April 1, 2023
*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 April 1, 2023 . 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.
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 the first three months. Plus, earn 5% cash back on grocery store purchases (excluding Target® and Walmart®) on up to $12,000 spent in the first year
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 19.49% - 28.24% variable APR applies. And there’s a 0% Intro APR on Balance Transfers for 15 months too, after which a 19.49% - 28.24% variable APR applies.
Pros & cons:
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 2023 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.
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 the first three months. Plus, earn 5% cash back on grocery store purchases (excluding Target® and Walmart®) on up to $12,000 spent in the first year
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 19.49% - 28.24% variable APR applies. And there’s a 0% Intro APR on Balance Transfers for 15 months too, after which a 19.49% - 28.24% variable APR applies.
Pros & cons:
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 2023 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.
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 $250 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 18.74%-29.74% variable APR applies.
Pros & cons:
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.
To see rates & fees for Blue Cash Preferred® Card from American Express please click here.
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 $250 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 18.74%-29.74% variable APR applies.
Pros & cons:
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.
To see rates & fees for Blue Cash Preferred® Card from American Express please click here.
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.
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 19.74% - 29.74% (variable) APR applies. And it offers an APR of 0% intro on balance transfers for 15 months, after which a 19.74% - 29.74% (variable) APR applies.
Pros & cons:
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:
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.
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 19.74% - 29.74% (variable) APR applies. And it offers an APR of 0% intro on balance transfers for 15 months, after which a 19.74% - 29.74% (variable) APR applies.
Pros & cons:
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:
Rewards rate: 4% cash back on eligible gas and EV charging purchases 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.
Pros & cons:
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.
Rewards rate: 4% cash back on eligible gas and EV charging purchases 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.
Pros & cons:
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.
Rewards rate: 5% back at Amazon.com and Whole Foods Market with an eligible Prime membership, 2% back at restaurants and gas stations and 1% back on all other purchases.
Sign-up bonus: Get a $100 Amazon Gift Card instantly upon approval.
Why we picked this card: The $0-annual-fee Amazon Prime Rewards Visa Signature Card offers a generous rewards rate on Amazon purchases, as well as an easy-to-earn sign-up bonus.
Pros & cons:
If you have an Amazon Prime membership and regularly shop at Amazon.com and Whole Foods Market, you stand to earn a generous amount of cash back from those purchases with the Amazon Prime Rewards Visa Signature Card.
But while the card charges a $0 annual fee, know that you’re required to have a Prime membership — which runs $139 annually (or $69 for college students) — to qualify for the higher rewards rate.
Rewards rate: 5% back at Amazon.com and Whole Foods Market with an eligible Prime membership, 2% back at restaurants and gas stations and 1% back on all other purchases.
Sign-up bonus: Get a $100 Amazon Gift Card instantly upon approval.
Why we picked this card: The $0-annual-fee Amazon Prime Rewards Visa Signature Card offers a generous rewards rate on Amazon purchases, as well as an easy-to-earn sign-up bonus.
Pros & cons:
If you have an Amazon Prime membership and regularly shop at Amazon.com and Whole Foods Market, you stand to earn a generous amount of cash back from those purchases with the Amazon Prime Rewards Visa Signature Card.
But while the card charges a $0 annual fee, know that you’re required to have a Prime membership — which runs $139 annually (or $69 for college students) — to qualify for the higher rewards rate.
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.
Pros & cons:
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:
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.
Pros & cons:
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:
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 cash back after you spend $1,500 on purchases in the first 6 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.
Pros & cons:
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:
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 cash back after you spend $1,500 on purchases in the first 6 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.
Pros & cons:
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:
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.
Pros & cons:
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.
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.
Pros & cons:
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.
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.
Pros & cons:
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.
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.
Pros & cons:
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.
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: None
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 18.74% - 28.74% (variable) APR applies.
Pros & cons:
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.
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: None
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 18.74% - 28.74% (variable) APR applies.
Pros & cons:
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.
Earning rate: Enjoy 5% cash back on travel purchased through Chase Ultimate Rewards®, our premier rewards program that lets you redeem rewards for cash back, travel, gift cards and more; 3% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery service, and 1.5% on all other purchases
Sign-up bonus: Earn an extra 1.5% on everything you buy (on up to $20,000 spent in the first year) — worth up to $300 cash back. That’s 6.5% on travel purchased through Chase Ultimate Rewards®, 4.5% on dining and drugstores, and 3% on all other purchases.
Why we picked this card: In addition to a solid cash back rate on every purchase, the Chase Freedom Unlimited® offers an interest-free period on purchases and balance transfers for more than a year.
Pros & cons:
If you’re planning to make a large purchase and pay it off over time, the Chase Freedom Unlimited® may be a good fit. The card offers a 0% Intro APR on Purchases for 15 months. After that, an APR of 19.49% - 28.24% Variable applies.
This $0-annual-fee card also comes with a 0% Intro APR on Balance Transfers for 15 months, then a 19.49% - 28.24% Variable applies.
Earning rate: Enjoy 5% cash back on travel purchased through Chase Ultimate Rewards®, our premier rewards program that lets you redeem rewards for cash back, travel, gift cards and more; 3% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery service, and 1.5% on all other purchases
Sign-up bonus: Earn an extra 1.5% on everything you buy (on up to $20,000 spent in the first year) — worth up to $300 cash back. That’s 6.5% on travel purchased through Chase Ultimate Rewards®, 4.5% on dining and drugstores, and 3% on all other purchases.
Why we picked this card: In addition to a solid cash back rate on every purchase, the Chase Freedom Unlimited® offers an interest-free period on purchases and balance transfers for more than a year.
Pros & cons:
If you’re planning to make a large purchase and pay it off over time, the Chase Freedom Unlimited® may be a good fit. The card offers a 0% Intro APR on Purchases for 15 months. After that, an APR of 19.49% - 28.24% Variable applies.
This $0-annual-fee card also comes with a 0% Intro APR on Balance Transfers for 15 months, then a 19.49% - 28.24% Variable applies.
Rewards rate: 2 points per $1 spent on groceries, gas, electronics, medical, household goods and telecommunications, and 1 point per $1 spent on everything else
Sign-up bonus: 20,000 bonus points for spending at least $3,000 in first 60 days.
Why we picked this card: Many rewards cards charge a high APR, but the Choice Rewards World Mastercard® is unique in that it comes with a valuable rewards program and also a reasonable 12.75% to 18.00% APR.
Pros & cons:
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® 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.
Rewards rate: 2 points per $1 spent on groceries, gas, electronics, medical, household goods and telecommunications, and 1 point per $1 spent on everything else
Sign-up bonus: 20,000 bonus points for spending at least $3,000 in first 60 days.
Why we picked this card: Many rewards cards charge a high APR, but the Choice Rewards World Mastercard® is unique in that it comes with a valuable rewards program and also a reasonable 12.75% to 18.00% APR.
Pros & cons:
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® 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.
Sign-up bonus: No bonus
Earning rate: 1.5% Cash Back on every purchase, every day; 5% Cash Back on hotels and rental cars booked through Capital One Travel (terms apply)
Why we picked this card: The Capital One QuicksilverOne Cash Rewards Credit Card is ideal for those with fair/limited credit who want to earn cash back rewards on every purchase. Cash back can be redeemed for any amount, anytime. Rewards don’t expire for the life of the account, and can be redeemed for statement credits, checks or gift cards, or used to directly cover a recent purchase.
Pros & cons:
If you want to earn cash back while building your credit profile, the Capital One QuicksilverOne Cash Rewards Credit Card is a solid option. Along with offering a flat cash back rate on general purchases, the card allows cardholders to request a product change to the Capital One Quicksilver Cash Rewards Credit Card after demonstrating responsible card usage and building a relationship with Capital One.
Just know, the Capital One QuicksilverOne Cash Rewards Credit Card charges a $39 annual fee. Additionally, the card comes with a high APR of 29.99% (variable) — but that’s to be expected from a card designed for those with fair credit.
Sign-up bonus: No bonus
Earning rate: 1.5% Cash Back on every purchase, every day; 5% Cash Back on hotels and rental cars booked through Capital One Travel (terms apply)
Why we picked this card: The Capital One QuicksilverOne Cash Rewards Credit Card is ideal for those with fair/limited credit who want to earn cash back rewards on every purchase. Cash back can be redeemed for any amount, anytime. Rewards don’t expire for the life of the account, and can be redeemed for statement credits, checks or gift cards, or used to directly cover a recent purchase.
Pros & cons:
If you want to earn cash back while building your credit profile, the Capital One QuicksilverOne Cash Rewards Credit Card is a solid option. Along with offering a flat cash back rate on general purchases, the card allows cardholders to request a product change to the Capital One Quicksilver Cash Rewards Credit Card after demonstrating responsible card usage and building a relationship with Capital One.
Just know, the Capital One QuicksilverOne Cash Rewards Credit Card charges a $39 annual fee. Additionally, the card comes with a high APR of 29.99% (variable) — but that’s to be expected from a card designed for those with fair credit.
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.
Pros & cons:
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.
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.
Pros & cons:
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.
Rewards rate: 5% cash back on everyday purchases at different places each quarter like Amazon.com, grocery stores, restaurants, and gas stations, 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.
Pros & cons:
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.
Rewards rate: 5% cash back on everyday purchases at different places each quarter like Amazon.com, grocery stores, restaurants, and gas stations, 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.
Pros & cons:
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.
Earning rate: 5X Membership Rewards® points on flights booked directly with airlines or with American Express Travel on up to $500,000 on these purchases per calendar year and 5X Membership Rewards® points on prepaid hotels booked with American Express Travel. Terms apply.
Welcome offer: Earn 80,000 Membership Rewards® Points after you spend $6,000 on purchases on the Card in your first 6 months of Card Membership. If you use your points to book a flight through American Express Travel, that’s a $1,000 value.
Why we picked this card: In addition to a high rewards rate on travel purchases and lucrative welcome offer, The Platinum Card® from American Express comes with a number of valuable travel credits.
Pros & cons:
To see rates and fees for The Platinum Card® from American Express, please click here.
If you travel frequently enough to take advantage of the card’s benefits, you stand to squeeze a lot of value from The Platinum Card® from American Express — even with its $695 annual fee. The card offers numerous benefits and credits, including automatic Marriott Bonvoy™ Gold Elite status (enrollment required), automatic Hilton Honors Gold status (enrollment required) and premium car rental privileges. Plus, get up to a $200 annual airline fee credit, up to a $200 annual hotel credit, a Global Entry or TSA PreCheck application fee credit, up to a $189 annual CLEAR® membership credit and more.
To see rates and fees for The Platinum Card® from American Express, please click here.
Earning rate: 5X Membership Rewards® points on flights booked directly with airlines or with American Express Travel on up to $500,000 on these purchases per calendar year and 5X Membership Rewards® points on prepaid hotels booked with American Express Travel. Terms apply.
Welcome offer: Earn 80,000 Membership Rewards® Points after you spend $6,000 on purchases on the Card in your first 6 months of Card Membership. If you use your points to book a flight through American Express Travel, that’s a $1,000 value.
Why we picked this card: In addition to a high rewards rate on travel purchases and lucrative welcome offer, The Platinum Card® from American Express comes with a number of valuable travel credits.
Pros & cons:
To see rates and fees for The Platinum Card® from American Express, please click here.
If you travel frequently enough to take advantage of the card’s benefits, you stand to squeeze a lot of value from The Platinum Card® from American Express — even with its $695 annual fee. The card offers numerous benefits and credits, including automatic Marriott Bonvoy™ Gold Elite status (enrollment required), automatic Hilton Honors Gold status (enrollment required) and premium car rental privileges. Plus, get up to a $200 annual airline fee credit, up to a $200 annual hotel credit, a Global Entry or TSA PreCheck application fee credit, up to a $189 annual CLEAR® membership credit and more.
To see rates and fees for The Platinum Card® from American Express, please click here.
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.
Pros & cons:
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.
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.
Pros & cons:
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 | Welcome Offer | Rewards Rate | Annual Fee | Recommended Credit | Card Review |
|---|---|---|---|---|---|
|
Chase Freedom Flex℠
|
Earn a $200 bonus after you spend $500 on purchases in the first three months. Plus, earn 5% cash back on grocery store purchases (excluding Target® and Walmart®) on up to $12,000 spent in the first year | 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. | $0 | Excellent/Good | Chase Freedom Flex℠ Review |
|
Blue Cash Preferred® Card from American Express
|
Earn a $250 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. | $0 intro annual fee for the first year, then $95. | Excellent/Good | Blue Cash Preferred® Card from American Express Review |
|
Capital One SavorOne Cash Rewards Credit Card
|
Earn a one-time $200 cash bonus after you spend $500 on purchases within the first 3 months from account opening | 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 | $0 | Excellent/Good | Capital One SavorOne Cash Rewards Credit Card Review |
|
Costco Anywhere Visa® Card by Citi
|
N/A | 4% cash back on eligible gas and EV charging purchases 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 | $0 | Excellent | Costco Anywhere Visa® Card by Citi Review |
|
Amazon Prime Rewards Visa Signature Card
|
Get a $100 Amazon Gift Card instantly upon approval. | 5% back at Amazon.com and Whole Foods Market with an eligible Prime membership, 2% back at restaurants and gas stations and 1% back on all other purchases. | $0 | N/A | Amazon Prime Rewards Visa Signature Card Review |
|
Chase Sapphire Preferred® Card
|
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 | $95 | Excellent | Chase Sapphire Preferred® Card Review |
|
Citi Custom Cash℠ Card
|
Earn $200 cash back after you spend $1,500 on purchases in the first 6 months of account opening. This bonus offer will be fulfilled as 20,000 ThankYou® Points, which can be redeemed for $200 cash back. | 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. | $0 | Excellent/Good | Citi Custom Cash℠ Card Review |
|
Wells Fargo Active Cash® 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 | Excellent/Good | Wells Fargo Active Cash® Card Review |
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Hilton Honors Aspire Card from American Express
|
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 | $450 | Excellent/Good | Review Coming Soon |
|
Citi® Double Cash Card – 18 month BT offer
|
None | Earn 2% on every purchase with unlimited 1% cash back when you buy, plus an additional 1% as you pay for those purchases. | $0 | Excellent/Good | Citi® Double Cash Card – 18 month BT offer Review |
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Chase Freedom Unlimited®
|
Earn an extra 1.5% on everything you buy (on up to $20,000 spent in the first year) — worth up to $300 cash back. That’s 6.5% on travel purchased through Chase Ultimate Rewards®, 4.5% on dining and drugstores, and 3% on all other purchases. | Enjoy 5% cash back on travel purchased through Chase Ultimate Rewards®, our premier rewards program that lets you redeem rewards for cash back, travel, gift cards and more; 3% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery service, and 1.5% on all other purchases | $0 | Excellent/Good | Chase Freedom Unlimited® Review |
|
Choice Rewards World Mastercard®
|
20,000 bonus points for spending at least $3,000 in first 60 days. | 2 points per $1 spent on groceries, gas, electronics, medical, household goods and telecommunications, and 1 point per $1 spent on everything else | $0 | Excellent/Good | Choice Rewards World Mastercard® Review |
|
Capital One QuicksilverOne Cash Rewards Credit Card
|
No bonus | 1.5% Cash Back on every purchase, every day; 5% Cash Back on hotels and rental cars booked through Capital One Travel (terms apply) | $39 | Fair/Limited | Capital One QuicksilverOne Cash Rewards Credit Card Review |
|
Discover it® Secured Credit Card
|
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 | $0 | Poor/Limited | Discover it® Secured Credit Card Review |
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Discover it® Student Cash Back
|
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, and gas stations, up to the quarterly maximum when you activate. Plus, earn unlimited 1% cash back on all other purchases – automatically | $0 | Fair/Limited | Discover it® Student Cash Back Review |
|
The Platinum Card® from American Express
|
Earn 80,000 Membership Rewards® Points after you spend $6,000 on purchases on the Card in your first 6 months of Card Membership. | 5X Membership Rewards® points on flights booked directly with airlines or with American Express Travel on up to $500,000 on these purchases per calendar year and 5X Membership Rewards® points on prepaid hotels booked with American Express Travel. Terms apply. | $695 | Excellent/Good | The Platinum Card® from American Express Review |
|
Capital One Spark Cash Plus
|
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 | $150 | Excellent | Capital One Spark Cash Plus Review |
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. These are good for non-travelers or those who value simplicity.
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 and even complimentary upgrades. 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.
Travel rewards
For those who don’t want to be limited to one particular airline or hotel brand, a general travel rewards credit card offers points or miles that can be redeemed for future flights, hotel stays and more. These cards may also offer travel protections, credits and discounts.
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.
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.
Don’t know your credit score?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.
| Do you... | Then choose a... |
|---|---|
| Want the simplest rewards possible? | Cash back credit card |
| 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®) |
| 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.
Let’s take the following cash back and flat-rate cards as an example:
| Feature | Card A (points worth $0.01 each) | Card B (cash back card) **Winner** | Card C (no-annual-fee cash back card) |
|---|---|---|---|
| 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 |
After taking into account the card’s welcome offer, earning rate and annual fee, Card B offers the most value during the first year or card membership. However, the comparison may look different in the second year when there isn’t a welcome offer. That calculation helps you decide if you should keep the card going forward or switch to a different one.
Still, you should also know that some people 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.
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)
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®.
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 — since these cards often offer valuable cash back, miles and points that can add up quickly.
However, if you’re carrying credit card debt or cannot control your spending, applying for a rewards credit card may not be a wise decision. That’s because many people who apply for rewards credit cards spend more than they normally would to chase additional rewards, which can lead to credit card debt and other financial worries. No rewards are worth the interest that a bank charges for carrying a balance.
In addition, if the rewards card charges an annual fee, make sure the card benefits outweigh what you’re paying.
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.
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.
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.
Ultimately, the best rewards credit card for you depends on how you plan to use the card. For example, if you eat out frequently, a dining rewards card may be ideal. But if you’d prefer a simple approach to earning rewards, a flat-rate cash back card may be a better fit.
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.
To see rates and fees for The Platinum Card® from American Express, please click here.
Additional reporting by Glen Luke Flanagan and Dan Miller.
For Capital One products listed on this page, some of the above benefits are provided by Visa® or Mastercard® and may vary by product. See the respective Guide to Benefits for details, as terms and exclusions apply
LendingTree has curated an exclusive panel of professionals, spanning various areas of expertise, to help dissect difficult subjects and empower you to make smarter financial decisions. Read on for more rewards credit card insights.
The commentary provided by these industry experts represent their viewpoints and opinions alone.
What dangers may arise from pursuing a credit card strictly for rewards?
Earning rewards with your credit card spending is a nice perk for consumers, but we should not let our quest for perks get in the way of good financial behavior. Earning perks is great, but not if it means adding to a mountain of credit card debt.
What questions should a consumer ask themselves prior to choosing a rewards credit card?
What are my spending patterns? How do I plan to use this card? The goal is to get a card that maximizes your rewards based on your personal spending habits.
According to a survey conducted by LendingTree, between 2017 and 2021, the rate of households using credit card rewards programs grew from 61.3% to 67.0%. What do you think is the driving force behind this increase?
Credit card companies are in a battle for a share of consumer purses. Rewards programs are supplying the ammunition for credit card companies to compete for market share. Consumers are now demanding more rewards and card companies need to remain competitive.
How can consumers make the most of their credit card rewards?
In general, most consumers should use the card with the highest cash back rewards and avoid cards with annual fees. Airline miles and hotel perks may sound great, but a good cash back card is the way to go.
Do you believe that the use of reward credit cards have an effect on the spending habits of a consumer?
Spending with plastic — debit or credit cards — entices consumers more than they would otherwise with cash. Reward cards further entice consumers because consumers can help justify some purchases based on rewards or credit card sign-up offers which typically only make sense for purchases that were going to be made anyway, do not have a credit card processing fee paid directly by the consumer and are charges paid off on or before the grace period ends and interest charges begin.
What questions should a consumer ask themselves prior to choosing a rewards credit card?
If annual fees and rewards categories are relevant for their purchase patterns, and whether the rewards expire if they are not used. Cash back rewards can be simple and hard to mess up if used properly and responsibly.
Do you believe that the use of reward credit cards have an effect on the spending habits of a consumer?
Without question, reward credit cards affect the spending habits of consumers. Not all consumers, of course, and no consumer is affected all of the time. But I’m sure customers use their credit card issued by a petroleum company or a club, such as Costco or Sam’s, to buy their gas. They may very well use a different card to purchase the rest of their items. People who use their cards frequently can easily increase their rewards by over $100 annually by judicious use of their cards.
For Capital One products listed on this page, some of the above benefits are provided by Visa® or Mastercard® and may vary by product. See the respective Guide to Benefits for details, as terms and exclusions apply
What dangers may arise from pursuing a credit card strictly for rewards?
The most obvious danger of pursuing a card purely for rewards is overspending. If you need a tank of gasoline, then by all means, buy a tank of gasoline. But if you don’t need that new hat or pair of shoes, then it doesn’t make any sense to buy it just because of a reward.
What questions should a consumer ask themselves prior to choosing a rewards credit card?
Consumers should ask themselves how they intend to use the card and how they intend to pay off the balance. For example, if they intend to use the card primarily for gasoline purchases and pay off the balance in full every month, then they should get a card with a high reward for gasoline purchases, even if the interest rate on the card is very high.
I always recommend that consumers consider getting two credit cards. Set up one to automatically pay as many bills as possible. Put that card in a drawer at home and leave it there. The advantages of this are that you will never miss a payment on the bills that you pay with the card, your rebates will build automatically and you’ll have a backup card in case you lose the card that you carry with you. It’s hard to find a downside to this. One more thing: When you shop for a new card, see if there’s a promotion available. I’ve seen many cards that will give you $200 or even $300 for opening an account. If one card pays an extra 1% in rebates, but another one offers a $300 bonus for signing up, then you have to spend $30,000 to offset that $300. The catch is that you usually have to spend a certain amount within the first 90 days or so. The amount typically isn’t dramatically high if you use the card a lot, especially if you have an airline ticket, or a car repair or some other fairly big purchase coming up.
Do you believe that the use of reward credit cards have an effect on the spending habits of a consumer?
Just as airlines use frequent flyer miles to encourage customer loyalty, reward credit cards encourage customer loyalty from their credit card users. Yes, customers increase usage of the reward credit cards just to get the reward. From getting cash back to airline miles, to access to tickets to special events, customers use the reward cards just for the purpose of obtaining the reward.
What dangers may arise from pursuing a credit card strictly for rewards?
Pursuing a credit card purely for the rewards may lead to the customer paying a higher interest rate or a higher fee for the card, and can lose out on cash discounts. For instance, when booking a cruise, travelers are encouraged to write a check with a discount of $250 or more, rather than using a credit card. Yet, consumers will choose to pay with the credit card, forgoing the discount just to get the rewards. Using a rewards card to buy groceries may lead to some customers spending more at the market than they would if they were paying cash. I also recommend that the consumer pay their credit card bill in full every month, to avoid paying interest on the purchases.
What questions should a consumer ask themselves prior to choosing a rewards credit card?
According to a survey conducted by LendingTree, between 2017 and 2021, the rate of households using credit card rewards programs grew from 61.3% to 67.0%. What do you think is the driving force behind this increase?
There are several reasons why more households are using credit card reward programs. The outbreak of COVID-19 which led to most consumers using credit cards for purchases (because retail establishments did not wish to handle cash). Furthermore, due to the COVID-19 pandemic, consumers were using credit cards to make online purchases of supplies and services. The pandemic led to consumers using more credit cards for purchases in 2020 and 2021 than they did in 2017-2019. Because consumers were using credit cards for their purchases, they wanted to get additional benefits, such as rewards. Staying home during the pandemic exposed the consumers to more advertisements of the rewards programs. Higher income has led to increased credit card reward spending. As the LendingTree survey reported, “Credit card rewards programs can be more valuable to Hawaii residents just by them being in a state where they need to spend more money on goods and services. Specifically, residents here need to fly great distances — and fork out plenty of cash — to leave the Aloha State, meaning travel credit cards may come more in handy there than elsewhere.”
How can consumers make the most of their credit card rewards?
Determine what rewards may be most beneficial for “me.” Do I want cash back or airline miles or other rewards? Utilize the rewards that you receive before the reward expires. Determine which rewards card will give you the most benefits. They are not one-size fits all. You may wish to have more than one rewards card to get different rewards.
The above offers and/or promotions may have since changed, expired, or is no longer available. Check the Issuers’ website for more details.
