Finder's pick for rewards: Chase Freedom Unlimited®
Up to 5%
Cash back
- Up to 5% cashback and an impressive 1.5% base cashback rate
- 15 months of intro APR on purchases
- No annual fee
Finder is committed to editorial independence. While we receive compensation when you click links to partners, they do not influence our content.
Finder's pick for rewards: Chase Freedom Unlimited®
Up to 5%
Cash back
Use our table to compare rewards credit cards and find the right option for your needs.
Get our weekly newsletter for the latest in money news, credit card offers + more ways to save
To maximize your rewards, get a rewards card that offers more points in the category you spend most.
During the coronavirus pandemic, cardholders are traveling less, spending less on gas, hotels and flights. Credit card issuers have noticed and made some changes to their rewards programs. Here’s what’s changed so far:
Here are a few types of rewards credit cards that you might encounter.
Type of rewards credit card | Benefits and features | Guide |
---|---|---|
Cashback | Rewards earned with these cards are given as cash back. You can redeem this cash back as a statement credit or deposit into your bank account. | See guide |
Points | These cards earn points on certain purchases, such as restaurants, gas or streaming services. You can then redeem these points in a variety of ways, such as travel, gift cards or cash back. | See cards |
Travel | These cards earn points or miles on travel purchases, such as flights, cruises or hotel nights. These cards aren’t typically tied to a specific travel brand, letting you earn rewards regardless of how you travel. | See guide |
Airline | Earn bonus miles when you spend on flights and other eligible categories. You can redeem these miles on additional flights and other rewards. These cards often come with additional airline benefits. | See guide |
Hotel | Earn points when you spend on hotel stays and other eligible categories. Redeem these points on rewards nights and other rewards. Like airline cards, hotel cards often come with additional hotel perks. | See guide |
Retail | Offer benefits and rewards tied to a particular retailer. Often, you can only use these cards with the affiliated company. | See guide |
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.
Find a card that best suits your credit score, finances, spending and rewards preferences.
Purchases you make with your rewards card are automatically posted as points or cashback to your account. Depending on the type of rewards card, you might earn more rewards for spending in a certain category.
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 you’re 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.
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.
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.
Most credit card providers offer a rewards program of some kind. To choose the best rewards program for your needs, consider whether you want a simple rewards structure like cash back or whether you want rewards redemption flexibility.
Rewards program | Highlights | Program guide |
---|---|---|
Amex Membership Rewards |
| Amex rewards program guide |
Bank of America Rewards |
| Bank of America rewards program guide |
Capital One rewards |
| Capital One rewards program guide |
Chase Ultimate Rewards |
| Chase Ultimate Rewards guide |
Citi ThankYou Rewards |
| Citi ThankYou rewards program guide |
Discover rewards |
| Discover rewards guide |
With a good or excellent credit score getting a rewards credit card is easy. But to make the most of your rewards, and to stay out of debt, you’ll need to do some work.
Spending is the best way to earn points points. But some cards offer more points for certain categories, like gas, groceries, department stores, dining and travel. While other cards offer a flat reward for all purchases. Review your spending habits to find the right reards card for you.
Maximizing your credit card rewards takes dedication.You need multiple credit cards that each earn accelerated rewards on a particular category. Then use each card where it earns the most. Some of the best credit card combinations are the Chase trifecta and the Amex trifecta.
Another way of maximizing points is by earning the signup bonus and redeeming your points with the highest redemption value. In some cases — as with the Chase credit cards — you can transfer your points from one card to another and get up to 50% higher redemption value.
To get the highest points redemption value you need to use your points for the right reward. For example, travel credit cards often have a 1 cent value per point, but only if you redeem it toward travel purchases. This means, avoid gift cards, cash and merchandise and focus only on travel redemption.
Some credit cards let you transfer points to partner airlines and hotels. But this doesn’t necessarily mean that you’ll get better points value. To be sure you get the most for your points, compare the redemption value in points on your credit card and travel partners by dividing the cash price with the points price.
A hotel stay costs $200 when paid with cash, 30,000 with credit card points and 40,000 points with partner hotel rewards program.
$200 divided by 30,000 points = 0.006
$200 divided by 40,000 points = 0.005
This means you get a 0.6 cents per point value with your credit card points and 0.5 cents per point value with the partner hotel. The higher the number, the higher the redemption value. In this case, it makes more sense to redeem your points with your credit card program than to transfer them to the partner hotel rewards program.
Steven Dashiell
Credit Cards Writer
Hi, Steve here! Before I decided on the Chase Freedom, I had a ton of questions about how Chase Ultimate Rewards worked, whether this card could transfer points and just how this card differed from other issuers’ rewards cards. Here are some of the articles that answered my questions and helped me make my decision.
What is the best way to use credit card rewards?
There are two schools of thought here. First, from a purely economic perspective, the ‘best way’ to use a credit card with rewards is to use them for something you need in a way that maximizes the value of the points. Let’s say your credit card company offers a 20% bonus if you redeem them for a gift card to a retailer that you frequent – ‘the best’ way to use the rewards then, is to use them on products/ services that you need, which have the highest bonus (i.e., points that have the highest dollar value).
A second perspective is, rewards are a bonus and should be used for something that you really want but may not necessarily need. For example, perhaps you always wanted to take an all-inclusive trip to the Caribbean but could never justify the expense. Amassing enough points to cover the trip is a great way to justify it. This may not maximize the economic value of the points but it does provide tremendous value to the credit card holder and for some people is likely the ‘best-way’ to use credit card rewards.
What’s one question everyone should ask before getting a rewards card?
Paying an annual fee on a travel card is worth it only if you can reasonably make back the fee through its benefits and rewards or if it provides desirable optionality for redemption. Statement credits, discounts at retailers, and other card benefits can get you back to par. But the most important consideration is whether the card affords you the option to redeem for rewards that you can use.
Before applying, count how many ways you can redeem your miles or points with the airline or the credit card issuer itself. And pay attention to the quantity and quality of travel partners that are a part of the redemption network.
What are the most important features of a rewards card?
The feature itself is not as important as understanding how to earn and redeem those rewards to its fullest potential. Not only should the rewards match what you want to redeem for, but you should also be intimately familiar with the value and options provided within the rewards program. And if you understand how to arbitrage your rewards for maximum value, even better!
What is the best way to use credit card rewards?
My advice is to match the rewards to your interests. If you like to travel, take advantage of that. If you like going out to eat, then use your rewards for restaurants. The biggest tip is to align rewards with your interest! If you like to shop pick one that’s accepted where you want to shop. Trading points for gift cards is always a smart move.
The more you use your credit card, the more points you will get, but be careful you don’t spend too much and over budget. Always pay your balance in full each month, otherwise, even the rewards you earn may be eaten up by the interest payments. And don’t sit on those rewards. You may forget about them or the program may change and you could lose those points.
For the average consumer, is it better to get cash back or points on a rewards card?
It depends on what this average consumer wants. Earning cash is frequently an immediate next statement
reward. It is an instant deduction in payments that gives a feeling of actually getting something back from the credit card. Earning points may be beneficial if someone is aiming at a higher-priced award (e.g., airline tickets) or is looking for a discount for an expensive item. However, the reward is frequently delayed and may require a longer commitment to spending to earn this reward.
Why might credit rewards make you spend more?
Rewards are a great benefit of credit cards when used properly. However, there are several ways in which our brain can trick us into overspending.
For example, whenever a reward is framed as part of a challenge (like many introductory credit card offers), our brain triggers a gaming mentality, by which we don´t want to miss out on a prize: we pay a disproportionate amount of attention to the prize, compared to the cost incurred to earn it…
But the main risk is that this overspending may trigger the habit of revolving instead of paying the bill in full every month, in which case interest cost can break the bank.
How can consumers get the most value from their rewards credit cards?
It is tempting to sign up for multiple rewards credit cards given the rewards and the fact that many of them have very appealing sign-up offers. However, it is important to always keep in mind one’s own interests and behaviors in determining if signing up for and using a rewards credit card is worth it. For example, getting a Disney rewards credit card makes sense and will provide good value for someone who is a big fan of Disney and visits Disney parks frequently but would be of little value to someone who buys Disney products or visits Disney parks sporadically.
What is the ideal number of rewards cards to own?
The ideal number of reward cards to hold will vary by individual… It is very likely that most consumers can handle 2 to 3 reward cards and recall when they are best to use, but beyond that number would be very taxing for most. If two or three cards offer quarterly rotating benefits, then it would be difficult for a consumer to evaluate which card to select in the moment of checking out at the grocer, gas station, department store, or restaurant. If the cards also carry annual benefit maximums, then the decision becomes even more challenging.
There’s no shortage of rewards credit cards to choose from. Think about what rewards you want and how you typically spend, then compare a few cards before settling on the winner.
If you’re not sure you want a rewards card yet, consider other options like 0% APR cards.
Back to topKevin Joey Chen is a credit cards, banking and investments writer whose work and analysis have appeared on CNN, U.S. News & World Report, Business.com, Lifehacker and CreditCards.com. He's passionate about helping you get your finances in order by expertly navigating cutting-edge financial tools — including credit cards, apps and budgeting software.
Earn accelerated points on Ulta Beauty purchases.
Earn accelerated cash back on gas, groceries and utilities and save money on interest.
There are several ways to better manage your rewards, including automatic redemption.
Use it for reward redemptions and reimbursement for eligible purchases.
A no-annual-fee card with attractive rewards on IHG spending.
Cash reigns as the favored reward across cardholders, according to industry reports.
Earn up to 6% cash back on select entertainment spending.
Here are our latest calculations for loyalty point valuations.
Well-known among frequent flyers and point chasers, this controversial strategy involves taking advantage of bonus point offers on different credit cards.
I’m sure anyone would say yes to receiving freebies for their credit card purchases, but is a rewards credit card right for you? We look at the pros and cons of rewards cards to help you find out whether or not they are really worth your time and effort.
Our goal is to create the best possible product, and your thoughts, ideas and suggestions play a major role in helping us identify opportunities to improve.
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.com 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.com 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.