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Author: Claire Dickey
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What you need to know about rewards credit cards
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 the tank or a more specific purchase, there’s a rewards credit card that can help you do it.
Rewards cards 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 rewards cards, such as the Wells Fargo Propel American Express® Card, for example, require that you redeem your rewards through the issuer’s portal. In the case of the Propel card, that would be the Go Far® Rewards 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. The Citi® Double Cash Card, for example, doesn’t offer a travel redemption option for cash back earnings but does offer statement credit, direct deposit and checks.
Is a rewards card worth it?
When you pay for purchases with cash or a debit card, you’re leaving the potential for rewards on the table.
With a rewards card, you can earn points, miles or cash back while cashing in on the additional perks of whichever rewards program your card falls under. Many rewards cards come with benefits like travel credits, cell phone protection, free checked bags, shopping discounts, travel protections and more.
As long as you have good credit and are a responsible spender, a rewards credit card can be an excellent addition to your wallet. For more information on rewards cards available to you, visit our rewards credit card review page.
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
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 donations. If you plan on redeeming for travel, familiarize yourself with your particular card’s rules before doing so.
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.
“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
Top picks for rewards credit cards
Here’s a look at the best rewards credit cards of 2019, according to our experts:
| Card Name |
Best for |
Bankrate Review Score |
| Capital One® Venture® Rewards Credit Card |
Travel |
4.6/5 |
| Chase Freedom Unlimited® |
Your first rewards credit card |
4.6/5 |
| Capital One® Savor® Cash Rewards Credit Card |
Dining and entertainment |
4.6/5 |
| Chase Sapphire Preferred® Card |
Points flexibility |
4.7/5 |
| Discover it® Cash Back |
First-year cash back bonus |
4.8/5 |
| Capital One® VentureOne® Rewards Credit Card |
Low APR |
4.1/5 |
| U.S. Bank Cash+™ Visa Signature® Card |
Personalized cash back rewards |
4.5/5 |
| Capital One® Quicksilver® Cash Rewards Credit Card |
Flat-rate cash back |
4.8/5 |
| Wells Fargo Propel American Express® Card |
Overall rewards |
4.5/5 |
| Chase Freedom® |
Rotating cash back categories |
4.5/5 |
Capital One® Venture® Rewards Credit Card
What we love:
- Receive 10X miles through January 2020 on thousands of hotels booked and paid for via hotels.com/venture
- Annual fee waived the first year (then $95) and no foreign transaction fees
- Get up to a $100 credit for Global Entry or TSA PreCheck®
This card isn’t for you if: You can’t live without lounge access.
Bottom line: The Venture Card is a solid travel rewards card with plenty of perks for the frequent traveler.
Read the full review and apply on Capital One’s secure website.
Chase Freedom Unlimited®
What we love:
- First-year bonus offer changed from a $150 sign-up bonus to 3% cash back on all purchases your first year (up to $20,000, then 1.5%)
- No annual fee and an introductory 0% APR on purchases and balance transfers for 15 months (17.24%–25.99% variable APR thereafter)
This card isn’t for you if: You frequently travel abroad, due to the 3% foreign transaction fee on purchases made outside of the United States.
Bottom line: The Freedom Unlimited offers both top-notch rewards and flexibility. You can redeem your rewards for cash back, gift cards, travel via the Chase Ultimate Rewards Portal and shopping at Amazon.com.
Read the full review and apply on Chase’s secure website.
Capital One® Savor® Cash Rewards Credit Card
What we love:
- Perfect for the food lovers at heart with an unlimited 4% back on dining and entertainment, 2% at grocery stores and 1% on everything else
- If summer concerts are the name of your game, you’ll love the 8% cash back on tickets at Vivid Seats through May 2020
- $95 annual fee is waived for your first year and you’ll receive a stellar $300 cash bonus when you spend $3,000 in your first three months
This card isn’t for you if: You don’t frequently spend on entertainment or eating out.
Bottom line: The Savor Cash Rewards Card is the perfect option for food lovers, concertgoers and entertainment junkies.
Read the full review and apply on Capital One’s secure website.
Chase Sapphire Preferred® Card
What we love:
- 25% boost to your points when you redeem for airfare, hotels, car rentals and cruises through Chase Ultimate Rewards
- This boost would make your 60,000-point bonus (earned after spending $4,000 in your first three months) worth $750 toward travel when redeemed through the portal
- One-to-one point transfer for nine airline and four hotel travel partners
This card isn’t for you if: You don’t like redeeming rewards through travel portals.
Bottom line: The Chase Sapphire Preferred is a great starter card for the semi-frequent traveler.
Read the full review and apply on Chase’s secure website.
Discover it® Cash Back
What we love:
- Enroll each quarter to earn 5% cash back (up to $1,500 per quarter) on rotating categories, 1% thereafter
- Discover will automatically match your cash back rewards at the end of your first year
- No annual fee and your first late payment fee is waived (then up to $39)
This card isn’t for you if: You don’t enjoy keeping up with rotating bonus categories.
Bottom line: The Discover it Cash Back is a desirable no annual fee rewards card, especially due to its first-year bonus.
Read the full review and apply on Discover’s secure website.
Capital One® VentureOne® Rewards Credit Card
What we love:
- In addition to 1.25X miles on every purchase, earn 10X miles on thousands of hotels booked and paid for at hotels.com/venture through January 2020
- No foreign transaction fees for spending abroad
- This no annual fee rewards card offers a 20,000-mile bonus when you spend $1,000 in your first three months (equivalent to $200 in travel)
- Low variable APR of 14.24% – 24.24%
This card isn’t for you if: You value a higher rewards rate over no annual fee.
Bottom line: The VentureOne is an appealing travel rewards card with standard Capital One perks, but you can find better rewards structures in other travel cards. Despite the low APR (14.24% – 24.24% variable), the 0% introductory APR on purchases is only 12 months.
Read the full review and apply on Capital One’s secure website.
U.S. Bank Cash+™ Visa Signature® Card
What we love:
- Choose two categories from a list of 12 to receive 5% cash back (up to $2,000 in combined purchases per quarter)
- Then, choose between gas stations, grocery stores or restaurants to receive 2% cash back and get 1% back on everything else
- Enjoy a $150 bonus after spending only $500 on eligible purchases within your first 90 days
- No annual fee
This card isn’t for you if: You have trouble remembering to activate or elect rotating bonus categories or if you plan to use the card abroad (thanks to the 3% foreign transaction fee).
Bottom line: Would you like to choose from more than a handful of bonus categories? The U.S. Bank Cash+ Visa Signature can help you get more control over where you earn your rewards.
Read the full review and apply on U.S. Bank’s secure website.
Capital One® Quicksilver® Cash Rewards Credit Card
What we love:
- Great no annual fee card for earning an unlimited 1.5% cash back
- $150 cash bonus after you spend $500 within your first three months
- Receive a 0% introductory APR for 15 months on purchases and balance transfers (16.24% – 26.24% variable thereafter)
- No foreign transaction fees and standard Capital One benefits
This card isn’t for you if: You already own a flat-rate cash back card.
Bottom line: The Quicksilver is one of the better options for those looking for a no-fuss cash back card or who want to transfer a balance.
Read the full review and apply on Capital One’s secure website.
Wells Fargo Propel American Express® Card
What we love:
- For no annual fee, you’ll earn a solid 3X points on the following: eating out and ordering in, gas stations, rideshares, transit, flights, hotels, homestays, car rentals and popular streaming services
- Receive a 30,000-point bonus after spending $3,000 in your first three months (worth $300 in cash back)
- No blackout dates on flights booked through Go Far® Rewards and you can pay with a combination of points and card payment
This card isn’t for you if: You’re looking for a simple rewards redemption option — points must be redeemed through the Go Far® Rewards portal and can’t be transferred to airline or hotel loyalty programs.
Bottom line: The Propel card offers a wonderful rewards structure without the burden of rotating categories or an annual fee, but be prepared to navigate Well Fargo’s online portal.
Read the full review and apply on Wells Fargo’s secure website.
Chase Freedom®
What we love:
- Earning 5% rewards on rotating categories is a strong cash back offering
- The 15 months on purchases and balance transfers (17.24-25.99% variable APR after that) provide both financing and repayment flexibility for cardholders
This card isn’t for you if: You actively budget before each quarter’s categories are announced.
Bottom line: The Chase Freedom® is a viable entry point for cost conscious cardholders looking to explore Chase’s expansive Ultimate Rewards Program, but for those who proactively budget, the rotating categories could be a wildcard to account for every quarter.
Read the full review and apply on Chase’s secure website.
Find the right rewards card for your credit score
Do you know the best rewards card for your credit score? Our experts at Bankrate have identified the top rewards cards for each credit score range.
The Chase Sapphire Preferred Card is a great travel rewards card for excellent credit offering points back for travel and dining at restaurants. This card is known for its massive sign-up bonus — 60,000 points when you spend $4,000 within the first three months of card ownership — as well as its 25% bonus on points redeemed for travel through the Chase Ultimate Rewards portal.
If you’re looking for a straightforward rewards card for good credit with both a solid sign-up bonus and rewards rate, look no further than the Capital One Venture Rewards Credit Card. You won’t get the same luxury benefits of an excellent credit travel rewards card, but you will enjoy no foreign transaction fees and a Global Entry or TSA PreCheck® credit of up to $100.
The QuicksilverOne is the sibling to the Quicksilver and offers the same unlimited 1.5% cash back on every purchase. The difference? You don’t need excellent credit to qualify for the QuicksilverOne, but you will be charged a $39 annual fee. After making your first five monthly payments on time, you may receive access to a higher line of credit.
Not many bad credit rewards cards offer both no annual fee and cash back rewards. With the Discover it Secured, you can start building your credit history or rebuild it altogether.
The card offers 2% cash back at gas stations and restaurants (up to $1,000 combined each quarter) and an unlimited 1% on everything else. You’ll also receive Discover’s first-year Cashback Match™ offer, meaning your cash back earnings will be automatically matched at the end of your first year.
Learn more about the best rewards cards for your credit score
Additional reading on rewards cards
For more information on all-things rewards cards, continue reading content from our credit card experts:
