can’t bear to travel without airport lounge access, a major perk offered by competitors including Chase, American Express and Mastercard.
Our final thought
The Capital One Venture is an exceptional rewards card with plenty of perks for the frequent traveler.
Read the full review and apply on Capital One’s secure website.
Capital One® Quicksilver® Cash Rewards Credit Card
What sets it apart
Unlike some other flat-rate rewards cards, the Capital One Quicksilver doesn’t have an annual fee, a foreign transaction fee or complicated mechanisms that control how you earn your rewards.
Why it might not be for you
If the calendar influences your spending habits (big purchases during home improvement season, for example), you could earn more rewards with a bonus category card.
Our final thought
If you want a low-maintenance cash back card that makes earning rewards simple, the Capital One Quicksilver is well worth your consideration.
Read the full review and apply on Capital One’s secure website.
Chase Sapphire Preferred® Card
What sets it apart
The points you earn with your Chase Sapphire Preferred receive a 25% bump in value when you redeem for travel through the Ultimate Rewards portal, and you also get the benefit of a 1-1 point transfer with travel partners (nine airlines and four hotel brands). Some rewards portals can be on the restrictive side, but Chase Ultimate Rewards offers a refreshing contrast.
Why it might not be for you
The $95 annual fee, although reasonable, puts some pressure on the cardholder to maximize points value to offset the cost.
Our final thought
The combination of the Chase Sapphire Preferred and the Chase Ultimate Rewards portal can bring lucrative travel rewards even for the casual traveler.
Read the full review and apply on Chase’s secure website.
Capital One® Savor® Cash Rewards Credit Card
What sets it apart
The 4% rewards rate on dining and entertainment makes the Capital One Savor a compelling choice for people who enjoy food and fun. Don’t mistake it for a two-trick pony, though, as it also offers 2% at grocery stores and 1% on everything else.
Why it might not be for you
If you prefer your kitchen and den to the restaurant and multiplex, consider an alternative like the Blue Cash Preferred® Card from American Express. Its highlights include 6% cash back at U.S. supermarkets on up to $6,000 in purchases per year (1% thereafter) and 6% cash back on select U.S. streaming services.
Our final thought
If you’re frequently out on the town, you’ll find a lot of reasons to put the Savor Cash Rewards card in your wallet. Few cards offer this level of rewards for dining and entertainment.
Read the full review and apply on Capital One’s secure website.
Capital One® VentureOne® Rewards Credit Card
What sets it apart
An annual fee is sometimes the price you have to pay for generous travel rewards and benefits, but not in the case of the Capital One VentureOne. The rewards rate of 1.25x miles on every purchase might not be exciting, but the rate on eligible hotel purchases at Hotels.com/Venture — unlimited 10x miles through January 2020 — can help your earnings accelerate quickly. Perks including 24-Hour Travel Assistance Services give the card’s value a nice boost.
Why it might not be for you
The hotel rewards offer comes with some strings attached, spelled out in detail on the Hotels.com/Venture website. Bookings that don’t follow the approved process to the letter will probably be ineligible for the 10x rate. Travelers who want more flexibility in how they book hotel stays might want to consider other options.
Our final thought
You’d have to travel far and wide to find a rewards card that offers this kind of earning potential without charging an annual fee. The CapitalOne VentureOne is a solid choice among travel rewards cards.
Read the full review and apply on Capital One’s secure website.
Capital One® SavorOne® Cash Rewards Credit Card
What sets it apart
For those who frequent places like movie theaters, aquariums and tourist attractions, and prefer dining out to eating in, this card is a solid option. However, it’s perhaps geared more toward casual spenders in these categories, as its sister card — the Capital One Savor Cash Rewards Credit Card — holds a higher cash back rewards rate. The SavorOne offers 3% cash back on dining and entertainment, 2% at grocery stores and 1% on everything else — so there’s still ample room to rack up cash back without having to pay an annual fee. You won’t have to pay interest on purchases and balance transfers for the first 15 months as a cardholder. After that, you’ll find a 16.24% – 26.24% variable APR, depending on your creditworthiness.
Why it might not be for you
If you find yourself visiting the local movie theater once a year, the 3% cash back on dining and entertainment might go to waste.
Our final thought
If you’re a frequent flyer and find yourself opting for all of the classic tourist attractions when you land, consider pairing this card with the Capital One VentureOne Rewards Credit Card. The duo will help you rack up points on miles and entertainment (without having to pay annual fees).
Read the full review and apply on Capital One’s secure website.
HSBC Cash Rewards Mastercard® credit card
What sets it apart
Cardholders can take advantage of a decent amount of cash back rewards within the first year, travel perks and debt consolidation opportunities. For starters, the HSBC Cash Rewards Mastercard comes with a 3% cash back rate on purchases up to $10,000 within the first year, and 1.5% on all other purchases afterward. The first-year rewards rate makes the card less optimal for long-term earning, although it still offers a 10% cash back anniversary bonus on all cash rewards earned each year. In terms of travel benefits, cardholders can swipe overseas without paying a foreign transaction fee and rest assured knowing their expenses are covered. You can avoid APR on all purchases during the first 12 months and transfer debt to this card with its 0% APR on balance transfers within the first year. After that, the APR for balance transfers and purchases will switch to a variable 14.99% – 24.99%, depending on creditworthiness.
Why it might not be for you
If you want to earn a greater amount of rewards or consolidate debt beyond the first year as a cardholder, look elsewhere.
Our final thought
For those with average or good credit, this card offers a well-rounded amount of rewards, especially for the first 12 months, along with travel perks.
Read our full HSBC Cash Rewards Mastercard credit card review.
U.S. Bank Cash+™ Visa Signature® Card
What sets it apart
Would you like to choose from more than a handful of bonus categories? This card offers a selection of 12, and you get to choose two for 5% cash back (up to $2,000 in combined purchases per quarter).
Why it might not be for you
More bonus categories could mean more effort to keep tabs on your choices, especially if you mix things up from quarter to quarter. Don’t forget the 3% foreign transaction fee on international purchases, either.
Our final thought
The U.S. Bank Cash+ Visa Signature expands your choices of where you earn your rewards. Few rewards cards offer this much versatility in bonus categories.
Read the full review and apply on U.S. Bank’s secure website.
USAA® Rewards™ American Express® Card
What sets it apart
The rewards rates on dining (3X per $1) and gas and groceries (2X per $1) are comparable to those of many top-tier cards, and this card also has benefits and perks tailored to the military. Not having to pay an annual fee will always come in handy.
Why it might not be for you
If you have a FICO Score below 670, you may have trouble qualifying since this card requires good or excellent credit. According to its website, USAA is working to develop a secured credit card for those who need to build credit. In the meantime, consider a credit card for fair credit or bad credit.
Our final thought
If you want to earn generous rewards on dining, gas and groceries while enjoying military-friendly features, the USAA Rewards American Express Card could provide a squared-away level of service.
Read the full review and apply on USAA’s secure website.
Discover it® Cash Back
What sets it apart
Discover Cashback Match™ automatically matches the cash back you’ve earned at the end of your first year. If you target your spending effectively in the rotating bonus categories, your earnings can add up quickly.
Why it might not be for you
The bonus categories process does require some effort on your part. If you forget to enroll every quarter or adjust your spending patterns, the 5% bonus on spending (up to the $1,500 quarterly maximum) becomes a missed opportunity.
Our final thought
The Discover it Cash Back is a desirable no annual fee rewards card, due in large part to its first-year bonus offer. If you take full advantage of the 5% bonus categories, the following years won’t be too shabby either.
Rewards cards: What they are and how they work
A rewards card can earn you points, miles or cash back for purchases made with the card. The card can be flat-rate — meaning it offers the same percentage back for every purchase — or offer rotating bonus categories — meaning you’ll earn different percentages depending on the category in which your purchase falls.
Depending on the issuer, rewards cards offer distinct rewards programs and have specific rules concerning how you can redeem your rewards. Some issuers require you to redeem your rewards through the portal. There can also be restrictions on what you can redeem your rewards for, such as cash back, statement credit, gift cards, shopping, travel and more.
In some cases, redeeming through the portal adds value to your rewards. A prime example is using the Chase Ultimate Rewards® portal with the Chase Sapphire Preferred. When you use the portal to redeem points earned with this card for travel purchases, the value increases 25%.
If you redeem 60,000 points for travel purchases through Chase Ultimate Rewards, those points will be worth $750 instead of $600.
Types of rewards cards
Navigating all the rewards card options available to you can be difficult. That’s why we broke out some of the most common types, along with more detailed recommendations from our team on the best cards in each category.
Cash back
With a cash back rewards card, you’ll earn a percentage of cash back on purchases. Your cash back will typically be applied as a statement credit toward your account, yet some cards — such as the U.S. Bank Cash+ Visa Signature Card — can directly deposit the cash back into your U.S Bank checking or savings account.
Travel
Whether it’s a co-branded card with an airline or hotel or a general-purpose travel rewards card, these cards can help frequent travelers earn rewards for their travel-related spending.
With a travel rewards card, you can expect perks like discounted trips, seat upgrades, travel insurance benefits, statement credits and more. For example, the Capital One Venture Rewards Credit Card offers up to $100 Global Entry or TSA PreCheck® credit. Read our guide to your first travel rewards card for tips on how to choose the right travel card option for you.
Co-branded retail cards
Certain co-branded cards are issued through a partnership between a credit card company and a retailer. With co-branded retail cards, you can earn discounts, free shipping and members-only access events.
The Costco Anywhere Visa® Card by Citi, for example, will earn you 4% cash back on eligible gas (up to $7,000 per year, then 1%), 3% on restaurant and eligible travel purchases and 2% on all other purchases from Costco and Costo.com. You’ll earn 1% on all other purchases.
Business
With a business rewards card, you can earn rewards for any business-related spending. The Capital One® Spark® Cash for Business, for example, will earn you an unlimited 2% cash back on every purchase for your business.
These cards may offer perks like free employee cards, travel and auto insurance, travel statement credits and more. If you’re interested in applying for a business credit card, read our tips on how to choose the right card.
“I have [a lot of] credit cards and use each of them for specific reasons: free nights, free flights, upgraded hotel rooms, cash back, etc. Overall, though, the goal is to strategically earn rewards, perks, and cash back to allow my family of four to travel as much as we want for as little money as possible.”
— Lee Huffman, Travel & Lifestyle Writer at Bald Thoughts
Best rewards sign-up bonuses
A generous signup bonus, sometimes called a welcome offer, is one of the marks of a premier rewards credit card. Here’s a look at some of the most lucrative signup bonuses and welcome offers from our top rewards credit cards:
| |
Offer/bonus
|
Spending requirement |
Value
|
| Chase Freedom Unlimited |
3% cash back on all purchases in your first year up to $20,000 spent
|
N/A |
$300**
|
| Chase Sapphire Preferred Card |
60,000 bonus points
|
Spend $4,000 on purchases in the first 3 months from account opening |
$750 (toward travel when you redeem through Chase Ultimate Rewards)
|
| Capital One Venture Rewards Credit Card |
50,000 miles
|
Spend $3,000 on purchases within 3 months from account opening |
$700*
|
| Capital One Savor Cash Rewards Credit Card |
$300
|
Spend $3,000 on purchases within 3 months from account opening |
$300
|
*Estimate based on July 2019 valuations by The Points Guy (50,000 miles x .014)
**Estimate based on doubling the card’s normal 1.5% cash back rate x $20,000
How to judge the value of a sign-up bonus
Not all bonuses are created equal, and sometimes you need to dig deeper into the numbers to figure out how much they’re worth. Follow these tips to get a clearer picture:
- Calculate the value of points/miles — When the value of a bonus isn’t spelled out, resources like The Points Guy’s monthly valuations can come in handy. As The Points Guy explains: “These valuations are based on a combination of what I would pay to buy points if given the opportunity and the overall value I could get from redeeming them, factoring in variables like award availability, fees and change/cancellation policies.”
- Look at the proportions — An overly large spending requirement could reduce the value of a bonus. For example, a $300 bonus after spending $2,000 in 3 months could make more sense economically than a $500 bonus that requires spending twice as much in the same amount of time.
- Avoid getting overextended — Spending more than you normally would just to meet the bonus requirement could come back to haunt you. If your bonus quest results in carrying a big balance, APR charges could negate the benefits of the welcome offer.
Redeeming your rewards
A stash of rewards is only meaningful if you redeem them. Thankfully, many cards offer unlimited redemption and rewards that don’t expire, but it’s still important to consider all the ways rewards can be used prior to applying for a card.
- Redemption options — Before redeeming, you should know what your particular card allows you to redeem for. Options generally include statement credit, cash back, gift cards, shopping, travel and charitable donations. If you plan on redeeming for travel, familiarize yourself with your particular card’s rules beforehand.
- Rewards portals — Some rewards credit cards allow you to transfer your rewards to partner hotels and airlines, but more commonly, cards will require that travel be redeemed through their portal. Make sure to research which cards require this prior to applying, especially if you value flexibility.
- Transferring rewards — If you’re interested in transferring your rewards from your card to an airline or hotel’s loyalty program, some cards allow you to do so and often for increased value. For example, many Chase cards allow you to transfer Chase Ultimate Rewards points to other travel loyalty programs at a 1:1 value.
How to maximize your rewards
Developing a thorough credit card strategy doesn’t happen overnight. Here are a few ways you can maximize your rewards at every stage in your card’s lifecycle.
Determine what your goals are
Before you apply for a card, decide what your goals are for using it. Would you like to do more traveling? Are you interested in saving money on everyday expenses like groceries and gas? Do you want to upgrade your airline or hotel status?
When you establish your long-term goals for your card use, you can then go on to develop a well-coordinated credit card strategy.
Take a look at your spending habits
The rewards card you choose should have a rewards structure centered around what you spend the most on. For example, if you manage a busy family of five, a rewards card that offers a high percentage of cash back on gas and groceries may be a good fit.
Should you already have one or more rewards cards, look for another that accomplishes a new goal or covers a segment of your budget not already accounted for.
Max out your spending categories
To get the most bang for your buck, you’re going to want to max out your card’s spending categories each quarter, should they have them. Cards with unlimited earning potential are an exception.
For example, if you owned the Discover it® Cash Back and spent $1,500 every three months on the 5% cash back rotating category, you’d have successfully maxed out the category at the 5% rewards rate (1% thereafter, activation required).
Double up on cards to earn more
To earn even more rewards, you can pair rewards cards that earn rewards for different types of spending.
Our most important piece of advice when it comes to pairing cards is to start slowly. Applying for multiple cards at once will only hurt your credit score — instead, start with the one that has the widest rewards net and slowly move onto others with more limited rewards categories.
If you’re interested in learning more about pairing cards, read our guide to the best credit card combinations.
If you’re new to rewards cards, it’s easy to assume that accumulating points is always as simple as just using your card.
However, racking up enough rewards for free travel or substantial cash back can be more complicated than it might seem. Checking out the fine print can help you avoid disappointing detours on your way to earning substantial rewards.
Bonus spending categories
The advantage of a rewards card’s rotating category bonuses is that they are usually the highest bonuses you can get, but there may be limits and loopholes. Here are a few to consider:
- Spending definitions — Let’s say you have a rewards card that offers a bonus rate on grocery purchases. Some cards don’t include merchants such as Walmart or Target in their definition of grocery stores. Another example is gasoline purchases. If you buy gas at Costco, for example, remember that some bonus categories specify purchases at gas stations, not wholesale clubs.
- Earning caps — Many cards put a limit on how much you can earn in a specific period of time. With the Chase Freedom and Discover it Cash Back, for instance, bonus earnings apply to just the first $1,500 spent each quarter.
- Alternate payment methods — Third-party food apps, online gift cards and mobile wallet payment methods such as Apple Pay or Google Pay might not always count toward bonus spending.
Non-automatic perks
Some card benefits are automatically available when you sign up and use the card, such as earning cash back or getting consumer purchase protections, such as extended warranties. In other cases, you must be proactive. You’ll need to sign up or enroll.
Whether it’s elite status with a hotel or rental car chain, baggage fee credits for when you fly or concierge services, read your card’s fine print carefully to find out what you need to do to enroll. Usually it’s as easy as a one-time or yearly online registration.
Special redemption options
Once you’re comfortable with your credit card’s rewards program, you may be able to find some advanced strategies. One way to do that is to analyze your redemption options.
For example, points from the Chase Sapphire Preferred card are worth 1 cent each when redeemed for statement credits. But Chase offers cardholders 25 percent more value when they redeem points through the Chase Ultimate Rewards Travel Portal, boosting the point value to 1.25 cents.
Also, consider how your brand loyalty and affiliations could ramp up your points. Some banks reward card users for also having a checking account or retirement account with them.
Avoid costly assumptions
There’s a learning curve when it comes to getting the most out of your credit card rewards programs, especially when you make assumptions.
Foreign transaction fees
If you’re more of a domestic traveler, you might not be too concerned if your chosen rewards cards tack on fees of 3% or more for overseas purchases. However, what most people don’t realize is that online purchases from overseas merchants can incur foreign transaction fees.
Changes to rewards programs
Terms are subject to change at virtually any time. Make it a habit to skim your entire credit card statement (either online in PDF form, or the physical copy that arrives via mail) and any communication directly from the issuer to spot any upcoming program changes. You might come to realize that you’re not getting as much value from a card as you once did if it decides to drop or reduce a certain offer, for example.
“The main thing we look for [in a rewards credit card] is the rate at which the miles are accumulated and which spending habits the card will work best for. Since we rarely eat out having a card pay 2x points on restaurants is not beneficial to us compared to a card with 1.5x points on everyday purchases.”
— Brittany and Kelan Kline, Co-Founders at The Savvy Couple
Additional reading on rewards cards
For more information on all-things rewards cards, continue reading content from our credit card experts:
Barry Bridges is a senior editor for Bankrate. Before he started writing about personal finance, he was an award-winning newspaper journalist in his native North Carolina. Send your questions about credit cards (and fantasy baseball) to bbridges@bankrate.com.
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