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Credit Cards

Best Rewards Credit Cards

Updated Mar 06, 2024   |   16-min read

Credit cards have become increasingly popular in recent decades. As more and more people turn to credit cards for everyday spending, more credit card issuers have entered the space, and they’re willing to compete for their customers.

With so many different rewards credit cards to choose from, deciding which is right for you can be difficult.

To help, you can compare our picks for the best rewards credit cards.

Best rewards credit cards:

Reviews of the best rewards credit cards

Below, you’ll find reviews of our picks for the best rewards credits cards.

Best for cash back: Chase Freedom Unlimited

LendEDU Rating: 4.9/5

Rewards rate: 1.5% – 5%

Annual fee: $0

Editor’s thoughts: This card offers a great introductory bonus, a high cash back rate on bonus categories and all other purchases, as well as no annual fee

The Chase Freedom Unlimited card is our top-rated option for earning cash back. New cardholders earn an additional 1.5% cash back on everything they purchase (up to $20,000 spent in the first year).

Here is the rewards rate breakdown after the first year or $20,000 spent:

  • 5% on purchases through Chase Travel
  • 3% on dining
  • 3% on drugstores
  • 1.5% on all other purchases

Pros

  • Cash back does not expire as long as your account is open

  • No limitations on how you redeem your cash back

  • The non-category-specific reward rate is higher than most cash back cards

  • A welcome bonus with a low spending requirement

  • Contactless payment

  • No annual fee

  • Added benefits from partners such as DoorDash and Lyft

Cons

  • 5% cash back on travel is only available on purchases through Chase Travel

To learn more about this card and what it offers, click here.


Best for rotating categories: Chase Freedom Flex

LendEDU Rating: 4.9/5

Rewards rate: 1% – 5%

Annual fee: $0

Editor’s thoughts: This card offers a great introductory bonus, a high cash back rate on bonus categories, and has no annual fee

The Chase Freedom Flex card is our top-rated card for earning cash back on rotating categories. New cardholders can earn $200 after spending $500 within the first three months of account opening.

Here is the rewards rate breakdown:

  • 5% on Chase travel purchased through Ultimate Rewards®
  • 5% on up to $1,500 on combined purchases in bonus categories each quarter you activate
  • 5% cash back on Lyft rides through March 2022
  • 3% on dining
  • 3% on drugstores
  • 1% on all other purchases

Pros

  • Cash back does not expire as long as your account is open

  • No limitations on how you redeem your cash back

  • A welcome bonus with a low spending requirement

  • No annual fee

  • Added benefits from partners such as DoorDash and Lyft

Cons

  • You have to activate the rewards rate on rotating categories each quarter

To learn more about this card and what it offers, click here.


Best for groceries and gas: Blue Cash Preferred® Card from American Express

LendEDU Rating: 4.8/5

Rewards rate: 1% – 6%

Annual fee: $0 year one; then $95

Editor’s thoughts: This card offers one of the larger welcome bonuses and has one of the highest cash back rates on bonus category spending

Rates and Fees. Terms Apply.

The Blue Cash Preferred® Card from American Express is our top-rated card for earning cash back on groceries and gas. New cardholders can earn a $250 statement credit after spending $3,000 in purchases within the first six months.

The annual fee of $95 shouldn’t deter those who find themselves paying monthly subscriptions for streaming services or who spend $6,000 a year at supermarkets. The value of that spending, plus spending on other bonus categories, will provide more than enough to cover the yearly cost of card ownership.

Here is the rewards rate breakdown:

  • 6% on groceries up to $6,000 per year in purchases at U.S. supermarkets
  • 6% on select U.S. streaming subscriptions
  • 3% on transit
  • 3% at U.S. gas stations
  • 1% on other purchases

Pros

  • Cash back does not expire as long as your account is open

  • A large welcome bonus

  • Stay in the know with exclusive access to ticket presales and members-only events

  • Contactless payment

Cons

  • Cash back can only be redeemed in the form of a statement credit

To learn more about this card and what it offers, click here.


Best for travel: American Express® Gold Card

LendEDU Rating: 4.8/5

Rewards rate: 1x – 4x

Annual fee: $250

Editor’s thoughts: This card offers a generous welcome bonus, has some of the highest bonus category rewards rates, and comes with a variety of added benefits

Rates and Fees. Terms Apply.

The American Express® Gold Card is our top-rated card for earning travel rewards. New cardholders can earn 60,000 Membership Rewards Points after spending $4,000 within the first six months of account opening.

The $250 annual fee can be covered each year as long as you use this card for dining, groceries, and booking flights. Additionally, there are a couple of credits you’ll receive as an added benefit for being a cardholder.

Here is the rewards rate breakdown:

  • 4x points on restaurants
  • 4x points on groceries at U.S. supermarkets on up to $25,000 in purchases per year
  • 3x points on flights booked directly with the airlines or on amextravel.com
  • 1x points on other purchases

Pros

  • One of the highest rewards rates for restaurant purchases

  • A generous welcome bonus with a manageable spending requirement

  • Up to $10 in statement credits monthly when using your card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, Milk Bar, and select Shake Shack locations. Enrollment required.

  • No foreign transaction fees

  • Several travel benefits for hotel stays, travel assistance, insurance, and more

  • Contactless payment

Cons

  • Cash back can only be redeemed in the form of a statement credit

  • No interest-free promotion on balance transfers

  • A large annual fee

To learn more about this card and what it offers, click here.


Best for travel flexibility: Chase Sapphire Preferred Card

LendEDU Rating: 4.7/5

Rewards rate: 1x – 5x

Annual fee: $95

Editor’s thoughts: This card is commonplace on most best-of lists and offers flexibility for how you earn and use rewards points

The Chase Sapphire Preferred Card is our top-rated travel card for travel flexibility. New cardholders can earn 60,000 bonus points after they spend $4,000 on purchases in the first three months from account opening. If those points are redeemed through Chase Ultimate Rewards®, that’s a $750 value.

If you are able to meet the spending requirements to earn the welcome bonus, the value from those points alone can cover your annual fee for several years. That doesn’t even include points you earn from everyday spending.

Here is the rewards rate breakdown:

  • 5x total points on travel purchased through Chase Ultimate Rewards®
  • 3x points on dining
  • 3x points on online grocery purchases (excluding Target, Walmart, or wholesale clubs)
  • 3x points on select streaming services
  • 2x points on all other travel
  • 1x point on all other purchases

Pros

  • A large welcome bonus

  • Up to $50 in statement credits each year for hotel stays purchased through Chase Ultimate Rewards®

  • Get 25% more value when you redeem points for travel through Chase Ultimate Rewards®

  • Partner benefits with DoorDash, Lyft, and Peloton

  • No foreign transaction fees

Cons

  • An annual fee

  • No introductory APR offers

To learn more about this card and what it offers, click here.


Best for students: Journey Student Rewards from Capital One

LendEDU Rating: 5/5

Rewards rate: 1% – 5%

Annual fee: $0

Editor’s thoughts: This card is an excellent way for students to start building credit while in school and earn rewards along the way

The Journey Student Credit Card from Capital One is our top-rated credit card for students. Most student cards avoid offering rewards to cardholders because they are considered riskier than individuals with established credit histories. Luckily, for the Journey Student Credit Card cardholders, earning cash back on all purchases is possible. Better yet, those who pay on time will receive a boost to a total of 1.25% back on all purchases.

Here is the rewards rate breakdown:

  • 1% on all purchases, boosted to 1.25% for each month that on-time payments are made
  • 5% on hotels and rental cars booked through Capital One Travel. Terms apply.

Pros

  • Gives cardholders the chance to boost their cash-back rate when making on-time payments

  • Unlimited access to your credit score and tools to help you monitor your credit profile with CreditWise from Capital One

  • Automatic credit line reviews

  • No annual fee

  • No foreign transaction fees

  • Contactless payment

Cons

  • No interest-free promotion on purchases or balance transfers

To learn more about this card and what it offers, click here.


Best for building credit: Petal 2 Visa Card

LendEDU Rating: 4.9/5

Rewards rate: 1% – 1.5%

Annual fee: $0

Editor’s thoughts: This card is designed to help cardholders build credit with the added benefit of earning cash back on purchases along the way

Petal credit cards are issued by WebBank, Member FDIC

The Petal 2 Visa Card is our top-rated credit card for building credit. If cardholders make on-time payments, the cash back reward can be increased from 1% up to 1.5% on all purchases. The credit limit will be set between $300 to $10,000.

Here is the rewards rate breakdown:

  • Up to 1.5% on all purchases when you pay on time
  • 2% to 10% at select merchants

Pros

  • Offers one of the highest cash-back opportunities for a credit-building credit card

  • No annual, international, or late payment fees

  • An increased cash back rate can be earned for spending with select merchants

  • Your spending and on-time payments are reported to all three major credit bureaus

  • The ability to freeze your card to protect your account

  • With the Petal app, you’ll be able to monitor your credit score for free

  • Manage popular subscriptions and learn how to cancel what you don’t use through the Petal app

Cons

  • No interest-free promotion on purchases or balance transfers

To learn more about this card and what it offers, click here.


Recap of the best rewards credit cards

CardRewards rateBest for
Chase Freedom Unlimited1.5% – 5%Overall cash back
Chase Freedom Flex1% – 5%Rotating categories
Blue Cash Preferred® Card from American Express1% – 6%Groceries and gas
American Express® Gold Card1x – 4xOverall travel
Chase Sapphire Preferred Card1x – 5xTravel flexibility
Journey Student RewardsUp to 5%Students
Petal 2 Visa Card1% – 1.5%Building credit

How we chose the best rewards credit cards

To find the best rewards credit cards, our Editorial Team analyzed the cards by introductory APR and bonus, rewards rates, redemption options, added benefits, annual fees, whether or not the issuer is nationally recognized, and more.

Learn more about our ratings and methodology here.

What you need to know about rewards credit cards

There are three broad categories of credit card rewards, including cash back, points, and bonus miles.

  • Cash-back rewards credit cards are often the easiest to understand. For each dollar you spend, you earn a percentage of the total amount spent as cash back. Cash back can be redeemed as a statement credit, as a direct deposit to a bank or brokerage account, or for merchandise.
  • Points reward credit cards work in a similar fashion, but you earn points for spending instead of cash back. For example, you may earn one point per dollar spent. Most points are redeemable for merchandise or gift cards available through the card issuer’s online store.
  • Rewards credit cards offering airline miles are ideal for the travel-focused spender. Miles are earned like points, and accrued miles balances may be used to offset the cost of travel-related purchases, including hotel stays and airfare. Miles often have no- or a reduced-cash value, so you’ll want to redeem them within travel loyalty programs or according to the best redemption options available. The number of miles earned per dollar spent varies for each card issuer.

Determining the value of rewards

Each credit card issuer designs its rewards program differently, and the value of rewards differs from one card to another. This makes it a challenge to compare credit card rewards programs. However, you can use a simple rule of thumb to calculate the value of your rewards: just consider how many points are required to make a $10 purchase. For most rewards credit cards, that number is 1,000 points, so each $1 you spend generates 100 rewards points.

The higher the number of points or miles it takes to make a $10 purchase, the less your rewards are worth. If a card requires 1,250 points to receive rewards worth $10, points aren’t as valuable. The opposite is also true: if it only takes 750 rewards points to make $10 purchase, your rewards are worth more.

Can you get one of the best rewards credit cards with bad credit?

Unfortunately, not everyone qualifies for the best credit cards. Credit cards that offer generous rewards typically require good or excellent credit.

Fortunately, there are options for rewards credit cards even if your credit score isn’t perfect. Some credit cards issuers even offer secured credit cards with rewards programs. These cards require a deposit, typically ranging from $100 up to $500, and your credit limit equals your deposited amount.

Understanding rotating rewards categories

Some rewards credit cards may have rotating rewards categories. Rotating rewards mean only certain purchases qualify for the best rewards rate and the categories for extra rewards change periodically.

For example, a credit card issuer may offer 5% rewards on gas station purchases for the first quarter of the year, then 5% rewards on grocery store purchases the next quarter.

Most issuers with these rotating rewards categories cap how much you can spend in each category to earn bonus rewards. For example, you may be limited to $1,500 in purchases that earn you extra rewards. Any amount over that threshold will earn the standard rewards rate.

Card issuers offering rotating rewards categories provide details in your credit card agreement about the maximum spending amounts, purchases that qualify for the extra rewards, and the number of extra points or miles that can be earned. In most cases, cardholders must sign up for the rotating categories each quarter to ensure they receive the bonus rewards offered.

Can you have too many rewards credit cards?

Several hundred rewards credit cards are available today, with more options added often. Because different cards reward different kinds of spending, it’s common for people to have more than one rewards credit card.

>> Read More: How many credit cards should you have?

For most people, having multiple credit cards is beneficial to maximize rewards they can earn for spending. However, it’s possible to have too many cards. If you’re using multiple rewards credit cards each month, you may find it challenging to keep up with on-time payments or manage spending responsibly.

Opening too many new cards in a short time can also negatively impact your credit, so consider these potential issues before applying for several rewards credit cards.

Rewards on cash advances

Most card issuers offer cash advances, either up to the full extent of their available credit line or as a percentage of available credit. Cash advances can be helpful in accessing cash quickly for major expenses that cannot be paid for with a swipe.

Cash can be transferred to a checking or savings account and withdrawn as needed when you take a cash advance. However, cash advances come with higher interest rates than purchase transactions on credit cards and you may be charged a one-time fee for taking a cash advance.

In addition to these downsides, credit card cash advances typically don’t earn rewards.

Rewards on balance transfers

Balance transfers can be a beneficial tool for many consumers. When you take a balance transfer, you can move an outstanding balance from one credit card to another. Often, you’ll pay a small fee to transfer the balance, which typically ranges from 1% to 5% of the amount transferred.

A balance transfer makes sense when you can transfer debt to a credit card charging a lower interest rate. Most balance transfer credit cards offer you 0% interest for a period of time – often six to 18 months – which can save you a fortune in interest.

While balance transfers are beneficial in reducing the total cost of borrowing during the 0% promotional period, cardholders don’t receive rewards on most balance transfers.

Using rewards to pay a bill

Credit card rewards can be redeemed for a variety of purposes. With many cash back credit cards, a statement credit is one option for redemption. This statement credit can reduce your outstanding balance due. This can be a good strategy for paying off debt. However, if the minimum payment due is less than the statement credit amount, payment is still required. And, some card issuers require minimum payments even if the statement credit is large enough to cover the required payment, so be sure to check with your card issuer.

Authorized users and earning rewards

Adding an authorized user to your rewards credit card can help you earn even more rewards over time.

Most rewards credit cards allow the primary cardholder to add an authorized user without that individual having to go through a full credit evaluation. And, most provide the same rewards for purchases made with the additional user’s credit card – although authorized users aren’t always entitled to all of the additional perks that cards can offer.

Minimum spending to earn rewards

Credit card issuers typically do not impose a spending minimum to earn rewards. However, there are times when minimum purchase amounts must be met to receive a bonus reward.

For example, credit card issuers often provide opportunities for new credit cardholders to earn significant sign-up rewards bonuses. To earn these extra rewards, cardholders must spend a minimum amount within a specified timeframe. For example, a new credit cardholder may have to spend $3,000 within the first three months of opening an account to earn 10,000 rewards points.

It’s also important to note that most cards only allow you to redeem rewards after you’ve accrued a certain amount of points or cash back.

Rewards and missing a payment

Missing a credit card payment can have serious negative consequences, including a lasting ding to your credit report. Some credit card issuers also require cardholders remain in good standing to continue to earn and redeem accumulated rewards.

Credit card companies have varied policies regarding how a late payment impacts rewards, but some will take away rewards points when an account is delinquent. However, most also allow rewards to be reinstated if you pay the amount due plus any late fees. There may also be a fee for reinstating rewards if the credit card issuer allows it.

Rewards and closing an account

Credit card rewards may be forfeited if you close an account, but only in certain circumstances.

For rewards, credit cards that offer miles or hotel loyalty program points, any rewards earned are generally transferred to your loyalty or frequent flyer account at the end of each statement period. Once rewards are in your account with the hotel or airline program, the points you earned are safe even if you close the account in the next billing cycle.

However, for cash back cards and some points rewards cards, closing an account may mean you lose any accumulated rewards at that time.

To ensure you don’t lose access to your rewards if you plan to close a credit card account, redeem the points beforehand.

What if rewards expire?

Some credit card issuers put an expiration date on rewards, but these policies vary significantly from one company to the next, and some cards offer rewards that never expire.

When rewards do expire, you usually have at least a year to use them. Unfortunately, once expired, there’s usually no way to get your lost rewards back.

Gifting credit card rewards

Gifting credit card rewards points can typically be accomplished in two ways: either by purchasing a gift card for another person through the card issuer’s site or by actually donating the points or miles to another person.

Not all cards allow you to gift rewards points, so it is necessary to review your card issuer’s policies before attempting to gift rewards to someone else. This strategy, however, is a great way to use rewards that are about to expire if you’re not planning to cash them in.

Limits on earning rewards

Some cards impose limits on the points you can earn, either for specific bonus categories or by billing cycle, or by year. When your card has a limit, no rewards points are available after the maximum earning threshold is reached. You’ll need to read your cardholder agreement to find out what limits, if any, apply to you.

Other rewards credit card resources