If you’re looking to get the most out of your spending in 2024, choosing the right rewards credit card can make a big difference. Whether you want cash back, travel points, or other perks, there are many options available. This article highlights some of the best rewards credit cards that can help you maximize your spending effectively. Let’s explore the top choices and what makes them stand out.
Key Takeaways
- Rewards cards help you earn cash back, points, or miles on your purchases.
- Some cards offer extra benefits like travel insurance and fraud protection.
- Choose a card that matches your spending habits for the best rewards.
- Be aware of potential downsides, like high interest rates if you carry a balance.
- Look out for annual fees and make sure the benefits outweigh the cost.
1. Capital One Savor Cash Rewards Credit Card
The Capital One Savor Cash Rewards Credit Card is a fantastic choice for those who love to dine out and enjoy entertainment. This card offers an unlimited 3% cash back on dining, grocery stores, and entertainment, making it perfect for foodies and entertainment lovers alike. Here’s a quick overview of its features:
Key Features:
- Intro Offer: Earn $250 cash back after spending $500 in the first 3 months.
- Annual Fee: $0, which is great for budget-conscious users.
- Regular APR: Ranges from 19.74% to 29.74% (Variable).
Rewards Breakdown:
| Category | Cash Back Rate |
|---|---|
| Dining | 3% |
| Grocery Stores | 3% |
| Entertainment | 3% |
| Streaming Services | 3% |
| All Other Purchases | 1% |
Pros and Cons:
Pros:
- Unlimited 3% cash back on dining and entertainment.
- No annual fee, making it accessible for everyone.
- Easy to earn the sign-up bonus.
Cons:
- The sign-up bonus may not be as high as some other cards.
- Limited to certain categories for higher cash back rates.
This card is ideal for anyone who frequently spends on dining and entertainment, allowing you to earn cash back effortlessly.
In summary, the Capital One Savor Cash Rewards Credit Card is a great option for maximizing your spending in categories that matter most to you, especially if you enjoy dining out and entertainment activities.
2. Chase Freedom Flex®
The Chase Freedom Flex® is a fantastic option for those looking to earn cash back on their everyday spending. This card offers a variety of rewards that can help you maximize your cash back potential.
Rewards Structure
- 5% cash back on up to $1,500 in combined purchases in rotating categories each quarter (activation required).
- 5% cash back on travel booked through Chase Travel.
- 3% cash back on dining and drugstore purchases.
- 1% cash back on all other purchases.
Welcome Bonus
You can earn a $200 bonus after spending $500 on purchases in the first 3 months from account opening.
Fees and Rates
| Feature | Details |
|---|---|
| Annual Fee | $0 |
| Intro APR | 0% for the first 15 months |
| Regular APR | 19.99% – 28.74% variable |
| Balance Transfer Fee | $5 or 3% (whichever is greater) |
| Foreign Transaction Fee | 3% |
The Chase Freedom Flex® is ideal for those who want to earn cash back rewards in various categories. However, remember that you need to activate the bonus categories each quarter to earn the maximum rewards.
Pros and Cons
Pros:
- No annual fee.
- Generous welcome bonus.
- Opportunity to earn up to 5% cash back in select categories.
Cons:
- Bonus categories must be activated each quarter.
- 3% fee on foreign transactions.
Overall, if you want to maximize your cash back rewards, the Chase Freedom Flex® is a great choice!
3. The Platinum Card® from American Express
The Platinum Card® from American Express is known for its luxurious benefits and rewards. While it comes with a high annual fee, the perks can make it worth it for frequent travelers. Here are some key features:
Key Benefits
- Annual Airline Fee Credit: Get up to $200 back on incidental fees with a selected airline.
- Uber Cash: Enjoy up to $200 in Uber savings each year, with $15 monthly and a bonus $20 in December.
- Hotel Credit: Receive up to $200 back on prepaid bookings at Fine Hotels + Resorts® or The Hotel Collection.
- Digital Entertainment Credit: Get up to $240 back annually on subscriptions like Disney+ and Hulu.
Costs and Fees
| Feature | Details |
|---|---|
| Annual Fee | $695 |
| Foreign Transaction Fee | None |
| Credit Needed | Excellent/Good |
Pros and Cons
Pros:
- Extensive travel perks and credits.
- Access to over 1,400 airport lounges worldwide.
- Earn 5X points on flights and hotels booked through Amex.
Cons:
- High annual fee of $695.
- No special financing offers on new purchases.
The rewards are solid and the perks are outstanding, but the annual fee can’t be ignored.
In summary, the Platinum Card® from American Express is ideal for those who travel often and want to enjoy premium benefits. If you can maximize the credits and rewards, it can be a valuable addition to your wallet.
4. American Express® Gold Card
The American Express® Gold Card is a fantastic choice for those who love dining out and grocery shopping. With this card, you can earn 4X Membership Rewards® points on every dollar spent at restaurants worldwide and at U.S. supermarkets, up to certain limits. Here’s a quick breakdown of the rewards:
| Category | Points Earned | Limit per Year |
|---|---|---|
| Restaurants (Worldwide) | 4X points | Up to $50,000 |
| U.S. Supermarkets | 4X points | Up to $25,000 |
| Flights (Directly with Airlines) | 3X points | No limit |
| Other Eligible Purchases | 1X points | No limit |
Welcome Bonus
You can earn 60,000 Membership Rewards® points after spending $6,000 on eligible purchases within the first 6 months of having the card.
Annual Fee
The annual fee for this card is $325. However, the rewards and benefits can easily outweigh this cost.
Notable Benefits
- Dining Credits: You can receive up to $120 in dining credits each year at select restaurants and services.
- No Foreign Transaction Fees: This is great for travelers who want to avoid extra charges.
- Flexible Rewards: Points can be redeemed for travel, shopping, and more.
The American Express® Gold Card is perfect for anyone looking to maximize their rewards on everyday spending, especially in dining and groceries.
5. Capital One Venture X Rewards Credit Card
The Capital One Venture X Rewards Credit Card is a fantastic choice for those who love to travel. With this card, you can earn 10 miles for every dollar spent on hotels and rental cars booked through Capital One Travel. Additionally, you earn 5 miles per dollar on flights and vacation rentals booked through the same platform. For all other purchases, you earn 2 miles per dollar.
Key Features:
- Intro Offer: Earn 75,000 bonus miles when you spend $4,000 in the first 3 months, which is worth about $750 in travel.
- Annual Fee: The card has a $395 annual fee, but if you utilize the $300 credit for bookings through Capital One Travel, it effectively reduces to $95.
- Lounge Access: Cardholders enjoy unlimited access to Priority Pass, Capital One lounges, and over 100 Plaza Premium lounges.
Pros and Cons:
Pros:
- High earning potential on travel-related purchases.
- Valuable sign-up bonus and anniversary bonus of 10,000 miles.
- Access to premium lounges enhances travel experience.
Cons:
- The annual fee is relatively high.
- The $300 travel credit is only applicable for bookings made through Capital One Travel.
This card is ideal for frequent travelers who can maximize the benefits and rewards it offers.
In summary, the Capital One Venture X Rewards Credit Card is a strong contender for anyone looking to maximize their travel rewards while enjoying premium benefits.
6. Chase Sapphire Preferred® Card
The Chase Sapphire Preferred® Card is a top choice for those who love to travel and dine out. With this card, you can earn points quickly and enjoy many benefits. Here’s a quick look at what makes it special:
Key Features
- 5 points for every dollar spent on travel booked through Chase Travel.
- 3 points on dining, select streaming services, and online grocery purchases.
- 2 points on all other travel expenses.
- 1 point on all other purchases.
Welcome Bonus
New cardholders can earn 60,000 bonus points after spending $4,000 in the first three months. This bonus can be worth $750 when redeemed for travel through Chase.
Annual Fee
The card has a $95 annual fee, which is reasonable considering the rewards and benefits it offers.
Benefits
- $50 annual hotel credit when booked through Chase Travel.
- Travel protections like trip cancellation insurance and primary car rental insurance.
- No foreign transaction fees, making it great for international travel.
Summary
The Chase Sapphire Preferred® Card is perfect for anyone who wants to maximize their spending on travel and dining. With its strong rewards program and valuable benefits, it’s a card worth considering for your wallet!
7. Discover it® Cash Back
The Discover it® Cash Back card is a fantastic choice for those looking to earn rewards without an annual fee. This card offers a unique cash-back program that allows you to earn 5% cash back on various categories that change every quarter, such as grocery stores, restaurants, and gas stations, up to a quarterly maximum of $1,500. After that, you earn 1% on all other purchases.
Key Features
- Annual Fee: $0
- Welcome Bonus: Discover matches all cash back earned in the first year, which means if you earn $150, it turns into $300!
- Introductory APR: 0% for the first 14 months on purchases and balance transfers.
Pros and Cons
Pros:
- Generous cash-back rewards
- No annual fee
- Easy to earn cash back with rotating categories
Cons:
- You must activate the 5% categories each quarter
- Limited to $1,500 in combined purchases per quarter for the 5% cash back
The Discover it® Cash Back card is ideal for those with a credit score of 700+ who want a $0 annual fee and a high rewards rate.
In summary, the Discover it® Cash Back card is a great option for anyone looking to maximize their spending with a straightforward cash-back program. Just remember to activate your categories each quarter to make the most of your rewards!
8. Citi Double Cash® Card
The Citi Double Cash® Card is a fantastic choice for those who want to earn cash back without any hassle. This card gives you a flat 2% cash back on every purchase you make. You earn 1% back when you buy something and another 1% back when you pay it off. This means you can earn cash back on all your spending without worrying about categories or limits.
Key Features:
- No Annual Fee: You won’t have to pay any yearly fees to keep this card.
- Introductory Offer: Earn $200 cash back after spending $1,500 in the first 6 months.
- 0% Intro APR: Enjoy 0% APR on purchases and balance transfers for the first 18 months.
Pros:
- Unlimited 2% cash back on all purchases.
- Simple rewards program with no categories to track.
- Cash rewards don’t expire as long as your account is open.
Cons:
- 3% foreign transaction fee if you use it abroad.
- Some other cards may offer better welcome bonuses.
This card is perfect for anyone looking for a straightforward way to earn cash back on their everyday spending. With no complicated rules, it’s easy to maximize your rewards!
9. Wells Fargo Active Cash® Card
The Wells Fargo Active Cash® Card is a great choice for those who want a simple way to earn rewards. With this card, you can earn unlimited 2% cash rewards on all your purchases. This means whether you’re shopping online or at your favorite store, you’re always earning cash back.
Key Features:
- No Annual Fee: You won’t have to worry about extra costs just to keep this card.
- Introductory Offer: Earn a $200 cash rewards bonus after spending $500 in the first 3 months.
- Cell Phone Protection: Get up to $600 in protection against damage or theft when you pay your cell phone bill with this card.
Pros and Cons:
Pros:
- Simple earning structure with 2% cash rewards on every purchase.
- No annual fee, making it budget-friendly.
- Cell phone protection adds extra value.
Cons:
- A 3% foreign transaction fee makes it less ideal for international use.
- Other cards may offer better welcome bonuses.
The Wells Fargo Active Cash® Card is perfect for anyone looking for a straightforward rewards card without the hassle of tracking categories. It’s a solid choice for beginners and seasoned users alike!
10. Bank of America® Customized Cash Rewards Credit Card
The Bank of America® Customized Cash Rewards Credit Card is a great choice for those who want flexibility in their rewards. This card has a $0 annual fee and allows you to choose your own 3% bonus category from a list of options. You can even change this selection up to once a month, making it easy to adapt to your spending habits.
Key Features
- 3% cash back on your chosen category, which can include grocery stores, dining, or online shopping.
- 2% cash back at grocery stores and wholesale clubs (on the first $2,500 in combined choice category/grocery store purchases each quarter).
- 1% cash back on all other purchases.
Additional Benefits
- No foreign transaction fees, making it a good option for travelers.
- Cash back rewards do not expire as long as your account is open.
- Introductory offer: earn a $250 cash bonus after spending $500 in the first 90 days.
Summary
This card is perfect for those who want to maximize their cash back rewards while enjoying the freedom to choose their bonus categories. With no annual fee and flexible rewards, it stands out as a top choice for cash back enthusiasts.
Final Thoughts on Rewards Credit Cards
In conclusion, rewards credit cards can be a great way to get more from your everyday spending. They offer various benefits like cash back, points, or miles, which can help you save money or even travel for less. However, it’s important to choose the right card that fits your spending habits. If you pay off your balance each month, you can enjoy the perks without worrying about high interest fees. Remember to look for cards that match your spending patterns, whether it’s groceries, dining, or travel. By doing so, you can maximize your rewards and make the most out of your purchases.
Frequently Asked Questions
What can I do with the rewards from my credit card?
You can use credit card rewards in different ways depending on your card. For cash-back cards, you can get your money back through a statement credit or a check. If you have points or miles, you can use them for flights or hotels. Some people like to use their rewards for gift cards or shopping, but using them for travel often gives you the best value.
How do I choose the best rewards credit card?
To find the right rewards credit card for you, think about how you spend money. Look for a card that gives rewards for categories where you spend the most, like groceries or gas. Also, check if the card has an annual fee and if the benefits are worth that fee.
Is it worth it to get a rewards credit card?
Yes, if you use your card wisely and pay off your balance each month, rewards credit cards can save you money. They can help you earn cash back or points for things you already buy.
Can I lose my rewards?
Yes, some rewards can expire if you don’t use them within a certain time. It’s important to check the rules for your specific card to know how long you have to use your rewards.
What should I do if I can’t pay my credit card bill?
If you can’t pay your credit card bill, try to pay at least the minimum amount. Contact your credit card company to explain your situation. They might offer options like a payment plan or a temporary lower interest rate.
Are there any fees for using rewards credit cards?
Some rewards credit cards have annual fees, which can vary. Always check if the benefits you get from the card are worth the fee. Also, be aware of interest rates if you carry a balance.
How can I maximize my rewards?
To get the most rewards, use your card for everyday purchases, especially in categories that earn the most points or cash back. Look for special promotions or bonus offers and consider combining cards to earn more.
What happens if I don’t use my credit card for a long time?
If you don’t use your credit card for a long time, the issuer might close your account. This can hurt your credit score. It’s good to use your card occasionally to keep it active.
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