Best Rewards Credit Cards in September 2024

. . .

A great rewards credit card allows you to earn cashback, miles, and points for purchases you were going to make anyway.

The best rewards cards also come with offers like lucrative welcome bonuses, bonus rewards categories, and perks like travel insurance, consumer protections, complimentary memberships, and statement credits.

Best for Flat-Rate Travel Rewards: Capital One Venture Rewards Credit Card

. . .

If you can’t stop thinking about your next big trip, then the Capital One Venture Rewards Credit Card may be your best bet. Since it offers both flexibility and substantial rewards, the annual fee may be worth it for you.

What we like

This card's flexibility is what really stands out. You can choose to use your miles to offset travel purchases or book trips directly through Capital One Travel. You also have the option to transfer miles to over 15 travel loyalty programs.

Perks-wise, you get a credit of up to $100 for Global Entry or TSA PreCheck® — which will speed up the airport security process. You also can enjoy two complimentary visits annually to Capital One Lounges or over 100 Plaza Premium Lounges via the Partner Lounge Network.

What we don't like

The bonus earning categories are only for car rentals and hotel bookings through Capital One Travel, which is a bit limiting.

The Venture Rewards also doesn't offer unlimited lounge access, like some other premium travel cards — although given it's low fee, that's fairly standard.

Learn more about the Capital One Venture Rewards Credit Card or compare all credit card offers.

Best for Beginner Travelers: Chase Sapphire Preferred® Card 

. . .

Love to travel and dine out? The Chase Sapphire Preferred® Card can give you the perks you’re craving. In addition to earning points, you get a $50 annual credit on hotels through Chase Travel℠ and, on your account anniversary, bonus points equal to 10% of your previous year’s spending.

Plus, to help cancel out the annual fee, you can increase the value of points by 25% by redeeming for airfare, hotels, car rentals, and cruises through Chase Travel℠.

What we like

As fun as traveling can be, it can also be stressful, but this credit card can back you up in tricky travel situations. The Chase Sapphire Preferred® provides travel protections such as trip cancellation/interruption insurance, primary rental car coverage, and lost luggage insurance.

If you're more of a homebody, you also get complimentary access to DashPass and benefits like $0 delivery fees and lower service fees for a minimum of one year when you activate by December 31, 2027 — which can make staying in a lot more appealing. 

What we don't like

The card doesn't include TSA Precheck® or Global Entry (by comparison, its sister card, the Chase Sapphire Reserve®, offers a statement credit of up to $100 every four years to cover the application cost for TSA PreCheck®, Global Entry, or NEXUS).

It also doesn't come with any lounge access or status upgrades — so if you spend a lot of time in airports, you may want to consider a more premium card with a higher fee.

Learn more about the Chase Sapphire Preferred® Card or compare all credit card offers.

Best for Cashback Matching: Discover it® Cash Back Credit Card

. . .

If cashback is more your speed, then the Discover it® Cash Back card’s unique rewards structure may be a better fit for you.

What we like

The rotating 5% cashback means you can really rack up the points if you time your spending accordingly. Plus, since the categories range from restaurants and grocery stores to Amazon and gas stations, you're sure to hit categories where you would normally spend money.

Plus, the unique unlimited cashback match means you can effectively double your rewards.

What we don't like

Keeping track of changing bonus categories every quarter may not suit your style. And while the card provides generous rewards, it does come with spending caps on bonus rewards.

If you're an international traveler, this card comes with no foreign transaction fees, but Discover's lower acceptance abroad might pose a challenge.

Best for Flat-Rate Cashback: Wells Fargo Active Cash® Credit Card 

. . .

If you don’t want to fuss with reward redemptions across different categories, a credit card with a high flat rate for cashback might be just what you need. Plus, the cash rewards don't expire as long as your account is open.

What we like

The Wells Fargo Active Cash® Card has a straightforward cashback structure and can deliver some pretty valuable perks. And with no annual fee, it's a cost-effective choice.

It also offers perks like access to Visa Signature Concierge services and up to $600 in cellphone protection against damage or theft when you pay your cellphone bill with the card (with a $25 deductible).

What we don't like

While the Active Cash offers travel emergency assistance services, this is for assistance and referrals only — no insurance is included. This means you're responsible for the costs if you need medical help or your luggage is lost.

As well, it charges a 3% foreign transaction fee, so this card isn't suitable to be your primary travel credit card.

How Do Rewards Credit Cards Work?

Rewards credit cards offer you incentives, such as cashback, points, or miles, based on your spending activity. Every time you make a purchase using your rewards credit card, you earn a certain amount of rewards based on the card's earning structure. Earning structures can vary in complexity and earning potential. 

Some cards offer an unlimited flat rate, such as 1.5% or 2% cashback, on all purchases. Other cards provide higher rewards, like up to 6% cashback or 10x points, for specific spending categories such as groceries, dining, travel, or gas.

Other cards might have rotating categories where the higher rewards rate changes every few months. Bonus categories typically have a cap on spending, after which additional spending will be rewarded at a lower rate, usually 1% or 1x points.

Depending on the card, rewards may accumulate as cashback, points, or miles. You can view your rewards balance, track your earnings, and initiate redemptions through your credit card issuer’s online portal or mobile app.

How To Redeem Credit Card Rewards

Once you accumulate rewards, you can redeem them for various benefits. These benefits can include statement credits, travel bookings, gift cards, merchandise, or even charitable donations. Some cards offer more flexibility and allow you to choose from a range of options, while others might tie to specific brands or retailers.

Some travel credit cards allow you to transfer points to partners, like airlines or hotel chains. Points may have different values with different transfer partners, so it’s important to consider the total value of your points before moving them.

The value of your rewards can vary based on how you choose to redeem them. For example, redeeming for travel might offer a higher value per point, particularly when redeemed through the issuer’s rewards portals, compared to redeeming for cashback. Generally, redeeming rewards for gift cards and merchandise will have the lowest return. 

READ MORE: How to Maximize Credit Card Rewards

What To Look for in a Rewards Credit Card

When looking for a rewards credit card, there are several important factors to consider. You want to find a card that aligns with your spending habits, financial goals, and lifestyle.

Rewards aligned with your spending

Choose a reward type that matches your preferences and spending patterns. Consider how many rewards you'll earn per dollar spent. Some cards offer a flat rate for all purchases, while others provide higher reward rates for specific spending categories. 

If you’re a dynamic spender, consider a rotating category card that will reward you for different spending each quarter. Just remember that these cards take a little more work as you need to stay on top of quarterly categories and make sure to activate them in order to earn the bonus rate.

Generous (and attainable) welcome offer

Many rewards cards offer sign-up bonuses after you spend a certain amount within the first few months. Look for cards with appealing bonuses that you can realistically take advantage of.

For example, if a bonus offer requires you to spend $5,000 within your first three months and you don't normally spend that much in that timeframe, don't go out shopping just to meet the requirement. A sign-up bonus isn't worth putting yourself into credit card debt!

Also keep in mind that welcome offers can change over time. A card offering 60,000 points might sometimes boost this to 80,000 or even 100,000 points with the same spending requirement. If you don’t have a pressing need to apply for the card right now, it can pay to wait for a better welcome offer to come around.

Perks and benefits

Look for additional benefits such as extended warranty protection, purchase protection, price protection, and concierge services.

If you're interested in travel rewards, consider cards that offer travel-related perks such as airport lounge access, application credits for Global Entry or TSA PreCheck, travel insurance, and rental car insurance.

Flexible redemption options

Earning rewards is all well and good, but you also need to make sure you can easily redeem them.

Check how flexible and convenient the redemption options are — some cards may restrict how you can use your rewards. For example, there might be a minimum redemption amount for cashback, or there might be blackout dates for booking flights with points.

The best rewards credit cards provide a range of redemption options, including statement credits, travel bookings, gift cards, merchandise, or even direct deposit into your bank account.

Minimal fees

Even if you never carry a balance on a credit card, your credit card can still cost you money thanks to fees. The most common fees you need to look out for when choosing a credit card are annual fees and foreign transaction fees.  

Generally speaking, rewards cards with an annual fee usually offer great rewards and perks in exchange. Compare the value of the rewards you're likely to earn with the cost of the annual fee to determine if the card is worth it for you. These fees can be steep — from around $95 to $695.

Higher-end cards will generally have much more valuable perks and reward structures. But a card’s benefits only offset the annual fee if you actually use those benefits — as luxurious as airport lounge access might sound, if you rarely travel, you likely won’t get enough value to justify the hefty fee that usually accompanies it. 

If you frequently travel outside of the country, foreign transaction fees can quickly add up when you use your card abroad. This is also true if you regularly make purchases from merchants based overseas, as these are also considered foreign transactions even if you’re making them from U.S. soil. You’ll want to get your hands on a rewards card that doesn't charge foreign transaction fees.

Achievable credit requirements

Some rewards cards require a high credit score for approval. Typically, the better the rewards, the better your credit score will need to be to qualify.

Check the credit score requirements to ensure you're eligible. A good credit score is 670 or above. If your credit score is on the lower side, you want to be careful when it comes to choosing a credit card. Try to get prequalified if you can, so you can measure your odds of getting approved for the card without a hard inquiry impacting your credit score. 

How To Make the Most Out of Your Rewards Credit Card

Once you have a rewards credit card, you want to maximize your rewards earnings while minimizing costs. Here are some tips to help you get the most value from your rewards credit cards:

• Choose the right card. Select a card that aligns with your spending habits and lifestyle. You want to look for a card with earning categories that match your highest spending areas.
• Understand the earning structure. Some credit cards more heavily reward dining out, buying gas, or booking travel through their specific travel portal. Certain cards require activation for bonus categories or have caps that will limit your earnings once you hit a certain threshold.
• Leverage rotating categories. If your card has rotating bonus categories, adjust your spending to take advantage of these higher rewards during those periods. 
• Pay your balance in full. Any interest charged on your rewards card will quickly offset the value of rewards earned. So avoid carrying a balance from month to month.
• Combine rewards with other benefits. Some rewards cards offer perks like travel insurance, airport lounge access, or extended warranties. These rewards can be general or can get quite niche, like gift cards for streaming services or department stores. 

Pros and Cons of Rewards Credit Cards 

Rewards credit cards can be very appealing — and, when you're intentional with them, quite lucrative. That said, they’re not without pitfalls.

You should be aware of both the advantages and disadvantages of rewards credit cards before you consider applying.

Pros

• Earning rewards: Rewards credit cards allow you to earn cashback, points, or miles on purchases you're already making.
• Freebies and perks: Some cards come with benefits like travel insurance, airport lounge access, extended warranties, and concierge services.
• Redemption flexibility: Many cards offer versatile redemption options, including statement credits, travel bookings, merchandise, and gift cards.
• Welcome offers: Many rewards cards offer enticing welcome bonuses that can provide a substantial boost to your rewards balance.

Cons

• Annual fees: Some rewards cards come with annual fees that can outweigh the value of the rewards, especially if you don't use the card frequently. 
• High interest rates: If you carry a balance from month to month, the high interest rates on credit cards effectively wipe out most of the benefits. 
• Overspending risk: The pursuit of earning rewards might tempt you to overspend or make unnecessary purchases, which can do more financial harm than good.
• Complexity: Rewards programs can be intricate, involving categories, tiers, and expiration dates. You'll need the time and energy to navigate your card’s reward system

Remember that the best rewards credit card for you depends on your individual preferences, spending habits, and financial goals. Take your time to compare different options and choose the one that aligns with your needs.

FAQs

Are travel rewards more valuable than cashback? 

The value of travel rewards versus cashback depends on your preferences and spending habits. Travel rewards can offer higher value when used for flights, hotel stays, and experiences. However, cashback provides immediate and flexible value. Consider your travel frequency, redemption options, and the overall reward structure of the cards to determine which option is more valuable for you.

How much are credit card reward points worth?

The value of credit card reward points varies widely. A general rule of thumb is that one reward point is worth one cent. That said, some points can be worth two cents or more, depending on the card and redemption method. Travel redemptions can sometimes offer higher value, while cashback typically has a straightforward 1:1 value. Check your card's specific terms and redemption options to calculate the value of rewards based on how you intend to use them.

What credit score do I need to get a rewards credit card?

The more generous a card is, the higher the credit score requirement is likely to be. You can qualify for some rewards credit cards with a credit score of 670 or above. However, most premium rewards cards require a score of 700 or even 750+. But keep in mind your credit score is not the only factor considered — your income, credit history, and other financial factors also play a role in the approval process.

. . .

---

Disclosure: Opinions expressed here are the author's alone, not those of any bank, credit card issuer, hotel, airline, or other entity. This content has not been reviewed, approved or otherwise endorsed by any of the entities included within the post.