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Choosing the right rewards credit card can mean the difference between regretting your application and earning excellent perks. But there’s no single best rewards credit card for everyone. That means you have to do some research.
The best rewards credit cards are those that work with your spending habits, lifestyle and financial goals. Check out some great rewards cards below to find out more.
Credit Cards with Great Rewards in 2020
- Chase Sapphire Preferred Credit Card: Those that spend regularly on travel can rack up valuable rewards points quickly with this card. And redeeming those points through Chase’s program makes them even more valuable.
- TD Cash Credit Card: With no annual fee, a generous signup bonus, and competitive ongoing APR based on your creditworthiness, the TD Cash Credit Card is a great all-around rewards card.
- American Express® Gold Card: If you want a card that everyone will recognize when you pull it out of your wallet, the Amex Gold Card is the card for you.
Understanding the Different Types of Credit Card Rewards
Rewards credit cards typically come in three main types. The type that’s right for you depends on how you spend and what types of perks would benefit you most. Before you apply for a rewards credit card, think about which of the following would serve you best.
- Cash back cards. These cards let you earn cash back on your purchases. How much and how you earn rewards is different for each card, but it’s usually as a percent of how much you spend. You can get the cash back as a statement credit or, with some cards, cash it in for perks such as gift cards.
- Membership rewards cards. These cards let you earn membership points in a specific program. Typically, you earn points for every dollar you spend, and some cards offer opportunities to earn double, triple or even more points per dollar. Points can be redeemed for a variety of perks, including to cover the cost of travel or for gift cards.
- Travel rewards cards. Travel cards work similar to membership rewards, though you typically accrue points or miles in a hotel– or airline-specific program. You can then redeem those points for free nights in hotels or to cover airfare costs. In some cases, you can also transfer points to other programs or redeem them for gift cards or merchandise.
Chase Sapphire Preferred
Benefits. The Chase Sapphire Preferred card makes the list because it offers an amazing signup bonus: Earn 100,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That’s $1,250 when you redeem through Chase Ultimate Rewards®. You also earn 2X points on dining at restaurants including eligible delivery services, takeout and dining out and travel & 1 point per dollar spent on all other purchases worldwide. Redeeming your points through the Chase Ultimate Rewards program makes them more valuable.
Disadvantages. If you’re not a frequent traveler that spends regularly, you may not be able to maximize your rewards with this card. It also comes with a $95 annual fee and requires good to excellent credit.
TD Cash Credit Card
Benefits: The TD Cash Credit card is a great $0 annual fee card for simple rewards perks. You can earn $150 cash back when you spend $500 within 90 of account opening. And you’ll earn at least 1% cash back on all eligible purchases—2% cash back at grocery stores, 3% cash back on dining and 1% cash back on all other eligible purchases. There’s a 0% introductory APR on purchases for first 6 billing cycles after account opening. And the ongoing APR is 12.99%, 17.99% or 22.99% (Variable).
Disadvantages: This card, like most rewards cards, requires good to excellent credit. If you don’t eat out or shop for groceries, these cash back rewards are less lucrative than some other cards.
American Express® Gold Card
Benefits: Beyond just looking cool, the American Express® Gold Card offers some pretty great perks, especially for people who love to travel. You can Earn 4X Membership Rewards® Points at Restaurants, including takeout and delivery, and earn 4X Membership Rewards® points at U.S. supermarkets (on up to $25,000 per calendar year in purchases, then 1X). For those who love to travel, the 3X Membership Rewards® points on flights booked directly with airlines or on amextravel.com are a big bonus. Plus there are no foreign transaction fees and various other statement credits available for certain types of purchases. Terms apply. Click here for rates and fees
Disadvantages: The $250 annual fee may be too high for some people. The card requires good to excellent credit and the rewards may not be worth it if you don’t travel enough to take advantage of the best perks.
What Credit Cards Give the Best Rewards?
As you can see from the list above, there’s a lot of variety in rewards credit cards. So there’s no single best rewards credit card. It’s important to do the research and find the card that offers perks and rewards you can actually accrue and will actually use.
The first step in getting a rewards card so you can start earning and using these perks is understanding which ones you might qualify for. Begin with the Credit.com Credit Report Card to learn more about your creditworthiness. Then, pick the best rewards card for you and apply for it today.
Editorial disclosure: Reviews are as determined solely by Credit.com staff. Opinions expressed here are solely those of the reviewers and aren’t reviewed or approved by any advertiser. Information presented is accurate as of the date of the review, including information on card rates, rewards and fees. Check the issuer’s website for the most current information on each card listed.
Note: It’s important to remember that interest rates, fees and terms for credit cards, loans and other financial products frequently change. As a result, rates, fees and terms for credit cards, loans and other financial products cited in these articles may have changed since the date of publication. Please be sure to verify current rates, fees and terms with credit card issuers, banks or other financial institutions directly.
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