Not all rewards credit cards are equal and there is certainly stiff competition on the marketplace today. Here are the five best credit cards out there for earning rewards.
1. American Express Blue Cash Preferred
Best for: Gas and grocery rewards
If you’re mostly interested in a card that rewards you for gasoline and grocery spending — which likely accounts for the bulk of your monthly purchases — the AmEx Blue Cash Preferred card may be just what you’re looking for. You’ll earn an impressive 6% back on groceries on the first $6,000 every year (then 1% afterward) and an unlimited 3% back on gasoline and department store spending
The Blue Cash Preferred card does have an annual fee of $75 but it comes with a $150 sign-up bonus after spending just $1,000 during the first three months. If you want to skip the annual fee, the Blue Cash Everyday card offers a lower rewards rate on the same categories.
2. Citi Double Cash
Best for: Flat cash back
Why bother with rotating categories when you’re looking for a no hassle reward program? The Citi Double Cash card has no annual fee and no confusing categories to worry about. You earn a flat 1% back on all spending then another 1% back when you pay off your balance — effectively rewarding you for paying your bill. Cash back can be redeemed for statement credits, checks, or gift cards.
3. Capital One Venture Rewards
Best for: No hassle travel rewards
If you’re a frequent traveler who doesn’t want to mess with a confusing rewards program, the Venture Rewards card may be a good fit. This flexible rewards card earns you 2 miles per $1 on all spending. You can then use rewards as a credit against any travel expenses, including car rentals, hotel stays, airline tickets, and more. With the Venture Rewards card, you can shop around and book travel wherever you like, whether it’s directly through a carrier or even through a discount booking site. You can always get the best deal and get rewarded for it.
The Venture Rewards card has an annual fee of $59 (waived the first year) plus a generous sign-up bonus of 40,000 miles (or $400 in travel) after you spend $3,000 during the first 3 months.
4. Chase Sapphire Preferred
Best for: Travel rewards
The Chase Sapphire Preferred is an all-around powerful travel rewards card and it comes with a great sign-up bonus of 40,000 miles — or the equivalent of $500 in travel rewards. You’ll earn 2x points on all travel and dining and 1x points on all other spending. Where the card really shines is its flexibility. You can get 20% off travel when you redeem for cruises, flights, hotel stays, and car rentals through Chase Ultimate Rewards or transfer your points to a wide range of frequent flyer programs at a 1:1 ratio. Partner loyalty programs include Hyatt Gold Passport, Marriott Rewards, Virgin Atlantic, United Airlines, Southwest Airlines, and more.
The Sapphire Preferred card has an annual fee of $95 (waived the first year), although this is worth it if you’re a frequent traveler.
5. Chase Freedom
Best for: Maximum cash back
Want to get the highest cash back possible? If you don’t mind dealing with bonus categories that change every quarter, the Chase Freedom card is a great pick. The Freedom card earns 5% back on rotating bonus categories like groceries, gasoline, movie theaters, and Amazon.com. Every quarter, you earn the bonus cash back on one or several categories up to $1,500 per quarter. You will always earn at least 1% back.
The Chase Freedom card has no annual fee and you can earn a $100 cash back bonus after spending $500 during the first three months. This card pairs well with the Chase Sapphire Preferred if you want to up your rewards even further. You can transfer points you earn on the Freedom card to a Sapphire Preferred card to enjoy the 20% bonus when you redeem points and book travel through Chase. This effectively earns you 6.25% on those bonus categories!
These five cards are all excellent contenders, but the best rewards card for you depends on what you are most interested in: a simple rewards program, maximum cash back on popular categories, free hotel stays or flights, or even a great sign-up bonus.