Ryan P Page, Staff Writer
@ryan_page
The benefits of a rewards card are cash back, points or miles on every purchase, plus the ability to redeem those rewards for statement credits, gift cards, travel and more. Rewards credit cards can also provide benefits such as airport lounge access, rental car insurance, or discounts on dining and entertainment. In addition, rewards cards are available for all credit scores and often without annual fees.
Top 5 Rewards Card Benefits
- Points, Miles, and Cash Back. The key feature of a rewards card is the ability to earn a percentage of your purchase back. The money you earn can be received as miles, points, or cash back, depending on the card. A credit card can include a flat earn rate across purchases, or it could provide extra earnings for specific categories like gas, groceries, dining, or streaming services.
- Initial Bonuses. A lot of rewards cards will offer an initial bonus after you sign up and spend a certain amount within a set time frame. The initial bonus will be given as cash back, points, or miles, depending on your card’s rewards. Some of the best credit card sign-up bonuses are worth an extra $200 to $500 or more after just a few months of spending.
- Travel Perks. Frequent travelers can use certain rewards credit cards to improve their travel experience. The best travel credit cards give you unique perks such as free hotel stays, airport lounge access, a statement credit for TSA PreCheck or Global Entry, elite status, and even discounts on in-flight purchases. Some travel credit cards come with an annual fee, but the best ones give you more than enough benefits to be worthwhile.
- Network-Specific Benefits. While credit card issuers determine a card’s rewards, most credit cards will also have benefits from the card network. These can include exclusive offers for online shopping, live event access, discounts on food delivery and meal services, insurance for rental cars, purchase protection, and concierge services.
- Special Discounts. Some rewards credit cards provide discounts through programs like BankAmeriDeals, Citi Easy Deals, or Amex Offers. These issuer-specific offers give customers discounts on rotating products and services, which may include savings on things like shopping or dining, as well as unique offerings like meal kits, magazines, and tax services.
Rewards cards can save you a lot of money, which is why many of the best ones have annual fees. To learn more about the benefits of rewards, check out WalletHub’s credit card rewards guide. You can also compare our editors’ picks for the best rewards cards.
Popular Rewards Credit Cards in December 2025 from Our Partners
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Everyday Cash Back
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Bonus Cash Back
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Bonus Miles
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Bonus Points
People also ask
What are the pros and cons of rewards credit cards?
The biggest pros and cons of rewards credit cards are savings with every purchase and extra secondary benefits on the positive side, and the potential for devaluation and earning caps on the negative side. Rewards credit cards can save you a lot of money when used responsibly. But they can also end up costing you if you pick the wrong card or carry a balance from month to month.
Biggest Pros and Cons of Rewards Credit...
read full answer by WalletHub, Financial CompanyWhat is a rewards credit card?
A rewards card is a credit card that gives points, miles or cash back for making purchases. Some rewards cards also give a welcome bonus to cardholders who spend a certain amount during the first few months their account is open or over the course of a year. People with any level of credit can qualify for a rewards card, but you’ll need at least “good” credit to be approved for the best credit cards with rewards. Rewards cards...
read full answer by WalletHub, Financial CompanyHow do rewards cards work?
A rewards card gives the cardholder something back for each purchase, usually a percentage of the purchase amount as cash back, miles, or points. You can sometimes earn bonus rewards by spending a certain amount in the first few months you have the card, too. You can then redeem the rewards, usually for merchandise, statement credits, gift cards or travel. Generally, your rewards will be available to use after you see them tallied up on...
read full answer by WalletHub, Financial CompanyDid we answer your question?
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