Finder’s expert credit card team analyzed over 200 rewards to find the best performing rewards cards for 2025 across 11 categories. We weighed reward categories, the average value of points upon redemption, welcome offer value, annual fees and introductory APRs. Unlike our competitors, Finder’s experts provide unbiased, trustworthy evaluations of all rewards credit cards and providers, not just those we partner with on the site.
While the Chase Freedom Unlimited®'s 1.5% back on all purchases is slightly lower than the 2% back that some cards offer, other categories earn more cash back and make up for this difference. For example, you earn 3% back on dining, takeout and delivery, 3% back on drugstore purchases and 5% back on travel purchased through Chase Ultimate Rewards. No other similar card offers a rewards program as robust as this one. Plus, you can get a way higher value if you transfer your points to a Chase Sapphire credit card.
Welcome Offer
$250
Rewards
Up to 5% cash back
Annual fee
$0
Minimum credit score
670
While the Chase Freedom Unlimited®'s 1.5% back on all purchases is slightly lower than the 2% back that some cards offer, other categories earn more cash back and make up for this difference. For example, you earn 3% back on dining, takeout and delivery, 3% back on drugstore purchases and 5% back on travel purchased through Chase Ultimate Rewards. No other similar card offers a rewards program as robust as this one. Plus, you can get a way higher value if you transfer your points to a Chase Sapphire credit card.
Pros
Earn cash back. Earn unlimited 1.5% cash back, 3% cash back on dining at restaurants including takeout and eligible delivery service, on drugstore purchases, as well as 5% cash back on travel through Chase Ultimate Rewards® where you can redeem rewards for travel, gift cards and more.
Intro APR on purchases. Enjoy 15 months of 0% intro APR period on purchases and balance transfers. After that, a variable APR of 18.99% to 28.49% applies.
Signup bonus. Earn a signup bonus of $250 after you spend $500 in the first 3 months from account opening.
Cons
Foreign transaction fee. All purchases made abroad or online with foreign merchants cost 3% of the amount.
Annual fee
$0
Purchase APR
0% intro for the first 15 months (then 18.99% to 28.49% variable)
Balance transfer APR
0% intro for the first 15 months (then 18.99% to 28.49% variable) $5 or 3% of the amount of each transfer, whichever is greater in the first 60 days
Welcome Offer
$250 after spending $500 in the first 3 months
Rewards
Up to 5% cash back
The information about Chase Freedom Unlimited® has been collected independently by Finder and has not been reviewed or provided by the issuer.
No other card offers what the Blue Cash Preferred® Card from American Express does — the highest rewards rate at U.S. supermarkets and on select U.S. streaming services. What's more, these two are not the only categories where you earn accelerated cash back as statement credit. Gas purchases at U.S. gas stations as well as taxis, rideshares, parking, tolls, trains and bus rides are also highly rewarding. These rewards are topped off with a handy intro APR on purchases and balance transfers, making it a great all-around rewards card for families. The Blue Cash Preferred® Card from American Express is the card by which other everyday rewards cards are measured.
Welcome Offer
$250
Rewards
Up to 6% cash back
Annual fee
$95 after the first year intro
Minimum credit score
670
No other card offers what the Blue Cash Preferred® Card from American Express does — the highest rewards rate at U.S. supermarkets and on select U.S. streaming services. What's more, these two are not the only categories where you earn accelerated cash back as statement credit. Gas purchases at U.S. gas stations as well as taxis, rideshares, parking, tolls, trains and bus rides are also highly rewarding. These rewards are topped off with a handy intro APR on purchases and balance transfers, making it a great all-around rewards card for families. The Blue Cash Preferred® Card from American Express is the card by which other everyday rewards cards are measured.
Pros
Welcome offer. Earn a $250 statement credit after spending $3,000 in eligible purchases during your first 6 months of card membership.
Earn cash back. Earn 6% cash back at U.S. supermarkets on up to $6,000 per year. After that, you'll earn 1% back. You'll also earn 6% on select U.S. streaming services and 3% on transit purchases. At U.S. gas stations, you'll earn 3% back. For all other eligible purchases, you'll get 1% back. Cash Back is received in the form of Reward Dollars that can be redeemed as a statement credit or at Amazon.com checkout
Intro APR period. Enjoy a 0% intro APR period on purchases and balance transfers for the first 12 months of account opening. After that, a variable APR of 20.24% to 29.24% applies.
Cons
Annual fee. The card comes with a $95 annual fee after the first year intro.
Cashback cap on groceries. Your 6% cashback rate at U.S. supermarkets is capped on up to $6,000 each year, and 1% after that.
Annual fee
$0 intro annual fee for the first year ($95 thereafter)
Purchase APR
0% intro for the first 12 months (then 20.24% to 29.24% variable)
Balance transfer APR
0% intro for the first 12 months (then 20.24% to 29.24% variable) Either $5 or 3% of the amount of each transfer, whichever is greater
Welcome Offer
$250 statement credit after spending $3,000 in eligible purchases in the first 6 months
Rewards
Up to 6% cash back
Terms apply to American Express benefits and offers. Cash back is received in the form of Reward Dollars that can be redeemed as a statement credit or at Amazon.com checkout.
With The Platinum Card® from American Express, you earn 80,000 points after spending $8,000 in the first 6 months. Given that these points can potentially double in value when redeemed on travel, you're looking at one of the most valuable welcome offers available. Aside from the generous welcome offer, The Platinum Card® from American Express is a mainstay in the rewards space thanks to its great rewards rate on airfare, travel credits and perks.
Welcome Offer
80,000 points
Rewards
Up to 5x points
Annual fee
$695
Minimum credit score
670
With The Platinum Card® from American Express, you earn 80,000 points after spending $8,000 in the first 6 months. Given that these points can potentially double in value when redeemed on travel, you're looking at one of the most valuable welcome offers available. Aside from the generous welcome offer, The Platinum Card® from American Express is a mainstay in the rewards space thanks to its great rewards rate on airfare, travel credits and perks.
Pros
Earn points. Earn 5x points on flights booked directly or through Amex Travel and prepaid hotels booked through Amex Travel. You can use your points toward gift cards, travel rewards, statement credit and more. Your 5x points on flights are capped on up to $500,000 annually, reverting to 1x points after. On other eligible purchases, you'll earn 1x points.
Welcome offer. Earn 80,000 membership rewards points after you spend $8,000 on purchases in the first 6 months of card membership.
Travel fee credit. Select a qualifying airline and earn up to a $200 airline fee statement credit each year on incidental charges, such as checked bags or in-flight purchases. Also earn up to $200 in statement credit on prepaid Fine Hotels + Resorts® or The Hotel Collection bookings (Hotel Collection requires a minimum two-night stay). Enrollment required.
Cons
Annual fee. As a luxury card, the Amex Platinum Card requires a $695 annual fee for use.
Narrow reward categories. This card is only particularly strong at earning rewards on travel.
Potentially limited acceptance abroad. American Express cards are not as widely accepted worldwide as Visa or Mastercard.
Annual fee
$695
Purchase APR
See Pay Over Time APR
Balance transfer APR
N/A
Welcome Offer
80,000 points after spending $8,000 in your first 6 months
Rewards
Up to 5x points
Terms apply to American Express benefits and offers.
The Chase Freedom Flex℠ is the best card for categories that change each quarter because aside from those categories, you get to earn 5% back on travel made through Chase Ultimate Rewards and Lyft purchases until March 2022. On top of this, the Chase Freedom Flex℠ offers 3% back on dining and drugstores, plus you get to earn a solid $200 welcome offer, creating a top of the line rewards card, unmatched by any similar card.
Welcome Offer
$200
Rewards
Up to 5% cash back
Annual fee
$0
Minimum credit score
670
The Chase Freedom Flex℠ is the best card for categories that change each quarter because aside from those categories, you get to earn 5% back on travel made through Chase Ultimate Rewards and Lyft purchases until March 2022. On top of this, the Chase Freedom Flex℠ offers 3% back on dining and drugstores, plus you get to earn a solid $200 welcome offer, creating a top of the line rewards card, unmatched by any similar card.
Pros
Cash back. Earn 5% cash back in select rotating categories on up to $1,500 each quarter you activate, then 1%. You'll also earn 5% back on travel through Chase Ultimate Rewards and on Lyft through March 2022, 3% back at restaurants and drugstores and 1% back on all other purchases.
Signup bonus. Earn $200 cash back after you make $500 in purchases within the first 3 months of account opening.
Intro APR. Get a 0% intro APR on purchases and balance transfers for the first 15 months from account opening, then 18.99% to 28.49% variable.
Cons
You'll need to keep track of rotating categories. You won't get the 5% cashback rate on the same categories each quarter. Also, you'll need to activate your cashback categories, or you won't receive the bonus rate.
Categories not always known. Often, Chase won't reveal the whole year's rotating categories until they're close to launching.
Foreign transaction fees. You'll pay a 3% fee on transactions made abroad.
Annual fee
$0
Purchase APR
0% intro for the first 15 months (then 18.99% to 28.49% variable)
Balance transfer APR
0% intro for the first 15 months (then 18.99% to 28.49% variable) $5 or 3% of the amount of each transfer, whichever is greater in the first 60 days
Welcome Offer
$200 after spending $500 in the first 3 months
Rewards
Up to 5% cash back
The information about Chase Freedom Flex℠ has been collected independently by Finder and has not been reviewed or provided by the issuer.
The Chase Sapphire Reserve®'s new earning rates are a welcome boost to this luxury travel card. And redeem your points on travel purchases through the Chase Ultimate Rewards and your points value jumps by 50%. On top of that, there's a host of travel perks like Priority Pass lounge access and $300 annual travel credit, both useful for frequent travelers. The travel credit alone halves the cost of the $550 annual fee.
Welcome Offer
60,000 points
Rewards
Up to 10x points
Annual fee
$550
Minimum credit score
740
The Chase Sapphire Reserve®'s new earning rates are a welcome boost to this luxury travel card. And redeem your points on travel purchases through the Chase Ultimate Rewards and your points value jumps by 50%. On top of that, there's a host of travel perks like Priority Pass lounge access and $300 annual travel credit, both useful for frequent travelers. The travel credit alone halves the cost of the $550 annual fee.
Pros
Annual travel credit. Get $300 in statement credit as reimbursement for your travel purchases every year on your card account anniversary.
Signup bonus. Earn 60,000 bonus points when you spend $4,000 in your first 3 months when you open your account. This is worth $900 if you redeem through the Chase Ultimate Rewards travel portal.
Rewards points. Earn 5x points on flights booked through Chase, 10x points on hotels and car rentals booked through Chase, 3x points on Chase Dining, 3x points on all other travel and dining and 1x points on all other purchases. These points are worth 50% more when redeemed through the Chase travel portal.
Cons
Annual fee. You'll pay $550 annual fee for the card.
No intro APR period. Like many other travel cards, you won't get a 0% intro APR period on purchases, balance transfers or both.
Excellent credit score required. Being a premium card, your chances of approval greatly increase with a credit score of 740 or higher.
Annual fee
$550
Purchase APR
20.24% to 28.74% variable
Balance transfer APR
20.24% to 28.74% variable
Welcome Offer
Earn 60,000 points after spending $4,000 in the first 3 months, from account opening. That's $900 toward travel when you redeem through Chase Ultimate Rewards®
The IHG One Rewards Premier Credit Card beats competitor cards with its high rewards rate, signup bonus and rewards nights. With $18,000 annual spending and maxing out rewards nights, you can get more than 20 rewards nights each year. And if you clear the signup bonus, you can get roughly 30 rewards nights or more within your first year. This makes the IHG One Rewards Premier Credit Card the most rewarding hotel credit card out there.
Welcome Offer
140,000 points
Rewards
Up to 26x points
Annual fee
$99
Minimum credit score
670
The IHG One Rewards Premier Credit Card beats competitor cards with its high rewards rate, signup bonus and rewards nights. With $18,000 annual spending and maxing out rewards nights, you can get more than 20 rewards nights each year. And if you clear the signup bonus, you can get roughly 30 rewards nights or more within your first year. This makes the IHG One Rewards Premier Credit Card the most rewarding hotel credit card out there.
Pros
Rewards points. Earn 26x total points on IHG purchases, 5x points on travel, gas stations and restaurants, and 3x points on all other purchases.
Limited time offer. Earn 140,000 points once you spend $3,000 in your first 3 months of card membership. Combined with the fourth-night-free perk, the signup bonus can easily get you 20 or more rewards nights.
Free nights. Get your fourth night free every time you redeem your points for four or more nights. Plus, every card anniversary, you'll get one free rewards night.
Cons
Annual fee. The card comes with an $99 annual fee. But the card easily pays off as long as you stay at IHG hotels at least few times a year.
No intro APR period. You won't get a 0% intro APR period on purchases or balance transfers, but this is standard with this type of card.
Annual fee
$99
Purchase APR
19.99% to 28.49% variable
Balance transfer APR
19.99% to 28.49% variable
Welcome Offer
Earn 140,000 Bonus Points after spending $3,000 on purchases in the first 3 months from account opening.
Rewards
Up to 26x points
Welcome Offer
140,000 points
Rewards
Up to 26x points
Annual fee
$99
Minimum credit score
670
Best for dining and entertainment
Capital One Savor Cash Rewards Credit Card
9
Excellent
It's rare to find a no-annual-fee card like the Capital One Savor Cash Rewards Credit Card where you earn 3% cash back on dining and 8% cash back on Capital One Entertainment purchases. If you want a card that rewards you for enjoying yourself, the Capital One Savor Cash Rewards Credit Card is definitely one of the best out there.
Welcome Offer
$200
Rewards
Up to 8% cash back
Annual fee
$0
Minimum credit score
670
It's rare to find a no-annual-fee card like the Capital One Savor Cash Rewards Credit Card where you earn 3% cash back on dining and 8% cash back on Capital One Entertainment purchases. If you want a card that rewards you for enjoying yourself, the Capital One Savor Cash Rewards Credit Card is definitely one of the best out there.
Pros
Annual fee. None.
APR. 0% intro APR on purchases and balance transfers for 15 months, then a normal purchase and balance transfer APR of 19.24% to 29.24% variable. You’ll pay a balance transfer fee of 3% on balance transfers performed in the first 15 months, or 4% at a promotional APR that Capital One may offer you at any other time.
3% cash back on dining and entertainment. 3% cash back on dining and at grocery stores (excluding superstores like Walmart® and Target®), 3% cash back on popular streaming services and entertainment, 8% cash back on Capital One Entertainment purchases and 1% cash back on all other purchases.
Welcome offer. $200 cash bonus after you make $500 in purchases within the first 3 months of account opening.
Cons
Potentially high ongoing APR. Your APR mostly depends on your creditworthiness. Avoid paying the high interest by paying your balance when due.
Annual fee
$0
Purchase APR
0% intro for the first 15 months (then 19.24% to 29.24% variable)
Balance transfer APR
0% intro for the first 15 months (then 19.24% to 29.24% variable) Balance transfer fee applies (3% for the first 15 months; 4% at a promotional APR that Capital One may offer you at any other time)
Welcome Offer
Earn a $200 cash bonus after you spend $500 on purchases within the first 3 months from account opening
Rewards
Up to 8% cash back
Content accurate at the time of publication. Check the issuer’s site for most up to date information.
Welcome Offer
$200
Rewards
Up to 8% cash back
Annual fee
$0
Minimum credit score
670
Best for small purchases
Citi Rewards+® Card
8.2
Great
The Citi Rewards+® Card leading perk is the round-up feature where every purchase is rounded up to the nearest 10. This makes purchases of $1 and $2 earn 10% and 5% respectively back in points. No other card comes even close to rewarding small purchases like this one does.
Welcome Offer
20,000 points
Rewards
Up to 2x points
Annual fee
$0
Minimum credit score
670
The Citi Rewards+® Card leading perk is the round-up feature where every purchase is rounded up to the nearest 10. This makes purchases of $1 and $2 earn 10% and 5% respectively back in points. No other card comes even close to rewarding small purchases like this one does.
Pros
Earn points. Earn 2x points at gas stations and supermarkets. This applies to the first $6,000 in qualifying purchases per calendar year, after which you will earn 1x points.
Signup bonus. Earn 20,000 bonus points after you spend $1,500 in purchases with your card within 3 months of account opening.
Rounding gets you more points. Your points will be rounded up to the nearest 10 points on every purchase.
A good intro APR. Get a 0% intro APR on purchases and balance transfers for the first 15 months after account opening, then 18.74% to 28.74% variable.
Cons
Foreign transaction fees. Because of the 3% foreign transaction fee, this may not be a good card to use with foreign merchants abroad or online.
Penalty APR. If you miss a payment, Citi may impose a penalty APR of up to 29.99% variable.
Annual fee
$0
Purchase APR
0% intro for the first 15 months (then 18.74% to 28.74% variable)
Balance transfer APR
0% intro for the first 15 months (then 18.74% to 28.74% variable) Intro balance transfer fee of 3% of each transfer (minimum $5) completed within the first 4 months of account opening. After that, your fee will be 5% of each transfer (minimum $5)
Welcome Offer
Earn 20,000 bonus points after you spend $1,500 in purchases with your card within 3 months of account opening; redeemable for $200 in gift cards at thankyou.com
Rewards
Up to 2x points
Welcome Offer
20,000 points
Rewards
Up to 2x points
Annual fee
$0
Minimum credit score
670
Best for unlimited everyday purchases and no annual fee
The U.S. Bank Altitude® Go Visa Signature® Card is a powerhouse of a card for everyday rewards, earning great rewards on dining, takeout, delivery and bars, and solid rewards on gas, groceries and streaming services. While it lacks an entertainment rewards category that you might find on comparable cards, it makes up for it by costing $0 annually to own and providing additional perks like an annual streaming credit.
Welcome Offer
$200 points
Rewards
Up to 4x points
Annual fee
$0
Minimum credit score
740
The U.S. Bank Altitude® Go Visa Signature® Card is a powerhouse of a card for everyday rewards, earning great rewards on dining, takeout, delivery and bars, and solid rewards on gas, groceries and streaming services. While it lacks an entertainment rewards category that you might find on comparable cards, it makes up for it by costing $0 annually to own and providing additional perks like an annual streaming credit.
Pros
Earn rewards. Earn 4x points on dining, including takeout and delivery. Earn 2x points at grocery stores, for grocery delivery and streaming services. You'll also earn 2x points at gas stations. and even EV charging stations. Earn 1x points on every other eligible purchase.
No annual fee. You won’t pay an annual fee to use this card. This is a steal given the value the card offers.
Intro APR. Get a 0% intro APR on purchases and balance transfers for 12 months, reverting to 18.24% to 28.49% variable.
Perks. Get travel and emergency assistance, car rental insurance coverage and roadside dispatch. You also get an annual streaming credit worth $15.
Signup bonus. Earn 20,000 points after spending $1,000 in the first 90 days. This isn’t the greatest signup bonus available, though it’s not the worst either.
Cons
Excellent credit score required. You’ll need an excellent credit score to qualify for this card. This isn’t surprising given the quality of the card.
No entertainment category. If you’re looking for a card that offers perks and rewards on movies, sports and other purchases, you’ll need to look elsewhere.
Annual fee
$0
Purchase APR
0% intro for the first 12 months (then 18.24% to 28.49% variable)
Balance transfer APR
0% intro for the first 12 months (then 18.24% to 28.49% variable)
Welcome Offer
20,000 points after spending $1,000 in the first 90 days
The Sam's Club® Mastercard® is the new warehouse gas card on the block, earning 5% back on gas on up to $6,000 and 1% back after at any gas station, not just Sam's Club gas stations. The card also earns a solid 3% back on dining and travel, up to % cash back on eligible Sam’s Club purchases (3% with Sam's Club® Mastercard® in addition to the 2% you earn with Plus membership) 1% back on everything else. The tradeoff is the card's reward card structure: you'll receive your earnings just once a year in the form of a Sam's Club coupon.
Welcome Offer
$30
Rewards
Up to 5% cash back
Annual fee
$0
Minimum credit score
670
The Sam's Club® Mastercard® is the new warehouse gas card on the block, earning 5% back on gas on up to $6,000 and 1% back after at any gas station, not just Sam's Club gas stations. The card also earns a solid 3% back on dining and travel, up to % cash back on eligible Sam’s Club purchases (3% with Sam's Club® Mastercard® in addition to the 2% you earn with Plus membership) 1% back on everything else. The tradeoff is the card's reward card structure: you'll receive your earnings just once a year in the form of a Sam's Club coupon.
Pros
Cash back. Earn up to 5% cash back on eligible Sam’s Club purchases (3% with Sam's Club® Mastercard® in addition to the 2% you earn with Plus membership), 5% back on gas purchases on up to $6,000 annually (reverting to 1% after), 3% back on dining and takeout, and 1% back on all other purchases.
No annual fee. The Sam's Club® Mastercard® doesn’t carry an annual fee, though you’ll need to be a Sam’s Club member to apply. Basic membership is $45 and Plus membership is $100.
Cash advance at register. Request up to $100 as a cash advance at checkout. You should generally stay away from cash advances, but this can prove useful in an emergency.
Cons
One annual redemption. You can only redeem your rewards in February of each year for that prior year’s earnings. Redeem your rewards online at SamsClub.com or at any Sam’s location.
No intro APR. You won’t find an intro APR on purchases or balance transfers with this card.
Tied to Plus membership. If you don’t have a Sam’s Club Plus membership, you can only earn 1% back on your Sam’s Club purchases with this card.
Annual fee
$0
Purchase APR
20.9% to 28.9% variable
Balance transfer APR
20.9% to 28.9% variable
Welcome Offer
Get a $30 statement credit when you open a new account and make $30 in Sam's Club purchases within 30 days.
The Discover it® Secured card is an excellent choice because not only do you get to build credit, but you also get to earn cash back without paying an annual fee. What's more, Discover will match the entire cash back you earn during your first year without limits. No other secured card does that. The card has no annual fee, which can help you keep costs down as you rebuild your credit.
Welcome Offer
Other
Rewards
Up to 2% cash back
Annual fee
$0
Minimum credit score
300
The Discover it® Secured card is an excellent choice because not only do you get to build credit, but you also get to earn cash back without paying an annual fee. What's more, Discover will match the entire cash back you earn during your first year without limits. No other secured card does that. The card has no annual fee, which can help you keep costs down as you rebuild your credit.
Pros
Signup bonus. At the end of your first year, Discover will match all of the cash back you’ve earned without any limits.
Cash back. Earn 2% cash back at gas stations and restaurants on the first $1,000 in combined purchases each quarter. After that, and on all other purchases, earn 1% cash back.
Credit reporting to the three major bureaus. Discover will report your payment history to the three major credit bureaus — TransUnion, Equifax and Experian. With consistent on-time payments, you’ll build your credit score.
Possible security deposit return after eight months. After eight months, Discover will review your account every month. If they deem you’ve been a responsible cardholder, they may return your security deposit while you continue using your card. This effectively turns your secured card into an unsecured card.
Cons
It hurts to pay late. Your first late fee is waived, but making subsequent late or returned payments could result in fees as high as $41.
Time limit for balance transfers. If you want to take advantage of the intro balance transfer APR, your transfers must post to your account within the first months.
Annual fee
$0
Purchase APR
27.24% variable
Balance transfer APR
10.99% intro for the first 6 months (then 27.24% variable) Balance transfer fee of 3%
Welcome Offer
Discover will match cash back earned at the end of your first card year
While we’ve curated our top-choice rewards credit cards here, there are even more options to choose from. See more credit cards that can help you earn rewards on a variety of categories and compare your options to find a product that best suits your needs.
In addition to the card’s rewards program, here are a few big items to review when comparing rewards cards:
Signup bonus. Many rewards cards offer bonus points to new customers to help you kick start your rewards cache. Depending on the card, you can earn a signup bonus worth anywhere between $100 and $4,000.
Transfer opportunities. Big name rewards cards allow you to transfer your points to partner airline and hotel rewards programs. This flexibility is highly valuable when used correctly.
Perks. Rewards cards can come with a terrific selection of additional benefits such as lounge access, statement credits, purchase protection and more. These can prove valuable provided they suit your needs.
Annual fee. Many cards offer decent rewards for no annual fee. Expect to pay a bit more, however, if you’re looking to get the highest rewards rate, the most generous welcome offer or a host of premium perks.
Intro APR. Save money on interest when you use this card for large purchases, but make sure you can pay it off within the 0% intro period. Or, choose to transfer debt to a 0% transfer card to save on interest while paying off your debt.
When choosing a credit card, Alex Claro, VPN analyst at CreditDonkey, suggests considering the specific perks a card offers and determine which perks you’ll likely use most.
“Some credit cards provide a variety of incentives, including cash back, redeemable miles or points, and discounts on future purchases,” Claro tells Finder. “You can earn rewards on some or all of your purchases, and depending on the rewards program, you can redeem them once you’ve earned a specific amount. Travel and trip cancellation insurance, rental car insurance, extended warranty, and purchase and price protection are examples of credit card benefits that differ per credit card.”
How do rewards credit cards work?
With a rewards credit card, you get a percentage back of what you spend, typically in the form of cash back, points or miles. You can redeem this earned currency through your card provider’s rewards portal. These points and miles represent a certain value in cash which can range depending on the rewards program.
For cashback cards, rewards are usually expressed as a percentage. If a card offers 2% cash back on all purchases, for example, you’ll receive $2 back for every $100 you spend.
For other cards, rewards are usually expressed as a point or mile multiple. A card might offer 2x points on all purchases, for example, which means you’ll receive 2 points for every dollar you spend. To learn more about how rewards credit cards work, you can read our guides on how to compare rewards cards and how to earn and redeem rewards.
Earn rewards Purchases you make with your rewards card are automatically posted as points or cash back to your account. Depending on the type of rewards card, you might earn more rewards for spending in a certain category.
Redeem rewards Earn enough points and you can redeem them on products, gift cards and more. Depending on your card, you might be able to simply redeem your points as a statement credit. Learn more about various ways to redeem your credit card rewards.
Pros and cons of using a rewards credit card
Pros
Rewards. Choose a card that fits your lifestyle and earn rewards on purchases you would have made anyway.
Redeeming rewards. Redemption options vary from card to card. You could earn cash back, travel benefits, merchandise, gift cards and more.
Global acceptance. Most rewards cards are affiliated with Visa or Mastercard, accepted in over 200 countries and territories worldwide. While American Express and Discover credit cards aren’t as widely accepted internationally, they’re accepted in many locations around the world.
Extra perks. Many rewards cards offer extra perks, such as complimentary travel and rental car insurance. Compare your options to see which features work best with your lifestyle and spending habits.
Cons
Cost. You may have to pay an ongoing annual fee, or your card may have a higher APR than your basic, no-frills product.
Limitations. Your card provider might not let you earn more than a certain number of points in a calendar year, and your points may expire after a set time.
Temptation to spend. Rewards are always enticing. But if you aren’t careful, you could find yourself in snowballing debt. If you consistently carry a balance on your card, the interest could offset any rewards you earn.
When is a rewards credit card worth it?
A rewards credit card is worth it when you earn an appreciable amount of points or cash back through your spending such that it exceeds the annual fee of the card (if it has one). Even the simplest of rewards credit cards can offer value if you use it properly. To make a rewards card worthwhile, consider where you spend the most and get a card that offers more points in those areas.
A rewards card’s annual fee is the primary concern when evaluating whether the card is worth it. Some of the more luxurious rewards cards come with steep annual fees, so you’ll need to use enough perks and earn enough rewards to overcome that.
Case study: Is the Chase Sapphire Reserve® worth it?
The Chase Sapphire Reserve® sports an annual fee of $550. To make this card worth it, you’d have to take advantage of enough of the card’s perks and features to outweigh this $550 fee in value. Here are a few ways to create that value.
Perks
Value
Annual travel statement credit
$300
Two Priority Pass stays
$160
TSA PreCheck and Global Entry credit (every 4 years)
$100
One year of Lyft Pink membership (one time)
$240
Total
$800
Here you can see you can get $800 of value out of the card perks in one year before you even factor in the rewards you can earn with the card on your everyday spending. This outweighs the cost of the annual fee, so the rewards card is worth it if you take advantage of the perks.
You asked, we listened: Top five common questions
With so many airline credit cards to choose from, it’s only natural to have some questions. Here are the 5 most common questions we receive on the subject.
How much are credit card rewards points worth? The most common value of a rewards point is 1 cent per 1 point. However, this can vary greatly depending on the specific loyalty program and how you redeem your points.
Can I redeem my rewards points for cash back? In many cases, yes. Many rewards cards offer cash back statements as a redemption option for points.
What types of rewards cards are there? There are three kinds of rewards cards: cards that earn cashback, miles or points. Cashback cards are typically the easiest type of card to use, but cards that earn miles or points give you the opportunity to redeem for higher value.
Which type of rewards card should I get? This depends on how you use your card, and we have a full guide on how to pick a rewards card type. In general, pick a card that rewards you for your regular everyday spending.
How many rewards cards should I have? Many consumers find it useful to have a few rewards cards, usually one with strong earnings for each type of major purchase category. By pairing up rewards cards, you can create a strong earning strategy that boosts your rewards even further.
Bottom line
The best rewards card depends on your finances and the rewards you’re looking for. If none of our top picks are the right fit for you, compare more rewards cards to find one that is.
If you want peace of mind, this rating will give it to you. These products offer the best value and outcomes considering various product features, terms, conditions and price.
Well-balanced products that provide what you need, offering a healthy mix of competitive features at a good price. However, they're not quite the best in class.
Bottom line: You can find better, but these products still offer reasonable value and have the basics sorted.
These products may not offer much value in the long run, and there are better options available.
Kevin Chen is a personal finance expert and a former writer at Finder. His expertise has been featured in CNN, U.S. News and World Report, Lifehacker and CreditCards.com, among other top media. See full bio
Finder.com is an independent comparison platform and information service that aims to provide you with the tools you need to make better decisions. While we are independent, the offers that appear on this site are from companies from which Finder receives compensation. We may receive compensation from our partners for placement of their products or services. We may also receive compensation if you click on certain links posted on our site. While compensation arrangements may affect the order, position or placement of product information, it doesn't influence our assessment of those products. Please don't interpret the order in which products appear on our Site as any endorsement or recommendation from us. Finder compares a wide range of products, providers and services but we don't provide information on all available products, providers or services. Please appreciate that there may be other options available to you than the products, providers or services covered by our service.
We update our data regularly, but information can change between updates. Confirm details with the provider you're interested in before making a decision.
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