Best rewards credit cards of July 2024
“Verified by an expert” means that this article has been thoroughly reviewed and evaluated for accuracy.
“Verified by an expert” means that this article has been thoroughly reviewed and evaluated for accuracy.
BLUEPRINT
Updated 12:29 p.m. UTC June 13, 2024
Editorial Note: Blueprint may earn a commission from affiliate partner links featured here on our site. This commission does not influence our editors' opinions or evaluations. Please view our full advertiser disclosure policy.
What’s even more rewarding than buying something you want? Getting rewards back on that purchase. Rewards credit cards come in multiple flavors and the best credit card for you will depend on your spending patterns, if you want cash back vs. travel points and your tolerance for an annual fee. We’ve analyzed over 350 credit cards that reward you for your spending to create a ranking of the very best rewards credit cards of 2024.
our partner
Blueprint receives compensation from our partners for featured offers, which impacts how and where the placement is displayed.
Blue Cash Preferred® Card from American Express
Best rewards credit cards
- Chase Freedom Flex® *: Best credit card for rewards.
- Discover it® Cash Back: Best for welcome offer.
- American Express® Gold Card: Best for dining and entertainment.
- Chase Freedom Unlimited®: Best for no annual fee.
- Bank of America® Customized Cash Rewards credit card *: Best for unique spending categories.
- Wells Fargo Active Cash® Card: Best for flat-rate cash back.
- U.S. Bank Cash+® Visa Signature® Card *: Best for customized categories.
- Wells Fargo Autograph℠ Card: Best for versatile rewards with no annual fee.
- Blue Cash Preferred® Card from American Express: Best for U.S. supermarkets and U.S. gas stations.
Why trust our credit card experts
Our team of experts evaluates hundreds of credit cards and analyzes thousands of data points to help you find the best card for your situation. We use a data-driven methodology to determine each rating. Advertisers do not influence our editorial content. You can read more about our methodology below.
- 350 cards analyzed.
- 20+ data points analyzed.
- 5-step fact-checking process.
Best credit card for rewards
Chase Freedom Flex®
*The information for the Chase Freedom Flex® has been collected independently by Blueprint. The card details on this page have not been reviewed or provided by the card issuer.
Best for welcome offer
Discover it® Cash Back
Best for dining and entertainment
American Express® Gold Card
Best for no annual fee
Chase Freedom Unlimited®
Best for unique spending categories
Bank of America® Customized Cash Rewards credit card
*The information for the Bank of America® Customized Cash Rewards credit card has been collected independently by Blueprint. The card details on this page have not been reviewed or provided by the card issuer.
Best for flat-rate cash back
Wells Fargo Active Cash® Card
Best for customized categories
U.S. Bank Cash+® Visa Signature® Card
*The information for the U.S. Bank Cash+® Visa Signature® Card has been collected independently by Blueprint. The card details on this page have not been reviewed or provided by the card issuer.
Best for versatile rewards with no annual fee
Wells Fargo Autograph℠ Card
Best for U.S. supermarkets and U.S. gas stations
Blue Cash Preferred® Card from American Express
Compare the best credit cards for travel
Earn a $200 bonus after you spend $500 on purchases in your first 3 months from account opening,
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 60,000 Membership Rewards® points after you spend $6,000 on eligible purchases with your new Card within the first 6 months of Card Membership.
Earn an extra 1.5% on everything you buy (on up to $20,000 spent in the first year) — worth up to $300 cash back. That’s 6.5% on travel purchased through Chase Travel℠, 4.5% on dining and drugstores, and 3% on all other purchases.
$200 online cash rewards bonus after you make at least $1,000 in purchases in the first 90 days of account opening.
Earn a $200 cash rewards bonus after spending $500 in purchases in the first 3 months.
Earn a $200 rewards bonus after you spend $1,000 in eligible purchases within the first 90 days of account opening.
Earn 20,000 bonus points when you spend $1,000 in purchases in the first 3 months – that’s a $200 cash redemption value.
Earn a $250 statement credit after you spend $3,000 in eligible purchases on your new Card within the first 6 months.
The information for the Chase Freedom Flex® has been collected independently by Blueprint. The card details on this page have not been reviewed or provided by the card issuer.
Why it’s the best
The Chase Freedom Flex® * The information for the Chase Freedom Flex® has been collected independently by Blueprint. The card details on this page have not been reviewed or provided by the card issuer. offers powerful rewards-earning potential for anyone willing to make the effort of activating a new rotating category every quarter. Plus, while this is marketed as a cash-back card, rewards are earned as points with each point worth 1 cent. If you pair the Flex with a premium Chase Ultimate Rewards® card, such as the Chase Sapphire Preferred® Card, you can redeem points for travel in the issuer’s portal for more value or transfer them to travel partners.
Pros:
- Solid welcome offer.
- Intro APR on purchases and balance transfers.
- Extensive travel and purchase protections.
Cons:
- Rotating categories require tracking and enrollment.
- Requires a premium Ultimate Rewards card to maximize point value or transfer points.
- Charges foreign transaction fees.
Card details:
- Annual fee: $0.
- Rewards: Earn 5% cash back on up to $1,500 in categories that rotate quarterly (requires activation), 5% cash back on travel purchased through Chase Travel℠, 3% cash back on dining and drugstores and 1% cash back on all other purchases.
- Welcome bonus: Earn a $200 bonus after spending $500 on purchases in the first three months of account opening.
- Foreign transaction fee: 3% of each transaction in U.S. dollars.
Why it’s the best
The Discover it® Cash Back offers an unbeatable first-year welcome offer: Discover will automatically match all the cash back earned at the end of the first cardmember year. This means the sky’s the limit for what your first-year bonus could be. The card also comes with an introductory APR offer plus high rewards on quarterly rotating categories that typically feature common spending areas.
Pros:
- Discover will automatically match all the cash back earned at the end of the first cardmember year.
- Solid intro APR offers on both purchases and balance transfers.
- No annual fee.
Cons:
- Low base rewards rate.
- Spending cap on bonus categories.
- Limited cardholder perks.
Card details:
- Annual fee: $0.
- Rewards: Earn 5% cash back on purchases at different places each quarter up to $1,500 spent each quarter when activated and 1% cash back on all other purchases.
- Welcome bonus: Discover will automatically match all the cash back earned at the end of the first cardmember year.
- Foreign transaction fee: None.
Why it’s the best
The American Express® Gold Card (terms apply, rates & fees ) comes with a high annual fee, but foodies will salivate over an industry-leading rewards rate for eligible dining purchases, as well as solid returns on spending at U.S. supermarkets.
Plus, if you take full advantage of the up to $120 annual dining statement credit (enrollment required; Valid at participating partners such as The Cheesecake Factory, Milk Bar and select Shake Shack locations) and the up to $120 yearly in Uber Cash (for purchases in the U.S.; card must be added in Uber account to receive benefit), you’ve already almost offset the amount of the annual fee anyway.
Pros:
- High rewards rates on dining and at U.S. supermarkets.
- Statement credits for eligible dining and Uber expenses.
- Generous travel and purchase protections¹.
Cons:
- No intro APR offer.
- High annual fee.
- Statement credits limited to select merchants and enrollment required.
Card details:
- Annual fee: $250.
- Rewards: Earn 4 Membership Rewards points per $1 at restaurants, plus takeout and delivery in the U.S., 4 points per $1 at U.S. supermarkets (on up to $25,000 per calendar year in purchases, then 1 point), 3 points per $1 on flights booked directly with airlines or through American Express travel and 1 point per $1 on other eligible purchases.
- Welcome bonus: Earn 60,000 Membership Rewards points after spending $6,000 on eligible purchases in the first six months of card membership.
- Foreign transaction fee: None.
Why it’s the best
The Chase Freedom Unlimited® offers generous rewards without charging an annual fee. First, earn rewards for dining in any way you please, including eating in or taking it to go. This is in addition to strong rewards on drugstores and travel booked through Chase. The real secret sauce with this card, however, is that all other spending earns a higher-than-average rate, which means you’ll get elevated earnings no matter what you’re buying.
Pros:
- High rewards without an annual fee.
- Comes with an introductory APR offer.
- No minimum redemption amount required to cash in your earnings.
Cons:
- If you don’t spend much in the higher bonus categories, you might be better off with another card.
- There’s a balance transfer fee.
- The card carries a foreign transaction fee so it’s not a good travel companion.
Card details:
- Annual fee: $0.
- Rewards: Earn 5% cash back on travel purchased through Chase Travel℠, 3% cash back on eligible dining and drugstore purchases and 1.5% cash back on all other purchases.
- Welcome bonus: Earn 1.5% back on everything bought in the first year on up to $20,000 in spending, which is worth up to $300.
- Foreign transaction fee: 3% of each transaction in U.S. dollars.
The information for the Bank of America® Customized Cash Rewards credit card has been collected independently by Blueprint. The card details on this page have not been reviewed or provided by the card issuer.
Why it’s the best
The Bank of America® Customized Cash Rewards credit card * The information for the Bank of America® Customized Cash Rewards credit card has been collected independently by Blueprint. The card details on this page have not been reviewed or provided by the card issuer. allows you to choose the bonus category from a list of broad spending areas. You can change your category selection once each calendar month. If your spending varies from month-to-month, the adaptability of this card is key.
On top of offering flexibility, the bonus options include categories rarely found on rewards cards. For example, you can earn bonus rewards getting your fridge repaired one month and get the same rate on a fortune teller the following month, all using the same credit card.
Pros:
- Flexible bonus category you can change each calendar month with a huge list of eligible expenses.
- No annual fee.
- Generous intro APR period on both purchases and balance transfers.
Cons:
- There’s a quarterly cap on the highest rewards categories.
- Charges foreign transaction fees.
- Requires managing categories and enrolling to earn higher rewards rates.
Card details:
- Annual fee: $0.
- Rewards: Earn 3% cash back in the category of your choice, 2% cash back at grocery stores and wholesale clubs (on up to $2,500 in combined choice category/grocery store/wholesale club quarterly purchases) and 1% cash back on all other purchases.
- Welcome bonus: Earn a $200 cash rewards bonus after spending $1,000 on purchases in the first 90 days of account opening.
- Foreign transaction fee: 3%.
Why it’s the best
The Wells Fargo Active Cash® Card is as good as it gets when you want to earn uncomplicated cash rewards on your spending. The card earns 2% cash rewards on purchases across the board, so there are no categories or spending caps to keep track of. Plus, the card comes with no annual fee, an intro APR offer and cellphone protection against damage or theft — boons for anybody seeking an easy-to-use, easy-to-manage card.
Pros:
- High flat-rate cash rewards on spending.
- Easily attainable welcome offer.
- Decent intro APR offer for both purchases and balance transfers.
Cons:
- Has foreign currency conversion fees.
- No bonus categories.
- Limited cardholder perks beyond cellphone protection.
Card details:
- Annual fee: $0.
- Rewards: Earn 2% cash rewards on purchases.
- Welcome bonus: Earn a $200 cash rewards bonus after spending $500 in purchases in the first three months of account opening.
- Foreign transaction fee: 3%.
The information for the U.S. Bank Cash+® Visa Signature® Card has been collected independently by Blueprint. The card details on this page have not been reviewed or provided by the card issuer.
Why it’s the best
Rewards optimizers will find that the U.S. Bank Cash+® Visa Signature® Card * The information for the U.S. Bank Cash+® Visa Signature® Card has been collected independently by Blueprint. The card details on this page have not been reviewed or provided by the card issuer. has plenty to work with. You can earn an elevated rewards rate on two categories of your choice, up to the quarterly maximum. The categories you can choose from are expansive and include both everyday spending options as well as some uncommon options like electronic stores, furniture stores, select clothing stores and home utilities. Those are spending areas not often found as a bonus category on other rewards cards. Many competing cards offer a lower cap on their highest bonus category, but this card doesn’t.
Pros:
- Quarterly choice bonus category cap is $2,000, which is higher than similar cards.
- Wide range of categories are eligible for the highest rewards rate.
- There’s no annual fee.
Cons:
- You’ll have to know ahead of the quarter where you plan to spend the most.
- It can be cumbersome to track your spending to maximize your rewards.
- This card is likely best paired with one that earns high flat-rate rewards, since the ongoing rewards rate is minimal.
Card details:
- Annual fee: $0.
- Rewards: Earn 5% cash back on prepaid air, hotel and car reservations booked directly in the Rewards Center, 5% cash back on your first $2,000 in combined eligible purchases each quarter on two categories of choice, 2% cash back on one everyday category (like gas stations, grocery stores and restaurants) and 1% cash back on all other eligible purchases.
- Welcome bonus: Earn $200 rewards bonus after spending $1,000 on purchases in the first 90 days of account opening.
- Foreign transaction fee: 3% of each foreign transaction.
Why it’s the best
For a no-annual-fee card, the Wells Fargo Autograph℠ Card delivers a surprising amount of value with a rewards structure that rivals its pricier peers. Restaurants, travel, gas stations, transit, streaming services and phone plans all earn high rewards. Plus, the card offers cellphone protection and the ability to transfer rewards to travel transfer partners — making it a no-brainer for anyone who wants to earn generous rewards, without forking over an annual fee to do so.
Pros:
- High rewards without an annual fee.
- Can redeem your earnings for cash back or transfer to travel partners.
- No foreign currency conversion fees make it a great choice for spending abroad.
Cons:
- No elite travel perks, like baggage protection or trip delay coverage.
- The card offers a wide swath of elevated rewards categories, but they may not align with your spending habits.
- List of travel transfer partners is limited compared to other issuers.
Card details:
- Annual fee: $0.
- Rewards: Earn 3 points per $1 at restaurants, travel, gas stations, transit, popular streaming services and phone plans and 1 point per $1 on other purchases.
- Welcome bonus: Earn 20,000 points after spending $1,000 in purchases in the first three months of account opening.
- Foreign transaction fee: None.
Why it’s the best
For a reasonable annual fee, the Blue Cash Preferred® Card from American Express (terms apply, rates & fees ) earns an unmatched cash-back rewards rate at U.S. supermarkets (up to the annual spending cap) and on select U.S. streaming services. Plus, the higher-than-average cash-back rate you’ll earn at U.S. gas stations and on transit is the icing on the cake.
Pros:
- One of the highest cash-back rates available at U.S. supermarkets.
- Robust purchase protections¹.
- Statement credit for select streaming services (enrollment required; terms apply).
Cons:
- Excludes wholesale clubs and superstores from U.S. supermarket earnings.
- Charges an annual fee after the first year.
- Has foreign transaction fees.
Card details:
- Annual fee: $0 intro annual fee for the first year, then $95.
- Rewards: Earn 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 and 1% cash back on other purchases. Cash back is received in the form of Rewards Dollars that can be redeemed as a statement credit or for eligible items at Amazon.com checkout.
- Welcome bonus: Earn a $250 statement credit after spending $3,000 in eligible purchases in the first six months of card membership.
- Foreign transaction fee: 2.7% of each transaction after conversion to US dollars.
Methodology
Our credit cards team has spent hours analyzing hundreds of credit cards. We took a deep dive into the details of each product and that analysis, combined with our years of experience covering credit cards, informed us as we developed these credit card rankings. Factors we considered included:
- Estimated annual earnings: 50%.
- Flexibility of rewards earned on the card: 15%.
- Annual fees: 10%.
- Sign up bonus: 10%.
- Rewards value: 5%.
- Intro 0% APR offer: 3%.
- Potential credits: 1%.
- Cellphone insurance: 1%.
- Return protection: 1%.
- Purchase protection: 1%.
- Extended warranty: 1%.
- Foreign transaction fees: 1%.
- Membership/location requirements: 1%.
How to choose the best credit card for rewards
There are a number of important questions to ask yourself when picking a rewards card.
- What’s your credit score? The cards that offer the best rewards are generally reserved for people with good to excellent credit. Knowing your credit score will help you understand what cards you’re eligible for and whether it’s worth improving your credit before applying.
- What kind of rewards do you want? If you’re looking to transfer points and get the best deals on award travel with a variety of airline and hotel loyalty programs, go for a general travel card. But if you would rather get cold, hard cash in your checking account, a cash-back card will be a better fit.
- What categories do you spend most heavily in? It won’t make sense to get a card that rewards gas station spending if you’re hardly ever on the road, or one that rewards dining if you don’t eat out, for instance.
- What additional features would you use? Consider how you could make the most of any bonus features, such as statement credits, 0% intro APR offers, cellphone protection and extended warranties.
What is a rewards credit card?
With a rewards credit card, you earn rewards in the form of a percentage back on your spending each time you make a purchase. Some rewards cards earn cash back on spending, while others earn points or miles that you can redeem towards travel. What the rewards are called is not as important as the ways the issuer allows you to redeem them.
How do rewards credit cards work?
When you make a purchase with a rewards credit card, you’ll basically get a kickback for every dollar spent. This is generally expressed as a number of points or miles per dollar, which can range from 1 point to over 20 points depending on the card, or as a percentage of your purchase, such as 2% cash back.
Exactly how those rewards per dollar are calculated will depend on your card. Some credit cards have flat rates in certain categories year round, while others will rotate the highest earning categories each quarter or allow you to customize them based on your spending habits.
As you spend, you’ll continue accumulating rewards in your account. Many rewards credit cards also offer welcome bonuses once you meet a certain spending requirement in the first few months, and this can be a great way to give your rewards balance an early boost.
How you redeem your credit card rewards will depend on what specific card you have and the type of rewards. Some common redemption options include:
- Book travel through the issuer’s portal.
- Receive a statement credit on your account.
- Cover recent purchases.
- Transfer points to travel partners.
- Request direct deposit or check.
- Purchase gift cards.
- Shop online with select retailers.
Keep in mind that not all redemption options yield the same value. Generally speaking, booking travel through your issuer will offer the most value for points, while purchasing gift cards or shopping online with points will deliver the least.
Types of rewards credit cards
Here are the different types of rewards credit cards you’ll find on the market:
Cash-back credit cards
With a cash-back credit card, rewards are typically expressed as a percentage of what you spend on the card. For example, a card may earn 2% back on all purchases, or may earn an elevated rate on purchases in a specific category — like 5% back on gas station spending.
Many cash-back credit cards are available for no annual fee. Some common redemption options with cash-back rewards include a statement credit, bank deposit, check or gift cards.
Travel rewards credit cards
A travel rewards credit card typically earns points or miles and allows you to redeem your rewards for travel. In many cases, you’ll earn an elevated rate for purchases in specific categories, such as 3 points per $1 spent on restaurant dining and takeout. There are travel credit cards with no annual fee, but premium benefits come with a price tag to match.
Some travel cards let you transfer rewards to airline and hotel loyalty programs. You’ll also generally have the choice to book travel through the issuer’s portal — sometimes at a boosted value per point. Cobranded travel cards are tied to specific airlines or hotel chains. These are less flexible in terms of booking travel than cards with general rewards, but may provide benefits such as free checked bags or elite status, which can be useful if you are loyal to a brand.
Business rewards credit cards
A business rewards card can earn cash back or travel rewards and are designed for business owners, typically offering higher rewards on common business spending categories. In addition to rewards, business credit cards are useful for separating personal expenses from business ones, streamlining employee spending and accessing expense management tools.
You don’t necessarily need to run a big operation to qualify for a business card, as many side hustles and freelance employment make you eligible.
“Rewards credit cards have literally changed my life. Since I started actively collecting and redeeming points and miles, I’ve been able to take my family on trips I never thought would be possible. Some of the cobranded cards I hold come with automatic elite status, which means we’ve been upgraded to suites and gotten other luxury perks we never would have had access to otherwise.”
Robin Saks Frankel, Credit cards lead editor, USA TODAY Blueprint
Earning and redeeming rewards
How to earn rewards
Earning rewards with a rewards credit card is simple — just use your card to checkout in person or online. Using the right rewards card can earn you anywhere from 1% to 6% back on your spending.
Most rewards credit cards also offer welcome bonuses, where you can earn bonus cash back or points if you hit a spending target shortly after opening the account. For example, you might be able to earn a $200 bonus if you spend $1,000 on purchases in the first three months.
Depending on the specifics of your card, rewards may show up immediately after each purchase posts to the account or rewards may post all at once after a billing cycle ends.
How to redeem rewards
You can request reward redemptions in your online account. Common redemption options include statement credits, deposits into a bank account, paper checks and gift cards. Some credit cards also allow you to shop with points at participating online merchants, or to use your rewards to buy merchandise through the issuer.
With a travel card, you can use rewards to book travel via your issuer’s travel portal or transfer rewards to airline and hotel loyalty programs. If you have a cobranded airline or hotel credit card, you can book directly with that specific airline or hotel chain, or its alliance partners.
How much are credit card rewards worth?
This depends on the specific credit card you’re using, and the value you get for your rewards can even change depending on the redemption method.
Here’s an example: a Chase Ultimate Rewards point is worth 1 cent if redeemed for cash back. But it can be worth as much as 1.5 cents if redeemed through the Chase Travel℠ portal using the Chase Sapphire Reserve®. On the other hand, it’s worth only 0.8 cents if using Ultimate Rewards points to shop with Amazon or PayPal.
Similarly, points on your Bilt World Elite Mastercard® can be redeemed for travel in the Bilt portal at a value of 1.25 cents each, but if you use them for a statement credit, you’ll get just 0.55 cents each.
Tips for maximizing your credit card rewards
There are several things to keep in mind to extract maximum value from your credit card rewards.
- Don’t carry a balance. Incurring high credit card interest from carrying a balance will wipe out the value of any rewards you earn.
- Only pay an annual fee if the math checks out. A card with an annual fee is worth it if you get enough value from the rewards and benefits to offset the cost of the fee. But make sure to do the math so you’re not paying more than you’re getting.
- Use multiple rewards credit cards. Use specific cards for spending in certain categories to maximize rewards earned on each purchase. But only if you can carefully manage the payments and avoid incurring interest or late charges. You may even select cards that earn rewards in the same ecosystem, like American Express Membership Rewards® points.
- Be aware of any quarterly or annual spending caps. With some cards, the earning rate drops after you hit a quarterly or annual spending cap. For instance, if your card earns 5% cash back on up to $1,500 spent per quarter, then the earning rate drops to 1%, you may wish to have a backup card to put your spending on after you hit the cap.
- Select the most lucrative redemption options. A good rule of thumb is to only take redemptions where you get a value of 1 cent per point or higher. If you’re using a travel card that lets you transfer rewards to partners, this is often the best way to get outsized value for your rewards.
Transfer travel rewards for outsized value. For example, the Chase Sapphire Reserve, Chase Sapphire Preferred and the Bilt Card all let you transfer points to World of Hyatt. You may be able to then redeem points for a stay at a Hyatt property at a value of 2 or even 3 cents per point.
Pros and cons of rewards credit cards
While the prospect of scoring rewards on all your spending is enticing, there are still some potential drawbacks:
Pros
- Offset your everyday spending by earning rewards.
- Redeem for award travel to take vacations you wouldn’t otherwise take.
- Score a welcome bonus for hitting a spending target in the first few months.
- Enjoy perks like purchase protections, travel coverages or a 0% intro APR period.
Cons
- Typically require good to excellent credit to qualify.
- Often come with high regular APRs.
- May charge an annual fee.
Should you get a rewards credit card?
Treat plastic like it’s cash and only spend what you can pay in full each month — if you approach credit cards with this mindset, then a rewards credit card offers a unique opportunity to offset your living costs a bit. The right cash-back credit card could earn you anywhere from 1% to 6% back on purchases, while a travel card could help you swing amazing deals on flights or make hotel stays much more affordable than you previously thought possible.
However, if you tend to roll over a balance from month to month, a rewards card is likely not for you. They tend to have high APRs, meaning you’ll incur expensive interest charges for carrying a balance. Any value you’d get from the rewards will be quickly erased by what you pay in interest.
We don’t recommend carrying a balance on your credit card, but if you do, a card with a lengthy 0% introductory APR period can sometimes help alleviate the pain of interest charges. These cards are meant for people with good-to-excellent credit, and they charge no interest for introductory periods that may be as short as six months or can be up to 21 months.
Alternatives to rewards credit cards
Rewards credit cards are a great way to get a little something extra from your everyday spending, but they’re not for everyone. Consider these alternative credit cards if:
- You carry a balance from month to month. Interest rates on credit cards are vastly higher than rewards rate and interest charges will quickly devour any rewards you earn. You’ll likely be better off with a card that offers a 0% intro APR to give you more breathing room to pay down expenses over time.
- You have existing credit card debt. If you’re struggling to tackle an existing credit card balance, earning rewards will only be a drop in the bucket. Consider instead a balance transfer card to hold interest at bay, often for over a year, so you can make real progress on paying off your credit card debt.
- You’re new to credit. Most rewards cards require good to excellent credit to qualify, and you’re unlikely to be approved if you don’t have much credit history. For those still in school, your best bet might be a student credit card. Don’t fret if you’re no longer hitting the books — you can still get your foot in the door with a starter credit card.
Frequently asked questions (FAQs)
Rewards credit cards are typically aimed at consumers with good to excellent credit, meaning a FICO Score 670 or higher. If your score is poor or fair, consider working to improve your credit with a secured credit card — you’ll have to provide the issuer a security deposit in the amount of your desired credit limit. After demonstrating responsible spending and payment behavior with the secured card, you may eventually qualify for an unsecured rewards card.
It depends on your card. While some cards let you earn unlimited rewards, others have a quarterly or annual spending cap on purchases in certain categories. After you hit that cap, your rate in that category will drop to the base earning rate until the new quarter or new year comes around.
This also depends on your specific card. With some cards, your rewards won’t expire as long as the account is open. Other cards have rewards that expire on a rolling basis, so if you don’t redeem them within their “lifespan” you’ll lose them. This is more common with cobranded airline and hotel credit cards.
Some cards will credit you any outstanding rewards when you close your account, while other card accounts will consider your rewards forfeit.
The best credit card for rewards depends on factors such as your credit profile and spending habits. For many people, the Chase Freedom Flex offers powerful earning potential. But if you’re a college student with limited credit history, a card like the Discover it® Student Cash Back will be more accessible to you. Then again, if you’re a frequent traveler, you may value the flexibility offered by the Chase Sapphire Reserve or Chase Sapphire Preferred® Card with their airline and hotel partners.
If you want to keep things simple and don’t want to keep up with multiple payment dates, sticking with one rewards card is just fine. However, if you’re looking to maximize rewards, it can make sense to have two or more credit cards in your lineup. For example, someone who spends a lot on groceries and also makes a lot of Amazon purchases each month might do well to put the U.S. supermarket spending on the Amex Blue Cash Preferred and pay for the online shopping with the Amazon Prime Visa * The information for the Prime Visa has been collected independently by Blueprint. The card details on this page have not been reviewed or provided by the card issuer. .
This varies from card to card and depends on what redemption method you choose. A good rule of thumb is to only use redemption options where you’re getting a value of at least 1 cent per point.
For example, Chase Ultimate Rewards are worth 1 cent each when redeemed for cash back. So, when the Chase Sapphire Reserve advertises 50% more value per point for travel bookings made in the Chase Travel portal, you know you can get 1.5 cents per point.
No, rewards earned on credit card purchases are not subject to tax. This is true for cash back as well as points and miles. Basically, the IRS recognizes these rewards as purchase discounts or rebates rather than as income.
For rates and fees for the American Express® Gold Card please visit this page.
For rates and fees for the Blue Cash Preferred® Card from American Express please visit this page.
¹Eligibility and Benefit level varies by Card. Terms, Conditions and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by AMEX Assurance Company.
*The information for the Bank of America® Customized Cash Rewards credit card, Chase Freedom Flex®, Prime Visa and U.S. Bank Cash+® Visa Signature® Card has been collected independently by Blueprint. The card details on this page have not been reviewed or provided by the card issuer.
Blueprint is an independent publisher and comparison service, not an investment advisor. The information provided is for educational purposes only and we encourage you to seek personalized advice from qualified professionals regarding specific financial decisions. Past performance is not indicative of future results.
Blueprint has an advertiser disclosure policy. The opinions, analyses, reviews or recommendations expressed in this article are those of the Blueprint editorial staff alone. Blueprint adheres to strict editorial integrity standards. The information is accurate as of the publish date, but always check the provider’s website for the most current information.
