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Erika's Picks for Best Rewards Credit Cards
- Best for flat-rate travel rewards:
Capital One Venture Rewards Credit Card - Best for beginner travelers:
Chase Sapphire Preferred® Card - Best for dining and premium travel:
American Express® Gold Card - Best for cashback matching:
Discover it® Cash Back Card - Best for flat-rate cashback:
Wells Fargo Active Cash® Card
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
Rewards Rate
- Earn 5x miles on hotels, vacation rentals, and rental cars booked through Capital One Travel
- 2x miles on all other purchases
Welcome Offer
$250 to use on Capital One Travel in your first cardholder year, plus earn 75,000 bonus miles once you spend $4,000 on purchases within the first 3 months - that’s equal to $1,000 in travel
Annual Fee
$95
The Capital One Venture Rewards Credit Card is one of the best cards for flat-rate travel rewards, with an earning structure that’s easy to keep track of.
The card comes with a generous welcome offer and travel credit. Miles can be redeemed for travel purchases on Capital One Travel, transferred to one of Capital One’s airline and hotel partners, or used as a statement credit to offset travel purchases.
Some other nice advantages of the Capital One Venture Rewards credit card include:
- Global Entry/TSA PreCheck credit
- No blackout dates
- No foreign transaction fees
- Car rental collision damage waiver
- Accident insurance
- 24-hour travel assistance
- Premium stays
- Access to exclusive events
While the card is great for earning flat-rate travel rewards, it is limited compared to other travel rewards cards. For example, Capital One only has a handful of lounges — far fewer than Chase and American Express. Venture Rewards cardholders also don’t have access to Capital One’s Priority Pass partner network. You can access a Capital One lounge, but it will come with an extra fee.
This is a change from the past when cardholders were granted two complimentary lounge visits per year.
The Capital One Venture Rewards Credit Card offers consistent rewards on all purchases while giving you access to Capital One Travel.
It’s a good choice if you want a simple way to earn travel rewards and don’t travel enough to benefit from all of the perks that come with Capital One’s premium travel rewards cards.
Best for Beginner Travelers
Chase Sapphire Preferred® Card
Rewards Rate
- 5x on travel purchased through Chase Travel℠
- 3x on dining, select streaming services and online groceries
- 2x on all other travel purchases
- 1x on all other purchases
Welcome Offer
Earn 100,000 bonus points after you spend $5,000 on purchases in the first 3 months from account opening
Annual Fee
$95
The Chase Sapphire Preferred® Card is a value-added card that doesn’t come with a hefty annual fee, making it a good option for people who are new to travel rewards.
Its tiered points structure is more complex than flat-rate rewards cards, but if you spend a lot on dining, streaming, and online groceries, it means you can maximize that spending.
The card comes with an annual fee but also a welcome bonus that you can put toward bookings made through Chase TravelTM. Points redeemed through Chase TravelTM are worth 25% more in value.
Other benefits include:
- $50 annual hotel credit on bookings made through Chase TravelTM
- 10% anniversary points boost
- No foreign transaction fees
- 1:1 point transfer to travel partners
- Auto rental insurance covering collision and theft
- Trip cancellation and interruption insurance (up to $10,000 per person, $20,000 per trip)
- Travel and emergency assistance
- 120-day purchase protection (up to $500 per claim and $50,000 per account)
- Extended warranty protection
- DashPass subscription (activate by December 31, 2027)
While the card is good for beginners, it has some limitations. There is an annual fee, and you won’t get free access to Chase’s airport lounge network.
The Chase Sapphire Preferred® Card is a good option for first-time cardholders since it offers many of the premium travel benefits that Chase has to offer — but without the high annual fee that many premium travel cards have.
The ability to transfer points to one of Chase’s travel partners gives you flexibility over how you use your points, allowing you to get the most out of your rewards.
Best for Dining and Premium Travel
American Express® Gold Card
Rewards Rate
- 4x points at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1x points for the rest of the year
- 4x points at U.S. supermarkets, on up to $25,000 in purchases per calendar year, then 1x points for the rest of the year
- 3x points for flights booked directly with airlines or on amextravel.com
- 1x points on all other purchases
Welcome Offer
Earn 60,000 Membership Rewards® Points after spending $6,000 in the first 6 months
Annual Fee
$325 (rates and fees)
The American Express® Gold Card is a top-tier rewards card for foodies and frequent travelers. In addition to the high points you can earn on dining and travel, you also get a hefty welcome offer that can be used toward travel.
It also comes with several annual credits, including:
- $120 Uber Cash annually when you add the Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction.
- $84 Dunkin' Credit issued in up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
- Up to $120 Restaurant Dining Credit when you dine at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
You also have access to the following perks:
- No foreign transaction fees
- 24/7 emergency assistance with Global Assist® Hotline*
- Baggage insurance (up to $1,250 for carry-on and $500 for checked bags)*
- Car rental loss and damage insurance*
- Purchase protection (up to $10,000 per covered purchase, up to $50,000 per year)*
While the Amex Gold Card is a good choice to earn points on food, it does have some drawbacks. There is a high annual fee, and the card comes with earning limits. Only $50,000 in dining purchases and $25,000 in grocery purchases earn the boosted rewards per calendar year. After that, they drop to just 1x point.
* Eligibility and Benefit level varies by Card. Terms, Conditions, and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by Amex Assurance Company.
The American Express® Gold Card is one of the best rewards cards for dining out and grocery shopping. The extra dining and Uber credits can offset the high annual fee, and the points you can earn for those categories are higher than with many other cards.
If a good portion of your monthly spending goes toward food purchases, and you’re looking for robust travel perks, the Amex Gold Card may be a good choice.
Best for Cashback Matching
Discover it® Cash Back Credit Card
Rewards Rate
- 5% cashback on rotating categories each quarter (up to $1,500 in purchases, then 1%; activation required)
- 1% on everything else
Welcome Offer
Discover Cashback Match™ will double all cashback earned in the first 12 months
Annual Fee
$0
The Discover it® Cash Back card is one of only a handful of credit cards that offers cashback matching. It offers 5% cashback on rotating categories (up to $1,500 in purchases per quarter) and 1% on all other purchases, and Discover will match your rewards with no limits during the first year.
Cashback is equivalent to $1. So, if you earn $500 in cashback during your first year, that’s worth $500 in rewards. Discover will match it, bringing your total rewards to $1,000.
Other benefits include:
- No annual fee
- No foreign transaction fees
- Online privacy protection
- FICO score access
- $0 fraud liability
- First late payment waived
- Digital credit card
While this card can be a great way to maximize cashback rewards, there might be challenges with using it. Discover is not as widely accepted as Visa or Mastercard, which can limit how many rewards you earn.
Also, while the 5% cashback option can help you earn more, you’ll need to remember to activate it each quarter. Matching also ends after the first year, which can make the reward value lower than other cards.
All information about the Discover it® Cash Back has been collected independently by Erika.com. The card details on this page have not been reviewed or provided by the card issuer.
The Discover it® Cash Back is a unique cashback card because Discover matches your rewards during the first year — basically doubling your reward rate.
There’s no annual fee, and if you’re savvy with your spending, the rotating cashback categories can help you maximize rewards on everyday purchases.
All information about the Discover it® Cash Back has been collected independently by Erika.com. The card details on this page have not been reviewed or provided by the card issuer.
Best for Flat-Rate Cashback
Wells Fargo Active Cash® Card
Rewards Rate
- Unlimited 2% cashback on all purchases
Welcome Offer
Earn $200 after spending $500 in the first three months
Annual Fee
$0
The Wells Fargo Active Cash® Card is a flat-rate cashback card with no rotating categories, spending caps, or activation requirements. The card offers simple, consistent rewards without the need to track different spending categories.
Additional perks include:
- Cash reward sign-up bonus
- No annual fee
- Cellphone protection (up to $600)
- Auto rental collision waiver
- Travel and emergency services
- Roadside dispatch
- Zero liability protection
- FICO tracking
The Active Cash is an easy card to manage since it has a flat rewards rate. However, this means it also won’t help you maximize your spending — it has no bonus categories, which means if you spend a lot in a specific category like dining or travel, you won’t earn more rewards.
All information about the Wells Fargo Active Cash® Card has been collected independently by Erika.com. The card details on this page have not been reviewed or provided by the card issuer.
The Wells Fargo Active Cash® Card has a simple cash reward structure that offers consistent rewards on all purchases. While it doesn’t offer bonus categories, the 2% rate is higher for everyday purchases than what other cards combine.
There is no annual fee and a cash welcome bonus, making it a good option for collecting cashback on everyday purchases.
All information about the Wells Fargo Active Cash® Card has been collected independently by Erika.com. The card details on this page have not been reviewed or provided by the card issuer.
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.
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.
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
Bottom Line: Are Rewards Credit Cards Worth It?
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.
Frequently Asked Questions
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.
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.
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