It can be overwhelming to choose the right rewards credit card because there are so many options to choose from. We analyzed some popular rewards credit cards based on an average American’s annual spending budget and compared their perks and drawbacks to find the best of the best cards.
You don’t have to be a big-time points collector to take advantage of rewards credit cards. With the right card and smart spending habits (paying your balance in full and on time every month), you could net over $2,000 in five years, even after factoring in the annual fee. That comes out to about $400-$500 per annum – even more if you score a welcome bonus – which can be put towards groceries, airline travel, or anything else that takes your fancy.
A rewards card can also provide additional perks, such as discounts at certain retailers, travel insurance, annual statement credits, and more.
Why you should read our analysis
We use data-driven methodologies to evaluate financial products and companies so that all are evaluated equally. Our editors are committed to providing unbiased ratings and information to you. Please see the following for more information on our editorial guidelines and credit card rating methodology.
Best rewards credit cards in the US
- Best rewards credit card: American Express® Gold Card
- Runner-up: Capital One Venture Rewards Credit Card (see rates and fees)
- Best for cash back: Chase Freedom Unlimited® Card
- Best for luxury travel: Chase Sapphire Reserve®
- Best for groceries: Blue Cash Preferred® Card from American Express
- Best for no annual fee: Citi® Double Cash Card
- Best for online shopping: Prime Visa
- Best for rotating bonus categories: Chase Freedom Flex℠
# American Express Gold Card
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Rewards
4X Membership Rewards® points at Restaurants (plus takeout and delivery in the U.S.) and at U.S. supermarkets (on up to $25,000 per calendar year in purchases, then 1X), 3X points on flights booked directly with airlines or on amextravel.com, 1X points on all other purchases
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Welcome bonus
Earn 60,000 Membership Rewards® points after you spend $4,000 on eligible purchases within the first 6 months of card membership
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Annual fee
$250
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Intro APR
Not applicable
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Regular APR
See Pay Over Time APR
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Balance transfer fee
N/A
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Foreign transaction fee
None
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Credit needed
Excellent/Good
Why do we choose it?
You might find the American Express Gold Card a great rewards card if you enjoy eating out or cooking at home. With this card, you earn 4X points for every dollar you spend at restaurants and 4X points at U.S. supermarkets (up to $25,000 per year, then 1X). Moreover, Amex travelers can earn 3X points on flights booked directly with airlines and through Amextravel.com.
The value of Membership Rewards points varies depending on how cardholders redeem them. You can use them in a variety of ways, from paying with points at checkout at retailers like Amazon to redeeming for gift cards or statement credits to booking travel. (See more on how points are calculated.)
Cardholders receive an annual dining credit of up to $120 ($10 a month) at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, Milk Bar, and select Shake Shack locations (enrollment required). Terms apply.
Taking advantage of the $120 dining credit can reduce the annual fee to effectively $130, and the rewards you earn can help further “pay” for the card.
Amex Offers allow Gold Card members to earn statement credits or Membership Rewards points at select retailers. These limited-time offers are location-based and additional terms apply. For example, an offer for Wine.com states: “Spend $50 or more, get $10 back.”
# Capital One Venture Rewards Credit Card
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Rewards
5 Miles per dollar on hotel and rental cars booked through Capital One Travel, 2X miles per dollar on every other purchase
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Welcome bonus
Earn 75,000 bonus miles once you spend $4,000 on purchases within 3 months from account opening
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Annual fee
$95
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Intro APR
N/A for purchases and balance transfers
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Regular APR
20.99% – 28.99% variable
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Balance transfer fee
0% at the regular transfer APR
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Foreign transaction fee
None
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Credit needed
Excellent/Good
Why do we choose it?
Earn 5X miles per dollar on hotels and rental cars booked through Capital One Travel. Earn 2X miles per dollar on all other purchases with the Capital One Venture Rewards Credit Card.
Despite Venture’s $95 annual fee, it’s lower than some other rewards cards, which charge up to $550.
Along with rewards, cardholders are entitled to a $100 credit each four years for Global Entry or TSA PreCheck applications. In addition to two complimentary Capital One Lounge visits per year, cardholders also have access to 100+ Plaza Premium Lounges through the Partner Lounge Network. If you are a frequent traveler, this is an excellent perk.
There are no foreign transaction fees with this card, and it also comes with 24-hour travel assistance and collision damage waivers for auto rentals.
# Chase Freedom Unlimited
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Rewards
Enjoy 5% cash back on travel purchased through Chase Ultimate Rewards®, 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 1.5% on all other purchases
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Welcome bonus
Earn an extra 1.5% on everything you buy (on up to $20,000 spent in the first year) – worth up to $300 cashback. That’s 6.5% on travel purchased through Chase Ultimate Rewards®, 4.5% on dining and drugstores, and 3% on all other purchases.
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Annual fee
$0
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Intro APR
0% for the first 15 months from account opening on purchases and balance transfers
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Regular APR
20.24% – 28.99% variable
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Balance transfer fee
Intro fee of either $5 or 3% of the amount of each transfer, whichever is greater, on transfers made within 60 days of account opening. After that, either $5 or 5% of the amount of each transfer, whichever is greater.
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Foreign transaction fee
3% of each transaction in U.S. dollars
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Credit needed
Excellent/Good
Why do we choose it?
Anyone looking to maximize cash back on everyday spending will love Chase Freedom Unlimited, our top cash-back card. With Chase Ultimate Rewards®, cardholders earn 5% cash back on travel, 3% on drugstores and dining out (including takeout), and 1.5% on all other purchases.
On up to $20,000 spent within the first year, cardholders earn an additional 1.5% on all categories if they take advantage of the generous welcome bonus.
You can take advantage of the 0% APR on new purchases and balance transfers for the first 15 months after opening the account (afterward, a variable APR of 20.24% – 28.99%). If you transfer funds within 60 days of opening the account, there is an intro balance transfer fee of $5 or 3% of the amount transferred. After that, the fee is $5 or 5% of the amount transferred, whichever is greater.
# Chase Sapphire Reserve
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Rewards
Earn 5X total points on flights and 10X total points on hotels and car rentals when you purchase travel through Chase Ultimate Rewards® immediately after the first $300 is spent on travel purchases annually. Earn 3X points on other travel and dining & 1 point per $1 spent on all other purchases plus, 10X points on Lyft rides through March 2025
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Welcome bonus
Earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That’s $900 toward travel when you redeem through Chase Ultimate Rewards®
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Annual fee
$550
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Intro APR
None
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Regular APR
22.24% – 29.24% variable
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Balance transfer fee
5%, minimum $5
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Foreign transaction fee
None
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Credit needed
Excellent
Why do we choose it?
The Chase Sapphire Reserve card is designed for frequent travelers, offering points on dining and travel worldwide as well as no foreign transaction fees.
For cash and gift cards, Chase rewards points are worth $.01. For cash and gift cards, 100 points equal $1 in redemption value.
If you redeem Chase Pay points to cover all or part of an Amazon purchase or a statement credit at participating Chase Pay merchants (Amazon, for example), each point is worth $.008, so 100 points equal $.80 in redemption value. There may be a difference in redemption values for other reward options.
Redeeming points for travel on Chase Ultimate Rewards increases their value by 50%. For example, 60,000 points are worth $900 toward airfare, hotels, car rentals, and cruise reservations. This is a great way to maximize the value of your rewards and makes this card stand out from the rest.
It’s even better to transfer Chase points to a Chase travel partner. For instance, you’ll get the best value by transferring your points to loyalty programs like World of Hyatt or Air Canada Aeroplan. It’s important to do your research before you transfer points because they can also lose value when transferred to certain travel partners, such as IHG One Rewards.
Despite its great rewards and benefits, this credit card comes with a hefty $550 annual fee. However, the annual credits can make up for the fee if you use them. In addition to the $300 travel credit, cardholders can redeem a $100 credit for Global Entry or TSA PreCheck application fees every four years. A Priority Pass Select membership, which provides access to more than 1,000 lounges in 500 cities worldwide, costs about $429.
The Chase Sapphire Preferred credit card might be a better choice if your concern is about its high annual fee. With Chase Ultimate Rewards, you can earn solid rewards rates on travel and dining, redeem your points for 25% more on qualifying travel purchases, and transfer points to the same partners for $95 per year.
# Blue Cash Preferred Card from American Express
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Rewards
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 and 1% cash back on other purchases. Cash Back is received in the form of Reward Dollars that can be redeemed as a statement credit.
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Welcome bonus
Earn a $250 statement credit after you spend $3,000 in purchases on your new card within the first 6 months.
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Annual fee
$0 intro annual fee for the first year, then $95.
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Intro APR
0% for 12 months on purchases from the date of account opening
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Regular APR
19.24% – 29.99% variable. Variable APRs will not exceed 29.99%.
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Balance transfer fee
Either $5 or 3% of the amount of each transfer, whichever is greater.
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Foreign transaction fee
2.7%
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Credit needed
Excellent/Good
Why do we choose it?
If you spend a lot at grocery stores and gas stations, the Blue Cash Preferred Card is a great choice. Its rewards program is tailored to these purchases and offers great cash-back rates.
Cut-the-cord cardholders can also earn cash back on select U.S. streaming services (6%). The list of eligible streaming subscriptions is longer than most, including Audible, Kindle Unlimited, and MLB.TV and more.
Traveler cardholders can earn 1% cash back on purchases related to travel, but they can also get travel perks, such as car rental insurance. Buying abroad incurs a 2.7% fee, so it isn’t a good choice for traveling outside the U.S.
Costco and Walmart and Target aren’t considered eligible grocery stores on Blue Cash Preferred. If you frequently shop at these retailers, you might want to check out their respective store credit cards.
# Prime Visa
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Rewards
5% cash back at Amazon.com and Whole Foods Market; 5% back on purchases made through Chase Travel; 2% back on local transit and commuting, including rideshare; 2% back at restaurants, gas stations and drugstores; 1% back on all other purchases
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Welcome bonus
Earn a $100 Amazon gift card instantly upon approval.
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Annual fee
$0 (but Prime membership is required)
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Intro APR
None
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Regular APR
19.24% to 27.24% variable
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Balance transfer fee
5%, $5 minimum
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Foreign transaction fee
None
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Credit needed
Excellent/Good
Why do we choose it?
With the Prime Visa, Prime members get 5% cash back at Amazon and Whole Foods on all purchases, plus a $100 Amazon.com gift card upon approval.
Along with the generous 5% cash back at those two retailers, the card also offers 2% back at restaurants, gas stations, and drugstores, as well as 1% back on all other purchases.
You must be an eligible Prime member to apply for this card ($139 for an annual membership and $14.99 for a monthly membership). You can still get 3% cash back at Amazon and Whole Foods if you don’t have a Prime membership with the Amazon Visa.
# Citi Double Cash Card
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Rewards
2% cash back: 1% on all eligible purchases and an additional 1% after you pay your credit card bill
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Welcome bonus
None
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Annual fee
$0
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Intro APR
0% for the first 18 months on balance transfers; N/A for purchases
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Regular APR
19.24% – 29.24% variable
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Balance transfer fee
For balance transfers completed within 4 months of account opening, an intro balance transfer fee of 3% of each transfer ($5 minimum) applies; after that, a balance transfer fee of 5% of each transfer ($5 minimum) applies
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Foreign transaction fee
3%
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Credit needed
Fair/Good/Excellent
Why do we choose it?
It’s a solid choice if you want to maximize your money without rotating reward categories or joining a credit union. Earn 1% cash back on all purchases and 1% when you pay off your bill with the Citi Double Cash Card.
There’s no annual fee and an easy-to-use cash-back program with no activation required and no limit on how many points you can earn. After earning $25 worth of points, Citi cardholders can redeem cash back for checks or statement credits. Plus, Citi will waive the first late fee for cardholders who forget to pay their card.
Citi Double Cash Card offers 0% APR on balance transfers initiated within four months of opening an account for the first 18 months. After that, the APR will range from 19.24% to 29.24%.
Along with cash-back rewards, Citi also offers a variety of special card member programs, including Citi Entertainment, which allows cardholders to purchase tickets for thousands of concerts and events in advance. Citi Identity Theft Solutions, a service that helps victims of identity theft, is also included with the card.
# Chase Freedom Flex
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Rewards
5% cash back on up to $1,500 in combined purchases in bonus categories each quarter you activate (then 1%), 5% cash back on travel booked through the Chase Ultimate Rewards®, 3% on drugstore purchases and on dining (including takeout and eligible delivery services), 1% cash back on all other purchases
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Welcome bonus
$200 cash back after you spend $500 on purchases in your first three months from account opening
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Annual fee
$0
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Intro APR
0% for the first 15 months from account opening on purchases and balance transfers
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Regular APR
20.24% – 28.99% variable
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Balance transfer fee
Intro fee of either $5 or 3% of the amount of each transfer, whichever is greater, on transfers made within 60 days of account opening. After that, either $5 or 5% of the amount of each transfer, whichever is greater.
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Foreign transaction fee
3%
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Credit needed
Excellent/Good
Why do we choose it?
If you’re looking to maximize cash-back rewards, consider a card with rotating bonus categories like the Chase Freedom Flex. Each quarter, this card offers 5% cash back in bonus categories on combined purchases up to $1,500, then 1%. The cash-back calendar changes every quarter.
You can also earn 5% cash back on travel booked through the Chase Ultimate Rewards portal, 3% cash back on dining at restaurants and drug stores, and 1% cash back on everything else.
The World Elite Mastercard offers a multitude of benefits, such as cell phone protection and Fandango credits. Plus, the Freedom Flex card comes with no annual fee and provides an appealing 0% intro APR for 15 months on new purchases and balance transfers (later 20.24-28.99% variable). For transfers made within 60 days of opening the account, there is either a $5 or 3% charge – whichever is greater – and afterward, it’s either $5 or 5%, whichever is more substantial.
Frequently Asked Questions:
How does a rewards credit card work?
When you use a rewards credit card, you can earn cash back, points, or miles when you make purchases with that card. These cards sometimes offer additional benefits, like travel protection and purchase protection.
What is the value of rewards credit cards?
Your spending habits and how you plan to use it will determine whether you should add a rewards credit card to your wallet.
Even the best rewards credit cards won’t be worth it for you if you carry a balance. High-interest rates negate the value of rewards.
Second, think about how complex you want your credit card strategy to be. A rewards card with bonus rewards or rotating categories may be a good choice for you if you find chasing the best value thrilling and don’t mind putting some thought into managing your cards. You may do better with a flat-rate rewards card that earns you the same rate on everything you buy if that sounds too complicated.
If you choose a card with bonus categories, make sure it fits your spending habits. Grocery shoppers may benefit from one that offers higher rewards at supermarkets, while those with lengthy commutes may want to opt for one that rewards gas purchases. Don’t forget to look into the perks and benefits offered too, as these may be especially advantageous if they’re included with cards that have annual fees.
Overall, a rewards credit card may be worth it if it matches your spending habits and offers perks you can easily take advantage of to offset the annual fee. Even if you don’t carry a balance and treat your credit card like a debit card, using a no-annual-fee cash-back card would reward you for spending that you were already going to do anyway.
Credit cards with rewards: how to choose one
The best rewards credit card is one that rewards you for your everyday purchases without forcing you to adjust your spending to maximize rewards.
When choosing a credit card, you should decide whether you are willing to pay an annual fee. Rewards cards can have annual fees of as much as $550, so it may be worthwhile, but not for everyone. Before signing up for a card, make sure you do the math to determine if it’s within your budget and if the benefits outweigh the annual fee.
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