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July 29, 2022
*Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It may not have been reviewed, approved or otherwise endorsed by the credit card issuer. This site may be compensated through a credit card issuer partnership.
This article was last updated July 29, 2022 . Terms and conditions may have changed. For the most accurate information, please consult the issuer website.
In addition to a valuable sign-up bonus and generous rewards rate, the Chase Freedom Flex℠ offers a long intro APR on purchases and balance transfers and charges a $0 annual fee.
Rewards credit cards allow you to earn points, miles or cash back on eligible purchases. Depending on the card, you may then be able to redeem those rewards for statement credits, travel, merchandise or other options. The best rewards credit cards offer sign-up bonuses worth $200 or more, 2% or more back on your ongoing spending, and other valuable perks like travel statement credits and hotel elite status.
Credit needed: Excellent/Good
Rewards rate: 5% cash back on up to $1,500 in combined purchases in bonus categories each quarter you activate. Enjoy new 5% categories each quarter! Plus, earn 5% cash back on travel purchased through Chase Ultimate Rewards®, 3% on dining and drugstores, and 1% on all other purchases.
Sign-up bonus: Earn a $200 Bonus after you spend $500 on purchases in your first 3 months from account opening!
Why we picked this card: The Chase Freedom Flex℠ earns cash back in a variety of categories at generous rates and comes with an easy-to-earn sign-up bonus on top of that. Plus, it offers a 0% Intro APR on Purchases for 15 months, after which a 16.49% - 25.24% variable APR applies. And there’s a 0% Intro APR on Balance Transfers for 15 months too, after which a 16.49% - 25.24% variable APR applies.
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If you don’t mind keeping track of bonus categories each quarter, the Chase Freedom Flex℠ provides a great opportunity to earn a large amount of cash back rewards. In addition to offering an accelerated cash back rate in ongoing categories — travel, dining and drugstore purchases— cardholders earn a generous cash back rate in categories that rotate quarterly. Chase Freedom Flex℠ bonus categories for 2022 include:
Just know, you must activate the bonus category each quarter to earn the 5% cash back rate on those purchases. Plus, the rate is capped at $1,500 in combined purchases each quarter.
Credit needed: Excellent/Good
Rewards rate: 5% cash back on up to $1,500 in combined purchases in bonus categories each quarter you activate. Enjoy new 5% categories each quarter! Plus, earn 5% cash back on travel purchased through Chase Ultimate Rewards®, 3% on dining and drugstores, and 1% on all other purchases.
Sign-up bonus: Earn a $200 Bonus after you spend $500 on purchases in your first 3 months from account opening!
Why we picked this card: The Chase Freedom Flex℠ earns cash back in a variety of categories at generous rates and comes with an easy-to-earn sign-up bonus on top of that. Plus, it offers a 0% Intro APR on Purchases for 15 months, after which a 16.49% - 25.24% variable APR applies. And there’s a 0% Intro APR on Balance Transfers for 15 months too, after which a 16.49% - 25.24% variable APR applies.
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If you don’t mind keeping track of bonus categories each quarter, the Chase Freedom Flex℠ provides a great opportunity to earn a large amount of cash back rewards. In addition to offering an accelerated cash back rate in ongoing categories — travel, dining and drugstore purchases— cardholders earn a generous cash back rate in categories that rotate quarterly. Chase Freedom Flex℠ bonus categories for 2022 include:
Just know, you must activate the bonus category each quarter to earn the 5% cash back rate on those purchases. Plus, the rate is capped at $1,500 in combined purchases each quarter.
Credit needed: Excellent/Good
Rewards rate: 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. Terms apply. Cash back can be redeemed as a statement credit.
Welcome offer: Earn a $350 statement credit after you spend $3,000 in purchases on your new Card within the first 6 months.
Why we picked this card: The Blue Cash Preferred® Card from American Express has one of the top rewards rates on U.S. supermarket purchases of any credit card on the market, as well as generous rates on other useful spending categories. Plus, there’s an intro APR of 0% on purchases for 12 months, after which a 16.24%-26.24% variable APR applies.
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To see rates and fees for the Blue Cash Preferred® Card from American Express, please click here.
If you spend heavily on groceries every month, you’ll come out on top with the Blue Cash Preferred® Card from American Express. Along with one of the highest cash back rates available at U.S. supermarkets, the card offers a generous cash back rate on U.S. streaming subscriptions, transit and at U.S. gas stations. If you max out the annual $6,000 spending cap at U.S. supermarkets, you’ll earn $360 back from those purchases — which more than covers the annual fee.
Credit needed: Excellent/Good
Rewards rate: 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. Terms apply. Cash back can be redeemed as a statement credit.
Welcome offer: Earn a $350 statement credit after you spend $3,000 in purchases on your new Card within the first 6 months.
Why we picked this card: The Blue Cash Preferred® Card from American Express has one of the top rewards rates on U.S. supermarket purchases of any credit card on the market, as well as generous rates on other useful spending categories. Plus, there’s an intro APR of 0% on purchases for 12 months, after which a 16.24%-26.24% variable APR applies.
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To see rates and fees for the Blue Cash Preferred® Card from American Express, please click here.
If you spend heavily on groceries every month, you’ll come out on top with the Blue Cash Preferred® Card from American Express. Along with one of the highest cash back rates available at U.S. supermarkets, the card offers a generous cash back rate on U.S. streaming subscriptions, transit and at U.S. gas stations. If you max out the annual $6,000 spending cap at U.S. supermarkets, you’ll earn $360 back from those purchases — which more than covers the annual fee.
Credit needed: Excellent/Good
Rewards rate: 3% Cash Back on dining and entertainment; 3% Cash Back on popular streaming services; 3% Cash Back at grocery stores; 1% Cash Back on all other purchases. Earn 8% cash back on Capital One Entertainment purchases and tickets at Vivid Seats.
Sign-up bonus: Earn a one-time $200 cash bonus after you spend $500 on purchases within the first 3 months from account opening.
Why we picked this card: The Capital One SavorOne Cash Rewards Credit Card earns cash back at a generous rate in a wide range of categories. Plus, it offers an APR of 0% intro on purchases for 15 months, after which a 16.49% - 26.49% (variable) APR applies. And it offers an APR of 0% intro on balance transfers for 15 months (3% fee on the amounts transferred within the first 15 months), after which a 16.49% - 26.49% (variable) APR applies.
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Whether you like to dine at restaurants, order takeout or delivery or craft a delicious meal with groceries you picked up at the supermarket, the Capital One SavorOne Cash Rewards Credit Card can reward you generously. And in addition to rewarding your inner foodie, this card can net you cash back for streaming services and entertainment purchases with a variety of merchants. Here’s what counts as entertainment:
Credit needed: Excellent/Good
Rewards rate: 3% Cash Back on dining and entertainment; 3% Cash Back on popular streaming services; 3% Cash Back at grocery stores; 1% Cash Back on all other purchases. Earn 8% cash back on Capital One Entertainment purchases and tickets at Vivid Seats.
Sign-up bonus: Earn a one-time $200 cash bonus after you spend $500 on purchases within the first 3 months from account opening.
Why we picked this card: The Capital One SavorOne Cash Rewards Credit Card earns cash back at a generous rate in a wide range of categories. Plus, it offers an APR of 0% intro on purchases for 15 months, after which a 16.49% - 26.49% (variable) APR applies. And it offers an APR of 0% intro on balance transfers for 15 months (3% fee on the amounts transferred within the first 15 months), after which a 16.49% - 26.49% (variable) APR applies.
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Whether you like to dine at restaurants, order takeout or delivery or craft a delicious meal with groceries you picked up at the supermarket, the Capital One SavorOne Cash Rewards Credit Card can reward you generously. And in addition to rewarding your inner foodie, this card can net you cash back for streaming services and entertainment purchases with a variety of merchants. Here’s what counts as entertainment:
Credit needed: Excellent
Rewards rate: 4% cash back on eligible gas for the first $7,000 per year and then 1% thereafter, 3% on restaurants & travel, 2% at Costco & Costco.com, 1% on all other purchases.
Sign-up bonus: No bonus.
Why we picked this card: The Costco Anywhere Visa® Card by Citi offers one of the best cash back rates around on gas, as well as solid earning rates on restaurant dining and travel spending.
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If you’re a Costco member and a road warrior who frequently spends at the gas pump, the Costco Anywhere Visa® Card by Citi will be a great fit for your wallet. There’s a $7,000 annual spending cap on the elevated gas rate, and if you max it out, that’s $280 in cash back.
However, if you’re not already a Costco member, be aware that memberships run $60 per year for a Gold Star membership and $120 per year for an Executive membership. Also, take note that gas purchased at superstores, supermarkets, convenience stores and warehouse clubs other than Costco, as well as fuel used for non-automobile purposes, does not qualify for the bonus cash back rate.
Finally, make sure you’re comfortable with how cash back redemption works on the Costco Anywhere Visa® Card by Citi: cardholders can only redeem their rewards for merchandise or cash back at Costco warehouses located in the U.S., including Puerto Rico. Rewards are also only distributed one time per year (after your February billing cycle) and must be redeemed by Dec. 31 of the year in which they are issued.
Credit needed: Excellent
Rewards rate: 4% cash back on eligible gas for the first $7,000 per year and then 1% thereafter, 3% on restaurants & travel, 2% at Costco & Costco.com, 1% on all other purchases.
Sign-up bonus: No bonus.
Why we picked this card: The Costco Anywhere Visa® Card by Citi offers one of the best cash back rates around on gas, as well as solid earning rates on restaurant dining and travel spending.
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If you’re a Costco member and a road warrior who frequently spends at the gas pump, the Costco Anywhere Visa® Card by Citi will be a great fit for your wallet. There’s a $7,000 annual spending cap on the elevated gas rate, and if you max it out, that’s $280 in cash back.
However, if you’re not already a Costco member, be aware that memberships run $60 per year for a Gold Star membership and $120 per year for an Executive membership. Also, take note that gas purchased at superstores, supermarkets, convenience stores and warehouse clubs other than Costco, as well as fuel used for non-automobile purposes, does not qualify for the bonus cash back rate.
Finally, make sure you’re comfortable with how cash back redemption works on the Costco Anywhere Visa® Card by Citi: cardholders can only redeem their rewards for merchandise or cash back at Costco warehouses located in the U.S., including Puerto Rico. Rewards are also only distributed one time per year (after your February billing cycle) and must be redeemed by Dec. 31 of the year in which they are issued.
Credit needed: Excellent
Rewards rate: 5x on travel purchased through Chase Ultimate Rewards®, 3x on dining and 2x on all other travel purchases
Sign-up bonus: 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®.
Why we picked this card: The Chase Sapphire Preferred® Card offers excellent value to travelers in the form of flexible Chase Ultimate Rewards® points. You can redeem them for cash back at a value of 1 cent per point, use them to book travel through the Chase Ultimate Rewards® portal and get 25% more value or transfer them at a 1:1 rate to a variety of airline and hotel partners.
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If you’re a frequent traveler, the Chase Sapphire Preferred® Card has much to love. For one thing, you can get a credit for up to $50 each year for hotel stays booked through the Chase Ultimate Rewards® portal. You also have a lot of flexibility in how you use your points — redeem them for travel bookings through the portal, and get 25% more value per point, or transfer at a rate of 1:1 to the following partners:
Credit needed: Excellent
Rewards rate: 5x on travel purchased through Chase Ultimate Rewards®, 3x on dining and 2x on all other travel purchases
Sign-up bonus: 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®.
Why we picked this card: The Chase Sapphire Preferred® Card offers excellent value to travelers in the form of flexible Chase Ultimate Rewards® points. You can redeem them for cash back at a value of 1 cent per point, use them to book travel through the Chase Ultimate Rewards® portal and get 25% more value or transfer them at a 1:1 rate to a variety of airline and hotel partners.
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If you’re a frequent traveler, the Chase Sapphire Preferred® Card has much to love. For one thing, you can get a credit for up to $50 each year for hotel stays booked through the Chase Ultimate Rewards® portal. You also have a lot of flexibility in how you use your points — redeem them for travel bookings through the portal, and get 25% more value per point, or transfer at a rate of 1:1 to the following partners:
Credit needed: Excellent/Good
Rewards rate: 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.
Sign-up bonus: 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.
Why we picked this card: Even though there’s a cap on the elevated cash back rate each month, the Citi Custom Cash℠ Card‘s 5% cash back rate is generous. If you max out the $500 spending cap, that’s $25 per month — $300 per year — in cash back at the elevated rate.
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The Citi Custom Cash℠ Card is an ideal choice for consumers whose top spending categories may fluctuate from month to month. This earns cash back in the form of Citi ThankYou Points, and will automatically determine your 5% category each month from the following list:
Credit needed: Excellent/Good
Rewards rate: 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.
Sign-up bonus: 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.
Why we picked this card: Even though there’s a cap on the elevated cash back rate each month, the Citi Custom Cash℠ Card‘s 5% cash back rate is generous. If you max out the $500 spending cap, that’s $25 per month — $300 per year — in cash back at the elevated rate.
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The Citi Custom Cash℠ Card is an ideal choice for consumers whose top spending categories may fluctuate from month to month. This earns cash back in the form of Citi ThankYou Points, and will automatically determine your 5% category each month from the following list:
Credit needed: Information not available
Rewards rate: Earn 14X per $1 of eligible purchases on your card directly with a participating Hilton hotel or resort, 7X for eligible purchases: on flights booked directly with airlines or amextravel.com; on car rentals booked directly from select car rental companies; & at U.S. restaurants, and 3X for other purchases on your card.
Welcome offer: Earn 150,000 Hilton Honors Bonus Points after you spend $4,000 in purchases on the Card within your first 3 months of Card Membership.
Why we picked this card: The Hilton Honors Aspire Card from American Express is a premium hotel card with robust travel benefits. The card awards up to two weekend night awards a year and complimentary Diamond elite status. Cardholders also enjoy a $250 airline fee credit every year (you must select one qualifying airline) and a complimentary Priority Pass™ Select (enrollment required) which provides access to more than 1,200 airport lounges worldwide.
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If you’re a Hilton Honors loyalist, you can earn an extremely generous rewards rate on participating Hilton hotel and resort stays with the Hilton Honors Aspire Card from American Express. The points you earn have many options for redemption — free night stays, experiences, Lyft rides, merchandise or car rentals (and even transfers to airline partners). Plus, the card offers a robust array of credits and travel benefits.
Credit needed: Information not available
Rewards rate: Earn 14X per $1 of eligible purchases on your card directly with a participating Hilton hotel or resort, 7X for eligible purchases: on flights booked directly with airlines or amextravel.com; on car rentals booked directly from select car rental companies; & at U.S. restaurants, and 3X for other purchases on your card.
Welcome offer: Earn 150,000 Hilton Honors Bonus Points after you spend $4,000 in purchases on the Card within your first 3 months of Card Membership.
Why we picked this card: The Hilton Honors Aspire Card from American Express is a premium hotel card with robust travel benefits. The card awards up to two weekend night awards a year and complimentary Diamond elite status. Cardholders also enjoy a $250 airline fee credit every year (you must select one qualifying airline) and a complimentary Priority Pass™ Select (enrollment required) which provides access to more than 1,200 airport lounges worldwide.
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If you’re a Hilton Honors loyalist, you can earn an extremely generous rewards rate on participating Hilton hotel and resort stays with the Hilton Honors Aspire Card from American Express. The points you earn have many options for redemption — free night stays, experiences, Lyft rides, merchandise or car rentals (and even transfers to airline partners). Plus, the card offers a robust array of credits and travel benefits.
Credit needed: Excellent/Good
Rewards rate: Earn 2% on every purchase with unlimited 1% cash back when you buy, plus an additional 1% as you pay for those purchases.
Sign-up bonus: For a limited time, earn $200 cash back after spending $1,500 on purchases in the first 6 months of account opening.
Why we picked this card: The Citi® Double Cash Card comes with a standard-setting flat cash back rate on all purchases. Plus, cardholders get a lengthy intro APR of 0% for 18 months on balance transfers, after which a 16.24% - 26.24% (variable) APR applies.
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If you’re carrying high-interest debt on a non-Citi credit card, doing a balance transfer to the Citi® Double Cash Card can give you a long window of time to pay off what you owe without incurring interest.
Then, once you pay off what you’ve transferred, this card is worth keeping in your wallet for its cash back program — you don’t have to keep track of different rewards rates in different spending categories because every purchase earns a competitive flat rate.
Note that the card charges a balance transfer fee. There is an intro balance transfer fee of 3% of each transfer (minimum $5) completed within the first 4 months of account opening. A balance transfer fee of 5% of each transfer ($5 minimum) applies if completed after 4 months of account opening.
Credit needed: Excellent/Good
Rewards rate: Earn 2% on every purchase with unlimited 1% cash back when you buy, plus an additional 1% as you pay for those purchases.
Sign-up bonus: For a limited time, earn $200 cash back after spending $1,500 on purchases in the first 6 months of account opening.
Why we picked this card: The Citi® Double Cash Card comes with a standard-setting flat cash back rate on all purchases. Plus, cardholders get a lengthy intro APR of 0% for 18 months on balance transfers, after which a 16.24% - 26.24% (variable) APR applies.
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If you’re carrying high-interest debt on a non-Citi credit card, doing a balance transfer to the Citi® Double Cash Card can give you a long window of time to pay off what you owe without incurring interest.
Then, once you pay off what you’ve transferred, this card is worth keeping in your wallet for its cash back program — you don’t have to keep track of different rewards rates in different spending categories because every purchase earns a competitive flat rate.
Note that the card charges a balance transfer fee. There is an intro balance transfer fee of 3% of each transfer (minimum $5) completed within the first 4 months of account opening. A balance transfer fee of 5% of each transfer ($5 minimum) applies if completed after 4 months of account opening.
Credit needed: Information unavailable
Rewards rate: 2 points per $1 spent on groceries, gas, electronics, medical, household goods and telecommunications, and 1 point per $1 spent on other purchases
Sign-up bonus: Earn 20,000 points when you spend $3,000 in the first 60 days.
Why we picked this card: Many rewards cards charge a high APR, but the Choice Rewards World Mastercard® from First Tech FCU is unique in that it comes with a valuable rewards program and also a reasonable 9.75% - 18.00% (variable) APR.
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We always recommend paying off your card in full so as to avoid interest charges. But if you have to carry a balance once in a while, a low interest card such as the Choice Rewards World Mastercard® from First Tech FCU can help you save money. You do have to join a credit union, but First Tech Federal Credit Union makes it relatively easy to qualify. If you don’t qualify based on where you live or work, your employer or a family member, you can qualify by joining the Computer History Museum or the Financial Fitness Association — which can be done as part of your application to First Tech FCU.
Credit needed: Information unavailable
Rewards rate: 2 points per $1 spent on groceries, gas, electronics, medical, household goods and telecommunications, and 1 point per $1 spent on other purchases
Sign-up bonus: Earn 20,000 points when you spend $3,000 in the first 60 days.
Why we picked this card: Many rewards cards charge a high APR, but the Choice Rewards World Mastercard® from First Tech FCU is unique in that it comes with a valuable rewards program and also a reasonable 9.75% - 18.00% (variable) APR.
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We always recommend paying off your card in full so as to avoid interest charges. But if you have to carry a balance once in a while, a low interest card such as the Choice Rewards World Mastercard® from First Tech FCU can help you save money. You do have to join a credit union, but First Tech Federal Credit Union makes it relatively easy to qualify. If you don’t qualify based on where you live or work, your employer or a family member, you can qualify by joining the Computer History Museum or the Financial Fitness Association — which can be done as part of your application to First Tech FCU.
Credit needed: Poor/Limited
Rewards rate: 2% cash back at Gas Stations and Restaurants on up to $1,000 in combined purchases each quarter. 1% unlimited cash back on all other purchases - automatically
Sign-up bonus: Discover will match all the cash back you’ve earned at the end of your first year.
Why we picked this card: The Discover it® Secured Credit Card allows you to earn cash back while rebuilding your credit. It charges a $0 annual fee and is accessible with a $200 minimum security deposit. Best of all, after seven months with the card, Discover begins conducting monthly account reviews to see if you’re eligible graduate to an unsecured card and get your deposit refunded.
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Whether you’re building credit from scratch or working to rebuild your credit after some past missteps, the Discover it® Secured Credit Card can help you in your journey. It reports payment and spending activity to all three major consumer credit bureaus — Equifax, Experian and TransUnion — and offers a clear timeline for when you might get your security deposit refunded. The fact that it also earns cash back on gas and restaurant spending is icing on the cake.
Credit needed: Poor/Limited
Rewards rate: 2% cash back at Gas Stations and Restaurants on up to $1,000 in combined purchases each quarter. 1% unlimited cash back on all other purchases - automatically
Sign-up bonus: Discover will match all the cash back you’ve earned at the end of your first year.
Why we picked this card: The Discover it® Secured Credit Card allows you to earn cash back while rebuilding your credit. It charges a $0 annual fee and is accessible with a $200 minimum security deposit. Best of all, after seven months with the card, Discover begins conducting monthly account reviews to see if you’re eligible graduate to an unsecured card and get your deposit refunded.
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Whether you’re building credit from scratch or working to rebuild your credit after some past missteps, the Discover it® Secured Credit Card can help you in your journey. It reports payment and spending activity to all three major consumer credit bureaus — Equifax, Experian and TransUnion — and offers a clear timeline for when you might get your security deposit refunded. The fact that it also earns cash back on gas and restaurant spending is icing on the cake.
Credit needed: Fair/Limited
Rewards rate: 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
Sign-up bonus: Unlimited Cashback Match – only from Discover. Discover will automatically match all the cash back you've earned at the end of your first year! So you could turn $50 cash back into $100. Or turn $100 into $200. There’s no minimum spending or maximum rewards. Just a dollar-for-dollar match.
Why we picked this card: The Discover it® Student Cash Back is an excellent first credit card for college students. It can help you build credit history while earning cash back at a generous rate, as long as you’re willing to activate a new rewards category each quarter.
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Building credit early can set you up for success later in life, so you get better rates on financial products such as auto loans and mortgages. The Discover it® Student Cash Back is a tool that allows college students to do just that. You will have to be willing to activate a new category each quarter to earn elevated cash back, but Discover typically sends out reminders.
Just know, to apply for this card, you need to be at least 18 years old, have a U.S. address, have a Social Security number and show proof of education.
Credit needed: Fair/Limited
Rewards rate: 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
Sign-up bonus: Unlimited Cashback Match – only from Discover. Discover will automatically match all the cash back you've earned at the end of your first year! So you could turn $50 cash back into $100. Or turn $100 into $200. There’s no minimum spending or maximum rewards. Just a dollar-for-dollar match.
Why we picked this card: The Discover it® Student Cash Back is an excellent first credit card for college students. It can help you build credit history while earning cash back at a generous rate, as long as you’re willing to activate a new rewards category each quarter.
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Building credit early can set you up for success later in life, so you get better rates on financial products such as auto loans and mortgages. The Discover it® Student Cash Back is a tool that allows college students to do just that. You will have to be willing to activate a new category each quarter to earn elevated cash back, but Discover typically sends out reminders.
Just know, to apply for this card, you need to be at least 18 years old, have a U.S. address, have a Social Security number and show proof of education.
Credit needed: Excellent/Good
Rewards rate: Earn unlimited 2% cash rewards on purchases
Sign-up bonus: Earn a $200 cash rewards bonus after spending $1,000 in purchases in the first 3 months
Why we picked this card: The Wells Fargo Active Cash® Card lets you earn unlimited 2% cash back on every purchase without tracking categories or having to activate promotions. It also offers a generous sign-up bonus.
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The Wells Fargo Active Cash® Card is best for people who want unlimited rewards without having to remember bonus categories or to activate quarterly promotions. Rewards never expire and redeeming rewards starts at just $1. Cardholders can even redeem rewards at the ATM with their linked Wells Fargo ATM or debit card.
Credit needed: Excellent/Good
Rewards rate: Earn unlimited 2% cash rewards on purchases
Sign-up bonus: Earn a $200 cash rewards bonus after spending $1,000 in purchases in the first 3 months
Why we picked this card: The Wells Fargo Active Cash® Card lets you earn unlimited 2% cash back on every purchase without tracking categories or having to activate promotions. It also offers a generous sign-up bonus.
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The Wells Fargo Active Cash® Card is best for people who want unlimited rewards without having to remember bonus categories or to activate quarterly promotions. Rewards never expire and redeeming rewards starts at just $1. Cardholders can even redeem rewards at the ATM with their linked Wells Fargo ATM or debit card.
Credit needed: Excellent/Good
Rewards rate: 2 Miles per dollar on every purchase, every day; 5 Miles on hotels and rental cars booked through Capital One Travel; 5 Miles per dollar when you book on Turo, the world’s largest car sharing marketplace, through May 16, 2023
Sign-up bonus: Enjoy a one-time bonus of 75,000 miles once you spend $4,000 on purchases within 3 months from account opening, equal to $750 in travel
Why we picked this card: The Capital One Venture Rewards Credit Card makes it simple to earn and redeem travel rewards. You earn 2 miles per dollar on the majority of your purchases, plus bonus miles on a few categories. You can easily redeem miles for travel statement credits against any of your purchases. You can also transfer miles to a variety of airline and hotel loyalty programs.
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The Capital One Venture Rewards Credit Card is best for travelers that want to earn bonus miles on every purchase while enjoying attractive benefits that are usually reserved for more expensive cards. It includes numerous travel perks that save money, protect your trip and improve your travel experience, including no foreign transaction fees, rental car coverage, airport lounge access and travel accident insurance.
Credit needed: Excellent/Good
Rewards rate: 2 Miles per dollar on every purchase, every day; 5 Miles on hotels and rental cars booked through Capital One Travel; 5 Miles per dollar when you book on Turo, the world’s largest car sharing marketplace, through May 16, 2023
Sign-up bonus: Enjoy a one-time bonus of 75,000 miles once you spend $4,000 on purchases within 3 months from account opening, equal to $750 in travel
Why we picked this card: The Capital One Venture Rewards Credit Card makes it simple to earn and redeem travel rewards. You earn 2 miles per dollar on the majority of your purchases, plus bonus miles on a few categories. You can easily redeem miles for travel statement credits against any of your purchases. You can also transfer miles to a variety of airline and hotel loyalty programs.
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The Capital One Venture Rewards Credit Card is best for travelers that want to earn bonus miles on every purchase while enjoying attractive benefits that are usually reserved for more expensive cards. It includes numerous travel perks that save money, protect your trip and improve your travel experience, including no foreign transaction fees, rental car coverage, airport lounge access and travel accident insurance.
Credit needed: Excellent/Good
Rewards rate: 2% Cash Back on every purchase; 5% Cash Back on hotels and rental cars booked through Capital One Travel
Sign-up bonus: Earn up to a $1,000 cash bonus; $500 once you spend $5,000 in the first 3 months, and $500 once you spend $50,000 in the first 6 months of account opening
Why we picked this card: The Capital One Spark Cash Plus is one of the most rewarding and straightforward options for business owners with a lot on their plates, offering a flat 2% cash back on the majority of purchases. There is no preset spending limit, so you can adapt the card to your business needs.
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The Capital One Spark Cash Plus is best for business owners who want to earn cash back and have the ability to pay their balance in full every month. While there is no preset spending limit, it does charge a 2.99% monthly late fee on unpaid balances. This card is best for business owners who can spend heavily on their cards to meet the large minimum spend requirement and earn the $200 annual cash bonus.
Credit needed: Excellent/Good
Rewards rate: 2% Cash Back on every purchase; 5% Cash Back on hotels and rental cars booked through Capital One Travel
Sign-up bonus: Earn up to a $1,000 cash bonus; $500 once you spend $5,000 in the first 3 months, and $500 once you spend $50,000 in the first 6 months of account opening
Why we picked this card: The Capital One Spark Cash Plus is one of the most rewarding and straightforward options for business owners with a lot on their plates, offering a flat 2% cash back on the majority of purchases. There is no preset spending limit, so you can adapt the card to your business needs.
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The Capital One Spark Cash Plus is best for business owners who want to earn cash back and have the ability to pay their balance in full every month. While there is no preset spending limit, it does charge a 2.99% monthly late fee on unpaid balances. This card is best for business owners who can spend heavily on their cards to meet the large minimum spend requirement and earn the $200 annual cash bonus.
| Credit card | Best for | Welcome offer | Rewards rate |
|---|---|---|---|
| Chase Freedom Flex℠ | Overall rewards credit card | Earn a $200 Bonus after you spend $500 on purchases in your first 3 months from account opening!. | 5% cash back on up to $1,500 in combined purchases in bonus categories each quarter you activate. Enjoy new 5% categories each quarter! Plus, earn 5% cash back on travel purchased through Chase Ultimate Rewards®, 3% on dining and drugstores, and 1% on all other purchases.. |
| Blue Cash Preferred® Card from American Express | Grocery shopping | Earn a $350 statement credit after you spend $3,000 in purchases on your new Card within the first 6 months. | 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. Terms apply. |
| Capital One® Savor® Cash Rewards Credit Card | Dining and entertainment | Earn a one-time $300 cash bonus once you spend $3,000 on purchases within 3 months from account opening | Earn unlimited 4% cash back on dining, entertainment, and popular streaming services, 3% at grocery stores and 1% on all other purchases. |
| Costco Anywhere Visa® Card by Citi | Gas purchases | N/A | 4% cash back on eligible gas for the first $7,000 per year and then 1% thereafter, 3% on restaurants & travel, 2% at Costco & Costco.com, 1% on all other purchases |
| Chase Sapphire Preferred® Card | Airline purchases | 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®. | 5x on travel purchased through Chase Ultimate Rewards®, 3x on dining and 2x on all other travel purchases |
| Citi® Double Cash Card – 18 month BT offer | Balance transfers | For a limited time, earn $200 cash back after spending $1,500 on purchases in the first 6 months of account opening. | Earn 2% on every purchase with unlimited 1% cash back when you buy, plus an additional 1% as you pay for those purchases. |
| Hilton Honors Aspire Card from American Express | Hotel stays | Earn 150,000 Hilton Honors Bonus Points after you spend $4,000 in purchases on the Card within your first 3 months of Card Membership. | Earn 14X per $1 of eligible purchases on your card directly with a participating Hilton hotel or resort, 7X for eligible purchases: on flights booked directly with airlines or amextravel.com; on car rentals booked directly from select car rental companies; & at U.S. restaurants, and 3X for other purchases on your card |
| Choice Rewards World Mastercard® from First Tech FCU | Low ongoing APR | Earn 20,000 points when you spend $3,000 in the first 60 days. | 2 points per $1 spent on groceries, gas, electronics, medical, household goods and telecommunications, and 1 point per $1 spent on other purchases |
| Discover it® Secured Credit Card | Bad credit | Discover will match all the cash back you’ve earned at the end of your first year. | 2% cash back at Gas Stations and Restaurants on up to $1,000 in combined purchases each quarter. 1% unlimited cash back on all other purchases - automatically |
| Discover it® Student Cash Back | Students | Unlimited Cashback Match – only from Discover. Discover will automatically match all the cash back you've earned at the end of your first year! So you could turn $50 cash back into $100. Or turn $100 into $200. There’s no minimum spending or maximum rewards. Just a dollar-for-dollar match. | 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 |
| Wells Fargo Active Cash® Card | Simple cash back | Earn a $200 cash rewards bonus after spending $1,000 in purchases in the first 3 months | Earn unlimited 2% cash rewards on purchases |
| Capital One Venture Rewards Credit Card | Simple travel rewards | Enjoy a one-time bonus of 75,000 miles once you spend $4,000 on purchases within 3 months from account opening, equal to $750 in travel | 2 Miles per dollar on every purchase, every day; 5 Miles on hotels and rental cars booked through Capital One Travel; 5 Miles per dollar when you book on Turo, the world’s largest car sharing marketplace, through May 16, 2023 |
| Capital One Spark Cash Plus | Business rewards | Earn up to a $1,000 cash bonus; $500 once you spend $5,000 in the first 3 months, and $500 once you spend $50,000 in the first 6 months of account opening | 2% Cash Back on every purchase; 5% Cash Back on hotels and rental cars booked through Capital One Travel |
A rewards credit card is a card that offers miles, points or cash back based on the amount you spend each month. Depending on the card, the rewards earned may be at a flat rate for all purchases or certain categories may earn bonus rewards. Many rewards credit cards partner with airlines, hotels and other brands to offer specific rewards tailored to those brands. Other rewards cards earn flexible points that can be redeemed in multiple ways, like cash back, gift cards, booking travel or transferring to travel partners.
Cash back
Cardholders receive a portion of their purchases as cash back. The cash back rewards are usually issued as statement credits, a physical check or a deposit to a bank account. Some redemptions are automatic, while others require you to initiate a request.
Flexible points
Flexible points provide many redemption options, including cash back, gift cards, booking travel and transferring to travel partners. If you have multiple credit cards that earn the same flexible points, most programs allow you to pool your rewards to reach your goals faster.
Airline co-branded
Airline credit cards earn miles towards future travel with the co-branded airline. These cards are issued in coordination with an airline to provide specific benefits for travelers, such as free checked bags, priority boarding and in-flight discounts. Some airline credit cards accelerate your path to elite status based on your spending.
Hotel co-branded
Hotel credit cards offer perks when staying at participating hotels. Cardholders typically receive automatic elite status, bonus points when paying for their stay and an annual free night.
Applying for a rewards credit card is a smart choice for people who are responsible with their credit and won’t be tempted to overspend. Having a good-to-excellent credit score qualifies you for some of the best rewards credit card offers to receive big welcome bonuses, high rewards on spending and attractive benefits.
However, if you are carrying credit card debt or cannot control your spending, applying for a rewards credit card may not be a wise decision. Many people who apply for rewards credit cards spend more than they normally would to chase additional rewards. This leads to credit card debt and other financial worries. No rewards are worth the interest that a bank charges for carrying a balance.
Figure out which cards you can qualify for
Before applying for a new credit card, it helps to know what your credit score is. Many banks, websites and apps offer credit scores for free. Knowing your score helps you focus on the credit cards you’re most likely to get approved for.
Don’t know your credit score?The best rewards credit cards are for people with excellent credit, but there are also good card options for every type of credit. Even people with fair credit or those who are rebuilding their credit can qualify for cards with valuable rewards and benefits until their credit scores improve.
| FICO Score | Vantage Score |
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Before applying, make sure that you read the fine print on who qualifies to receive a bonus or open an account. Many banks exclude current cardholders or those who have received a bonus in the last 24 to 48 months. Understanding the terms and conditions can spare you from the unpleasant surprise of opening and spending a lot of money on a card just to discover that you don’t qualify for the sign-up bonus.Consider your goals for the rewards
Knowing how you want to spend the rewards from your card narrows down your choices to make it easier to pick the right card. Selecting which type of rewards you want to earn enables you to focus on a limited number of cards so that it is easier to compare their bonuses, earnings rates, benefits, and fees.
| What type of user are you? | Choose a ... |
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| You want the simplest rewards possible | Cash back credit card |
| You want rewards that you can use in a variety of ways to get the best value | Flexible points credit card (ex.: Chase Sapphire Preferred® Card or Chase Freedom Unlimited®) |
| You want to earn rewards and benefits with a hotel or airline program | Co-branded airline or hotel credit card (ex.: United℠ Explorer Card or Hilton Honors American Express Card) |
Find rewards that match your spending patterns
Matching your spending habits with the bonus categories of your rewards credit card is the best approach. This allows you to maximize the rewards earned on your regular purchases, like groceries, gas, dining and travel.
Some people get multiple cards that earn the same type of rewards to take advantage of each card’s bonus categories. For example, the Chase Trifecta is a strategy that seeks to earn maximum Ultimate Rewards points on every purchase.
Popular bonus categories: Groceries, Restaurants and Gas
Do the math to decide which card is best for you
After narrowing down your choices, compare how much you can earn from each card in the first year. Factor in the welcome bonus, rewards earned from spending and annual credits. Then subtract the annual fee to determine your net benefit from each rewards card.
Some people also assign a cash value to other card benefits, like free checked bags, as part of the comparison. Only include these benefits if they actually earn or save you additional money. For example, travelers who only carry on their luggage won’t actually save money with the free checked bags benefits.
The comparison may look different in the second year when there isn’t a welcome bonus. That calculation helps you decide if you should keep the card going forward or switch to a different one.
| Feature | Card A (points worth $0.01 each) | Card B (cash back card) **Winner** | Card C (no-annual-fee cash back card) |
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| Sign-up bonus | 50,000 points | $250 | $200 |
| Earning rate | 2X points on every purchase | 6% cash back on groceries, 3% cash back on gas, 1% cash back on everything else | 2% cash back on every purchase |
| Rewards earned on $6,000 in groceries | 12,000 points worth $120 | $360 | $120 |
| Rewards earned on $3,000 in gas | 6,000 points worth $60 | $90 | $60 |
| Rewards earned on $11,000 in other spend | 22,000 points worth $220 | $110 | $110 |
| Annual fee | $95 | $95 | $0 |
| Rewards minus annual fee | $305 | $465 | $290 |
Not all points are created equal. Understanding the value of your points enables you to compare points from different programs.
To calculate the value of an award redemption, first, determine the cost when paying cash. Subtract any taxes or fees that you still have to pay. Then, divide that total by the number of points you’re redeeming. The result is the value per point of that redemption.
Point value = $ value of target redemption option (minus taxes/fees that you still have to pay) ÷ Number of pointsExample: ($1,500 laptop computer – $124 in taxes) ÷ 190,000 points = $0.007 point value (less than 1 cent/point)
In order to choose the best rewards credit cards for your wallet, it pays to evaluate the features that each card offers and decide which are most important to you.
Many credit cards offer a welcome bonus to new cardholders when they spend a certain amount within a set timeframe. For example: “Earn 50,000 points after spending $3,000 within three months”. Earning a welcome bonus is the quickest way to earn a large number of points quickly. Because the rewards are so big compared to the required spending, many people focus on this feature the most.
Some of the best rewards credit cards charge an annual fee. While many people try to avoid paying an annual fee, it can be worthwhile if the benefits outweigh the fees. Often, you’ll earn a larger welcome bonus, get more points on your spending and receive additional benefits from a card with an annual fee versus one without.
Some of the best rewards credit cards charge an annual fee. While many people try to avoid paying an annual fee, it can be worthwhile if the benefits outweigh the fees. Often, you’ll earn a larger welcome bonus, get more points on your spending and receive additional benefits from a card with an annual fee versus one without.
Certain credit cards offer introductory 0% APR promotions on balance transfers, purchases or both to new cardholders. These promotions allow you to eliminate interest on those balances for the duration of the offer’s term. Typical interest-free periods range from 12 to 18 months. Zero percent offers are an excellent way to pay off debt quicker or avoid interest on a large purchase.
Rewards cards often include benefits specific to the co-branded partner or loyalty program that’s issuing the card. Airline cards often include free checked bags and priority boarding, while hotel cards may offer a free hotel night and automatic elite status. Other benefits include rental car protection, trip interruption or cancellation insurance, extended warranty coverage and annual credits at select merchants. The value of some of these benefits could be worth more than the welcome bonus or rewards earned on your spending, so be sure to consider them.
If you’re in the market for a credit card that offers rewards on the purchases you make, there are certainly plenty of options to choose from.
For example, if you prefer eating in over dining out, the Blue Cash Preferred® Card from American Express, which offers an accelerated cash back rate at U.S. supermarkets, may be your best fit. But if you’d prefer to earn rewards to help cover the cost of airfare, the Chase Sapphire Preferred® Card offers better value when redeeming points through Chase Ultimate Rewards®.
Banks offer cardholders numerous ways to redeem points, but some choices offer much higher value than others. Credit card rewards generally have the highest value when redeeming them for travel or transferring points to airline and hotel partners. And you’ll generally receive the lowest value for your points when redeeming them for merchandise, using them for online shopping or buying gift cards.
Each rewards program is different, so the value that you receive with these options will vary. In some cases, you may get a higher value when you have a specific card. For example, your points are worth 50% more when booking travel through Ultimate Rewards if you have the Chase Sapphire Reserve®.
Before deciding which of these cards is right for you, it’s important to familiarize yourself with the fundamentals of how rewards credit cards work. In addition to reviewing our frequently asked questions below, we recommend that you take a closer look at the terms and conditions for the card’s rewards program from the issuer’s website.
Rewards credit cards offer points, miles or cash back on eligible purchases. Depending on the card, you may be able to redeem those rewards for statement credits, checks, travel, charitable donations, cash back, merchandise, gift cards and more.
Many rewards credit cards let you earn rewards when you make eligible purchases using your card and/or when you reach the spend threshold required to earn the card’s sign-up or welcome offer. Rewards cards may also offer annual bonuses each year on your account anniversary; a referral bonus when you refer a friend to the card and the friend is approved; or when you add an authorized user to your credit card account. Note, you cannot earn rewards on cash advances or balance transfers or illegal transactions.
This will depend on the card. For example, some cards offer an unlimited flat rewards rate on every purchase. Other cards may offer 1 point or mile (or 1% back for cash back cards) per dollar spent on general purchases, and extra points, miles or cash back in bonus spending categories, like gas, dining or airfare. While you may be limited on the amount of extra rewards you can earn from bonus categories, rewards cards typically allow you to earn unlimited rewards on general purchases.
In addition to redeeming rewards for statement credits, gift cards, merchandise, travel and more, some cards also allow you to transfer your rewards to travel partners.
Again, this will depend on the card. For many credit cards, your rewards will never expire as long as your account remains open and in good standing. However, there are cards that expire your rewards if you don’t make a charge on your card or redeem your rewards within a given time period.
There are two important reasons why you should never carry a balance on a rewards card. First, rewards cards tend to carry higher interest rates (APRs) than non-rewards cards. So, carrying a balance over from month to month can get expensive, as those interest charges are added to your balance.
Second, those high interest charges can negate the rewards you are earning with the card. For example, if you earn 2% in cash back for a purchase, but are assessed interest on any unpaid balance, you’re losing money instead of saving money.
Yes, rewards credit cards are worth it when you use them to earn rewards on purchases and pay off your balance in full each month. These cards offer valuable cash back, miles and points that add up quickly. If you’re paying an annual fee, make sure that the benefits are worth more than what you’re paying.
There are many rewards credit cards that offer a high level of rewards in different categories. For example, the Capital One Venture X Rewards Credit Card offers 10X miles on hotels and rental cars booked through its travel portal. The goal is to find cards that offer high bonuses on categories where you spend the most.
No, credit card rewards are considered a refund on the amount you spend. Because of this, the IRS does not require consumers to pay taxes on credit card rewards.
The best travel rewards credit card depends on whether you want to earn airline miles, hotel points or flexible points, your spending patterns and your willingness to pay an annual fee. Our choice for the best credit card for travel rewards is the Chase Sapphire Preferred® Card. You’ll earn up to 5X points on purchases and receive generous travel and purchase protections. Its flexible points transfer to 14 hotel and airline partners and are worth 25% more when booking travel through Ultimate Rewards.
The ability to combine rewards earned on two credit cards depends on the type of rewards. If the rewards are of the same type (e.g. American Airlines AAdvantage miles), then combining them is possible. However, if the rewards are of different types, then generally they cannot be combined. Flexible points can be transferred to multiple loyalty programs, and may be combined with rewards earned within those partner programs.
Responsible use of rewards cards can build a positive credit history. You must pay your account on time every month and strive to keep your balances low relative to your credit limit. Additionally, maintain a good mix of credit accounts and keep your applications to a minimum. And building a higher average age of account is often easier when you have no fee or low-fee rewards cards.
To select the best rewards credit card for each of these categories, our experts compared credit cards that offer rewards programs on LendingTree.com and on major issuer sites. This included cash back credit cards, 0% intro APR cards, balance transfer credit cards, secured cards, student cards and more.
We then chose our top picks based on a variety of factors, such as the type of rewards offered, the value of the card’s sign-up bonus, the rewards redemption options, the card’s annual fee and the interest rates.
Other factors that came into play when making our selection include the benefits offered by the card, such as purchase and extended warranty protections.
To see rates and fees for the Blue Cash Preferred® Card from American Express, please click here.
Additional reporting by Glen Luke Flanagan and Dan Miller.
The above offers and/or promotions may have since changed, expired, or is no longer available. Check the Issuers’ website for more details.
