Rewards credit cards allow cardholders to earn points, miles or cash back on their spending. With so many options, choosing the right card for your needs can be challenging. This guide compares the best rewards credit cards in 2024 based on rewards rates, annual fees, signup bonuses, redemptions, and benefits.
How Rewards Credit Cards Work
Rewards cards provide incentives like cash back, points or miles based on your spending. Many feature bonus categories where you’ll earn an elevated rate along with a standard base rate on non-bonus purchases. You can later redeem rewards for statement credits, gift cards, travel, cash and more.
Cards may charge an annual fee but offset it with perks like travel credits, airport lounge access or annual free nights. However, plenty of no annual fee cards with decent rewards earnings also exist.
When selecting a rewards card, consider your spending categories and how you prefer to redeem rewards. This will help narrow down the many options.
Best Cash Back Credit Cards
Cash back cards provide simple yet valuable rewards in the form of statement credits or cash. Some pay a flat, unlimited rate, while others offer tiered bonuses. Cash back doesn’t expire, allowing flexibility in when you redeem it.
Wells Fargo Active Cash Card
The Wells Fargo Active Cash Card makes earning cash back straightforward, with 2% back on every purchase. It carries no annual fee and provides new cardholders $200 cash rewards after spending $1,000 in the first 3 months.
You also get up to $600 in cell phone protection when paying your wireless bill with this card. Standard APR is 19.99% – 29.99% variable.
Citi Custom Cash Card
With the Citi Custom Cash Card, you automatically receive 5% cash back on your highest eligible spending category each billing cycle (on up to $500 in purchases, then 1%). All other purchases earn 1% back.
This no annual fee card also provides a $200 signup bonus after $1,500 in purchases within 6 months of account opening. Standard APR is 16.99% – 26.99% variable.
Chase Freedom Flex
The Chase Freedom Flex offers 5% cash back on quarterly rotating categories (on up to $1,500 in spending per quarter, then 1%). You also get 5% back on travel purchased via Chase Ultimate Rewards, 3% back on dining and drugstores, and 1% back everywhere else.
There’s no annual fee, but there is a 3% foreign transaction fee. New cardholders can earn $200 cash back after spending $500 in the first 3 months. Standard APR is 18.24% – 28.24% variable.
Best Travel Rewards Credit Cards
Travel rewards cards let you earn points or miles to redeem for flights, hotels, cruises, car rentals and more. Some are flexible, while others focus on a single travel provider. Luxury cards also provide airport lounge access and travel perks.
Chase Sapphire Preferred
The Chase Sapphire Preferred is beloved for its valuable transferable Ultimate Rewards points, which you can redeem for an average of 1.25 cents each via Chase or transfer to airline/hotel partners.
You’ll earn 5x points on travel purchased via Chase, 3x points on dining, select streaming services and online groceries (excluding Target, Walmart and wholesale clubs), and 2x points on other travel. All other purchases get 1x point per dollar spent.
There’s a $95 annual fee, and the signup bonus is 60,000 points (worth $750 in Chase travel redemptions) after spending $4,000 in the first 3 months. Standard APR is 19.99% – 26.99% variable.
Capital One Venture X Rewards
The premium Capital One Venture X Rewards offers a flat 2X miles per dollar on all purchases. You’ll get 10X miles on Capital One hotel and car rentals booked via their travel portal.
Business travelers can capitalize on up to $300 back annually for booked Capital One hotels and flights. Additional perks include airport lounge access and status with Capital One’s hotel collection.
There’s a hefty $395 annual fee, but with multiple travel credits provided each year, it’s easier to offset. The new cardholder bonus is 75K miles (worth $750 in travel redemptions) after $4K spend in 3 months. Standard APR is 19.99% – 29.99% variable.
Citi Premier Card
The Citi Premier Card offers a well-rounded 3X points on air travel, hotels, gas stations, restaurants and supermarkets (1X on everything else).
Points transfer 1:1 to airline partners or redeem for 1 cent per point in cash back. New cardholders get 60K bonus points after spending $4K in the first 3 months. There’s a $95 annual fee, and standard APR is 19.99% – 29.99% variable.
Best Hybrid Cash/Travel Rewards Cards
Hybrid rewards cards allow flexible redemptions for cash back, statement credits or travel. You can choose whichever option provides more value at time of redemption.
Capital One SavorOne Cash Rewards
With the Capital One SavorOne Cash Rewards, earning rewards is straightforward. You’ll get unlimited 3% cash back on dining, entertainment, streaming services and popular grocery stores. All other purchases earn 1% back.
Additionally, you’ll have access to an elevated 5% cash back rate on hotels and rental cars booked via Capital One Travel. New cardholders can earn a $200 cash bonus after $500 spend in the first 3 months. There is no annual fee, but foreign transaction fees apply. Standard APR is 19.99% – 29.99% variable.
PenFed Pathfinder Rewards Visa
The PenFed Pathfinder Rewards Visa offers 4X points on travel and everyday purchases like gas, transit, restaurants and supermarkets (1X on everything else). Each point is worth 1 cent, so they can be redeemed for cash back. But points transfer to loyalty programs when redeeming for travel means they’re worth over 25% more.
This card does have a $95 annual fee that’s waived the first year. New applicants get $100 after $1K minimum spend in 3 months of account opening. Standard APR is 11.99% – 18.00% variable for cardholders with good credit.
Best Business Rewards Credit Cards
Small business rewards cards help entrepreneurs maximize points and miles on common purchases like shipping, advertising, phone services and travel expenses.
Ink Business Preferred
The Ink Business Preferred offers 3X points on up to $150K in combined annual spending across shipping, internet/cable/phone services, advertising purchases with social media sites & search engines, and travel.
All non-bonus category purchases earn 1X point per dollar spent. Points transfer 1:1 to premium travel partners or get a 25% redemption bonus when booking travel via Chase.
There’s a $95 annual fee, and the signup bonus is 100K points after spending $15K in first 3 months. Standard APR is 19.99% – 26.99% variable.
American Express Blue Business Plus
The American Express Blue Business Plus provides 2X Membership Rewards points on all eligible purchases up to $50K per year (then 1X point), with no bonus category limitations.
Points transfer or redeem in fixed sums for cash back, statement credits, gift cards, or travel. There are no foreign transaction fees. New applicants can earn 15K Membership Rewards bonus points after spending $3K in first 3 months. There is no annual fee for this card. Standard APR is 16.49% – 22.49% variable.
Top Factors Impacting Your Decision
Here are key considerations when applying for a rewards credit card tailored to your spending and travel habits:
Ideal redemption options
Determine whether you want to redeem for cash back, travel, gift cards or other rewards.
Spending categories
Select a card that matches your top regular spending categories like gas, groceries, dining out, etc. to maximize bonus rewards.
Annual Fee
While many great rewards cards don’t charge an annual fee, premium travel cards that have one often offset it with annual credits and other luxury perks.
Foreign Transaction Fees
There are plenty of no foreign transaction fee cards, allowing you to save on currency conversion fees when traveling or shopping internationally.
To Recap
While selecting the ideal rewards card involves weighing preferences like annual fees, point valuations and redemption goals, ample options exist for every budget and spending habit.
Keys to maximizing any rewards credit card include paying balances off fully each month, staying within your means, and using it for consistent spending in bonus categories.
Comparing the pros and cons of top contenders can make choosing the perfect fit easier. Just remember – rewards are best treated as rebates on everyday purchases rather than excuses to overspend.
Frequently Asked Questions
How do rewards credit cards work?
Rewards credit cards provide cardholders incentives like cash back, points or miles based on your spending habits. Things like the rewards rate, bonus categories, annual fees and redemption options vary widely across different cards.
Are rewards credit cards worth it?
Yes, rewards cards provide immense value through statement credits, points, miles and other freebies earned from everyday spending. However, to maximize value, it’s important to pay your balance in full each month to avoid negating rewards with interest charges.
What is the best rewards credit card for me?
The ideal rewards card for you depends on your monthly budget, spending habits, travel goals, annual fee tolerance and preferred redemption options. Once you determine those key factors, you can pinpoint the perfect card matching your needs.
What credit score do I need for a rewards credit card?
Most rewards cards require good to excellent credit, generally 670 and higher. A few options exist for average credit in the mid-600s, but rewards and approval odds won’t be as strong. Building your score or opting for a secured card can help until your credit improves.
Can I earn rewards points with a secured credit card?
It’s rare to find secured credit cards offering robust rewards programs since it’s more risky lending. But a few provide simple cash back earnings around 1% to help cardholders in rebuilding credit establish responsible spending habits.
In another related article, How to Easily Check Your Debit Card Balance Online
