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At Bankrate, we have a mission to demystify the credit cards industry — regardless or where you are in your journey — and make it one you can navigate with confidence. Our team is full of a diverse range of experts from credit card pros to data analysts and, most importantly, people who shop for credit cards just like you. With this combination of expertise and perspectives, we keep close tabs on the credit card industry year-round to:
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Rewards credit cards are a great way to get the most out of your everyday expenses. As you use your card, you'll get a little something in return, usually cash back or travel rewards. Some cards offer a flat rewards rate on all purchases, while others provide a boosted rate in particular spending categories, like travel or dining. Check out our expert advice and the best rewards card offers from our partners.
Our writers, editors and industry experts score
credit cards based on a variety of factors
including card features, bonus offers
and independent research. Credit card issuers have
no say or influence on how we rate cards.
Rewards rate
2%
Earn unlimited 2% cash rewards on purchases
Intro bonus
$200 cash rewards
Earn a $200 cash rewards bonus after spending $1,000 in purchases in the first 3 months
Annual fee
$0
Regular APR
14.99%-24.99% (Variable)
Recommended credit
Good to Excellent (670 - 850)
A FICO score/credit score is used to represent the creditworthiness of a person and may be one indicator to the credit type you are eligible for. However, credit score alone does not guarantee or imply approval for any financial product.
If your credit card rewards strategy is hands-off, the Wells Fargo Active Cash℠ Card might be a match. With no annual fee and unlimited 2 percent cash rewards on purchases, all you have to do is use the card and redeem your rewards when you’re ready — no bonus categories or spending caps to worry about.
Earn unlimited cash back rewards on all purchases; no spending caps on the 2 percent rewards.
You can redeem your rewards as physical cash in $20 increments when you use a Wells Fargo debit or ATM card.
Cons
There is a balance transfer fee that rises from 3 percent to 5 percent if you don’t transfer a balance within the first 120 days of account opening.
You cannot transfer rewards between programs with this card.
Earn a $200 cash rewards bonus after spending $1,000 in purchases in the first 3 months
Earn unlimited 2% cash rewards on purchases
0% intro APR for 15 months from account opening on purchases and qualifying balance transfers, then a 14.99% to 24.99% variable APR; balance transfers made within 120 days qualify for the intro rate and fee of 3% then a BT fee of up to 5%, min: $5
$0 annual fee
No category restrictions or sign ups and cash rewards don't expire as long as your account remains open
Enjoy a premium collection of benefits at a selection of the world's most intriguing and prestigious hotel properties with Visa Signature Concierge
Get up to $600 protection on your cell phone (subject to $25 deductible) against covered damage or theft when you pay your monthly cellular telephone bill with your Wells Fargo Active Cash℠ Card
Select "Apply Now" to learn more about the product features, terms and conditions
additional features
Purchase intro APR
0% intro APR for 15 months from account opening
Balance transfer intro APR
0% intro APR for 15 months from account opening on qualifying balance transfers
Our writers, editors and industry experts score
credit cards based on a variety of factors
including card features, bonus offers
and independent research. Credit card issuers have
no say or influence on how we rate cards.
Rewards rate
6%
6% Cash Back at U.S. supermarkets on up to $6,000 per year in purchases (then 1%).
6%
6% Cash Back on select U.S. streaming subscriptions.
3%
3% Cash Back on transit including taxis/rideshare, parking, tolls, trains, buses and more.
3%
3% Cash Back at U.S. gas stations
1%
1% Cash Back on other purchases
Intro bonus
$300
Earn a $300 statement credit after you spend $3,000 in purchases on your new Card within the first 6 months.
Annual fee
$0 introductory annual fee for the first year, then $95.
Regular APR
13.99%-23.99% Variable
Recommended credit
Good to Excellent (670 - 850)
A FICO score/credit score is used to represent the creditworthiness of a person and may be one indicator to the credit type you are eligible for. However, credit score alone does not guarantee or imply approval for any financial product.
The generous cash back rewards in categories including U.S. supermarkets, U.S. gas stations, select U.S. streaming subscriptions and transit makes this a top-tier option for families and practical spenders alike. If you spend a lot of time on the road and at the table, you'll have a tough time finding a more rewarding credit card.
Intro annual fee of $0 for the first year (then $95).
Earn 6 percent cash back on select streaming services (including Hulu and Netflix).
Cons
There’s a required minimum of $25 worth of rewards before you’re eligible to redeem.
There is a very high penalty APR (29.99 percent variable) applied if you miss a payment or a payment is returned by your bank.
Earn a $300 statement credit after you spend $3,000 in purchases on your new Card within the first 6 months.
$0 intro annual fee for the first year, then $95.
Buy Now, Pay Later: Enjoy $0 intro plan fees when you use Plan It® to split up large purchases into monthly installments. Pay $0 plan fees on plans created during the first 12 months after account opening. Plans created after that will have a monthly plan fee up to 1.33% of each purchase amount moved into a plan based on the plan duration, the APR that would otherwise apply to the purchase, and other factors.
Low intro APR: 0% for 12 months on purchases from the date of account opening, then a variable rate, 13.99% to 23.99%
6% Cash Back at U.S. supermarkets on up to $6,000 per year in purchases (then 1%).
6% Cash Back on select U.S. streaming subscriptions.
3% Cash Back at U.S. gas stations and on transit (including taxis/rideshare, parking, tolls, trains, buses and more).
1% Cash Back on other purchases.
Cash Back is received in the form of Reward Dollars that can be redeemed as a statement credit.
Our writers, editors and industry experts score
credit cards based on a variety of factors
including card features, bonus offers
and independent research. Credit card issuers have
no say or influence on how we rate cards.
Rewards rate
5%
Earn 5% cash back on purchases in your top eligible spend category each billing cycle, up to the first $500 spent, 1% cash back thereafter.
1%
Earn unlimited 1% cash back on all other purchases.
Intro bonus
$200
Earn $200 in cash back after you spend $750 on purchases in the first 3 months of account opening. This bonus offer will be fulfilled as 20,000 ThankYou® Points, which can be redeemed for $200 cash back.
Annual fee
$0
Regular APR
13.99% – 23.99% (Variable)
Recommended credit
Good to Excellent (670 - 850)
A FICO score/credit score is used to represent the creditworthiness of a person and may be one indicator to the credit type you are eligible for. However, credit score alone does not guarantee or imply approval for any financial product.
The Citi Custom Cash℠ Card is somewhat of a game-changer for offering a rewards system that adjusts to match your spending. With this card’s 10 eligible bonus categories, you’ll have plenty of opportunity to strategize, even if your spending is varied from month to month.
You’ll earn rewards in the form of Citi ThankYou points, which can be redeemed for cash back (statement credit, check or direct deposit), gift cards and more.
Cons
Your points must have at least a $5 or more value before you can redeem them as a check.
This card does charge a 3 percent foreign transaction fee, which could diminish your reward earnings when spending abroad.
Earn $200 in cash back after you spend $750 on purchases in the first 3 months of account opening. This bonus offer will be fulfilled as 20,000 ThankYou® Points, which can be redeemed for $200 cash back.
0% Intro APR on balance transfers and purchases for 15 months. After that, the variable APR will be 13.99% - 23.99%, based on your creditworthiness.
Earn 5% cash back on purchases in your top eligible spend category each billing cycle, up to the first $500 spent, 1% cash back thereafter. Also, earn unlimited 1% cash back on all other purchases.
No rotating bonus categories to sign up for – as your spending changes each billing cycle, your earn adjusts automatically when you spend in any of the eligible categories.
No Annual Fee
Citi will only issue one Citi Custom Cash℠ Card account per person.
Our writers, editors and industry experts score
credit cards based on a variety of factors
including card features, bonus offers
and independent research. Credit card issuers have
no say or influence on how we rate cards.
Rewards rate
5%
Earn 5% cash back on everyday purchases at different places each quarter like Amazon.com, grocery stores, restaurants, gas stations and when you pay using PayPal, up to the quarterly maximum when you activate.
1%
Plus, earn unlimited 1% cash back on all other purchases – automatically.
Intro bonus
Cashback Match™
Intro Offer: Unlimited Cashback Match - only from Discover. Discover will automatically match all the cash back you've earned at the end of your first year! There's no minimum spending or maximum rewards. You could turn $150 cash back into $300.
Annual fee
$0
Regular APR
11.99% - 22.99% Variable
Recommended credit
Good to Excellent (670 - 850)
A FICO score/credit score is used to represent the creditworthiness of a person and may be one indicator to the credit type you are eligible for. However, credit score alone does not guarantee or imply approval for any financial product.
The Discover it® Cash Back is a popular choice for cash back rewards because of Discover's rotating bonus categories. Instead of committing to one or two fixed bonus categories, you have the opportunity to earn a bonus rate of 5% on purchases in a different category each quarter you enroll (on up to $1,500, then 1%). It's a rewarding way to earn cash back quarter by quarter and all year-round.
The Cashback Match program in the first year is a generous intro offer.
Cons
You must enroll to reap max benefits each quarter and keep track of the rotating categories.
After the intro APR period concludes for balance transfers the balance transfer fee will jump from 3 percent to 5 percent of the amount of each transfer.
Intro Offer: Unlimited Cashback Match - only from Discover. Discover will automatically match all the cash back you've earned at the end of your first year! There's no minimum spending or maximum rewards. You could turn $150 cash back into $300.
Earn 5% cash back on everyday purchases at different places each quarter like Amazon.com, grocery stores, restaurants, gas stations and when you pay using PayPal, up to the quarterly maximum when you activate.
Plus, earn unlimited 1% cash back on all other purchases – automatically.
Redeem cash back in any amount, any time. Rewards never expire.
Use your rewards at Amazon.com checkout.
No annual fee.
Discover is accepted nationwide by 99% of the places that take credit cards.
Click "Apply Now" to see rewards, FICO® Credit Score terms, Cashback Match™ details & other information.
Our writers, editors and industry experts score
credit cards based on a variety of factors
including card features, bonus offers
and independent research. Credit card issuers have
no say or influence on how we rate cards.
Rewards rate
5X
Earn 5X points on travel purchased through Chase Ultimate Rewards®.
3X
Earn 3X points on dining.
2X
Earn 2X points on all other travel purchases, plus more.
Intro bonus
60,000 points
Earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $750 when you redeem through Chase Ultimate Rewards®.
Annual fee
$95
Regular APR
15.99%-22.99% Variable
Recommended credit
Good to Excellent (670 - 850)
A FICO score/credit score is used to represent the creditworthiness of a person and may be one indicator to the credit type you are eligible for. However, credit score alone does not guarantee or imply approval for any financial product.
The Chase Sapphire Preferred® Card is a favorite among travel enthusiasts because of its valuable sign-up bonus and points flexibility. Transferring points to partner airlines can actually boost their value even more, making your rewards even better than you bargained for.
It’s easy to combine points from other Chase cards to maximize reward earnings.
Transferring your points to one of three major U.S airlines listed as travel partners can actually boost your point value if you book through Chase’s Ultimate Rewards portal.
Cons
This card does charge a $95 annual fee.
There are no intro APR offers on purchases or balance transfers.
Earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $750 when you redeem through Chase Ultimate Rewards®.
Enjoy new benefits such as a $50 annual Ultimate Rewards Hotel Credit, 5X points on travel purchased through Chase Ultimate Rewards®, 3X points on dining and 2X points on all other travel purchases, plus more.
Get 25% more value when you redeem for airfare, hotels, car rentals and cruises through Chase Ultimate Rewards®. For example, 60,000 points are worth $750 toward travel.
With Pay Yourself Back℠, your points are worth 25% more during the current offer when you redeem them for statement credits against existing purchases in select, rotating categories.
Get unlimited deliveries with a $0 delivery fee and reduced service fees on eligible orders over $12 for a minimum of one year with DashPass, DoorDash's subscription service. Activate by 12/31/21.
Count on Trip Cancellation/Interruption Insurance, Auto Rental Collision Damage Waiver, Lost Luggage Insurance and more.
Get up to $60 back on an eligible Peloton Digital or All-Access Membership through 12/31/2021, and get full access to their workout library through the Peloton app, including cardio, running, strength, yoga, and more. Take classes using a phone, tablet, or TV. No fitness equipment is required.
additional features
Purchase intro APR
N/A
Balance transfer intro APR
N/A
Best for dining and entertainment with no annual fee
Our writers, editors and industry experts score
credit cards based on a variety of factors
including card features, bonus offers
and independent research. Credit card issuers have
no say or influence on how we rate cards.
Rewards rate
8%
Earn 8% cash back on tickets at Vivid Seats through January 2023.
3%
Earn unlimited 3% cash back on dining, entertainment, popular streaming services and at grocery stores (excluding superstores like Walmart® and Target®).
1%
Earn 1% on all other purchases.
Intro bonus
$200
Earn a one-time $200 cash bonus after you spend $500 on purchases within the first 3 months from account opening
Annual fee
$0
Regular APR
14.99% - 24.99% (Variable)
Recommended credit
Good to Excellent (670 - 850)
A FICO score/credit score is used to represent the creditworthiness of a person and may be one indicator to the credit type you are eligible for. However, credit score alone does not guarantee or imply approval for any financial product.
The Capital One SavorOne Cash Rewards Credit Card offers cash back on dining and entertainment without an annual fee, making it a great card for on-the-go rewards seekers. But it’s not all food and games: The card also offers cash back at grocery stores, increasing its everyday value.
The requirements for earning the welcome bonus are easy to meet: Earn a $200 cash bonus when you spend $500 in the first 3 months.
This card does not charge an annual fee or a foreign transaction fee.
Cons
Popular stores like Walmart, Target, BJ’s and Sam’s Club will not count for elevated rewards rates, as these options are not considered traditional grocery stores.
Beware of redeeming cash rewards on Amazon.com, as there is a list of restricted items you can’t use rewards on.
Earn a one-time $200 cash bonus after you spend $500 on purchases within the first 3 months from account opening
Earn unlimited 3% cash back on dining, entertainment, popular streaming services and at grocery stores (excluding superstores like Walmart® and Target®), plus 1% on all other purchases. Plus, earn 8% cash back on tickets at Vivid Seats through January 2023
No rotating categories or sign-ups needed to earn cash rewards; plus cash back won't expire for the life of the account and there's no limit to how much you can earn
0% intro APR on purchases and balance transfers for 15 months; 14.99% - 24.99% variable APR after that
Our writers, editors and industry experts score
credit cards based on a variety of factors
including card features, bonus offers
and independent research. Credit card issuers have
no say or influence on how we rate cards.
Rewards rate
5X
Earn 5X miles on hotels and rental cars booked through Capital One Travel, where you'll get our best prices on thousands of trip options
1.25X
Earn unlimited 1.25X miles on every purchase, every day.
Intro bonus
20,000 miles
Earn a bonus of 20,000 miles once you spend $500 on purchases within 3 months from account opening, equal to $200 in travel
Annual fee
$0
Regular APR
14.99% - 24.99% (Variable)
Recommended credit
Good to Excellent (670 - 850)
A FICO score/credit score is used to represent the creditworthiness of a person and may be one indicator to the credit type you are eligible for. However, credit score alone does not guarantee or imply approval for any financial product.
A lot of travel rewards cards don’t offer boosted rewards on general purchases, which is why the VentureOne is a great choice for a beginner or occasional traveler. You can earn travel rewards without already being a frequent flyer, plus there’s no annual fee. Travelers of all kinds can easily find value in the VentureOne.
Our writers, editors and industry experts score
credit cards based on a variety of factors
including card features, bonus offers
and independent research. Credit card issuers have
no say or influence on how we rate cards.
Rewards rate
10X
Earn unlimited 10X miles on hotels and rental cars booked through Capital One Travel and 5X miles on flights booked through Capital One Travel.
2X
Earn unlimited 2X miles on all other purchases
Intro bonus
100,000 miles
Earn 100,000 bonus miles when you spend $10,000 on purchases in the first 6 months from account opening
Annual fee
$395
Regular APR
16.99% - 23.99% (Variable)
Recommended credit
Excellent (740 - 850)
A FICO score/credit score is used to represent the creditworthiness of a person and may be one indicator to the credit type you are eligible for. However, credit score alone does not guarantee or imply approval for any financial product.
You can really rack up the miles with this new premium travel rewards credit card from Capital One, which touts a generous return rate on travel purchases, a lucrative welcome offer and a sweet anniversary bonus, among its standout features. Travelers seeking flexible redemption options should consider applying if they can shoulder the $395 annual fee.
You’ll get up to a $100 credit for Global Entry or TSA PreCheck®.
You’ll also get up to $300 back annually as statement credits for bookings through Capital One Travel.
Cons
There is a $395 annual fee, which might price the card out of some people’s budgets.
Capital One is thin on major domestic airline transfer partners.
Earn 100,000 bonus miles when you spend $10,000 on purchases in the first 6 months from account opening, equal to $1,000 in travel
Limited-time Offer: Receive up to $200 back in statement credits for vacation rentals charged to your account within your first year
Receive up to $300 back annually as statement credits for bookings through Capital One Travel, where you'll get our best prices on thousands of options
Get 10,000 bonus miles (equal to $100 towards travel) every year, starting on your first anniversary
Earn unlimited 10X miles on hotels and rental cars booked through Capital One Travel and 5X miles on flights booked through Capital One Travel, plus unlimited 2X miles on all other purchases
Escape the airport crowd and recharge before your flight with unlimited access to all-inclusive amenities at the Capital One Lounge and at 1,300+ Priority Pass lounges worldwide
Receive up to a $100 credit for Global Entry or TSA PreCheck®
Use your Venture X miles to easily cover travel expenses, including flights, hotels, rental cars and more—you can even transfer your miles to your choice of 15+ travel loyalty programs
Our writers, editors and industry experts score
credit cards based on a variety of factors
including card features, bonus offers
and independent research. Credit card issuers have
no say or influence on how we rate cards.
Rewards rate
4X
Earn 4X Membership Rewards® Points at Restaurants, including takeout and delivery.
4X
Earn 4X Membership Rewards® points at U.S. supermarkets (on up to $25,000 per calendar year in purchases, then 1X).
3X
Earn 3X Membership Rewards® points on flights booked directly with airlines or on amextravel.com.
Intro bonus
60,000 points
Earn 60,000 Membership Rewards® Points after you spend $4,000 on eligible purchases with your new Card within the first 6 months.
Annual fee
$250
Regular APR
See Pay Over Time APR
Recommended credit
Good to Excellent (670 - 850)
A FICO score/credit score is used to represent the creditworthiness of a person and may be one indicator to the credit type you are eligible for. However, credit score alone does not guarantee or imply approval for any financial product.
The American Express® Gold Card earns exceptionally generous rewards rates in spending categories that travelers who love fine dining will surely find tempting. And earning up to $340 in total annual credits toward eligible dining, Uber and hotel purchases can make the annual fee well worth it.
The points you earn won’t expire for the life of the account.
Transferring points to a partnering airline or hotel loyalty program can increase their value.
Cons
The annual fee for this card is $250, which can be fairly high for some.
You must go through amextravel.com to redeem travel rewards.
Rose Gold is here to stay. Card Members can choose between a Gold or Rose Gold Card.
Earn 60,000 Membership Rewards® Points after you spend $4,000 on eligible purchases with your new Card within the first 6 months.
Earn 4X Membership Rewards® Points at Restaurants, including takeout and delivery, and earn 4X Membership Rewards® points at U.S. supermarkets (on up to $25,000 per calendar year in purchases, then 1X).
Earn 3X Membership Rewards® points on flights booked directly with airlines or on amextravel.com.
$120 Uber Cash on Gold: Add your Gold Card to your Uber account and each month automatically get $10 in Uber Cash for Uber Eats orders or Uber rides in the U.S., totaling up to $120 per year.
$120 Dining Credit: Earn up to a total of $10 in statement credits monthly when you pay with the Gold Card at Grubhub, Seamless, The Cheesecake Factory, Ruth's Chris Steak House, Boxed, and participating Shake Shack locations. This can be an annual savings of up to $120. Enrollment required.
Our writers, editors and industry experts score
credit cards based on a variety of factors
including card features, bonus offers
and independent research. Credit card issuers have
no say or influence on how we rate cards.
Rewards rate
1.5%
Earn 1.5% cash back on every purchase, every time.
Intro bonus
$200
$200 online cash rewards bonus after you make at least $1,000 in purchases in the first 90 days of account opening
Annual fee
$0
Regular APR
13.99% - 23.99% Variable APR on purchases and balance transfers
Recommended credit
Good to Excellent (670 - 850)
A FICO score/credit score is used to represent the creditworthiness of a person and may be one indicator to the credit type you are eligible for. However, credit score alone does not guarantee or imply approval for any financial product.
If you like your credit card rewards simple and steadily valuable, the Bank of America® Unlimited Cash Rewards credit card may be a perfect match. The flat rate of 1.5% cash back isn’t revolutionary in the world of credit card rewards, but it’s a straightforward offer that promises value no matter how your budget changes. Plus, the cash back boost for Preferred Rewards members is a huge incentive for Bank of America loyalists.
You’ll get a significant rewards boost (25 to 75 percent more in cash back rates) if you qualify to be a Preferred Rewards member.
Potential to cash in on even more rewards with BankAmeriDeals, Bank of America’s limited-time offer program.
Cons
Steep requirements to qualify for Preferred Rewards status.
Other flat-rate cash rewards cards offer more notable benefits.
New Offer! With the new Unlimited Cash Rewards credit card, you can earn 1.5% cash back on every purchase, every time.
No annual fee
$200 online cash rewards bonus after you make at least $1,000 in purchases in the first 90 days of account opening
If you're a Preferred Rewards member, you can earn 25%-75% more cash back on every purchase. That means you could earn up to 2.62% cash back on every purchase.
No limit to the amount of cash back you can earn and cash rewards don't expire
0% Introductory APR for 15 billing cycles for purchases, and for any balance transfers made in the first 60 days. After the intro APR offer ends, 13.99% - 23.99% Variable APR will apply. A 3% fee (min $10) applies to all balance transfers.
Contactless Cards - The security of a chip card, with the convenience of a tap
This online only offer may not be available if you leave this page or if you visit a Bank of America financial center. You can take advantage of this offer when you apply now.
additional features
Purchase intro APR
0% Intro APR for 15 billing cycles for purchases
Balance transfer intro APR
0% Intro APR for 15 billing cycles for any BTs made in the first 60 days. A 3% fee (min. $10) applies.
Our writers, editors and industry experts score
credit cards based on a variety of factors
including card features, bonus offers
and independent research. Credit card issuers have
no say or influence on how we rate cards.
Rewards rate
2%
Earn 2% on every purchase with unlimited 1% cash back when you buy, plus an additional 1% as you pay for those purchases.
Intro bonus
N/A
Annual fee
$0
Regular APR
13.99% - 23.99% (Variable)
Recommended credit
Good to Excellent (670 - 850)
A FICO score/credit score is used to represent the creditworthiness of a person and may be one indicator to the credit type you are eligible for. However, credit score alone does not guarantee or imply approval for any financial product.
The Citi® Double Cash Card is a fairly solid option for earning no-hassle cash back rewards on a consistent basis. It’s also a great tool to help you manage and create good spending habits, as this card rewards you for paying back what you’ve spent.
This card offers a 0 percent intro APR on balance transfers for 18 months (then 13.99 to 23.99 percent variable).
Pair this card with another Citi rewards card to maximize your earnings.
Cons
This card has no intro APR offer for purchases.
The rewards you earn with this card expire if you don’t use the card for 12 months.
Earn 2% on every purchase with unlimited 1% cash back when you buy, plus an additional 1% as you pay for those purchases.
To earn cash back, pay at least the minimum due on time.
Balance Transfer Only Offer: 0% intro APR on Balance Transfers for 18 months. After that, the variable APR will be 13.99% - 23.99%, based on your creditworthiness.
Balance Transfers do not earn cash back. Intro APR does not apply to purchases.
If you transfer a balance, interest will be charged on your purchases unless you pay your entire balance (including balance transfers) by the due date each month.
There is an intro balance transfer fee of 3% of each transfer (minimum $5) completed within the first 4 months of account opening. After that, your fee will be 5% of each transfer (minimum $5).
The standard variable APR for Citi Flex Plan is 13.99% - 23.99% based on your creditworthiness. Citi Flex Plan offers are made available at Citi's discretion.
Our writers, editors and industry experts score
credit cards based on a variety of factors
including card features, bonus offers
and independent research. Credit card issuers have
no say or influence on how we rate cards.
Rewards rate
10X
Earn 10X total points on hotels and car rentals when you purchase travel through Chase Ultimate Rewards®.
5X
Earn 5X total points on air travel through Chase Ultimate Rewards®.
3X
Earn 3X points on other travel and dining.
1X
Earn 1 point per $1 spent on all other purchases
Intro bonus
50,000 points
Earn 50,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $750 toward travel when you redeem through Chase Ultimate Rewards®
Annual fee
$550
Regular APR
16.99%-23.99% Variable
Recommended credit
Excellent (740 - 850)
A FICO score/credit score is used to represent the creditworthiness of a person and may be one indicator to the credit type you are eligible for. However, credit score alone does not guarantee or imply approval for any financial product.
One of our top picks for frequent travelers with a taste for luxury perks, the Chase Sapphire Reserve® offers a fairly notable rewards rate. Also, you can maximize your earnings by pairing it with another Chase Ultimate Rewards card. If you want to earn generous rewards and enjoy seamless point transfers and flexible redemption, look no further.
Get a $300 travel credit each year to put towards flights, hotels and more.
Any points you redeem through the Ultimate Rewards portal have up to a 50 percent higher value.
Cons
This card charges a very steep $550 annual fee.
The regular APR for this card (16.99 to 23.99 variable) is a bit higher than average.
Earn 50,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $750 toward travel when you redeem through Chase Ultimate Rewards®
$300 Annual Travel Credit as reimbursement for travel purchases charged to your card each account anniversary year. Through December 31, 2021, gas station & grocery store purchases will also count towards earning your Travel Credit
Earn 5X total points on air travel and 10X total points on hotels and car rentals when you purchase travel through Chase Ultimate Rewards® immediately after the first $300 is spent on travel purchases annually. Earn 3X points on other travel and dining & 1 point per $1 spent on all other purchases
Get 50% more value when you redeem your points for travel through Chase Ultimate Rewards. For example, 50,000 points are worth $750 toward travel
With Pay Yourself Back℠, your points are worth 50% more during the current offer when you redeem them for statement credits against existing purchases in select, rotating categories
1:1 point transfer to leading airline and hotel loyalty programs
Access to 1,300+ airport lounges worldwide after an easy, one-time enrollment in Priority Pass™ Select and up to $100 application fee credit for Global Entry or TSA Pre✓®
Count on Trip Cancellation/Interruption Insurance, Auto Rental Collision Damage Waiver, Lost Luggage Insurance and more
additional features
Purchase intro APR
N/A
Balance transfer intro APR
N/A
Guide to the best rewards credit cards
With a rewards credit card you can earn cash back, points or airline miles on the purchases you already make, usually at a set percentage of your spending. You can redeem your rewards for statement credits, cash back, airline tickets, hotel nights, gift cards and more options.
The more you know…
Gift cards are an easy way to redeem credit card rewards, but according to Bankrate’s study, U.S. adults have $20 billion in unused gift cards or other credits.
Check out our guide to choosing and using the best rewards credit card for you, along with in-depth profiles of the top rewards cards available from our partners.
6% cash back at U.S. supermarkets (up to $6,000 per year in purchases, then 1%) 6% cash back on select U.S. streaming subscriptions 3% cash back on transit 3% cash back at U.S. gas stations
5% cash back on purchases in your top eligible spend category each billing cycle, up to the first $500 spent, 1% cash back thereafter. Unlimited 1% cash back on all other purchases.
Unlimited 10X miles on hotels and rental cars booked through Capital One Travel; 5X miles on flights booked through Capital One Travel, and unlimited 2X miles on all other purchases
5X points on air travel and 10X points on hotels and car rentals when you purchase travel through Chase Ultimate Rewards® immediately after the first $300 is spent on travel purchases annually. 3X points on other travel and dining & 1 point per $1 spent on all other purchases
A closer look at our top-rated rewards credit cards
Wells Fargo Active Cash Card
Best for 2% cash rewards
This card is a good fit for: Cash rewards seekers who prefer a simple, valuable earning structure.
This card is not a great choice for: International travelers looking for a card to use abroad. Each purchase outside of the U.S. will come with a 3 percent foreign currency conversion fee.
What makes this card unique? The generous rewards rate isn’t the only noteworthy feature. Cardholders who pay their monthly cellphone bill with the Active Cash card will get up to $600 of protection against covered damage or theft (subject to $25 deductible).
Is the Wells Fargo Active Cash Card worth it? It’s hard to go wrong with unlimited 2 percent cash rewards, especially since there’s no annual fee. If you’re looking for a combination of simplicity and value, the Active Cash is worthwhile.
This card is a good fit for: Families and others with large grocery and gasoline bills.
This card is not a great choice for: People who shop for groceries at superstores (like Target and Walmart) or wholesale clubs (like Costco or Sam’s Club), which don’t count toward the U.S. supermarkets rewards category.
What makes this card unique? Those looking to cash in on their weekly trips to the grocery store will have a hard time finding a more rewarding card. Sure, you can find other cards that reward you for grocery purchases, but a rate of 6 percent (on up to $6,000 at U.S. supermarkets per year, then 1 percent) at U.S. supermarkets puts this card on a level of its own.
Is the Blue Cash Preferred Card from American Express worth it? With a $95 annual fee ($0 introductory annual fee for the first year), you do have to wonder whether the stellar rewards rate justifies the cost of holding the card. If you spend more than $1,584 per year at U.S. supermarkets, the card pays for itself on those rewards alone (1,584 x .06 = 95.04). That works out to just $33 per week. So, yes, if you spend $33 or more at a U.S. supermarket each week, the Blue Cash Preferred is worth it.
This card is a good fit for: Someone with varied spending habits. Since the 5 percent cash back category (5 percent cash back on up to $500 spent per billing cycle, then 1 percent) retroactively shifts to match the eligible category in which you spend the most each billing cycle, you won’t have to worry about maximizing your spending in a particular category.
This card is not a great choice for: Someone who wants to earn cash back in multiple categories. While your 5 percent bonus category may change from month to month, you’ll only earn 5 percent cash back in one eligible category per billing cycle (up to $500 spent per billing cycle, then 1 percent). So if you’re looking for a card that rewards spending in several categories at once, this isn’t it.
What makes this card unique? Very few rewards cards offer a bonus category that automatically shifts to match your spending.
Is the Citi Custom Cash Card worth it? The cash back rate is fantastic, especially because it’s paired with so many useful categories. If you were to max out the $500 per billing cycle spending cap for the bonus category, you would earn $25 in cash back in just one billing cycle ($500 x .05 = $25). And that doesn’t include any additional rewards you would earn after the rate drops to 1 percent.
This card is a good fit for: Those who like the excitement of changing bonus categories.
This card is not a great choice for: Someone with fixed spending habits or a preference for a simple rewards structure.
What makes this card unique? Most rewards cards feature static rewards categories. The Discover it Cash Back keeps it exciting with rotating bonus categories. Each quarter you activate, you earn 5 percent cash back in a different set of bonus categories (on up to $1,500, then 1 percent).
Is the Discover it Cash Back worth it? Because Discover’s cash back categories are always changing, the card’s value can, too. That said, the categories are usually pretty useful, including previous categories like grocery stores, restaurants, gas stations and Amazon.com. Discover has already announced bonus categories for the remainder of 2021, so you can look ahead to be sure you like them. If you were to spend $1,500 to max out the 5 percent category each quarter, you would earn $300 in cash back. Discover’s first-year cash back match would bring your earnings to $600 in your first year, an impressive haul for a card with no annual fee.
This card is a good fit for: Occasional to frequent travelers who want great value without the annual fee of a luxury travel card.
This card is not a great choice for: Travelers who value luxury perks like airport lounge access.
What makes this card unique? Chase’s airline and hotel transfer partner list is top-notch, so the fact that you can transfer your points at a 1:1 ratio makes this card even more valuable.
Is the Chase Sapphire Preferred Card worth it? The rewards portal is what really makes this card worth it — the points you earn with your Chase Sapphire Preferred receive a 25-percent bump in value when you redeem for airfare, hotels, car rentals and cruises through Chase Ultimate Rewards. Some rewards portals make it difficult to get your money’s worth, but Chase offers a refreshing contrast.
Best for dining and entertainment with no annual fee
This card is a good fit for: On-the-go foodies and thrill-seekers.
This card is not a great choice for: Those seeking a go-to card for the everyday essentials. The SavorOne does offer 3 percent cash back at grocery stores (excluding large retailers like Target and Walmart), but you can do better if you’re looking for a practical card for everyday use.
What makes this card unique? If you’re looking for another card that rewards entertainment purchases at a boosted rate, you’ll have to look pretty hard. Tickets to sporting events, aquariums and zoos, movies, concerts and dance clubs are all on Capital One’s list of eligible entertainment purchases.
Is the Capital One SavorOne Cash Rewards Credit Card worth it? It’s pretty clear that this card isn’t for ultra-frugal folks who prefer free entertainment and cooking at home. That said, the unlimited 3 percent cash back on dining and entertainment is a great deal for people who spend a fair amount in those categories. Plus, there’s no annual fee and new cardholders will earn a quick $200 after spending just $500 within the first three months of opening an account.
This card is not a great choice for: Frequent travelers who want to capitalize on their travel purchases.
What makes this card unique? Instead of having to book your rewards travel through the issuer’s site, you can redeem your miles as a statement credit to cover travel purchases made on your card within the last 90 days. This allows you to truly hunt around for the best deal, whether that’s through Capital One or another merchant.
Is the Capital One VentureOne Rewards Credit Card worth it? With no annual fee, it’s hard to go wrong with the VentureOne. The ease of earning and redeeming miles is a huge plus, especially for those just getting started with travel rewards. That said, 1.25 miles per dollar isn’t the greatest rate, and you might have to wait a while to accumulate enough miles to cover a flight. For example, $6,000 in annual spending ($500 per month) would earn you 7,500 miles over the course of a year (6000 x 1.25 = 7,500). Miles are worth 1 cent apiece when redeemed for travel or a statement credit, so that gives you an annual rewards value of just $75.
This card is a good fit for: Non-brand loyalists; this general purpose travel card offers unlimited 10X miles on hotels and rental cars booked through Capital One Travel and 5X miles on flights booked through Capital One Travel, plus unlimited 2X miles on all other purchases.
This card is not a great choice for: The annual-fee-averse; this card charges a $395 annual fee, though that charge is relatively reasonable, given its benefits and the higher annual fees associated with other premium credit cards.
What makes this card unique? The anniversary bonus (10,000 bonus miles, equal to $100 towards travel, every year, starting on your first anniversary) is a nice boon — and a rarity among general purpose premium travel credit cards. (They’re more common among airline- or hotel-specific cards.)
Is the Capital One Venture X Rewards Credit Card worth it? The $395 annual fee is steep on the surface, but savvy spenders could recoup it by cashing in all their annual statement credits (up to a $100 credit for Global Entry or TSA PreCheck®, and, separately, up to $300 back annually as statement credits for bookings through Capital One Travel), racking up rewards and leveraging the ancillary benefits.
This card is a good fit for: Foodies who want to stockpile travel rewards.
This card is not a great choice for: Travelers who want luxury benefits like airport lounge access.
What makes this card unique? When deciding on a rewards card, you sometimes have to pick a favorite: dining at restaurants or cooking at home. The ability to earn the same great rate on dining and at U.S. supermarkets is rare.
Is the American Express Gold Card worth it? Even if you don’t spend much on travel, you can quickly rack up Membership Rewards points on everyday purchases and transfer them to one of Amex’s airline partners to potentially boost their value. Plus, the annual credits can be worth up to $340, easily paying for the annual fee and then some. (Annual Fee: $250, Rates and Fees)
Bank of America Unlimited Cash Rewards credit card
Best for Bank of America loyalists
This card is best for: Simplicity lovers looking for a flat-rate cash back card. It’s even better for Bank of America Preferred Rewards members, who will earn 25 percent – 75 percent more cash back (based on your enrolled tier).
This card is not a great choice for: Cash back maximizers who don’t mind remembering a few bonus categories in exchange for a higher rewards rate.
What makes this card unique? Aside from the boosted rewards rate for Preferred Rewards members, there are a few perks that make this card special. One of the most useful is the ability to access your FICO® Score within your online account or mobile app.
Is the Bank of America Unlimited Cash Rewards credit card worth it? If you’re a Preferred Rewards member, the boosted rewards rate makes this card one of the most lucrative cash back cards available, with a maximum of up to 2.62 percent cash back for Preferred Rewards members (based on your enrolled tier). Even without that boost, 1.5 percent cash back on every purchase provides steady value.
This card is a good fit for: Those looking for an everyday card with a simple rewards structure.
This card is not a great choice for: Sign-up bonus seekers.
What makes this card unique? This card effectively offers 2 percent cash back, but in a unique way. You earn 1 percent as you make purchases, and 1 percent as you pay those purchases off. This doesn’t require any extra work on your part, but it does encourage responsible habits.
Is the Citi Double Cash Card worth it? It’s not tough to make a case for this card’s value: Those who pay their bill in full each month will earn a flat 2 percent back on every purchase (1 percent as you buy, one percent as you pay off your purchases). If your monthly credit card bill is $600, you would earn $12 in cash back per month, or $144 per year.
This card is a good fit for: Frequent travelers who want to earn rewards on travel and dining.
This card is not a great choice for: Occasional travelers or fee-averse consumers. If you’re not sure you can make up the value of the $550 annual fee between rewards and perks, the Chase Sapphire Preferred is a better choice.
What makes this card unique? Among other credits, this card comes with a $300 annual travel credit, which is automatically applied to your account when you make a travel purchase. The Platinum Card® from American Express offers a similar credit, but it’s much harder to use since it only covers incidental purchases with one airline each year.
Is the Chase Sapphire Reserve worth it? Travel rewards beginners and occasional travelers might find it tough to get more than $550 of value out of this card each year. But if you make use of the credits and additional perks, the Sapphire Reserve is easily worth it. For example, the Priority Pass™ Select membership that comes with the card can’t be purchased on its own, but the comparable “Prestige” membership costs $429 per year. Then there’s the $300 annual travel credit. Between those two perks alone, the card could pay for itself.
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 rewards rate for every purchase — or offer a higher rewards rate for particular types of purchases, such as groceries or travel.
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 their 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 key to getting the most out of your rewards credit card is using it strategically. There are standard strategies like using your card for everyday purchases and more specialized ways to earn credit card rewards. Here are some of the more unique ways to earn credit card rewards:
Finance a large purchase: If you are making a significant purchase anyway, consider making that purchase using your rewards credit card. One of the easiest ways to reach a rewards card spending requirement is to finance that purchase on a rewards card.
Refer a friend: Some credit card issuers like Capital One will provide current cardholders with rewards when friends they’ve referred are approved for a card.
Types of rewards credit 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 of rewards credit cards, along with more detailed recommendations from our team on the best cards in each category.
With a cash back card, you’ll be rewarded with a percentage of your purchases paid back to you. Your cash back will typically be applied as a statement credit toward your account, but some cards can directly deposit the cash back into your checking or savings account. Here are the three main types of cash back.
Flat-rate cash back cards offer a fixed percent back — usually between 1 and 3 percent — on all purchases. For those who prefer to set and forget, a flat-rate credit card is an excellent, no-fuss option. The Capital One Quicksilver Cash Rewards Credit Card, for example, earns 1.5 percent cash back on all purchases.
Tiered cash back cards reward specific types of purchases at a higher rate. These cards then reward other purchase categories at varying rates until it reaches the base rate for all other purchases. For example, the Blue Cash Preferred Card from American Express earns 6 percent cash back at U.S. supermarkets on up to $6,000 in purchases per year, then 1 percent. This card also earns 3 percent back on transit and at U.S. gas stations, and 1 percent back on other purchases. The different rewards rates for different categories are what define a tiered cash back card.
Dynamic bonus category cards are similar to tiered cash back cards in that they reward certain purchases at a higher rate. The difference is that the bonus categories change. Depending on the card, the issuer may assign new categories quarterly to align with seasonal trends, or you may be able to change the category at your discretion. For example, one of the most popular dynamic bonus category cards is the Discover it Cash Back, which offers 5 percent cash back on purchases in a different category each quarter you enroll (on up to $1,500 in purchases per quarter, then 1 percent). Discover’s Q4 2021 cash back categories are Amazon.com, Target.com and Walmart.com.
With a travel rewards card, you can expect perks like discounted trips, seat upgrades, travel insurance benefits, statement credits and more. There are two main types of travel rewards credit cards: co-branded and general-purpose. The way you earn and redeem rewards depends on which type you have:
A co-branded travel card will offer boosted rewards on purchases with a particular airline or hotel. Airline cards will offer airline miles as rewards, while hotel credit cards usually offer reward points that can be redeemed for award nights and other perks. Co-branded credit cards are less flexible than general-purpose travel cards because you can only redeem your rewards through the specific airline or hotel associated with your card.
General-purpose travel cards will only be tied to a card issuer, like Chase, rather than a single airline or hotel brand. You’ll earn points on every purchase, which can be redeemed for flights, hotel stays and more through a variety of brands. When redeeming reward points for travel, you can use the card issuer’s travel portal. Some cards offer the flexibility of transferring your points to a favorite airline or hotel loyalty program. If you’re a brand loyalist, this can often yield the highest point value.
Most small-business credit cards are also rewards cards, falling under the umbrella of cash back or travel rewards. But unlike rewards cards meant for consumers, you’ll need to show proof that you operate a business in order to be approved. Also, the card should only be used for business expenses.
With a business rewards card, you can earn rewards for your most common business expenses — from copier ink to advertising services to flights. For example, with the Ink Business Cash® Credit Card, you can earn 5 percent cash back at office supply stores and on internet, cable and phone services and 2 percent cash back at gas stations and restaurant purchases (on up to the first $25,000 in combined purchases each account anniversary year, then 1 percent).
These cards may offer perks like free employee cards, travel and car rental 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 business credit card.
If you’ve been diligent in building your credit and you’re ready to reap the benefits, it may be time to get a rewards card. Here are some criteria you should consider to determine if you’re ready for a rewards credit card:
You have good-to-excellent credit: Although there are exceptions, most rewards credit cards require a good-to-excellent credit score (670+) for approval. If you’re still looking for a credit card to help you boost your credit score, there are many solid options for people with fair credit.
You pay your balance in full and on time each month: Rewards cards can be lucrative if used responsibly, but they tend to have higher APRs. If you consistently carry a balance on your credit card, the benefits rewards will start to diminish. Carrying a balance on your credit card introduces interest payments, and significant interest payments can quickly overshadow the benefits of any rewards credit card.
You travel frequently: If you’ve started to travel more regularly, a card that helps you earn free or discounted travel can go a long way. Frequent travelers can earn from rewards credit cards by making everyday purchases that can be redeemed for travel. They can also earn travel points and miles by making purchases with specific travel companies or through their credit card issuer’s travel portal.
Pros and cons of rewards credit cards
A rewards card can be a great way to earn lucrative points, miles or cash back for the purchases you’re already making. However, there are some downsides to be aware of before applying. If you’re wondering whether rewards credit cards are worth it, here are a few pros and cons to keep in mind when shopping for your next rewards card:
Pros
Little-to-no annual fee: Many rewards cards don’t require an annual fee.
Sign-up bonuses: Rewards cards can come with generous sign-on bonuses (extra points or miles for spending a certain amount of money in a set time period, usually your first three months), especially when compared to other types of credit cards.
Additional benefits: Depending on the card and issuer, you could gain access to additional bonuses and benefits, like airport lounge access, hotel upgrades, and certain travel or shopping protections.
Cons
Rewards caps: Some travel cards carry earning caps, which limit the amount of points or miles you can earn. This factor can reduce the value of the card, especially if the APR is on the higher side or there’s a large annual fee.
Higher APRs: Rewards credit cards tend to carry higher interest rates than cards in other categories, like low interest. As such, they’re not a great fit for people who tend to carry a balance from time to time.
Higher annual fees: The more generous the rewards system, the higher the annual fee. Unless you maximize your rewards earnings, it can be hard to outweigh the cost of the annual fee.
Good credit scores often required: The cards that offer the best rewards programs typically require good-to-excellent credit scores.
Who should get a rewards credit card?
The world of rewards credit cards can be confusing to newcomers. If you’re deciding when to take the plunge and acquire a rewards card, aligning your new card with some of your goals is a great way to determine if the card is right for you. Here are a few people who can benefit the most from rewards credit cards:
If award flights and hotel nights sound like the ultimate rewards to you, consider getting a travel rewards credit card. Whether you already travel often or want to earn points and miles on everyday purchases, there’s a travel card that will put you one step closer to your destination with every eligible transaction. Plus, the best travel credit cards usually offer sign-up bonuses worth several hundred dollars toward travel.
Frugal folks have plenty of options when it comes to high-earning rewards cards. Groceries and gas are two common reward categories that can benefit nearly anyone. And if you want to keep it even more simple, a flat-rate card can ensure you’re earning rewards every time you make a purchase.
Those who dine out more often than cooking at home can tap into a wealth of cash back or travel points with a rewards credit card. Whether you prefer an in-person experience, takeout or delivery, there’s a credit card to reward your dining purchases.
Using a credit card responsibly — even just for small purchases — over the course of a few years will establish a credit history and ideally land you a good credit score by the time you graduate. Then, when it’s time to apply for a mortgage or an auto loan, you have access to the best interest rates. And with a rewards card, you can earn points, miles or cash back along the way.
Whether you’re a freelance photographer or you operate a brick-and-mortar store, you can use a business credit card to earn valuable rewards and boost your bottom line. Business credit cards often feature bonus categories tailored to small businesses, such as internet services, office supplies, travel and dining.
Bankrate insight
If you’re trying to maximize your rewards earnings, it makes sense to use a combination of credit cards. Ideally, you would have a card that rewards your most frequent purchase categories at a high rate, as well as a good flat-rate card. Just be sure you’re ready to manage several accounts, especially if they come with annual fees.
How to choose a rewards credit card
When choosing a rewards card, it pays to do some research and reflection. In general, you should ask yourself:
What types of purchases do you spend the most on?
Whether it’s groceries, travel, dining out or something else, it’s important to select a card that fits with your highest spending categories. If your spending isn’t focused on one specific purchase category, consider applying for a flat-rate card that earns rewards on all eligible purchases. If you spend primarily on specific categories, a tiered card or one with rotating categories will offer higher rates on that category, thus maximizing your rewards earning potential.
What kind of rewards are you interested in?
Deciding between cash back or points and miles ultimately comes down to your personal preference on the type of rewards you want to earn the most. If you’re a frequent traveler and want to enhance your air travel experience by earning rewards towards flights, hotel room upgrades and an array of other helpful benefits, a travel credit card that earns points would be a good fit. However, if you prefer to passively earn rewards on everyday purchases or don’t spend a lot on your credit card, a cash back credit card would be a stronger fit that allows you to earn rewards good for cash back or statement credits to your account.
How much effort are you willing to put into maximizing your earnings?
To get the most out of your rewards card, you need to strategize and identify the things you spend money on most. Many rewards cards are relatively low-effort as they provide rewards on all everyday eligible purchases or may encompass a broad category, such as dining or travel. However, it’s important to read the issuer’s fine print as there may be some exceptions. If you are willing to use a more complex strategy to extract the most value, you may need to take advantage of rotating bonus categories or transferring points and miles to partners.
Flat-rate rewards credit cards vs. bonus category rewards credit cards
Rewards credit cards typically come in two categories, flat-rate or bonus categories. Flat-rate cards earn the same rewards rate on all purchases. Bonus category cards earn cardholders higher rates on purchases in specific categories and lower rates in others. To determine which would be best for you, there are a few things to consider.
You should get a bonus category rewards credit card if:
You want to earn bonus rewards on travel, hotel or airline purchases — Reaping the benefits of travel and hotel stays are great reasons to sign up for a bonus category credit card. You can find bonus category cards that offer elevated rewards on travel like the Citi Premier® Card that earns cardholders 3X points on air travel purchases.
Your spending is concentrated in a specific category — A card that rewards you at a higher rate for spending in categories you typically spend in already is a good choice for many consumers. If you love to dine out or spend a lot on groceries, a bonus category card might be the best fit for you.
You should get a flat-rate rewards credit card if:
You’re new to rewards credit cards — Keeping track of bonus categories, rotating or otherwise, for a credit card can be a complicated process, especially if you’re new to rewards cards. Flat-rate rewards cards keep things simple by allowing you to earn rewards without having to keep track of anything except your own budget.
You don’t spend a lot in any particular category — If your spending isn’t concentrated in any single category, say travel or dining out, you’re likely better off with a flat-rate rewards card. You’ll be able to earn rewards without stretching your budget to spend more than you normally would in certain areas.
Developing a thorough credit card strategy doesn’t happen overnight. Here are a few ways you can maximize your rewards at every stage of card ownership.
Target your spending categories: If your card has special categories that earn higher rewards rates, try to concentrate your spending in those areas. If you pursue this strategy, do it responsibly. Overspending with a credit card to chase rewards is a losing game.
Earn your sign-up bonus: Understand how long you have to meet the spending requirement associated with the offer. Avoid overspending, however, to secure the points.
Leverage your extra benefits: Be sure you know how and when to cash in credits. Also take note of what ancillary benefits a card entitles you to. Ancillary benefits include travel and shopping protections.
Double up on cards to earn more: To earn even more rewards, you can pair cards that earn rewards for different types of spending. Be aware: Applying for multiple cards at once will only hurt your credit score. If you’re interested in learning more about pairing cards, read our guide to the best credit card combinations.
Redeem through the issuer’s portal: In some cases, redeeming through the issuer’s portal adds value to your rewards.
Nearly 1 in 3 rewards credit cardholders didn’t redeem any rewards last year, a Bankrate survey found. While 69 percent of cardholders did redeem cash back, points or miles last year, 55 percent of those did so for less than $300 in value.
Things to look for in the fine print
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 seems. 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, like spending caps or strict category definitions.
Non-automatic perks: Some card benefits are automatically available when you sign up and use the card. In other cases, you must be proactive and sign up or enroll.
Special redemption options: Some cards have additional or special options for redemption that you may be interested in as a cardholder. For example, Chase Sapphire Reserve cardholders will see points values increase from 1 cent per point to 1.5 cents per point when redeemed for travel through the Ultimate Rewards portal.
Changes to rewards programs: Terms are subject to change at virtually any time. 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.
Bankrate uses a 5-star system to assign scores to credit cards available from our partners. With rewards credit cards, we focus on factors including:
Rewards value
The cards on our list feature some of the industry’s finest rewards programs, with generous earning rates and consistently high value of points or miles.
Low cost of ownership
Is the card a good deal, money-wise? Do the benefits and rewards outweigh annual fees and other costs? With the best rewards credit cards, the answer to both questions needs to be yes.
Redemption options
The best rewards cards make it easy for you to redeem your cash back, travel miles or rewards points. Top cards that earn travel miles offer flexible options for using them, including transfers to travel partners.
Benefits and perks
Benefits such as discounts, purchase protection and travel insurance add value to your credit card even when you're not using it to earn rewards.
More information on rewards credit cards
For more information on all things rewards cards, continue reading content from our credit card experts:
Have more questions for our credit card editors? Feel free to send us an email, find us on Facebook, or Tweet us @Bankrate.
Frequently asked questions about rewards credit cards
Credit card issuers offer rewards as an incentive for attracting new customers and retaining current ones, but their self-interest doesn’t mean rewards cards aren’t worthy of consideration. With some planning and spending discipline, you could make it a mutually beneficial arrangement.
Rewards credit cards earn points, miles or cash back for eligible purchases, and determining whether these rewards are worth it is as simple as weighing the monetary value of the rewards versus the cost of the card. It can be difficult to tell exactly how much points or miles are worth, but Bankrate’s card reviews provide a clear look at how rewards translate into dollar figures.
If your financial situation allows you to pay off your bill in full each month and there aren’t any upfront or extraordinary fees, a rewards card can be worthwhile. Although some of the top-rated rewards cards charge an annual fee, the fees are often accompanied by generous rewards rates and sign-up bonuses.
If you’re in a situation where you’re making partial payments or an annual fee is overwhelming, a rewards card isn’t the best choice for you. Many rewards cards will suspend earning when cardholders aren’t paying off bills in full, and experts like Bankrate.com’s Ted Rossman advise against chasing rewards when you have credit card debt. If you see yourself carrying an occasional balance, a low interest card is probably in your best interest.
The versatility and cash back rate of the Citi Double Cash Card make it an excellent rewards card with no annual fee. Its 2 percent cash back rate is not only unlimited — it’s one of the best flat rates in the market. The card also has an 18-month 0% intro APR offer on balance transfers (13.99% - 23.99% variable APR after) in case you’re looking for an opportunity to transfer a balance and temporarily avoid paying interest.
A strong case can be made for the Capital One VentureOne Rewards Credit Card as the top travel card with no annual fee. Every purchase earns 1.25x miles per dollar, and the Capital One Miles program is notable for its flexibility and growing number of transfer partners.
Those more interested in earning points may look to another rewarding no annual fee option, such as the Citi Rewards+ Card. Cardholders can earn 2X ThankYou Points at U.S gas stations and supermarkets on up to $6,000 in combined purchases per year, plus 1x ThankYou Points on all other purchases. The rewards rate in the U.S. gas stations and supermarkets category and Citi’s Round Up feature make the Citi Rewards+ card an elite choice for getting the most out of your card without paying an annual fee.
It's difficult to pin down exactly how much a travel rewards point is worth because it depends on how you choose to redeem them. That said, points are usually worth between 1 and 2 cents. You'll get the most value of your rewards points by redeeming them for travel, rather than gift cards or statement credits. See The Points Guy's monthly point valuations for estimated values of airline and hotel loyalty program points.
If you're loyal to a particular store or brand, a store rewards card can certainly be worth it. On top of earning potential, many store cards give holders access to exclusive coupons, sales and clearance items. It really only makes sense to have store cards for brands that you're particularly fond of, or you could catch yourself in a slew of emails and have cards that aren't being maximized. While store cards can be worthwhile, be on the lookout for higher APRs and hidden fees that cut into your earnings.
How does the IRS treat credit card rewards for tax purposes?
If your credit card issuer offered you rewards for making purchases, the IRS considers the rewards to be a form of rebate on the purchases. Thus, the cost of the purchase is reduced and the rewards are not considered taxable income. However, if an issuer awarded you bonus rewards just for opening an account or for any other reason without requiring any purchase or minimum spending amount to qualify, the value of such bonus is taxable.
What if a card issuer awarded you airline miles?
If they were awarded on the basis of you making purchases, typically frequent flyer miles, then they would still maintain the tax exemption. However, if your issuer awarded you bonus miles for opening a credit card, since you did not have to purchase anything to qualify and therefore are not receiving a rebate, you would have to pay taxes on such reward miles.
Here are some of the most common types of reward redemptions, along with some of the restrictions you may encounter when redeeming your rewards:
Statement credit: One of the most common redemption methods is a statement credit, which is money credited to your account that reduces your credit card balance. While many cards allow you to decide when and how much you want to redeem, others require you to have earned a minimum amount of cash back before you can claim your rewards.
Check or Direct Deposit: Some credit card rewards programs allow you to redeem your rewards for cash back in the form of a check or direct deposit to your bank account. This method can provide more flexibility as the cash back rewards are not necessarily locked into one card’s account. However, this can prove to be tricky if you don’t already have a banking relationship with your credit card issuer and some issuers require you to have earned a minimum amount of cash back before you can request a check.
Gift cards: Many credit card issuers give you the option of redeeming your cash back through a rewards portal for online shopping or as gift cards to select department stores, restaurants, video streaming services and more. Some issuers let you redeem smaller amounts of points for gift cards compared to the points required for larger reward items. For example, The Discover it® Cash Back lets you redeem your cash back for gift cards from shopping partners once you’ve earned $5 in cash back (gift cards range from $5 to $200, in increments of $5). However, you will be limited to purchases from stores that issuer has partnered with.
Travel: By redeeming your accumulated credit card rewards for travel purchases, you can gain hundreds of dollars in savings on airfare and hotel accommodations.The main caveat is that travel related rewards often require that you save up a large amount of points. In addition, travel rewards may also be subject to blackout dates, which can make this redemption option less desirable and flexible.
Crypto credit cards reward spending, but in lieu of earning cash back or miles on purchases, cardholders are paid in virtual currencies, like Bitcoin or Ethereum. Alternatively, some issuers, like SoFi, Venmo and Brex, are letting select cardholders redeem rewards for crypto alongside more traditional options, like statement credits or cash deposits. If you’re considering these alternatives, remember that cryptocurrency is an investment. If you’re a virtual currency enthusiast or investor and crypto rewards appeal to you, consider crypto cards that offer the best return on spending and allow you to bypass commission and transaction fees.
Mariah Ackary is a personal finance writer who specializes in credit card rewards and small business credit. Mariah is a lifelong writer, but she began writing about finance in 2018. She joined the Bankrate team in 2019, excited by the opportunity to directly help people make good financial decisions. Send your questions to mackary@bankrate.com
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Former Senior Editor Barry Bridges has been writing about credit cards, personal loans, mortgages and other personal finance products since 2017. Before joining Bankrate, he was an award-winning newspaper journalist in his native North Carolina.
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