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With all the great offers available, a rewards credit card is practically a must-have. You could save money by earning cash back, travel rewards, or points with your favorite retailer on all your purchases. The tricky part is sorting through all those credit card offers to find the one that fits your lifestyle.
To make it easier, The Ascent's experts have reviewed hundreds of options and put together a list of the best rewards credit cards. Below, you'll find quality rewards cards for everyone, whether you're looking for a big introductory bonus, no annual fee, or extra rewards in a specific bonus category.
Great for: Travel sign up bonus
Bottom Line
With a leading sign-up bonus, the sky’s the limit for this top-rated travel rewards card. Plus, the premium points program for travel and dining make it a no brainer for travel enthusiasts everywhere. Read Full Review
Credit Rating Requirement:
Rewards
2x points on travel and dining, 1x points on all other purchases. 25% more points for travel booked through Chase's portal.
Annual Fee
$95
Intro APR
Purchases: N/A
Balance Transfers: N/A
Ongoing APR
15.99% - 22.99% Variable
Welcome Bonus
80,000 points after spending $4,000 within 3 months
Highlights
Great for: Bonus cash with no annual fee
Bottom Line
Earn up to 5% cash back in rotating quarterly categories, up to the quarterly maximum when you activate. Somehow this card also packs in a 0% intro APR offer for no annual fee. Read Full Review
Credit Rating Requirement:
Rewards
5% cash back on everyday purchases at different places each quarter like Amazon.com, grocery stores, restaurants, gas stations and when you pay using PayPal, up to the quarterly maximum when you activate. 1% unlimited cash back on all other purchases - automatically
Annual Fee
$0
Intro APR
Purchases: 0%, 14 months
Balance Transfers: 0%, 14 months
Ongoing APR
11.99% - 22.99% Variable APR
Welcome Bonus
Dollar-for-dollar match of all cash back earned the first year
Highlights
Great for: Cash back and 0% intro APR
Bottom Line
This card includes a lineup of features that makes it a great option for one-card-wallet simplicity. The unlimited cash back makes it easy to earn rewards. The sign-up bonus and long 0% intro APR offer are the cherries on top. Read Full Review
Credit Rating Requirement:
Rewards
Unlimited 1.5% cash back, 5% cash back on travel through Chase
Annual Fee
$0
Intro APR
Purchases: 0%, 15 months
Balance Transfers: N/A
Ongoing APR
14.99% - 23.74% Variable
Welcome Bonus
$200 after spending $500 within 3 months
Highlights
Great for: 0% intro APR for balance transfers
Bottom Line
Earn up to 2% on all purchases - 1% when you buy, and 1% when you pay the minimum each month. Add that to no annual fee and an 18 month 0% intro APR offer on balance transfers and this card is a winner. Read Full Review
Credit Rating Requirement:
Rewards
2% cash back: 1% when you buy plus 1% as you pay
Annual Fee
$0
Intro APR
Purchases: N/A
Balance Transfers: 0%, 18 months
Ongoing APR
13.99% – 23.99%, variable
Welcome Bonus
N/A
Highlights
Great for: Gas and U.S. supermarkets
Bottom Line
The U.S. supermarkets and gas stations rewards are clear standouts, in addition to a leading welcome offer and a nice 0% intro APR offer. Terms apply. Read Full Review
Credit Rating Requirement:
Rewards
6% cash back at U.S. supermarkets ($6,000 spending cap per year), 3% cash back at U.S. gas stations and on transit, 1% back on all else
Annual Fee
$0 introductory annual fee for the first year, then $95.
Foreign Transaction Fee
2.7% of each transaction after conversion to US dollars.
Intro APR
Purchases: 0%, 12 months
Balance Transfers: N/A
Ongoing APR
13.99%-23.99% Variable
Welcome Bonus
Earn a $300 statement credit after you spend $3,000 in purchases on your new Card within the first 6 months.
Highlights
Great for: Dining and U.S. supermarkets
Bottom Line
The welcome offer, lucrative rewards at restaurants worldwide, U.S. supermarkets, and on travel more than justify the annual fee for most who spend in these categories. Terms apply. Read Full Review
Credit Rating Requirement:
Rewards
4x points at restaurants worldwide and U.S. supermarkets purchases ($25,000 annual spending cap), 3x points for travel booked with airlines or amextravel.com, 1x on all else
Annual Fee
$250
Foreign Transaction Fee
None
Intro APR
Purchases: N/A
Balance Transfers: N/A
Ongoing APR
See Pay Over Time APR
Welcome Bonus
60,000 Membership Rewards® Points after spending $4,000 within 6 months
Highlights
Great for: Dining
U.S. Bank Altitude® Go Visa Signature® Card
Bottom Line
A rare, great pick that offers lucrative rewards (up to 4x points), a big bonus, and a competitive 0% intro APR offer, all somehow with no annual fee. Read Full Review
Credit Rating Requirement:
Rewards
4x points on dining, 2x points on groceries, gas, and streaming services, 1x points on all else
Annual Fee
$0
Intro APR
Purchases: 0%, 12 billing cycles
Balance Transfers: 0%, 12 billing cycles
Ongoing APR
14.99% - 23.99%, variable
Welcome Bonus
20,000 points after spending $1,000 within 90 days
Highlights
Great for: Travel card with no annual fee
Bottom Line
No-annual-fee travel cards typically skimp on the sign-up bonus, but this card delivers with its market-leading intro bonus offer, unlimited rewards on purchases, and other wallet-friendly perks. Read Full Review
Credit Rating Requirement:
Rewards
Unlimited 1.5 points per $1 on purchases, 25%-75% more points for Bank of America Preferred Rewards members
Annual Fee
$0
Intro APR
Purchases: 0%, 12 billing cycles
Balance Transfers: N/A
Ongoing APR
13.99% - 23.99% Variable
Welcome Bonus
25,000 points after making at least $1,000 in purchases within the first 90 days of account opening
Highlights
Great for: Unlimited travel miles
Capital One® Venture® Rewards Credit Card
What We Like About The Card
Unlimited 2X miles, TSA Pre✓® credits, and a big, limited time sign-up bonus make this credit card one of the best travel companions on the market. Read Full Review
Credit Rating Requirement:
Rewards
Unlimited 2x miles on all purchases
Annual Fee
$95, annually
Intro APR
Purchases: N/A
Balance Transfers: N/A
Ongoing APR
17.24% - 24.49%, variable
Welcome Bonus
60,000 miles after spending $3,000 within 3 months, another 50,000 miles after spending a total of $20,000 within 12 months
Highlights
Great for: Dining
Capital One® Savor® Cash Rewards Credit Card
Bottom Line
Unlimited 4% cash back on dining and entertainment makes this the ideal option for spending nights out on the town. Pair that with the big sign-up bonus and 2% back at grocery stores and you’ve got the ingredients for a top-rated rewards card. Read Full Review
Credit Rating Requirement:
Rewards
4% cash back on dining and entertainment, 2% at grocery stores and 1% on all other purchases
Annual Fee
$95
Intro APR
Purchases: N/A
Balance Transfers: N/A
Ongoing APR
15.99% - 24.99%, variable
Welcome Bonus
$300 after spending $3,000 within 3 months
Highlights
Great for: Travel, dining, and gas stations
Wells Fargo Propel American Express® card
Bottom Line
This no-annual-fee rewards card enables you to earn 3X points for dining out, travel, gas stations, and more, plus a big welcome bonus. The addition of a 0% Intro APR offer makes it even more surprising that there's no annual fee. Read Full Review
Credit Rating Requirement:
Rewards
3X points for eating out and ordering in, gas stations, rideshares, transit, flights, hotels, and more, 1x points on other purchases
Annual Fee
$0
Intro APR
Purchases: 0% intro APR, 12 months from account opening
Balance Transfers: 0% intro APR, 12 months on qualifying balance transfers
Ongoing APR
14.49%-24.99% (Variable)
Welcome Bonus
20,000 points after spending $1,000 within 3 months
Highlights
Great for: Building credit
Bottom Line
People with no or limited credit histories will be hard pressed to beat it. The rewards program and lack of fees are clear standouts in the category. Read Full Review
Credit Rating Requirement:
Rewards
1.5% cash back after making 12 on-time monthly payments. 1% cash back on purchases right away
Annual Fee
$0
Intro APR
Purchases: N/A
Balance Transfers: N/A
Ongoing APR
12.99% - 26.99%, variable
Welcome Bonus
N/A
Highlights
A rewards credit card is one that earns rewards when you use it to pay for eligible purchases. The reward you earn depends on the card. One card may offer a rate of 1.5% cash back on every purchase. Another could offer 2 miles per $1 on all your spending. There are also rewards cards that offer higher rates in specific categories, such as 3% on grocery store purchases.
As you use your card, your reward balance will grow. If you spend $100 on a card offering 1.5% cash back, then the card issuer would add $1.50 to your rewards balance. You can redeem your rewards any time you meet the redemption minimum. Many of the best rewards credit cards also don't have a minimum, in which case you can redeem rewards at any time.
There are three types of rewards cards: Travel rewards credit cards, cash back credit cards, and store credit cards.
Note that some top rewards cards technically fall into multiple categories, but there's still usually a single category that best describes each card. The Chase Sapphire Preferred® Card is a popular example. It earns points you can use for travel, cash back, or store gift cards. However, its points are most valuable when used for travel, and it earns bonus rewards on every travel purchase. For those reasons, it's considered a travel credit card.
A travel credit card earns rewards you can redeem for travel. This can include airfare, hotel stays, vacation rentals, car rentals, cruises, and much more. Travel credit cards usually offer special travel perks and no foreign transaction fee. Most come with an annual fee, though.
There are a few different ways to use travel rewards depending on the card. Some cards let you redeem rewards at a fixed rate toward cash travel purchases. For example, with the Capital One® Venture® Rewards Credit Card, miles are worth $0.01 each towards travel. If you have 10,000 miles, you can redeem them for $100 in travel. Miles are redeemable on bookings through Capital One's travel portal or as a statement credit towards previous travel purchases.
Airline and hotel cards earn rewards in the provider's loyalty program. United Airlines cards earn miles in the United MileagePlus program, Hyatt cards earn points in the World of Hyatt program, and so on. With this type of travel rewards card, you can use your rewards for bookings through the loyalty program.
Certain cards in major credit card rewards programs offer transferable rewards. That means you can transfer your points to any partners in the card issuer's rewards program. Let's say you have the American Express® Gold Card. You could send rewards to the airline and hotel partners in the American Express Membership Rewards program.
Compare more picks: Check out The Ascent's best travel rewards cards
A cash back credit card earns rewards in the form of cash back. There are a few different ways to redeem cash rewards.
Just about all cash back cards let you apply your rewards as a statement credit on your credit card account. If you have $100 in cash back, you could use it to reduce your credit card bill by $100. A word of warning -- credit card companies typically don't consider cash back a substitute for your minimum payment. If there's a balance on your cash back card, then you still need to pay at least the minimum amount.
Many cash back cards also let you deposit cash back into your bank account or request a check.
Compare more picks: Check out The Ascent's best cash back credit cards
Store credit cards work a bit differently than travel cards and cash back cards. There are quite a few retailers that have their own store cards, and each retailer sets the rules with the cards it offers. This type of rewards card is only recommended if you spend a lot of money at the store in question. For most consumers, cash back cards are the better choice.
Most store cards earn rewards you can redeem for a gift card with that store. There are exceptions, though. Certain store cards also offer cash back, with the Costco Anywhere Visa® Card by Citi being one example. Some store cards offer a discount on every purchase instead of rewards.
There are two basic categories of store cards. Closed-loop store cards only work at that retailer and any other brands it has. Open-loop store cards can be used with other merchants. Some stores only offer one of the two, whereas others offer both options. When stores offer both, they generally approve customers with lower credit scores for closed-loop cards. Applicants with better credit can qualify for open-loop cards.
Here's an example of how this works. Let's say you apply for a credit card with T.J. Maxx. Any of the following could happen:
TIP
Use your rewards card for every purchase: If you don't, you're leaving money on the table. Always pay by card so you can earn rewards on all your spending.
Stick to your budget: A common mistake is making unnecessary purchases and using rewards to justify it. Don't let credit card rewards convince you to overspend.
Pay off your credit card every month: Credit card interest will cost more than any rewards you earn. Avoid this by always paying your entire statement balance.
For the typical consumer, the best credit card for rewards is the Citi® Double Cash Card – 18 month BT offer. It can earn you 2% cash back on every purchase. Citi splits up this double cash back as 1% when you make a purchase, and then another 1% when you pay your bill on time.
Most consumers will get the greatest value from a card with a high rewards rate on every purchase. This Citi card's rate of 2% cash back is as good as it gets.
Keep in mind that this isn't the best rewards credit card for every cardholder. Your best rewards card could be one with bonus categories that fit your spending to a tee, or a travel card that helps cover expensive airfare for you. It's important to find the rewards card that matches your lifestyle and spending habits. That way, you'll be able to maximize your credit card rewards.
You should get a rewards credit card if you have a good credit score and you plan to pay the bill in full every month.
Rewards cards are usually a great choice. If you use them correctly, they can save you a lot of money. There are only a couple situations when you shouldn't focus on getting a rewards card.
If you don't have a good credit score, you should work on that first. It usually takes a FICO® Score of at least 670 to be approved for any of the best rewards credit cards. By improving your credit, you'll be able to qualify for rewards cards that offer much more value.
A rewards card also isn't worth it if you won't pay in full. Every month that you carry a balance, the card issuer can charge you credit card interest. The cost of that will almost always outweigh your rewards.
Your financial situation may call for a different type of credit card. Here are a few alternatives to rewards credit cards that could be more useful for you:
0% APR credit cards: Credit cards with a 0% intro APR on purchases. If you won't be able to pay your credit card bill in full for any reason, then 0% APR cards are the best option. They're especially helpful for financing big purchases. The credit card company won't charge you interest for the duration of the intro period.
Credit cards for bad credit: Credit cards that are open to applicants with a poor or limited credit history. While credit cards for bad credit tend to be light on benefits, they can help you improve your credit.
Balance transfer credit cards: Credit cards with a 0% intro APR on balance transfers. When high-interest debt is costing you money every month, balance transfer cards can come in handy. You can transfer your debt over and avoid interest for the length of the intro period.
You have a lot of options when it comes to the best credit cards for rewards. Here are some of the top reward credit card offers we've seen lately:
Card | Rating | Great For |
---|---|---|
Rating image, 5.00 out of 5 stars.
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Great For: Travel sign up bonus |
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Rating image, 5.00 out of 5 stars.
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Great For: Bonus cash with no annual fee |
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Rating image, 5.00 out of 5 stars.
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Great For: Cash back and 0% intro APR |
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Rating image, 5.00 out of 5 stars.
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Great For: 0% intro APR for balance transfers |
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Rating image, 5.00 out of 5 stars.
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Great For: Gas and U.S. supermarkets |
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Rating image, 4.50 out of 5 stars.
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Great For: Dining and U.S. supermarkets |
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Rating image, 5.00 out of 5 stars.
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Great For: Dining |
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Rating image, 5.00 out of 5 stars.
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Great For: Travel card with no annual fee |
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Rating image, 4.50 out of 5 stars.
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Great For: Unlimited travel miles |
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Rating image, 4.50 out of 5 stars.
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Great For: Dining |
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Rating image, 5.00 out of 5 stars.
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Great For: Travel, dining, and gas stations |
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Rating image, 4.50 out of 5 stars.
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Great For: Building credit |
A rewards credit card earns a set amount of rewards on every purchase. These increase your rewards balance, and you can redeem your rewards through your credit card issuer.
For example, you have a card that earns 2 rewards points on every $1 you spend. If you make a $50 purchase, then you'd receive 100 points. You could redeem those points with any of the options your card issuer offers. This depends on the type of rewards card you have, but redemption options can include cash back, travel, and gift cards.
The main types of rewards credit cards are travel rewards cards, cash back cards, and store cards.
Travel credit cards earn rewards that you can use for travel purchases. Cash back credit cards earn rewards you can redeem as cash. Store credit cards are tied to specific retailers and usually earn rewards you can turn into gift certificates.
To choose a rewards credit card, start by deciding whether you want to earn travel rewards, cash back rewards, or rewards with a specific store. Most consumers find that travel cards and cash back cards work for them better than store cards.
Next, check out rewards cards and see how much they'd earn on your everyday purchases. The goal is to find a card that fits your spending habits. If groceries are one of your biggest monthly expenses, then a card with bonus grocery rewards would be just what you need.
After you've selected cards that fit your spending, compare their other perks and their annual fees. That will help you figure out which card offers the most value for you.
We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team. The Motley Fool has a Disclosure Policy. The Author and/or The Motley Fool may have an interest in companies mentioned.
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