Credit cards can be a great tool to help manage finances and earn rewards while doing so. With so many options available in today’s market, it can be overwhelming to choose the best one for your needs. One popular type of credit card is the rewards credit card, which allows users to earn points, miles, or cash back for every purchase made.
When it comes to rewards credit cards, there are a variety of options to consider. Some cards offer higher rewards for specific categories, such as dining or travel, while others offer a flat rate for all purchases. Additionally, some cards come with annual fees, while others do not. It’s important to consider your spending habits and goals when choosing a rewards credit card to ensure you’re getting the most value out of it.
Best Credit Cards for Rewards: Get More Perks and Benefits
In this article, we’ll explore some of the best credit cards for rewards currently available on the market. Whether you’re looking to earn cash back, airline miles, or hotel points, we’ll provide an overview of the top options to help you make an informed decision.
Types of Credit Cards for Rewards
Cash Back Credit Cards
Cash back credit cards are a popular choice for those who want to earn rewards on their everyday purchases. These cards typically offer a percentage of cash back on purchases, which can range from 1% to 6%. Some cash back credit cards offer a flat rate of cash back on all purchases, while others offer bonus cash back in certain categories such as gas, groceries, or dining.
One example of a popular cash back credit card is the Chase Freedom Flex℠, which offers 5% cash back on up to $1,500 in purchases in rotating categories each quarter, and 1% cash back on all other purchases. Another popular option is the Capital One Quicksilver Cash Rewards Credit Card, which offers a flat rate of 1.5% cash back on all purchases.
Travel Rewards Credit Cards
Travel rewards credit cards are designed for those who want to earn rewards on travel-related expenses such as flights, hotels, and rental cars. These cards typically earn points or miles that can be redeemed for travel-related expenses. Some travel rewards credit cards also offer additional perks such as airport lounge access, travel insurance, and statement credits for travel expenses.
The Capital One Venture Rewards Credit Card is a popular general-purpose travel credit card that earns 2 miles per dollar on all purchases, and 5 miles per dollar on hotel and rental car bookings made through Capital One Travel. Another popular option is the Chase Sapphire Preferred® Card, which earns 2 points per dollar on travel and dining, and 1 point per dollar on all other purchases.
Points Rewards Credit Cards
Points rewards credit cards are similar to travel rewards credit cards in that they earn points that can be redeemed for rewards. However, points rewards credit cards are more flexible in terms of how points can be redeemed. Points can be redeemed for travel, merchandise, gift cards, statement credits, and more.
The American Express® Gold Card is a popular points rewards credit card that earns 4 points per dollar on dining, 4 points per dollar at U.S. supermarkets (on up to $25,000 per year in purchases, then 1 point per dollar), and 3 points per dollar on flights booked directly with airlines or on amextravel.com. Another popular option is the Chase Freedom Unlimited®, which offers 1.5% cash back on all purchases, but also allows you to convert cash back to points that can be redeemed for travel or other rewards.
How to Choose the Best Credit Card for Rewards
Identify Your Spending Habits
Before choosing a credit card for rewards, it’s important to understand your own spending habits. Consider which categories you spend the most money in, such as groceries, gas, or travel. Look for credit cards that offer bonus rewards in those categories. For example, if you spend a lot on groceries, consider a credit card like the Blue Cash Preferred® Card from American Express, which offers 6% cashback at U.S. supermarkets.
Consider the Annual Fee
Many rewards credit cards come with an annual fee, so it’s important to consider whether the rewards you’ll earn will offset the cost of the fee. If you’re not sure, calculate how much you would need to spend to break even. For example, if a credit card has a $95 annual fee and offers 2% cashback on all purchases, you would need to spend $4,750 per year to break even.
Check for Signup Bonus
Some credit cards offer a signup bonus, which can be a great way to earn a lot of rewards quickly. However, make sure you understand the requirements to earn the bonus, such as spending a certain amount of money within a certain time frame. Also, make sure the bonus is worth it compared to the annual fee, if there is one.
Rewards Redemption Options
Finally, consider how you can redeem your rewards. Some credit cards offer more flexible redemption options, such as cashback or statement credits, while others may only allow you to redeem rewards for travel. Make sure the redemption options align with your preferences and needs.
By considering these factors, you can choose the best credit card for rewards that fits your spending habits and lifestyle.
Top Credit Cards for Rewards
Best Cash Back Credit Cards
When it comes to cash back credit cards, the Chase Freedom Unlimited® is a top choice. It offers bonus categories and a high ongoing rate for cash back. Another great option is the Wells Fargo Active Cash® Card, which offers a flat-rate cash rewards program. The Capital One SavorOne Cash Rewards Credit Card is also worth considering, especially if you frequently dine out or attend entertainment events.
Best Travel Rewards Credit Cards
For those who love to travel, the Chase Sapphire Reserve® is a popular choice. It offers 10X points on hotels and car rentals, as well as a generous sign-up bonus. The American Express Gold Card is another great option, offering rewards on flights, hotels, and dining. If you prefer airline-specific rewards, the Delta SkyMiles® Reserve American Express Card is a top pick.
Best Points Rewards Credit Cards
When it comes to points rewards credit cards, the Capital One Venture is a standout choice. It offers a generous sign-up bonus and flexible redemption options. The Citi Premier® Card is another great option, offering rewards on travel, dining, and entertainment. The Chase Sapphire Preferred® Card is also worth considering, as it offers rewards on travel and dining, as well as a valuable sign-up bonus.
Ultimately, the best credit card for rewards will depend on your individual spending habits and preferences. Consider the rewards categories that align with your spending, as well as any additional perks, such as sign-up bonuses or travel benefits.
What is the best credit card for rewards?
The best credit card depends on you and your financial needs. Carefully consider your spending habits—do you frequently spend money on gas, groceries, travel or at a particular store? Look for a rewards card or a set of rewards cards that provide you the most return on each dollar you spend, whether it’s cash back for dining purchases or points that can be redeemed for travel, Amazon purchases or more.
How many credit card rewards points can I earn?
Many credit cards have no limit to how many points you can earn but some do have either quarterly or annual earning caps. The card’s terms and conditions may limit how much spending will qualify for rewards, especially those with a category bonus.