Ranked: The 3 Best Credit Card Perks for Seniors

Recent credit card research by The Motley Fool's Ascent shows seniors are just as interested in credit card perks as other consumers. After the interest rate and what fees a credit card charges, rewards are the most important things seniors look for in a credit card. 

But which ones are the best? Let's take a look at three of the top credit perks according to seniors. 

1. Cash back 

Cash back credit cards earn you money on most items you buy, so it's not surprising that 65% of seniors, the largest group, have one. Some cards return as much as 2% on regular purchases, 6% on groceries, and 3% on gas and restaurants.

For example, if you have a cash back card that pays 3% on nearly all purchases and you spend $5,000 on the card throughout the year, you'll earn $150 in cash back. 

Because seniors are often on a fixed income, finding a cash back card with no annual fee may be a good option. And while all credit cards have variable interest rates, some may have lower rates than others, so it pays to comparison shop before signing up.  

2. Travel benefits

If you travel frequently in retirement, travel credit cards offer great perks like free airline miles, free hotel stays, and even airport lounge access. Many seniors love these cards, and 25% of those with a credit card have one.

Many travel cards give you a welcome bonus in the form of free airline miles or travel points after you spend a specific amount. For example, you might get 75,000 miles after spending your first $4,000. Travel rewards cards can go a long way toward saving money on big-ticket travel expenses, like getting discounted business-class tickets that cost less than $300. 

And some hotel cards will give you a free night every year, plus several free nights as a welcome offer. Just keep in mind that many travel-specific credit cards have annual fees. Some are free, but others charge between $95 to $695 annually. 

3. Gas and groceries perks

Gas and groceries are two necessities that most seniors have to budget for, so why not earn some money back on these expenses? About 17% of seniors have this type of card. 

Some gas and grocery credit cards offer up to 6% cash back when shopping at supermarkets, up to a specific dollar amount, and then 1% back afterward. Some cards also offer 3% cash back on gas stations, boosting your potential rewards even higher. 

One point to keep in mind with some gas and grocery credit cards is that they may exclude Costco and Sam's Club purchases. So, if you frequent discount warehouse clubs, you may want to consider an alternative card, like the Costco Anywhere Visa® Card by Citi. 

How to find a great credit card

With so many credit cards for seniors, figuring out which is best for you can be challenging. Here are a couple of suggestions to get the credit card perks you want.

Comparison shop

While many credit cards offer great perks, some are better than others. For instance, some cards offer a low or 0% introductory rate, and others might have a $0 annual fee. Comparison shop to find a card that balances initial offers with great long-term perks like a high cash back rate.

Improve your credit score 

If you have a low credit score, consider improving it before you apply for a new card. The best ways to improve your credit score are paying off debt and making on-time payments to all of your lenders. A higher score could give you a lower variable interest rate and help you get a 0% introductory rate. 

No matter your age, some credit cards can be a great way to earn cash back and perks for travel. Just ensure you've budgeted for your credit card payments so you can pay the balance off in full each month. There's no use in having credit card perks if you rack up debt. If you need help managing your debt load, check out The Motley Fool's Ascent's guide to paying off credit debt.