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With all the great offers available, a rewards card is practically a must-have. If you're trying to find one, read on -- we've sorted through hundreds of options to pick the best rewards credit cards. While we considered a few factors, the most important were the cards' rewards rates, bonus opportunities, and fees.
We're rewards card enthusiasts, so we've tried out many of our top picks firsthand. On our list, you'll find quality options for every situation, whether your priority is earning a huge welcome bonus, collecting cash back on everyday expenses, or scoring flexible travel points.
Great for: Unlimited cash back
On Wells Fargo's Secure Website.
On Wells Fargo's Secure Website.
A standout cash back card with one of the highest unlimited rewards rates we've come across. The inclusion of a hefty sign-up bonus and versatile 0% intro APR offer are the cherries on top. Read Full Review
Chase Sapphire Preferred® Card
Great for: Travel sign up bonus
On Chase's Secure Website.
On Chase's Secure Website.
With a big 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
Great for: Bonus cash back
On Chase's Secure Website.
On Chase's Secure Website.
Deserves to be top of wallet for many cardholders due to some of the highest cash back rates for essentials, a big sign-up bonus, and no annual fee. Read Full Review
Blue Cash Preferred® Card from American Express
Great for: U.S. gas and U.S. supermarkets
On American Express' Secure Website.
Terms apply
On American Express' Secure Website.
Terms apply
The U.S. supermarkets and U.S. gas stations rewards are clear standouts, in addition to a big welcome bonus and a nice 0% intro APR offer. Read Full Review
Great for: Customizing your cash back
On Citi's Secure Website.
On Citi's Secure Website.
A leading cash-back card that includes a big sign-up bonus, great rewards program, and long 0% intro APR offers, all with no annual fee. Read Full Review
SoFi Credit Card
Great for: Saving and paying down debt
Offers a unique welcome bonus, high cash back, and a unique perk to lower your APR after 12 months of on-time payments. But the rewards redemptions are restrictive.
Great for: Unlimited rewards in certain categories
On Wells Fargo's Secure Website.
On Wells Fargo's Secure Website.
Just released, this card immediately moves to the top of our rankings for no annual fee rewards cards thanks to its excellent sign-up bonus offer, earn unlimited 3x points on a variety of categories, and cell phone protection. Read Full Review
Great for: Dining and U.S. supermarkets
The welcome offer, lucrative rewards at restaurants, U.S. supermarkets, and on travel more than justify the annual fee for most who spend in these categories. Read Full Review
Bank of America® Travel Rewards credit card
Great for: Travel card with no annual fee
On Bank of America's Secure Website.
On Bank of America's Secure Website.
No-annual-fee travel cards typically skimp on the sign-up bonus, but this card delivers with its intro bonus offer, unlimited rewards on purchases, and other wallet-friendly perks. Read Full Review
Capital One SavorOne Cash Rewards Credit Card
Great for: Dining rewards with no annual fee
On Capital One's Secure Website.
On Capital One's Secure Website.
Dining and grocery spending will earn premium rewards, but that's not the only showstopper. The sign-up bonus, no annual fee, and a 0% intro APR offer can add a ton of value. Read Full Review
Great for: Travel rewards
On Citi's Secure Website.
On Citi's Secure Website.
A solid pick with a big bonus and nice list of airlines transfer partners, plus it includes a robust rewards program beyond just travel Read Full Review
Discover it® Student Cash Back
Great for: Students
On Discover's Secure Website.
On Discover's Secure Website.
A leading student credit card with a rewards program that goes toe-to-toe with some of the top rewards cards we've come across. Read Full Review
Discover it® Secured Credit Card
Great for: Bad/building credit
On Discover's Secure Website.
On Discover's Secure Website.
This card is a great place to start when building your credit history. It offers perks rarely found in secured cards, including cash back, no annual fee, and Discover's innovative sign-up bonus. Read Full Review
Capital One Venture X Rewards Credit Card
Great for: Premium travel rewards
On Capital One's Secure Website.
On Capital One's Secure Website.
This is a strong premium level travel card with a big sign-up bonus, robust rewards program, and rich travel credits. Read Full Review
A rewards credit card earns cash back, points, miles, or some other type of reward for purchases. The amount you earn depends on the card and, in some cases, the spending category. For example, there are cards that offer a flat rate of 2% on purchases. Others offer higher rates in some categories, such as 3% on groceries.
Every eligible purchase adds to your reward balance. So, if you spend $100 on a card offering 2% cash back, you'd earn $2 in rewards. You can redeem rewards when you have enough to meet the redemption minimum, if there is one. Fortunately, many of the best rewards credit cards don't have a minimum, so you can redeem rewards anytime.
There are three types of rewards cards: travel rewards credit cards, cash back credit cards, and store credit cards.
That's simple enough, but there is one confusing part we should mention before getting into each type of rewards card. Some rewards cards technically fall into multiple categories -- but there's usually a single category that best fits 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, so it could fit into any of the three types of rewards cards. However, its points are worth the most when you use them for travel, and it earns bonus rewards on travel purchases. For those reasons, we consider it a travel credit card.
If traveling is one of your favorite things, travel credit cards are basically made for you. These cards earn rewards that you can use to cover travel purchases like airfare or hotel stays.
Travel cards are the most complicated type of rewards card. That's mainly because the way you can use travel rewards depends on the card. Here are a few examples:
There are also some cards in popular rewards programs that offer transferable rewards. That means you can transfer your rewards to any partners in the card issuer's rewards program. These programs also usually let you redeem rewards at a fixed rate. Here are the top travel rewards programs that give you these options:
COMPARE PICKS: Best Travel Rewards Credit Cards
Cash back credit cards are as straightforward as it gets, and that's a big part of why they're so popular. When you use your card for a purchase, you get cash back. That could be 1%, 2%, or even 5% or more for purchases in a bonus category.
Wondering what you can do with this cash back? Almost all cash back cards let you put your rewards towards your credit card bill as a statement credit. With $100 in cash back, you could cut your credit card bill by $100. The one important thing to know here is that cash back typically isn't considered a substitute for your minimum payment. If there's a balance left, you still need to pay at least the minimum due.
Many cash back cards also let you deposit your cash into your bank account by direct deposit or request a check in the mail.
COMPARE PICKS: Best Cash Back Credit Cards
Store credit cards are the one type of rewards card I don't recommend for most people. A cash back or travel card is usually a much better deal. But store cards are everywhere, and some have their uses if you shop at the store often, so it's worth knowing how they work.
Most store cards earn rewards you can redeem with that store for a gift card. There are exceptions, like the Costco Anywhere Visa® Card by Citi, which earns cash back. And some store cards offer a discount on purchases or zero-interest financing instead of rewards.
A store card can be "closed-loop" or "open-loop." Closed-loop store cards only work at that retailer and any related brands. Open-loop store cards can be used with other merchants. Some stores only offer one of the two, and 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.
For example, let's say you apply for a T.J. Maxx credit card. Any of the following could happen:
LEARN MORE: Best Store Credit Cards
TIP
Use your rewards card for every eligible purchase: If you don't, you leave money on the table. Always pay by card so you earn rewards on your spending.
Stick to your budget: A common mistake is making unnecessary purchases, 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 almost always costs more than any rewards you earn. Avoid this by always paying your entire statement balance.
For a lot of people, the best credit card for rewards is the Wells Fargo Active Cash® Card. It earns an unlimited 2% cash rewards on purchases and charges no annual fee. In addition, it offers a generous welcome bonus and a 0% intro APR.
The biggest reason we recommend this Wells Fargo card is its cash back rate. No matter what your spending habits are, you earn competitive cash back on all your payments. In fact, an unlimited 2% cash rewards rate is the best we've seen.
There's no single card that's the best rewards credit card for everyone. That's why we always suggest comparing your options to find the one that's best for you. Your best rewards card could be one with bonus categories that fit your spending to a T, or a travel card that helps you cover expensive airfare. With the right fit, you can maximize your credit card rewards.
Learn more on how to pick the best rewards credit card in the video below. And if you're ready to get started, here's how to apply for a credit card.
After earning credit card rewards, you can redeem them through the card's rewards program. The ways you can redeem them depend on the card. Here are the most common redemption options for credit card rewards:
When you log in to your online account, there should be a clear option to redeem rewards. Choose this to see what your redemption options are and pick the one you want.
Check how much value you get with each redemption method. People sometimes assume they get the same value no matter how they use their rewards. This is a common mistake that can cost you money. The value often depends on how you use your rewards. For example, if your card earns travel points, you may also be able to redeem them for cash back, but at a much lower rate per point.
You should get a rewards credit card if you have a good credit score and will pay the bill in full every month.
Rewards cards are usually a great choice. You're going to pay for purchases anyway. Why not use a rewards card to get something back on that money you're spending? There are only a couple of situations where a rewards credit card isn't the right fit:
Here are the pros and cons of having a rewards credit card:
Your financial situation may call for a different type of credit card. Here are a few common situations where a rewards credit card isn't the right choice, along with what type of card to pick instead.
If you won't be able to pay in full, get a credit card with a 0% intro APR on purchases. The credit card company won't charge you interest during your card's introductory period. On a card with a 15-month 0% intro APR, that means no interest charges for the first 15 months.
CHECK OUT THE LONGEST OFFERS: Best 0% APR Credit Cards
If you're working on your credit score, find a card aimed at people in your score range. First, learn about how to find out your credit score. Every credit score falls into a range, like "fair credit" or "bad credit." Once you know your score, you can pick a card you're likely to qualify for.
FIND THE RIGHT CARD FOR YOUR CREDIT SCORE:
If you're dealing with credit card debt, go with a balance transfer credit card. These cards have a 0% intro APR on balance transfers (balances you move over from other credit cards). Although a balance transfer fee applies, you can still save quite a bit on interest this way. If you're unfamiliar with this type of offer, our complete guide to balance transfers explains everything you need to know.
SAVE ON DEBT: Best Balance Transfer Credit Cards
LOVE REWARDS? Check out The Ascent's MyPoints Review, where you can learn about the rewards program from MyPoints.
Card | Rating | Great For |
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Rating image, 5.00 out of 5 stars.
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Great For: Unlimited cash back |
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Rating image, 4.50 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 back |
|
Terms apply
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Rating image, 5.00 out of 5 stars.
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Great For: U.S. gas and U.S. supermarkets |
Rating image, 5.00 out of 5 stars.
|
Great For: Customizing your cash back |
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Rating image, 4.50 out of 5 stars.
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Great For: Saving and paying down debt |
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Rating image, 4.50 out of 5 stars.
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Great For: Unlimited rewards in certain categories |
|
Terms apply
![]() |
Rating image, 4.50 out of 5 stars.
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Great For: Dining and U.S. supermarkets |
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: Dining rewards with no annual fee |
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Rating image, 4.50 out of 5 stars.
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Great For: Travel rewards |
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Rating image, 5.00 out of 5 stars.
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Great For: Students |
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Rating image, 5.00 out of 5 stars.
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Great For: Bad/building credit |
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Rating image, 4.50 out of 5 stars.
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Great For: Premium travel rewards |
A rewards credit card earns purchase rewards in the form of cash back, points, or miles. Every eligible purchase adds to your rewards balance, and you can then redeem your rewards with the credit card issuer.
To compare rewards credit cards, look at their rewards rates, bonus offers, annual fees, and any additional benefits they offer. These are the features that have the most impact on the value a card offers.
You may also want to decide on one type of rewards card first, such as a travel card or a cash back card. If you know you want a specific type of card, then you can save time by only looking at cards in that category.
The best way to use credit card rewards is the redemption method that offers the most value. This can vary depending on which rewards credit card you have. For example, travel cards usually provide the most value when redeeming rewards for travel, whereas cash back cards are designed for cash back redemptions.
When you have a rewards credit card, make sure you review the different redemption methods so you can choose the best one.
To make the most of a rewards credit card, use it for every purchase to earn as much back as you can. However, don't make unnecessary purchases just because your card earns rewards. Follow your usual spending habits. Last but not least, always pay the full statement balance on your credit card to avoid interest charges.
Michael Shipman, CPA
Assistant Professor for Accounting, Mount Aloysius College
With high gas prices, should consumers consider using credit cards that provide rewards to pay for gas?
One should never get a credit card for a "non-credit reason." In the tax world, we have the saying, "The tax tail should never wag the economic dog." This means that a company should not do something solely for tax reasons, but rather, should have a good business reason for a course of action. The same can be said of credit cards. This said, if you are opening a new line of credit during a time of high gas prices (whether it be because you need a credit card or an additional credit card, or have to close one for a good reason and are now looking for another), getting and using a credit card that provides rewards to pay for gas could be better than the other usual reward opportunities!
What should consumers know when deciding between a general cash back credit card vs. a gas company credit card?
Consumers should know the details of each reward opportunity. For example, I would want to know what I can and cannot get cash back on, how often I can get cash back, at what rate I get cash back, if there is a limit on how much cash I can get back, and if there are any other restrictions on the card. This line of reasoning applies to gas company credit cards as well: Is it just the one company I can get my gas bill reduced at? How often can I use it? At what rate is my gas reduced? Is there a limit on how much my gas bill is reduced, and are there any other restrictions on the card? Lastly, remember, even though the gas company credit card sounds like a good idea now, it can only help with gas, as opposed to the general cash back credit card likely providing cash back for use at your discretion.
Are there any benefits or drawbacks to companies that advertise money back per gallon?
The obvious benefit is that you can reduce your gas bill. As far as I can tell, that is where the benefits end. One drawback is that you may get a gas company credit card for a company that routinely has more expensive gas than one of its competitors in your area. A similar drawback is that by getting this credit card, you are likely influencing yourself to buy most, if not all, of your gas from one company, which may or may not always be the best economic decision. This is similar to loyalty cards for gas chains (Sheetz, Wawa, etc.), with the difference that loyalty cards do not really have consequences. Credit cards do have consequences, and it is important to read the fine print on gas company credit card offers like any others, as you may find the gas company card has a lower interest rate (benefit), but you may also find (and this sounds more likely, in my opinion) a higher interest rate. Whatever you decide, always remember to monitor your credit card bills carefully, and if possible, pay off your balance every month!
Amit Sinha
Professor, Finance and Quantitative Methods at Bradley University
With high gas prices, should consumers consider using credit cards that provide rewards to pay for gas?
Using a rewards credit card to purchase gas is a good idea, especially if the card is used responsibly. Having a card that provides rewards only for gas may not be a great idea. Now, one has to carry an extra credit card around, and then remember to use it each time one has to pump gas. Having a card that provides rewards for all purchases, including gas, would suffice in my opinion. There is the added responsibility of managing payments for one more card now. And with more cards, the irresponsible use of any becomes likely, leading to consequences far greater than the rewards.
What should consumers know when deciding between a general cash back credit card vs. a gas company credit card?
First of all, one should look at all the issues regarding the cards. Things like, say, interest rates, credit limits, late fee penalty, and certainly the rewards. Gas company cards may provide rewards only for gas purposes at their company stations and nowhere else, making it useless, at least for rewards purposes, for gas purposes at other gas pumps. A general cash back credit card provides rewards for any purchases anywhere.
Are there any benefits or drawbacks to companies that advertise money back per gallon?
It is all in the details. Are the rewards based on gallons purchases, or dollars used. As it costs more than one dollar per gallon, it may make sense to have the money back be based on a per dollar basis. On the other hand, if per gallon rewards are to be more, then that is the card to have.
Joseph Stasio
Associate Professor, Marketing, Merrimack College
With high gas prices, should consumers consider using credit cards that provide rewards to pay for gas?
It is important to understand that prices fluctuate given market conditions. Right now, gas prices along with many other consumer products are experiencing abnormally high prices. This is due to a number of factors including unusually high demand, labor shortages, and supply chain irregularities, all causing inflation. Decisions involving credit card usage tied to gas purchases should involve this understanding. So, using credit cards that reward gas purchases will be advantageous in the short run, but not so much when gas prices return to a more normal range. Of course, if consumers have different credit cards to use, then they can provide the best return on purchases after gas prices come down and they offer a better return on their buying behavior.
What should consumers know when deciding between a general cash back credit card vs. a gas company credit card?
The answer to this question is provided in question one. The key is to understand market conditions and their impact on prices. Generally speaking, consumers should have a few credit cards. For example, not all businesses accept either Discover Cards or Amex Cards. Depending on the amount of expenditures people experience each month and whether they carry a balance or pay off the total amount each month, consumers can decide which cards to use that will provide them the best return on their purchases. It is important for consumers to understand their own purchase behavior and judiciously use their credit cards. Gas company credit card decisions should be made in this context.
Are there any benefits or drawbacks to companies that advertise money back per gallon?
Companies that advertise money back per gallon are really speaking to heavy users of gasoline. They would include people who drive long distances to work each day or people who use their cars to conduct business that involves much travel. Salespeople, truck drivers, etc., fall into this category. If companies do not target their messages to these groups of people, then they are wasting their marketing/advertising dollars. With social media platforms and the use of digital marketing techniques, companies should learn how best to reach these people and get the most from their marketing dollars. Any other approach is generally not advisable because people who are not heavy users of gasoline will most probably not be interested in these advertisements.
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.
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