How to Choose the Best Rewards Credit Cards (2024)

Nowadays, having a good rewards credit card is not a convenience, it’s a must. And yet, finding the one that fits like a glove amidst a myriad of choices can be quite a challenge. It all boils down to what matters most to you — maybe it’s racking up cash back on your weekly grocery runs, or perhaps you’re more about those sweet travel perks.

In this article, we’ll dive into the different types of rewards credit cards, find out what benefits each one brings to the table, and help you understand how to select the best rewards credit card to meet your particular needs. Let’s get the ball rolling!

Rewards Credit Card Types Explained

Owning top rewards credit cards is a great way to save money, as they typically have some form of cash back or bonus point system. The golden rule in selecting one is to have a clear understanding of your spending habits. A practical tip? Track all your monthly expenses. Then, you will know which rewards card will work wonders for your spendings. 

To reiterate, your goals and lifestyle determine the best rewards card for you. To make an informed choice, consider the following factors:

• Types of Reward Programs: Are you more enticed by cash back or points/miles? Understand the reward categories they cover.
• Fees: Look beyond annual fees. Consider fees for foreign transactions and other financial services you use frequently.
• Sign-up Bonuses: Pay attention to available welcome bonuses, as they can add significant value to the deal.
• Extra Perks: Think about additional benefits like insurance protection, which can also be a significant plus.

Let’s take a look at the main types of rewards credit cards. 

Cash-Back Credit Cards

You earn a percentage of your spending back. For instance, 1% cash back on a $150 purchase nets you $1.50. We recommend combining this one with other options for extra benefits. 

Chase Freedom Unlimited Card

One of the best credit cards for rewards if you are interested in cash back is the Chase Freedom Unlimited Card. With it, you will receive at least 1.5% cash back on all purchases. 

• No annual fee;
• 0% APR on purchases for the first 15 months;
• Can only be obtained by individuals with good credit scores.

Travel Credit Cards

In most cases, you collect points or miles to earn rewards, which are later redeemed for travel-related purchases. To maximize rewards, you can even slightly shift your travel preferences.

Capital One Venture Rewards Credit Card

Once you spend $4,000 on purchases within 3 months, this travel card gives you a welcome bonus of 75,000 Miles.

• Generous miles rewards program;
• Significant welcome bonus;
• No limit or expiration date on miles.

Grocery Credit Cards

Grocery credit cards work by rewarding you for your supermarket spending. To really milk the grocery rewards, think about adding another credit card to your wallet, especially those boasting a 0% annual fee.

Blue Cash Preferred Card

By using this credit card, you get an impressive 6% cash back at U.S. supermarkets if you spend up to $6,000 a year. The intro APR is 0% for 12 months.

• 6% cash back at the U.S. supermarkets;
• 3% cash back at gas stations;
• $95 annual fee after the first year. 

Gas Credit Cards

Last but not least, we have gas credit cards. As the name suggests, you will receive good cash back at gas stations, so it’s a great option to consider for active drivers.

Citi Rewards+® Card

The Citi Rewards+® Card offers automatic rounding up of points to the nearest 10 on all purchases, and this comes without any maximum limit.

• 20,000 points after spending $1,500 within the first three months;
• Points can be redeemed for gas, flights, hotels, and other travel expenses
• No annual fee.

Comparing and Applying for Best Credit Cards for Rewards

Whether you are searching for the best credit card for points or you prefer cash back, it is essential to compare your options before you apply. Some factors to consider when looking for credit cards with the best rewards include:

• Annual fee. A bonus card may have a high annual fee, so it’s worth deciding if you will be using it actively enough to justify the yearly payments. Similarly, a card with no annual fee might have higher than average service payments.
• Welcome bonuses. Some deals offer excellent sign-up and welcome bonuses. This is another factor to consider, as a good enough welcome bonus can even make up for an annual fee. Remember that there is usually a spending minimum to use a sign-up bonus. 
• Consider rewards and loyalty programs. Cash back is a more straightforward and common bonus system, but travel credit cards with rewards often use points. Before you get one, you should learn in detail what you can use those points for. 

It is also a good idea to use online resources to get more data. For example, you can use a side-by-side credit card comparison tool. 

Here are some tips to mind when applying for a rewards credit card:

• Consider improving your credit score beforehand. 
• Don’t apply for too many at once — this may affect your credit score.

Final Thought

To wrap it up, it’s clear that the definition of a credit card with the best rewards varies significantly from person to person, depending on an individual’s regular expenses and spending habits. For some, options that pile on travel rewards are a perfect match, while others might find more value in a card that offers hefty cashback on groceries. The key to finding your ideal offer is research. Remember, with all the options available, it pays to compare different choices — looking at their rewards structure, fees, perks, etc.

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