Best Rewards Credit Cards of 2024

How do rewards credit cards work?

After making an eligible purchase on a rewards credit card, you’ll receive a portion back in cash, points, or miles. These rewards will likely be redeemable through your account on the credit card issuer’s website or mobile app.

For example, let’s say you make a $200 purchase on an eligible hotel stay using the Capital One Venture Rewards Credit Card. As this card earns 5X miles on hotel stays booked through Capital One Travel, you’ll receive 1,000 miles (worth approximately $14).

Types of rewards credit cards

There are several types of reward cards to be aware of, but the two main types are travel and cash back:

Cash-back cards

Cash back credit cards let consumers earn a specific percentage of cash back on their spending, often between 1% and 6%.

• Flat-rate cash back cards offer rewards on all purchases at a set rate. For example, the Capital One Quicksilver Cash Rewards Credit Card earns 1.5% back on all purchases.
• Tiered rewards cards offer specific bonus categories, like groceries or dining. For example, the Blue Cash Preferred^® Card from American Express offers 6% cash back on up to $6,000 in spending per year at U.S. supermarkets (then 1%), 6% back on select U.S. streaming services, 3% back at U.S. gas stations and on transit expenses, and 1% on all other eligible purchases.

Travel credit cards

• General travel cards let you earn points or miles on everyday purchases and travel purchases. These rewards can be redeemed for cash back, gift cards, and travel. Typically, you’ll get the best redemption value for travel. Some of these cards allow you to transfer points to various travel partners which can offer even more value.
• Co-branded airline credit cards let users earn airline miles and enjoy frequent flyer perks with programs like Southwest, United, or Delta. Some of these cards offer top-of-the-line perks like airport lounge access, in-flight discounts, companion tickets, and more.
• Co-branded hotel cards let users earn points in specific hotel loyalty programs, such as Wyndham Rewards or the Marriott Bonvoy program. Some cards offer perks like elite status, annual night rewards, travel insurance, and more.

Pros and cons of rewards credit cards

Reasons to get a rewards credit card

Should you get a rewards card? That depends, but if the following statements sound like you, you may want to consider it:

• Building up a stash of points you can spend sounds appealing to you.
• You spend quite a bit on groceries, gas, dining, travel, or entertainment each month
• Travel is important to you, and you want a way to make it more affordable
• You have a large purchase coming up and you want to earn a large welcome bonus in return
• You’re responsible with your finances and manage your credit well.

These are just some reasons to pick up a rewards credit card, but there are plenty of others. Most people can benefit from a rewards credit card, as even 1% back on purchases can add up quickly.

Reasons to not get a rewards credit card

Although most people can benefit from a rewards credit card, they aren’t right for everyone.

• If the possibility of earning rewards will make you more susceptible to overspending, it may not be the smartest financial decision.
• If you have bad credit or are just starting your credit journey, you may not qualify for a top rewards credit card yet.

Earning credit card rewards: What to watch out for

Here are some of the potential problems to be aware of before you pick up a new rewards card:

• Transaction fees: Watch out for fees such as foreign transactions, balance transfers, and cash advance fees.
• Overspending: The potential for rewards causes many consumers to spend more than they planned, especially when earning a sign-up offer in a short time.
• Complicated rewards programs: Some programs make you jump through hoops before you can use your points or miles.
• High APRs: Most rewards cards charge a high regular APR when you carry a balance month-to-month.
• Pricey benefits you can’t use: Although many rewards cards offer valuable benefits, they aren’t worth it if you can’t utilize them. Some rewards cards have high annual fees, so ensure you can get your money’s worth before committing.

How to choose a rewards credit card

Choosing a rewards card can be tricky, but these factors can help narrow your choices.

Here are the main rewards card factors you should think about before you decide:

Type of rewards

Whether you want to earn cash back or flexible points like Chase Ultimate Rewards, you need to decide on this factor ahead of time. After all, the type of rewards you want the most can help you narrow down card options considerably.

Your spending habits

Also look for credit cards that offer bonus categories that make sense with your spending, whether you spend a lot at U.S. supermarkets or you splurge on travel purchases. Finally, look for cards that offer a generous earning rate on other purchases you make with your card.

▶︎ See our picks: Best credit cards for groceries and best credit cards for dining

Sign-up bonuses

Rewards credit cards typically offer generous welcome offers, allowing you to earn a pile of points, miles, or cash-back. To earn these bonuses, you need to spend a set amount within a short period. Make sure this bonus is achievable; don’t overspend just to earn it.

▶︎ See our picks: Best credit card welcome offers

Intro 0% APR periods

If you want a 0% interest period on purchases, balance transfers, or both for a limited time, this factor can also help you narrow down your choices.

▶︎ See our picks: Best 0% APR credit cards

Travel perks

If you spend a lot on travel purchases or traverse the globe fairly often, look for cards that offer airport lounge access, travel statement credits, and affordable travel insurance.

▶︎ See our picks: Best travel credit cards

Consumer protections

If consumer protections are important to you, look for cards that offer purchase protection against damage or theft and extended warranties on items that come with a manufacturer’s warranty.

Fees

Finally, make sure you’re only paying an annual fee if you’re getting something in return. Also, watch out for transaction fees that can eat away at your rewards haul.

▶︎ See our picks: Best no-annual-fee rewards credit cards and best cards with no foreign transaction fees

Making the most of your credit card rewards

After choosing your perfect rewards credit card, it’s time to ensure you maximize those rewards.

• Keep track of bonus categories. Especially if you have multiple credit cards, ensure you’re earning the most value on your expenses by making purchases that maximize those categories.
• Use your card to buy almost everything. Although some people prefer to use debit cards or cash to make purchases, they won’t earn any rewards. Even 1% back on a $3 purchase earns you something. However, some merchants charge an additional fee to process a credit card, so verify this before proceeding.
• Study the rewards program. Some credit card issuers offer additional value when redeeming rewards in a specific way. For example, 1 Capital One mile equals 0.5 cents when redeemed as cash back and can be worth over 1 cent when redeemed with select transfer partners.
• Use the other perks. If your credit card offers statement credits, travel insurance, Global Entry or TSA PreCheck, airport lounge access, etc., use them! These perks can be worth hundreds of dollars and often make up the bulk of a card’s value.

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^{For rates and fees of the Blue Cash Everyday® Card from American Express, please visit this page.}

^{For rates and fees of the Blue Cash Preferred® Card from American Express, please visit this page.}

^{For rates and fees of The Platinum Card® from American Express, please visit this page.}

^{For rates and fees of the Hilton Honors American Express Card, please visit this page.}

^{For rates and fees of the Delta SkyMiles® Gold American Express Card, please visit this page.}