15 Best Rewards Credit Cards of December 2024
Updated: Nov 18, 2024+ 2 more+ 2 more
Rewards credit cards come in two main varieties. Cash-back cards pay you back a percentage of each transaction. Travel rewards cards give you points or miles that you can redeem for free flights, hotel stays and more. The right rewards credit card for you is all about how you spend money and what kind of rewards you value.
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NerdWallet's credit cards content, including ratings and recommendations, is overseen by a team of writers and editors who specialize in credit cards. Their work has appeared in The Associated Press, USA Today, The New York Times, MarketWatch, MSN, NBC's "Today," ABC's "Good Morning America" and many other national, regional and local media outlets. Each writer and editor follows NerdWallet's strict guidelines for editorial integrity.
Rewards credit cards come in two main varieties. Cash-back cards pay you back a percentage of each transaction. Travel rewards cards give you points or miles that you can redeem for free flights, hotel stays and more. The right rewards credit card for you is all about how you spend money and what kind of rewards you value.
Why trust NerdWallet
400+ credit cards reviewed by our team of experts (See our top picks)
80+ years of combined experience covering credit cards and personal finance
27,000+ hours spent researching and reviewing financial products in the last 12 months
Objective comprehensive ratings rubrics (Methodology)
NerdWallet's credit cards content, including ratings and recommendations, is overseen by a team of writers and editors who specialize in credit cards.
Their work has appeared in The Associated Press, USA Today,
The New York Times, MarketWatch, MSN, NBC's "Today," ABC's "Good Morning America"
and many other national, regional and local media outlets.
Each writer and editor follows NerdWallet's strict guidelines for editorial integrity.
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Rewards credit cards come in two main varieties. Cash-back cards pay you back a percentage of each transaction. Travel rewards cards give you points or miles that you can redeem for free flights, hotel stays and more. The right rewards credit card for you is all about how you spend money and what kind of rewards you value.
Why trust NerdWallet
400+ credit cards reviewed by our team of experts (See our top picks)
80+ years of combined experience covering credit cards and personal finance
27,000+ hours spent researching and reviewing financial products in the last 12 months
Objective comprehensive ratings rubrics (Methodology)
NerdWallet's credit cards content, including ratings and recommendations, is overseen by a team of writers and editors who specialize in credit cards. Their work has appeared in The Associated Press, USA Today, The New York Times, MarketWatch, MSN, NBC's "Today," ABC's "Good Morning America" and many other national, regional and local media outlets. Each writer and editor follows NerdWallet's strict guidelines for editorial integrity.
Rewards credit cards come in two main varieties. Cash-back cards pay you back a percentage of each transaction. Travel rewards cards give you points or miles that you can redeem for free flights, hotel stays and more. The right rewards credit card for you is all about how you spend money and what kind of rewards you value.
Why trust NerdWallet
400+ credit cards reviewed by our team of experts (See our top picks)
80+ years of combined experience covering credit cards and personal finance
27,000+ hours spent researching and reviewing financial products in the last 12 months
Objective comprehensive ratings rubrics (Methodology)
NerdWallet's credit cards content, including ratings and recommendations, is overseen by a team of writers and editors who specialize in credit cards. Their work has appeared in The Associated Press, USA Today, The New York Times, MarketWatch, MSN, NBC's "Today," ABC's "Good Morning America" and many other national, regional and local media outlets. Each writer and editor follows NerdWallet's strict guidelines for editorial integrity.
Why trust NerdWallet
400+ credit cards reviewed by our team of experts (See our top picks)
80+ years of combined experience covering credit cards and personal finance
27,000+ hours spent researching and reviewing financial products in the last 12 months
Objective comprehensive ratings rubrics (Methodology)
NerdWallet's credit cards content, including ratings and recommendations, is overseen by a team of writers and editors who specialize in credit cards. Their work has appeared in The Associated Press, USA Today, The New York Times, MarketWatch, MSN, NBC's "Today," ABC's "Good Morning America" and many other national, regional and local media outlets. Each writer and editor follows NerdWallet's strict guidelines for editorial integrity.
NerdWallet's Best Rewards Credit Cards of December 2024
Wells Fargo Active Cash® Card: Best for Flat-rate cash back
Citi Double Cash® Card: Best for Simplicity + high rate
Blue Cash Preferred® Card from American Express: Best for Families & households
Chase Freedom Unlimited®: Best for All-around cash back
Capital One Savor Cash Rewards Credit Card: Best for Going out & staying in
Chase Freedom Flex®: Best for Quarterly categories + cash bonus
Discover it® Cash Back: Best for Quarterly categories + matching bonus
Citi Custom Cash® Card: Best for Automatic 5% rewards
U.S. Bank Cash+® Visa Signature® Card: Best for Maximum customizability
Capital One Venture Rewards Credit Card: Best for Simple travel rewards
Chase Sapphire Preferred® Card: Best for Bonus travel rewards
Discover it® Student Chrome: Best for College students
Bilt World Elite Mastercard® Credit Card: Best for Rewards on rent payments
World of Hyatt Credit Card: Best for Hotel credit card
United℠ Explorer Card: Best for Airline card
Show SummaryHide Summary
Best Rewards Credit Cards From Our Partners
Credit card | NerdWallet rating | Annual fee | Rewards rate | Intro offer | Learn more |
---|---|---|---|---|---|
Apply Now on Chase's website on Chase's website | Best for Bonus travel rewards | $95 | 1x-5x | 60,000 points | Apply Now on Chase's website on Chase's website |
Apply Now on American Express' website on American Express' website | Best for Families & households | $0 intro annual fee for the first year, then $95. | 1%-6% | $250 | Apply Now on American Express' website on American Express' website |
Apply Now on Capital One's website on Capital One's website | Best for Simple travel rewards | $95 | 2x-5x | 75,000 miles | Apply Now on Capital One's website on Capital One's website |
Apply Now on Chase's website on Chase's website | Best for All-around cash back | $0 | 1.5%-5% | Up to $300 | Apply Now on Chase's website on Chase's website |
Apply Now on Wells Fargo's website on Wells Fargo's website | Best for Flat-rate cash back | $0 | 2% | $200 | Apply Now on Wells Fargo's website on Wells Fargo's website |
Apply Now on Capital One's website on Capital One's website | Best for Going out & staying in | $0 | 1%-8% | $250 | Apply Now on Capital One's website on Capital One's website |
Apply Now on Chase's website on Chase's website | Best for Quarterly categories + cash bonus | $0 | 1%-5% | $200 | Apply Now on Chase's website on Chase's website |
Apply Now on Citibank's application on Citibank's application | Best for Automatic 5% rewards | $0 | 1%-5% | $200 | Apply Now on Citibank's application on Citibank's application |
Apply Now on U.S. Bank's website on U.S. Bank's website | Best for Maximum customizability | $0 | 1%-5% | $200 | Apply Now on U.S. Bank's website on U.S. Bank's website |
Apply Now on Discover's website, on Discover's website, or call 800-347-0264 | Best for Quarterly categories + matching bonus | $0 | 1%-5% | Cashback Match™ | Apply Now on Discover's website, on Discover's website, or call 800-347-0264 |
Apply Now on Citibank's application on Citibank's application | Best for Simplicity + high rate | $0 | 1%-5% | $200 | Apply Now on Citibank's application on Citibank's application |
Apply Now on Chase's website on Chase's website | Best for Airline card | $0 intro for the first year, then $95 | 1x-2x | 60,000 miles | Apply Now on Chase's website on Chase's website |
Apply Now on Discover's website, on Discover's website, or call 800-347-0264 | Best for College students | $0 | 1%-2% | Cashback Match™ | Apply Now on Discover's website, on Discover's website, or call 800-347-0264 |
Apply Now on Bilt's website on Bilt's website | Best for Rewards on rent payments | None | 1X-3X | N/A | Apply Now on Bilt's website on Bilt's website |
Apply Now on Chase's website on Chase's website | Best for Hotel credit card | $95 | 1x-9x | Up to 60,000 Points | Apply Now on Chase's website on Chase's website |
Find the right credit card for you.
Whether you want to pay less interest or earn more rewards, the right card's out there. Just answer a few questions and we'll narrow the search for you.
Whether you want to pay less interest or earn more rewards, the right card's out there. Just answer a few questions and we'll narrow the search for you.
Our pick for: Simple travel rewards
Rewards breakdown
Card details
- Enjoy a one-time bonus of 75,000 miles once you spend $4,000 on purchases within 3 months from account opening, equal to $750 in travel
- Earn unlimited 2X miles on every purchase, every day
- Earn 5X miles on hotels, vacation rentals and rental cars booked through Capital One Travel, where you'll get Capital One's best prices on thousands of trip options
- Miles won't expire for the life of the account and there's no limit to how many you can earn
- Receive up to a $120 credit for Global Entry or TSA PreCheck®
- Use your miles to get reimbursed for any travel purchase—or redeem by booking a trip through Capital One Travel
- Enjoy a $50 experience credit and other premium benefits with every hotel and vacation rental booked from the Lifestyle Collection
- Transfer your miles to your choice of 15+ travel loyalty programs
- View Rates & Fees
NerdWallet's take
Easy-to-earn, easy-to-redeem rewards have rightly made the Capital One Venture Rewards Credit Card one of the best-loved travel credit cards on the market.
You earn 5 points per dollar spent on hotels and car rentals booked through Capital One Travel and 2 miles per dollar spent on all other purchases. Miles can be redeemed for credit on your statement against most travel expenses. You’re not restricted to any particular airline or hotel, and there’s no minimum amount required to redeem. Just book your own travel, then pay for it with rewards. The great sign-up bonus starts you off right, too.
If you're loyal to a particular airline or hotel chain, you may get more value from one of that brand's own cards. This card allows you to transfer miles to several airline frequent-flyer programs, but the options aren't very strong.
Our pick for: Families & households
Rewards breakdown
Card details
- Earn a $250 statement credit after you spend $3,000 in eligible purchases on your new Card within the first 6 months.
- $0 intro annual fee for the first year, then $95.
- Buy Now, Pay Later: Enjoy $0 intro plan fees when you use Plan It® to split up large purchases into monthly installments. Pay $0 intro plan fees on plans created during the first 12 months from the date of account opening. Plans created after that will have a monthly plan fee up to 1.33% of each eligible purchase amount moved into a plan based on the plan duration, the APR that would otherwise apply to the purchase, and other factors.
- Low Intro APR: 0% on purchases and balance transfers for 12 months from the date of account opening. After that, your APR will be a variable APR of 18.49% - 29.49%.
- 6% Cash Back at U.S. supermarkets on up to $6,000 per year in purchases (then 1%).
- 6% Cash Back on select U.S. streaming subscriptions.
- 3% Cash Back at U.S. gas stations.
- 3% Cash Back on transit (including taxis/rideshare, parking, tolls, trains, buses and more).
- 1% Cash Back on other purchases.
- Cash Back is received in the form of Reward Dollars that can be redeemed as a statement credit or at Amazon.com checkout.
- $84 Disney Bundle Credit: With your enrolled Blue Cash Preferred Card, spend $9.99 or more each month on an auto-renewing Disney Bundle subscription, to receive a monthly statement credit of $7. Valid only at Disney Plus.com, Hulu.com or Plus.espn.com in the U.S.
- Terms Apply.
- View Rates & Fees
NerdWallet's take
If groceries, gas and/or commuting are among your most common expenses, the Blue Cash Preferred® Card from American Express is a winner.
This card offers industry-leading rewards at U.S. supermarkets — 6% cash back on up to $6,000 in spending per year (then 1%) — supplemented by 3% cash back at U.S. gas stations and on transit (including such things as taxis, rideshares, buses, trains, tolls and parking). You also get 6% cash back on select U.S. streaming subscriptions. All other purchases earn 1% back. A welcome offer adds to the appeal.
This card has a high annual fee, although if you spend at least $31 a week at U.S. supermarkets, the cash back will offset it. Because it’s from American Express, you might have trouble using it in some places.
Our pick for: All-around cash back
Rewards breakdown
Card details
- INTRO OFFER: Earn an additional 1.5% cash back on everything you buy (on up to $20,000 spent in the first year) - worth up to $300 cash back!
- Enjoy 6.5% cash back on travel purchased through Chase Travel℠, our premier rewards program that lets you redeem rewards for cash back, travel, gift cards and more; 4.5% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery service, and 3% on all other purchases (on up to $20,000 spent in the first year).
- After your first year or $20,000 spent, enjoy 5% cash back on travel purchased through Chase Travel℠, 3% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery service, and unlimited 1.5% cash back on all other purchases.
- No minimum to redeem for cash back. You can choose to receive a statement credit or direct deposit into most U.S. checking and savings accounts. Cash Back rewards do not expire as long as your account is open!
- Enjoy 0% Intro APR for 15 months from account opening on purchases and balance transfers, then a variable APR of 19.99% - 28.74%.
- No annual fee – You won't have to pay an annual fee for all the great features that come with your Freedom Unlimited® card
- Keep tabs on your credit health, Chase Credit Journey helps you monitor your credit with free access to your latest score, alerts, and more.
- Member FDIC
NerdWallet's take
The Chase Freedom Unlimited® was already a fine card when it offered 1.5% cash back on all purchases. Now it's even better, with bonus rewards on travel booked through Chase, as well as at restaurants and drugstores. New cardholders get a great bonus offer, too.
This card earns 5% cash back on travel booked through Chase; 3% cash back at restaurants and drugstores; and 1.5% on other purchases. There's a great intro APR offer, and new cardholders who apply through NerdWallet can snag this bonus offer: Earn an additional 1.5% cash back on everything you buy (on up to $20,000 spent in the first year) - worth up to $300 cash back!. If you're a maximizer, you can transfer your rewards to one of Chase's Sapphire cards to boost their value by 25% or 50%.
While you can earn big rewards on travel bookings with this card, it also charges a 3% foreign transaction fee, so it's not a good companion abroad.
This card earns 5% cash back on quarterly categories that you activate (on up to $1,500 per quarter in category spending) and 1% on other purchases. The categories for October through December 2024 are especially enticing for holiday shoppers: Amazon.com and Target.
Our pick for: Quarterly categories + matching bonus
Rewards breakdown
Card details
- INTRO OFFER: Unlimited Cashback Match for all new cardmembers–only from Discover. Discover will automatically match all the cash back you’ve earned at the end of your first year! There’s no minimum spending or maximum rewards. You could turn $150 cash back into $300.
- Earn 5% cash back on everyday purchases at different places you shop each quarter like grocery stores, restaurants, gas stations, and more, up to the quarterly maximum when you activate. Plus, earn unlimited 1% cash back on all other purchases.
- Redeem your rewards for cash at any time.
- Apply and you could get a decision in as little as 60 seconds. No annual fee.
- Start shopping and earning rewards in minutes with our digital card, before your physical card arrives in the mail, if eligible.
- Discover could help you reduce exposure of your personal information online by helping you remove it from select people-search sites that could sell your data. It’s free, activate with the mobile app.
- Get a 0% intro APR for 15 months on purchases. Then 18.74% to 27.74% Standard Variable Purchase APR applies, based on credit worthiness.
- Terms and conditions apply.
- View Rates & Fees
NerdWallet's take
The bonus categories, $0 annual fee and new-cardmember bonus make this card an all-around winner. There's also a solid 0% intro APR offer: 0% intro APR for 15 months on purchases and balance transfers, and then the ongoing APR of 18.74%-27.74% Variable APR.
This card has broad bonus categories that you activate each quarter, allowing you to earn 5% cash back at such places as restaurants, grocery stores and gas stations. (The 5% rewards are capped at $1,500 in spending per quarter; after that, you get 1%. There’s also a distinctive sign-up bonus: INTRO OFFER: Unlimited Cashback Match for all new cardmembers – only from Discover. Discover will automatically match all the cash back you’ve earned at the end of your first year! There’s no minimum spending or maximum rewards. You could turn $150 cash back into $300.
Keeping track of the changing bonus categories, and remembering to opt in to them every three months, can be a hassle.
Our pick for: Going out & staying in
Rewards breakdown
Card details
- For a limited time, earn a $250 cash bonus once you spend $500 on purchases within the first 3 months from account opening
- Earn unlimited 3% cash back at grocery stores (excluding superstores like Walmart® and Target®), on dining, entertainment and popular streaming services, plus 1% on all other purchases
- Earn 8% cash back on Capital One Entertainment purchases
- Earn unlimited 5% cash back on hotels and rental cars booked through Capital One Travel, where you'll get Capital One's best prices on thousands of trip options. Terms apply
- No rotating categories or sign-ups needed to earn cash rewards; plus cash back won't expire for the life of the account and there's no limit to how much you can earn
- 0% intro APR on purchases and balance transfers for 15 months; 19.74% - 29.74% variable APR after that; balance transfer fee applies
- No foreign transaction fee
- No annual fee
- View Rates & Fees
NerdWallet's take
The $0-annual-fee Capital One Savor Cash Rewards Credit Card is a powerhouse card for foodies — whether they prefer to dine out or cook at home.
The card earns 8% cash back on Capital One Entertainment purchases and 3% cash back on dining, grocery stores, eligible streaming services and entertainment. (1% back on other purchases.) That's an impressive and hard-to-find combination of rewards categories. Plus, there's a rich sign-up bonus and an intro APR offer.
If your spending is more focused specifically on either dining OR groceries, then other cards with higher rewards rates in one of those categories may be a better fit.
Our pick for: Automatic 5% rewards
Rewards breakdown
Card details
- Earn $200 cash back after you spend $1,500 on purchases in the first 6 months of account opening. This bonus offer will be fulfilled as 20,000 ThankYou® Points, which can be redeemed for $200 cash back.
- 0% Intro APR on balance transfers and purchases for 15 months. After that, the variable APR will be 18.49% - 28.49%, based on your creditworthiness.
- Earn 5% cash back on purchases in your top eligible spend category each billing cycle, up to the first $500 spent, 1% cash back thereafter. Also, earn unlimited 1% cash back on all other purchases. Special Travel Offer: Earn an additional 4% cash back on hotels, car rentals, and attractions booked on Citi Travel℠ portal through 6/30/2026.
- No rotating bonus categories to sign up for – as your spending changes each billing cycle, your earn adjusts automatically when you spend in any of the eligible categories.
- No Annual Fee
- Citi will only issue one Citi Custom Cash® Card account per person.
- View Rates & Fees
NerdWallet's take
The Citi Custom Cash® Card offers a twist on existing 5%-back credit cards: You'll earn 5% back automatically based on your spending habits, not based on rotating quarterly bonus calendars. Terms apply. That makes it a low-maintenance — and potentially valuable — option.
This card earns 5% cash back on up to $500 spent in your highest-spend category per billing cycle (from a list of eligible options). And those options happen to be popular spending categories like restaurants, grocery stores, streaming services, select travel expenses and more. There's also a sign-up bonus and an intro APR period, all for an annual fee of $0.
The monthly spending cap on your 5% rate will limit the amount of cash back you can accrue. And other spending beyond your one eligible bonus category will earn just 1% back.
Our pick for: Flat-rate cash back
Rewards breakdown
Card details
- Select “Apply Now” to take advantage of this specific offer and learn more about product features, terms and conditions.
- Earn a $200 cash rewards bonus after spending $500 in purchases in the first 3 months.
- Earn unlimited 2% cash rewards on purchases.
- 0% intro APR for 12 months from account opening on purchases and qualifying balance transfers. 19.49%, 24.49%, or 29.49% Variable APR thereafter; balance transfers made within 120 days qualify for the intro rate and fee of 3% then a BT fee of up to 5%, min: $5.
- $0 annual fee.
- No categories to track or remember and cash rewards don’t expire as long as your account remains open.
- Find tickets to top sports and entertainment events, book travel, make dinner reservations and more with your complimentary 24/7 Visa Signature® Concierge.
- Up to $600 of cell phone protection against damage or theft. Subject to a $25 deductible.
- View Rates & Fees
NerdWallet's take
The Wells Fargo Active Cash® Card offers a combination of features that few other flat-rate cards can match, starting out with a rich and unlimited 2% cash back on every purchase.
Aside from the excellent flat cash-back rewards rate, new cardholders also are eligible for a generous sign-up bonus: Earn a $200 cash rewards bonus after spending $500 in purchases in the first 3 months. There's also an intro APR period.
There's a foreign transaction fee, common among cash-back credit cards. And you can find cards with richer rates on popular spending categories, if you're willing to put up with their more complex reward structures.
Our pick for: Simplicity + high rate
Rewards breakdown
Card details
- Earn $200 cash back after you spend $1,500 on purchases in the first 6 months of account opening. This bonus offer will be fulfilled as 20,000 ThankYou® Points, which can be redeemed for $200 cash back.
- Earn 2% on every purchase with unlimited 1% cash back when you buy, plus an additional 1% as you pay for those purchases. To earn cash back, pay at least the minimum due on time. Plus, a special travel offer, earn 5% total cash back on hotel, car rentals and attractions booked on the Citi Travel℠ portal through 12/31/25.
- Balance Transfer Only Offer: 0% intro APR on Balance Transfers for 18 months. After that, the variable APR will be 18.49% - 28.49%, based on your creditworthiness.
- Balance Transfers do not earn cash back. Intro APR does not apply to purchases.
- If you transfer a balance, interest will be charged on your purchases unless you pay your entire balance (including balance transfers) by the due date each month.
- There is an 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).
- View Rates & Fees
NerdWallet's take
With the Citi Double Cash® Card, earning cash back is simple and lucrative. If you're looking for a low-hassle cash back card to use daily, this is it.
The value in this card is pretty much all in its stellar rewards rate: 2% cash back on purchases — 1% when you buy something, and 1% when you pay it off.
Other cards offer higher cash back percentages in specific categories.
Our pick for: Quarterly categories + cash bonus
Rewards breakdown
Card details
- Earn a $200 Bonus after you spend $500 on purchases in your first 3 months from account opening
- 5% cash back on up to $1,500 in combined purchases in bonus categories each quarter you activate. Enjoy new 5% categories each quarter!
- 5% cash back on travel purchased through Chase Travel℠, our premier rewards program that lets you redeem rewards for cash back, travel, gift cards and more
- 3% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery service, and unlimited 1% cash back on all other purchases.
- No minimum to redeem for cash back. You can choose to receive a statement credit or direct deposit into most U.S. checking and savings accounts. Cash Back rewards do not expire as long as your account is open!
- 0% Intro APR for 15 months from account opening on purchases and balance transfers, then a variable APR of 19.99%-28.74%.
- No annual fee – You won't have to pay an annual fee for all the great features that come with your Freedom Flex® card
- Keep tabs on your credit health - Chase Credit Journey helps you monitor your credit with free access to your latest score, real-time alerts, and more.
- Member FDIC
NerdWallet's take
The Chase Freedom Flex® offers rewards as high as 5% in specific categories (some that change quarterly and some that don't), plus a generous bonus offer for new cardholders. If you're willing to put in a little work, it's one rich card.
This card earns 5% cash back in bonus categories that change every three months (on up to $1,500 per quarter in spending, then 1%); 5% on travel booked through Chase; 3% cash back at restaurants and drugstores; and 1% on other purchases. New cardholders can snag a strong sign-up bonus, too. Finally, if you have one of Chase's Sapphire cards, you can transfer your rewards to it for greater value and flexibility.
Activating and tracking the bonus categories can be a hassle. For an option that does away with the 5% categories in exchange for a higher ongoing rate on "everything else," check the Chase Freedom Unlimited®. And it charges a foreign transaction fee, so it's not the best choice for international travel.
Our pick for: Rewards on rent payments
Rewards breakdown
Card details
- $0 Annual Fee
- Earn 1x points on rent payments without the transaction fee, up to 100,000 points each calendar year
- Earns 3x points on dining
- Earn 2x points on travel
- Earn 1x points on other purchases
- Earn double points on the first of each month (excluding rent, up to 1,000 bonus points)
- Use the card 5 times each statement period to earn points
- Earn up to 5x Bilt points on Lyft rides when you link your Bilt account and pay with your Bilt card
- Point redemptions include airlines, hotels, future rent payments, credit card statement credits, toward a down payment on a home, etc
- Select “Apply Now” to learn more about the product features, terms, and conditions
- View Rates & Fees
NerdWallet's take
The no-annual-fee Bilt World Elite Mastercard® Credit Card stands out by offering credit card rewards on rent payments without incurring an additional fee. The ability to earn rewards on what for many people is their single biggest monthly expense makes this card worth a look for any renter.
This card earns 1 point per dollar spent on rent (up to 100,000 points annually). That might not seem like a jaw-dropping rate, but consider that in most cases, you either can't use a credit card for rent at all, or you can't do so without paying an extra fee that more than wipes out the value of your rewards. The card also earns 3X points at restaurants, 2X on travel, 5X on Lyft (when you link your accounts) and 1X elsewhere. Those rewards rates, except for rent, are doubled for purchases on the first day of every month ("rent day"). Among redemption options: credit toward rent or a home down payment, and travel, including options to transfer them to airline and hotel partners.
You must use the card at least five times during a statement period to earn most rewards, though you'll still earn 250 points on rent. There's no sign-up bonus. If the manager of your property requires that you pay rent by check rather than through an online portal, you can still earn rewards, but Bilt needs to send a check on your behalf.
Our pick for: Bonus travel rewards
Rewards breakdown
Card details
- Earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening.
- Enjoy benefits such as 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, $50 Annual Chase Travel Hotel Credit, plus more.
- Get 25% more value when you redeem for airfare, hotels, car rentals and cruises through Chase Travel℠. For example, 60,000 points are worth $750 toward travel.
- Count on Trip Cancellation/Interruption Insurance, Auto Rental Collision Damage Waiver, Lost Luggage Insurance and more.
- Get complimentary access to DashPass which unlocks $0 delivery fees and lower service fees for a minimum of one year when you activate by December 31, 2027.
- Member FDIC
NerdWallet's take
The Chase Sapphire Preferred® Card provides outstanding value and flexibility — including the option of transferring your rewards to popular airline and hotel loyalty programs — for a reasonable annual fee.
You earn 5 points per $1 spent on all travel purchased through Chase; 3 points per $1 spent on dining (including eligible delivery services and takeout), select streaming services, and online grocery purchases (not including Target, Walmart and wholesale clubs); 2 points per $1 spent on travel not booked through Chase; and 1 point per $1 spent on other purchases. Points are worth 1.25 cents apiece when you redeem them for travel booked through Chase, or you can transfer them to several other loyalty programs, including United, Southwest, Marriott and Hyatt. The card also comes with a superb sign-up bonus.
The rewards you earn on your spending are valuable in themselves, but if it's perks you're looking for — for example, free checked bags on flights, free hotel upgrades or automatic travel credits — look to a branded airline or hotel card or this card's premium sibling, the Chase Sapphire Reserve®.
Our pick for: Airline card
Rewards breakdown
Card details
- Limited-time Offer: Earn 60,000 bonus miles
- $0 introductory annual fee for the first year, then $95.
- 2x miles on United® purchases, dining, and hotel stays
- Enjoy priority boarding privileges and visit the United Club℠ with 2 one-time passes each year for your anniversary
- Free first checked bag - a savings of up to $160 per roundtrip. Terms Apply.
- Up to $120 Global Entry, TSA PreCheck® or NEXUS fee credit
- 25% back as a statement credit on purchases of food, beverages and Wi-Fi on board United-operated flights and on Club premium drinks when you pay with your Explorer Card
- Member FDIC
NerdWallet's take
The United℠ Explorer Card delivers terrific value, with several perks not offered by other airline cards in its price range. If you fly United regularly — or have the option to — it's a must.
You earn 2 miles per dollar on United purchases, at restaurants and on hotel stays; other purchases earn 1 mile per dollar. The first checked bag is free for you and a companion, and you get priority boarding. Each year, you receive two one-time passes to United Club airport lounges, and the card reimburses your application fee for TSA Precheck or Global Entry. You even get primary rental car insurance and a great sign-up bonus.
Other cards provide a free checked bag for more people traveling on your reservation. As with any branded airline card, you're limited in how you can redeem your rewards.
Our pick for: College students
Rewards breakdown
Card details
- INTRO OFFER: Unlimited Cashback Match for all new cardmembers – only from Discover. Discover will automatically match all the cash back you’ve earned at the end of your first year! So you could turn $50 cash back into $100. Or turn $100 cash back into $200. There’s no minimum spending or maximum rewards. Just a dollar-for-dollar match.
- Earn 2% cash back at Gas Stations and Restaurants on up to $1,000 in combined purchases each quarter, automatically. Plus earn unlimited 1% cash back on all other purchases.
- Redeem your rewards for cash at any time.
- No credit score required to apply.
- Discover could help you reduce exposure of your personal information online by helping you remove it from select people-search sites that could sell your data. It’s free, activate with the mobile app.
- No annual fee and build your credit with responsible use.
- 0% intro APR on purchases for 6 months, then the standard variable purchase APR of 17.74% - 26.74% applies.
- Terms and conditions apply.
- View Rates & Fees
NerdWallet's take
Discover offers two fine cards for college students. The Discover it® Student Chrome shines with its no-maintenance rewards structure and student-friendly bonus categories. You also get a free FICO score, low fees, and forgiveness for your first late payment. Plus, Discover says there's no FICO history requirement for this card.
You earn 2% cash back at restaurants and gas stations, on up to $1,000 in combined purchases per quarter, and 1% cash back on all other purchases. (Unlike with Discover's other student card, you don't have to "activate" your bonus rewards.) The annual fee is $0. There's also Discover's signature bonus for new cardholders.
Although there's no foreign transaction fee, Discover isn’t as widely accepted abroad as other cards. If you plan to travel internationally, make sure you have a backup plan.
Our pick for: Maximum customizability
Rewards breakdown
Card details
- $200 rewards bonus after spending $1,000 in eligible purchases within the first 90 days of account opening.
- 5% cash back on your first $2,000 in combined eligible purchases each quarter on two categories you choose.
- 5% cash back on prepaid air, hotel and car reservations booked directly in the Rewards Travel Center.
- 2% cash back on one everyday category like Gas Stations and EV Charging Stations, or Grocery Stores (excludes discount stores/supercenters and wholesale clubs).
- 1% cash back on all other eligible purchases.
- 0% Intro APR on purchases and balance transfers for the first 15 billing cycles. After that, a variable APR currently 18.74% - 28.99%.
- No Annual Fee
- Terms and conditions apply.
- View Rates & Fees
NerdWallet's take
The unique rewards system on the U.S. Bank Cash+® Visa Signature® Card makes it a potentially lucrative option for people who don't mind (or who even enjoy) actively managing their credit card accounts.
A rotating category card with a twist: You pick your bonus categories. You earn 5% cash back in two categories you choose, on up to $2,000 per quarter in combined spending (then 1%); unlimited 2% cash back in an "everyday" category of your choice; and 1% on all other non-bonus-category spending. There's a good sign-up bonus, and the annual fee is $0.
Rotating category cards involve work, and this one adds an extra layer of effort because you have to pick your categories each quarter. Forget to do so, and you'll earn only 1%. Further, the 5% categories tend to be more specialized than on comparable cards, so you might have trouble maxing out bonus rewards.
Our pick for: Hotel credit card
Rewards breakdown
Card details
- Earn up to 60,000 Bonus Points. Earn 30,000 Bonus Points after you spend $3,000 on purchases in your first 3 months from account opening. Plus, up to 30,000 More Bonus Points by earning 2 Bonus Points total per $1 spent in the first 6 months from account opening on purchases that normally earn 1 Bonus Point, on up to $15,000 spent.
- Enjoy complimentary World of Hyatt Discoverist status for as long as your account is open.
- Get 1 free night each year after your Cardmember anniversary at any Category 1-4 Hyatt hotel or resort
- Receive 5 tier qualifying night credits towards status after account opening, and each year after that for as long as your account is open
- Earn an extra free night at any Category 1-4 Hyatt hotel if you spend $15,000 in a calendar year
- Earn 2 qualifying night credits towards tier status every time you spend $5,000 on your card
- Earn up to 9 points total for Hyatt stays – 4 Bonus Points per $1 spent on qualified purchases at Hyatt hotels & up to 5 Base Points per $1 from Hyatt as a World of Hyatt member
- Earn 2 Bonus Points per $1 spent at restaurants, on airline tickets purchased directly from the airlines, on local transit and commuting and on fitness club and gym memberships
- Member FDIC
NerdWallet's take
Although Hyatt isn't as big as its competitors, the outstanding value delivered by World of Hyatt Credit Card makes it worth considering for anyone who spends a lot of time in hotels.
You earn 4 points per dollar spent with Hyatt, 2 points per dollar on an array of common spending categories (see the product details tab), and 1 point per dollar on other spending. Hyatt points are also worth significantly more than most other hotel points. You get a free night each anniversary year and can earn another with $15,000 a year in spending. There's a decent sign-up bonus, automatic elite status and more.
Hyatt's relatively small footprint — about 850 properties compared with 5,000 or more for other chains — means you won't have as many locations to choose from as you'd get with other hotel cards.
FULL LIST OF EDITORIAL PICKS: BEST REWARDS CREDIT CARDS
Before applying, confirm details on the issuer’s website.
Wells Fargo Active Cash® Card
Our pick for: Flat-rate cash back
Among flat-rate cash-back cards, you'll be hard-pressed to beat the Wells Fargo Active Cash® Card. It earns an unlimited 2% back on all purchases, which is excellent. But in addition, the card offers a rich sign-up bonus and a decent intro APR period on both purchases and balance transfers. That's an impressive, hard-to-find combination of features on a card with a $0 annual fee. Read our review.
Citi Double Cash® Card
Our pick for: Simplicity + high flat rate
Year after year, the Citi Double Cash® Card has been a top choice among flat-rate cash-back cards. You earn 2% cash back on every purchase — 1% when you buy something and 1% when you pay it off. There's no 0% intro period for purchases and no bonus categories, but the high rewards rate more than makes up for the lack of bells and whistles. Read our review.
Our pick for: Families & households
If your household spends a lot on groceries, gas, transit and streaming, the Blue Cash Preferred® Card from American Express is for you. The rewards it pays in those categories — particularly at U.S. supermarkets and on select U.S. streaming subscriptions — are among the richest of any card. There's a nice welcome offer for new cardholders and an introductory APR period, too. The generous benefits come at a cost, though: Unlike most cash-back cards, this one charges an annual fee. Terms apply. Read our review.
Our pick for: All-around cash back
The Chase Freedom Unlimited® was already a fine card when it offered 1.5% cash back on all purchases. Now it's even better, with bonus rewards on travel booked through Chase, as well as at restaurants and drugstores. On top of all that, new cardholders get a 0% introductory APR period and the opportunity to earn a sweet bonus. Read our review.
Capital One Savor Cash Rewards Credit Card
Our pick for: Going out & staying in
Some credit cards reward you well for going out, others for staying in. The Capital One Savor Cash Rewards Credit Card is the rare card that does both. It offers a terrific cash-back rate not only on dining and entertainment but also at grocery stores and on popular streaming services. Toss in a good bonus offer and intro APR period, and this card is a winner. (see rates and fees). Read our review.
Chase Freedom Flex®
Our pick for: Quarterly categories + cash bonus
The Chase Freedom Flex® offers bonus cash back in quarterly categories that you activate, as well as on travel booked through Chase, at restaurants and at drugstores. Category activation can be a hassle, but if your spending matches the categories — and for a lot of people, it will — you can rack up hundreds of dollars a year. There's a fantastic bonus offer for new cardholders and an intro APR offer, too. Read our review.
Discover it® Cash Back
Our pick for: Quarterly categories + matching bonus
The Discover it® Cash Back earns bonus cash back in quarterly categories that you activate. In past years, those categories have included common spending areas like grocery stores, restaurants, gas stations and specific major retailers. Category activation can be a hassle, but if your spending aligns with those categories (and for most households, it probably will), you can rake in serious rewards. You also get the issuer's signature "cash-back match" bonus in your first year. Read our review.
Citi Custom Cash® Card
Our pick for: Automatic 5% rewards
The Citi Custom Cash® Card offers a lot of value for a $0 annual fee: 5% back automatically in your eligible top spending category on up to $500 spent per billing cycle (1% back on other spending). The list of eligible 5% categories is varied and includes biggies like restaurants, grocery stores and more. And unlike with its competitors, there's no activation schedule or bonus calendar to keep track of. Read our review.
U.S. Bank Cash+® Visa Signature® Card
Our pick for: Maximum customizability rewards
If you don't mind putting some work into your rewards, check out the U.S. Bank Cash+® Visa Signature® Card. It might be the most customizable cash back card available. You pick which categories earn the most cash back — you get two 5% categories and a 2% category — and you can change those options every quarter. There's a good bonus offer for new cardholders, too. Read our review.
U.S. Bank Altitude® Go Visa Signature® Card
Our pick for: Flexible foodie rewards
The U.S. Bank Altitude® Go Visa Signature® Card is perhaps the most cost-effective restaurant card on the market, earning a whopping 4 points per dollar on dining purchases including takeout and delivery. You can find higher rates on dining, but not on cards with no annual fee. Read our review.
U.S. Bank Altitude® Connect Visa Signature® Card
Our pick for: Road trips
The U.S. Bank Altitude® Connect Visa Signature® Card is one of the most generous cards on the market if you're taking to the skies or the road, thanks to the quadruple points it earns on travel and purchases at gas stations and EV charging stations. It's also a solid card for everyday expenses like groceries, dining and streaming, all for a $0 annual fee. Read our review.
Capital One Venture Rewards Credit Card
Our pick for: Simple travel rewards
The Capital One Venture Rewards Credit Card is probably the best-known general-purpose travel credit card, thanks to its ubiquitous advertising. You earn 5 miles per dollar on hotels and car rentals booked through Capital One Travel and 2 miles per dollar on all other purchases. Miles can be redeemed at a value of 1 cent apiece for any travel purchase, without the blackout dates and other restrictions of branded hotel and airline cards. The card offers a great sign-up bonus and other worthwhile perks (see rates and fees). Read our review.
Chase Sapphire Preferred® Card
Our pick for: Bonus travel rewards
For a reasonable annual fee, the Chase Sapphire Preferred® Card earns bonus rewards (up to 5X) on travel, dining, select streaming services, and select online grocery purchases. Points are worth 25% more when you redeem them for travel booked through Chase, or you can transfer them to about a dozen airline and hotel partners. The sign-up bonus is stellar, too. Read our review.
Discover it® Student Chrome
Our pick for: College students
Simplicity makes the Discover it® Student Chrome a standout for students searching for their first credit card. You'll earn bonus cash back at restaurants and gas stations with no activation required and no rotating categories to keep track of. Read our review.
Bilt World Elite Mastercard® Credit Card
Our pick for: Rewards on rent payments
The Bilt World Elite Mastercard® Credit Card stands out by offering credit card rewards on rent payments without incurring an additional transaction fee. The ability to earn rewards on what for many people is their single biggest monthly expense makes this card worth a look for any renter. You also get bonus points on dining and travel when you make at least five transactions on the card each statement period, and redemption options include point transfers to partner hotel and loyalty programs. Read our review.
United℠ Explorer Card
Our pick for: Airline card
The United℠ Explorer Card earns bonus rewards not only on spending with United Airlines but also at restaurants and on eligible hotel stays. And the perks are outstanding for a basic airline card — a free checked bag, priority boarding, lounge passes and more. Read our review.
» Not a United frequent flyer? See our best airline cards for other options
World of Hyatt Credit Card
Our pick for: Hotel credit card
Hyatt isn't as big as its competitors, but World of Hyatt Credit Card is worth a look for anyone who spends a lot of time on the road. You can earn a lot of points even on non-Hyatt spending, and those points have a high value compared with rival programs. There's a great sign-up bonus, free nights, automatic elite status and more. Read our review.
Not a Hyatt customer? See our best hotel cards for other options.
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OTHER RESOURCES
UNDERSTANDING CASH-BACK REWARDS CARDS
How cash-back rewards work
With a cash-back credit card, you earn rewards equal to a percentage of the amount you spend. Cash-back rates range from 1% to 6% — that is, 1 cent to 6 cents per dollar spent — depending on the card you use and where you use it. Your monthly statement will show you the rewards you've earned to date; you can also track your rewards online.
Cash-back cards come in three main varieties: flat-rate, tiered and bonus-category.
Flat-rate cards
The simplest cash back cards earn the same percentage on every purchase, no matter where you use your card. Examples include:
The Capital One Quicksilver Cash Rewards Credit Card, which earns 1.5% cash back on purchases.
The Citi Double Cash® Card, which earns 2% on purchases — 1% for every dollar you spend and 1% for every dollar you pay back.
Tiered cards
These cards pay a higher rate in certain categories and 1% back on everything else. Every card has its own structure, designed to appeal to a specific type of consumer. For example:
The Blue Cash Preferred® Card from American Express is a good card for families. It earns 6% back on up to $6,000 in spending per year at U.S. supermarkets (1% after that); 6% back on select U.S. streaming services; 3% back at U.S. gas stations and on transit expenses like taxis, tolls, trains and buses; and 1% everywhere else (terms apply).
The Capital One Savor Cash Rewards Credit Card is a nice option for people who like a night out. It pays 3% cash back on dining and entertainment, as well as popular streaming services and grocery stores (excluding superstores like Walmart and Target). It pays 1% on all other purchases
Cards with rotating or customizable categories
Cards with bonus categories that change from time to time require more effort from you. You have to have to "opt in" or "activate" the bonus categories online. Some cards even let you (or make you, depending on your perspective) choose your own categories. Once you've opted in, spending in the bonus categories earns a higher rate, although the amount of spending eligible for the bonus rate is typically capped. Examples:
The Discover it® Cash Back pays 5% cash back in bonus categories that change every three months, on up to $1,500 in spending per quarter. (Category activation required.) All other spending earns 1%. Common quarterly categories include grocery stores, gas stations and restaurants.
The U.S. Bank Cash+® Visa Signature® Card lets you customize your categories. You earn 5% back on up to $2,000 in combined quarterly spending on two categories you choose from a pretty extensive list, plus 2% back in one “everyday” category you choose, such as gas stations or grocery stores. All other purchases earn 1% back. Category options are subject to change, and you must make your choices each quarter.
What determines your bonus rewards?
When a card pays bonus cash back in specific categories, you earn those higher rewards based on where you use your card, not what you buy. If the category is "grocery stores," for example, then anything you buy at a supermarket will count — not just groceries. Conversely, groceries bought somewhere else, such as at a drugstore, wouldn't qualify for grocery store rewards.
Each merchant that accepts credit cards is assigned a category code by credit card networks like Visa. The code identifies the type of merchant it is, and these codes are what trigger your bonus rewards.
How to redeem cash-back rewards
Despite the term "cash back," most people don't actually take their cash-back rewards in the form of, well, cash back. The easiest and most common thing to do is to apply your rewards to your account as a statement credit. This directly reduces the amount you owe. (If your balance is $80, for example, and you redeem $30 in cash back, your balance becomes $50.) You're not getting literal cash back from the issuer, but less cash will be coming out of your pocket to pay the bill, so the effect is the same.
Depending on the card, you could also get your rewards deposited directly into your bank account or receive them as a check in the mail. Some cards set a minimum amount to redeem, usually $20 or $25. Other cards have no minimum for redemption.
» MORE: For cash-back options beyond those featured on this page, see our best cash-back credit cards.
UNDERSTANDING TRAVEL REWARDS CARDS
How travel rewards work
By Sam Kemmis, NerdWallet point and miles expert
With a travel rewards credit card, you earn points or miles every time you use the card, but you can often earn more points per dollar in select categories. For example, some travel rewards cards, such as the Chase Sapphire Reserve®, offer bonus points on any travel spending, while others grant bonus points only when you use the card with a specific airline or hotel chain.
Not all points and miles earned on travel cards are the same:
General-purpose travel cards — including the Chase Sapphire Preferred® Card, the American Express® Gold Card and the Capital One Venture Rewards Credit Card — give you rewards that can be used like cash to pay for travel or that can be exchanged for points in airline or hotel loyalty programs.
Airline- and hotel-specific cards — such as the United℠ Explorer Card and the Hilton Honors American Express Card — give points and miles that can be used only with the brand on the card. (Although it's possible in some cases to transfer hotel points to airlines, we recommend against it because you get a poor value.)
What is a credit card point or mile worth?
How do we value points and miles? With the rewards earned on general travel cards, it's simple: They have a fixed value, usually between 1 and 1.5 cents per point, and you can spend them like cash. With airline miles and hotel points, finding the true value is more difficult. How much value you get depends on how you redeem them.
To better understand what miles are worth, NerdWallet researched the cash prices and reward-redemption values for hundreds of flights. Our results:
Keep in mind that the airline values are based on main cabin economy tickets and exclude premium cabin redemptions. See our valuations page for business class valuations and details about our methodology.
Our valuations are different from many others you may find. That’s because we looked at the average value of a point based on reasonable price searches that anyone can perform, not a maximized value that only travel rewards experts can expect to reach.
You should therefore use these values as a baseline for your own redemptions. If you can redeem your points for the values listed on our valuations page, you are doing well. Of course, if you are able to get higher value out of your miles, that’s even better.
How to redeem travel rewards
How you go about cashing in your travel rewards depends on the type of card you earned them on and what you want to do with them. In most cases, you'll be redeeming either through your card issuer or through the loyalty program tied to the card.
Redeeming rewards on general-purpose travel cards
With a general-purpose travel card, you can usually use your points to pay for travel ahead of time by going through your card issuer's booking portal, which operates much like Orbitz or Expedia. Many cards also allow you to turn your points into statement credit for travel expenses already incurred. With this option, you use your card to book travel however you want, and then wipe out the cost on your statement by applying your points to your balance. You'll also go through your issuer's rewards portal to transfer points to airline or hotel programs.
You might have other options for using your points on general travel cards, such as for cash back or gift cards, but be careful with these options. You'll often get a lower value per point for non-travel redemptions.
Redeeming airline or hotel rewards
When your rewards are airline miles or hotel points, you typically redeem them for free flights or stays by signing in to your account in the associated loyalty program, such as Delta SkyMiles, American AAdvantage, Marriott Bonvoy or Hilton Honors. Enter your desired booking dates, then choose to see the price expressed in miles or points. Depending on the program, there may be limits and restrictions. An airline may have "blackout dates" when you can't get a free flight, for example, or a hotel may make only a certain number of rooms available for reward redemptions on a first-come, first-served basis.
DETERMINING THE RIGHT KIND OF REWARDS CARD FOR YOU
There are so many options among rewards credit cards that picking the right one for you can be daunting. Make the process easier by approaching it systematically.
Rewards cards aren't for everyone
The first step is determining whether a rewards card is right for you at all. The best rewards credit cards require good to excellent credit — generally defined as a credit score of 690 or above — although there are a handful of options for fair or even bad credit.
A rewards card makes sense if you pay your bill in full every month. If you carry a balance from month to month, the interest you'll pay can quickly wipe out the value of your rewards; you'd be better off with a low-interest credit card, or a balance-transfer credit card that would allow you to pay down your debt over a defined period of time with 0% interest.
Look at both 'earn' and 'burn'
You'll want a rewards credit card that makes sense on both the "earn" side and the "burn" side. That means a card that rewards you for the kind of spending you do (earn) and that gives you rewards you can use (burn). For example, earning 5% cash back on home improvement stores might not do much for someone who lives in a small studio apartment. And if you never travel, airline miles are pretty much worthless.
The right choice also will depend on how much effort you’re willing to put into learning a rewards program and understanding a card’s built-in perks. Annual fees and sign-up bonuses can also sway your decision.
'Best' is a personal matter
Because of those factors, there’s no single “best” rewards card for everybody. Best might be a simple, flat-rate cash-back card, a premium travel card laden with benefits, or something in between. If you’re having trouble deciding on a type of rewards card, give special consideration to cash back. A NerdWallet study has shown cash-back credit cards are better for most people than travel cards.
HOW TO COMPARE REWARDS CARDS
We've discussed how to evaluate a credit card's rewards structure. But rewards rates aren't the only factor to consider when choosing a rewards credit card.
Annual fee
The credit cards with the richest rewards often charge annual fees. This is especially the case with travel credit cards. Typical annual fees range from around $90 to more than $500. Although some people are dead-set against paying them, annual fees can be worth it (or even a bargain) if the rewards and perks you earn outweigh the cost, and some cards waive the annual fee for the first year.
Most cash-back cards don't charge an annual fee. You can find good travel cards without an annual fee, although their rewards rates and sign-up bonuses tend to be small than those offered by their full-fee siblings.
Sign-up bonus
Also known as welcome offers, sign-up bonuses can give you a nice wad of cash or hundreds or thousands of points or miles for spending a certain amount in the first few months you have the card. But don't just look at the windfall you stand to receive. Pay attention also to the spending requirement. In general, the bigger the bonus, the more you'll have to spend to earn it. Avoid overspending to get a bonus.
0% intro APR period
You don’t normally want to carry a balance from month to month with rewards cards, but some of them offer 0% introductory APR periods on new purchases, balance transfers or both. A 0% period can be helpful if you have a big purchase coming up that you'd like a little time to pay off (which could also help you earn the sign-up bonus).
Foreign transaction fees
If you travel abroad, or plan to, look for a card that doesn't slap a surcharge on purchases made outside the U.S. Foreign transaction fees typically run about 3% of the purchase amount. A good travel card won't charge these fees, but many cash-back cards do.
Perks
Rewards are what you get for using a credit card. Perks are what you get simply for carrying the card — and depending on the card, perks can deliver even more value than rewards. Travel cards, in particular, are known for their perks. Examples include:
Automatic credit for travel expenses. Several general travel cards will reimburse hundreds of dollars a year in travel expenses. This might apply to any travel purchase, or to specific expenses such as airline fees or Uber rides. Learn more about travel credits.
Reimbursement for TSA Precheck and Global Entry. More and more cards are paying you back for the application fee for these trusted traveler programs, which help you get through airport security and customs more quickly. Learn more about trusted traveler programs, and see which cards offer reimbursement.
Airport lounge access. The biggest airlines (American, Delta, United) all offer high-end, high-annual-fee credit cards that get you into their airport lounges when you travel, and some lower-fee airline cards offer discounted or limited access. Several general travel cards get you into lounges in worldwide networks such as Priority Pass. American Express even has its own lounge network. Learn more about cards with lounge access.
Free checked bags and priority boarding. Exclusive to airline cards, these perks make travel a lot easier because you don't have to stuff everything into a carry-on to avoid a bag fee, and you don't have to fight for overhead-bin space because you're among the first to board the plane. The checked-bag perk alone can easily pay the annual fee on some cards. Learn more about free checked bags.
Free nights and other amenities. Credit cards issued by hotel chains offer perks that general travel cards can't match. Some of them give you one free night a year, which can make up the cost of the card immediately. Other benefits include free breakfast, free internet and early check-in or late check-out.
PROS AND CONS OF REWARDS CARDS
Pros
Rewards cards make purchases work harder for you. Earning rewards on every dollar you spend is like finding change in your couch cushions every day. Save up that change, and pretty soon you’re talking real money.
They allow you to travel more often, or more luxuriously, at a discount. Travel rewards credit cards can make it possible to sit in first class, upgrade to a suite or skip the long security line. Even if you don’t cash in points to travel like an Instagram influencer, they can help you travel for less money.
They can help protect you if your vacation falls apart. Many travel cards will compensate you if your bags get lost, your flight gets significantly delayed or canceled, or you have to cut your trip short because of a family emergency or illness. Many also offer coverage for your rental car. This all comes at no additional cost to you.
Cons
Rewards cards typically have higher APRs. That means credit card debt will cost you more over time. For a major purchase you’d like to pay back over time, look into a card with a 0% introductory APR offer. In general, use a rewards card only for purchases you’ll be able to pay in full when your statement comes.
Annual fees add up, especially if you carry multiple rewards cards.
They require a fair amount of mental energy. Some people relish the challenge of maximizing every purchase and piecing together a complicated, yet heavily subsidized, vacation itinerary. Others have zero interest in memorizing which card to use at gas stations, which to use at grocery stores, and which to use at restaurants. If you want rewards with little effort, a flat-rate cash back card or a travel card with a straightforward rewards program (no fancy transfers to airline partners or complicated redemptions) will make jumping into the pool of rewards cards warm and inviting.
MAKING THE MOST OF YOUR REWARDS CARD
Use the card for the bulk of your spending
Put all your ordinary expenses on the card, including monthly bills, to rack up rewards more quickly. That’s the power of a rewards card: getting extra value from your regular spending. Before applying for a card, make sure you’ll be able to meet the spending minimum required to earn the sign-up bonus. Be careful to never overspend just for rewards.
Pair cards to earn even more
Consider using complementary cards to extract maximum rewards for your spending. For example, one card might offer high rewards for restaurant spending, while an airline card gives you free checked bags and a third card gives you a nice rate on all other spending. If you have a card with a sign-up bonus, consolidate spending on that card until you earn that bonus.
Redeem rewards thoughtfully
Redeem your rewards in the way that delivers maximum value. With travel cards, you usually get a better redemption rate when you redeem for travel expenses than you would if you opted for cash back. Cash-back cards, meanwhile, may give you the highest redemption rate for statement credit, but a lower rate if you redeem points for gift cards. Some rewards can be transferred to travel partners, such as airlines and hotels, at a valuable rate. Learn what the options are and what your rewards are worth.
Use the freebies
A free checked bag can save you $60 on a roundtrip domestic flight. Access to airport lounges means free snacks and a more relaxing space in which to wait for your flight. Global Entry reimbursement is worth $100, and you’ll be spared having to remove your shoes to go through a metal detector at the airport. Take advantage of all the perks you’re offered, especially if you’re paying an annual fee.
OTHER CARDS TO CONSIDER
Rewards cards come in a variety of flavors to fit different consumer preferences and spending patterns. This roundup highlights the best cards in each particular category, but there may be a better card for you. Find other great cards in our specialized roundups:
• • •
NerdWallet's Kimberly Palmer contributed to this article.
To view rates and fees of the Blue Cash Preferred® Card from American Express, see this page.
Last updated on November 18, 2024
Methodology
NerdWallet's Credit Cards team selects the best rewards credit cards based on overall consumer value, as evidenced by star ratings, as well as their suitability for specific kinds of consumers, including both those seeking cash-back rewards and those interested in travel rewards. Factors in our evaluation include annual and other fees, rewards rates, the earning structure (for example, flat-rate rewards versus bonus categories), redemption options, bonus offers for new cardholders, introductory and ongoing APRs, and other noteworthy features such as airline or hotel perks or the ability to transfer points. Learn how NerdWallet rates credit cards.
Frequently asked questions
How do rewards credit cards work?
There are two main types of rewards credit cards: cash-back cards and points/miles cards:
• With a cash-back credit card, the card issuer "pays you back" a certain percentage of every purchase. For example, if your card earns 1.5% cash back on all purchases and you buy something for $100, you would earn $1.50 in cash back.
• With a points or miles card, the issuer gives you a certain number of rewards points (often called “miles” on airline and travel credit cards) for each dollar you spend. How you use the points or miles depends on the card. Common redemption options include travel, gift cards and merchandise.
With most rewards cards, you can see your accumulated earnings on your monthly statement or through your online account portal, and you can decide when and how to redeem them.
What can I do with credit card rewards?
What you can do with your credit card rewards depends on the type of rewards you’ve earned and the card’s rules:
• Cash-back rewards are typically redeemable for a credit on your statement, which reduces your outstanding balance. You may also be able to have your rewards deposited into a bank account or sent as a check.
• Points or miles are most commonly redeemed for travel, but you may also be able to redeem them for gift cards, merchandise or cash back. For cards that carry the name of an airline or hotel brand, you typically use your rewards for free travel or upgrades. Some bank-branded credit cards let you transfer their points into airline or hotel programs.
How many credit card rewards points can I earn?
In most cases, there is no limit to how many points or miles or how much cash back you can earn with a credit card. Some cards do limit how much spending is eligible for bonus rewards — that is, higher rewards offered in specific categories — but after you hit that limit, you still earn rewards at the base rate. For example, a card might offer 3% rewards on up to $6,000 a year in spending and then 1% after that.
How much are credit card rewards points worth?
How much each point or mile is worth depends on the card that issued it and how you redeem it. As a very general rule of thumb, it’s helpful to think of points and miles as worth an average of 1 cent apiece, although you can certainly get a higher (or lower) value.
In some programs, points are worth 1 cent apiece regardless of how you redeem. In others, you might get 1 cent per point when redeeming for travel and 0.5 cents when redeeming for gift cards or cash back. Airline miles could be worth anywhere from less than 1 cent to more than 5 cents apiece depending on how many miles you need to earn a free flight and how much that flight would have cost if you were paying cash. Hotel points are similarly variable in value. See our points and miles valuation page for NerdWallet’s current values for airline miles and hotel points.
What credit score do I need to get a rewards credit card?
The best rewards credit cards typically require good to excellent credit for approval. Good credit is generally defined as a credit score of 690 or better. However, there are some decent rewards-bearing cards for people with fair credit and even bad credit. Keep in mind that credit scores are only one factor in your application. Every issuer has its own criteria for approval.
Are credit card rewards taxable?
Typically, credit card rewards are not taxable. That's because the IRS generally considers credit card rewards to be discounts or rebates on purchases made with the card, not income.
Do credit card rewards expire?
Whether your credit card rewards expire depends on the card and the rewards program. In most cases, rewards do not expire as long as your account is active — meaning, you are using the card for purchases at least occasionally. Some programs require you to redeem your rewards within a certain time frame, but that's becoming more and more rare.
Is there a limit to the amount of rewards you can earn with a rewards credit card?
There is usually no limit to the rewards you can earn with a credit card. Some cards do limit how much spending is eligible for "bonus" rewards — that is, higher rewards for certain purchases — but after you hit that limit, you still earn rewards at the base rate. For example, a card might offer 2 points per dollar on up to $10,000 a year in spending and then 1 point per dollar after that. Or a card will offer 3% on groceries on up to $6,000 a year in spending, then 1% after that.
How do you redeem credit card rewards?
You can usually redeem rewards through your card issuer's website or app. In some cases, you may need to make a phone call, but that's rare.
Cash back can almost always be redeemed for a credit on your statement. So, for example, if your account has a balance of $200 and you redeem $30 in cash back, your balance would drop to $170. You may also be able to redeem cash back as a deposit into a bank account or even as a check mailed to you, but these options aren't always available. Some cards have a minimum redemption amount, like $20 or $25.
Airline miles and hotel points can be redeemed directly with the airline or hotel chain. Use these rewards to book flights or stays, or to pay for upgrades.
General-purpose credit card points — such as Chase Ultimate Rewards®, American Express Membership Rewards, Citi ThankYou Points, Bilt Points and so on — are typically the most flexible reward, although they can also be the most confusing. Depending on the program, you can redeem points to purchase travel through the card issuer's booking portal, redeem them for credit against travel spending or other purchases, transfer them to partner airline and hotel programs, redeem them as cash back, use them to pay for purchases at Amazon or other retailers, or something else.
Is it better to get cash back or travel rewards?
Whether cash back rewards or travel rewards are better for you depends entirely on your spending habits and your appetite for complexity. Cash back is the easiest kind of reward to manage — $1 is worth $1 no matter how you use it. So if you want the flexibility to use your rewards for anything without worrying about whether you're getting the "best deal," opt for cash back. With travel rewards, points sometimes have a fixed value (1 cent per point is common), but often the value you get from each point or mile often depends entirely on how you redeem it. You might get 1 cent worth of value per point, you might get a fraction of a cent, you might get multiple cents. Some people love the challenge of squeezing maximum value out of their rewards. See our points and miles valuation page for NerdWallet’s current assessment of how much these rewards should be worth. Learn more here: How to choose between cash back and travel rewards.