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How many rewards credit cards do you have in your wallet? Do you know if you’re maximizing their rewards potential? According to a recent study by J.D. Power, only about one-third of credit card holders completely understand all of their card’s benefits. That’s not so surprising. Between different point values for different types of spending, special bonus categories that may change every month or be capped, and redemption values that may also fluctuate, it’s tough to know how to maximize a card’s benefits. But failing to do so means leaving benefits — and sometimes cold cash — on the table.
100,000 Membership Rewards® Points
$695
See Pay Over Time APR
Excellent/Good (700 - 749)
Up to 2X Reward Rate
Earn 2X points on dining including eligible delivery services, takeout and dining out and travel. Plus, earn 1 point perRead More
100,000 bonus points
$95
15.99%-22.99% Variable
Excellent/Good (700 - 749)
Offering a rare mix of high rewards rates and redemption flexibility, this card is a dream for frequent spenders on travel & dining - while charging a modest annual fee.
Up to 5% Reward Rate
Earn 5% cash back on everyday purchases at different places each quarter like Amazon.com, grocery stores, restaurants, gas stations andRead More
Cashback Match™
$0
11.99% - 22.99% Variable
Excellent/Good (700 - 749)
For moderate spenders who are willing to activate the 5% rotating categories and track the quarterly spending cap, this no-annual-fee card can deliver tidy rewards outside of its ongoing 1% earning rate.
Up to 5% Reward Rate
Earn 5% cash back on everyday purchases at different places each quarter like Amazon.com, grocery stores, restaurants, gas stations andRead More
Cashback Match™
$0
12.99% - 21.99% Variable
Fair/New to Credit
Here's an excellent way for students with average or limited credit scores to gain experience managing credit. No annual fee, no penalty APR, a "good grades" statement credit for up to 5 years for eligible students that maintain a GPA of 3.0 or higher, plus up to 5% cashback rewards in rotating categories(up to a quarterly cap with enrollment, 1% back on other purchases) earn this card an "A" in our book.
The Citi Double Cash card's simple cash back structure and long lasting APR offer make the Citi Double Cash a favorite among those who want to set it and forget it. It offers a solid cashback rate on all purchases, plus a long-lasting 0% intro APR offer, all without an annual fee.
In the secured credit world, the Discover it® Secured Credit Card stands above the competition. With an unlimited 1% cash back rate on all purchases, plus 2% cash back at gas stations and restaurants on up to $1,000 in combined purchases each quarter, no penalty APR and no annual fee, we love this card for those who need to rebuild their credit. The matching cash back reward at the end of your first year is a sweet bonus.
Up to 2X Reward Rate
Earn 2X AAdvantage® miles for every $1 spent on eligible American Airlines purchases; Earn 1X AAdvantage® miles on other purchases
50,000 miles
$450
15.99% - 24.99% Variable APR on purchases and balance transfers
Excellent, Good (700 - 749)
For the AA frequent flier who will use the complimentary Admirals Club lounge access, this alone more than offsets the annual fee. Considering that all authorized cardholders are eligible, this can be an incredible value. Extra perks such as VIP check-in, priority boarding, concierge service, and free checked bag sweeten the deal.
Up to 3X Reward Rate
Earn 3X Rewards Program Points on new travel purchases – including airline, hotels, and car rentals; Earn 2X Points onRead More
50,000 Rewards Program Bonus Points
$395; each authorized user $65 per year
14.99% - 18.99% Variable APR on purchases and balance transfers
Good/Excellent (700 - 749)
Only available to those with a U.S. HSBC Premier checking account, the rewards and benefits seem insufficient to offset the high APR, lack of intro 0% APR offer, and high annual fee. Perhaps the status value of the metal card makes it worthwhile to some.
Up to 6x Reward Rate
Earn 6X points on purchases at participating Marriott Bonvoy properties worldwide; earn 3X points on U.S. restaurants and flights bookedRead More
75,000 points + up to $200 in statement credits
$450
15.74%-24.74% Variable
Excellent/Good (700 - 749)
Just a few Marriott stays per year is enough to offset the $450 annual fee via the $300 annual Marriott credit and anniversary night. The complimentary status, lavish Bonvoy perks, and substantial welcome bonus add sweetness to the deal.
Forbes analyzed more than 100 rewards credit cards to find top picks for a range of categories. Characteristics taken into consideration while evaluating cards included rewards rates, reward redemption options and additional benefits included with the card.
Rewards credit cards give you an incentive to spend on a specific card, but they’re not all created equal. Many cards have different point values, meaning some points might be worth more than others. And adding to the confusion, some point values fluctuate based on how they’re redeemed.
Before choosing a rewards credit card, consider the following:
Just because a card didn’t make our top 10 list doesn’t mean it isn’t worth mentioning. There are plenty of rewards cards out there that have great programs and bonus offers, including:
1) American Express® Gold Card
This is a favorite among American Express rewards cards, and for good reason: The company teams up with major airlines like Delta, JetBlue, Emirates and more, making rewards redemptions easy — and points transfer at a 1:1 value. The card also comes with Amex’s signature benefits, such as travel concierge services, help with booking vacations and more.
2) Capital One Venture Rewards Credit Card
This popular travel rewards card has a generous welcome bonus and no foreign transaction fees, meaning you can bring it abroad without worrying about added fees on your next adventure.
3) Uber Visa Card
This card is a top pick for dining, considering its high 4% rewards rate for the category. It also has a unique tie-in with Uber, letting cardholders redeem their rewards for Uber Cash. If you’re someone who loves spending weekends out on the town, this card can be a great asset.
To view rates and fees of the American Express® Gold Card, please visit this page.
The best credit card for rewards will vary depending on what benefits are most important to you. Do you want airline or hotel points with a specific brand or more flexible rewards? Are you willing to pay a high annual fee? That said, if you are looking for a flexible travel rewards card, consider the Chase Sapphire Preferred® Card. A card like the Sapphire Preferred has a flexible rewards currency that you can use to purchase tickets on any airline or rooms at any hotel available in the Chase travel portal or to transfer to many airline and hotel partners.
A rewards credit card allows you to earn cash back or points with your purchases. When you use the card, you will receive a certain number of points per dollar you spend. You may also receive a welcome bonus when you are approved for the card and spend a specified amount within a period of time.
The best rewards program will vary depending on your usage. Will you redeem your points for luxury travel or to visit Grandma? Each use will maximize a different type of reward. If you are looking for a flexible travel currency, Chase Ultimate Rewards will transfer to over a dozen travel partners in addition to their ability to be redeemed directly for travel.
In general, you will get the most value out of your points redeeming them for luxury travel if you earn miles directly with an airline or transferable points that can be transferred to an airline partner. For instance, a business class flight may cost four or five times the amount of an economy flight in dollars, but in miles only costs twice as much.
Consider that a round trip ticket to Europe costs 60,000 miles in many programs, but with recent sales we’ve seen flights under $500 with regularity. The same trip may cost 120,000 miles in business class, but could easily cost over $3,000. With the example above, you would receive only about 0.8 cents per mile in value when you redeem for economy but 2.5 cents per mile redeeming for business class travel.
Other types of points, like Southwest Rapid Rewards points, are worth a fixed value, so no matter how you redeem them you can rest assured knowing that you got the most value for your points.
A travel rewards credit card awards points or miles for your purchases that you can use either directly for travel or, in some cases, transfer to travel partners. You earn points or miles as you make purchases on the card, then redeem the points or miles when you are ready to travel.
The vast majority of credit card travel rewards are redeemable through your credit card account’s website. If the card is with a specific hotel chain or airline, you can redeem points toward hotel stays or airline tickets directly at the hotel or airline’s website.
If the card offers flexible rewards, you can either transfer the points to your chosen partner or choose to redeem the points directly with the credit card company’s travel agency. Occasionally, with some lesser known partners, you may need to call the credit card company to make the transaction.
What you can do with credit card rewards will depend on the type of rewards you have. If you have miles or points with a specific airline or chain, you will be able to redeem for trips with that vendor or its partners.
If you have flexible points, you have more options. You can transfer your points to a number of travel partners or redeem points directly for travel with the credit card’s travel agency.
Typically, credit cards do not have a limit to how many points you can earn. That said, there may be limits on how much spending will qualify for a category bonus. For example, the Amex EveryDay® Preferred Credit Card* offers 3 Membership Rewards points per dollar on U.S. supermarket purchases, but only up to the first $6,000 in purchases per year. Purchases over that amount will earn 1 point per point.
The value of flexible rewards points, like Chase Ultimate Rewards, will depend on the type of card you have and how you use the points. In general, you can expect a minimum of 1 cent in value from most types of points, with some uses yielding 1.5 to 2 cents per point.
The value of an airline mile or hotel point will depend on the type. Not all points are created equal. Some values are pegged to the cash price: For instance, Southwest Rapid Rewards and JetBlue TrueBlue points are worth about 1.5 cents per point. In the same vein, Hilton Honors points average 0.5 cents per point.
Other airline or hotel point values will vary with each booking. For instance, if a flight or hotel room costs 50,000 miles and the flight is $500, you’re getting 1 cent per mile in value. If the flight or hotel room costs $1,000 for the same 50,000, you’re getting 2 cents per mile. The value of a point will vary with each redemption.
Rewards cards in general, including travel credit cards, typically require good to excellent credit. A score in the “good” range of 670 to 739 may be sufficient for a basic rewards card, but for the best rewards cards you can expect to need a score of 740 or higher to qualify.
There are three types of rewards credit cards. The first is a card that is offered through a specific airline or hotel chain that allows you to earn rewards towards awards with that company or its partners.
The second is flexible rewards credit cards. Flexible cards offer you the ability to transfer to a number of different travel partners in addition to being able to redeem miles directly for travel. You can redeem for travel via statement credit or purchasing from the credit card’s website depending on the specific card.
Finally, you have cards that allow you to redeem rewards for statement credit, sometimes for a specific category such as travel, or that offer cash back rewards you could then use on whatever you would like.
