Best Rewards Credit Cards

The best points credit card is Chase Sapphire Reserve® or U.S. Bank FlexPerks® Gold American Express® Card because both cards give points that are worth 1.5 cents each when redeemed for travel. These two cards' points have more value than other points-earning credit cards currently on the market. The average credit card point has a redemption value of 1 cent.

Points earned on a Chase credit card are called Chase Ultimate Rewards points, and they redeem at different values depending on which credit card you have and what you redeem for. Overall, Chase Ultimate Rewards points are most valuable when redeemed for travel booked through the Chase travel portal. But points earned on the Chase Sapphire Reserve Credit Card are worth the most out of all the Chase credit cards. You'll earn 3 points / $1 spent at restaurants and 1 point / $1 on every other dollar spent, plus an initial bonus of 50,000 points (worth $750 in travel) after spending $4,000 in the first 3 months. The card's annual fee is $550.

It's not clear how much U.S. Bank FlexPerks points are worth for other redemption methods, but they have an exceptional redemption rate for travel booked through U.S. Bank. Airfare, hotels, and rental cars are considered travel to U.S. Bank. The U.S. Bank FlexPerks Gold Credit Card has great points-earning potential, too: 5 points / $1 spent at restaurants, 2 points at gas stations and airlines, and 1 point / $1 for everything else. Plus, the intro bonus of 30,000 points for $2,000 in the first 4 months is worth $450 in travel. The annual fee is $85.

When shopping around for a points credit card, it's important to keep in mind that points (along with miles) are one of the credit card rewards currencies that can change in value at any time. Moreover, credit card companies reserve the right to change rewards programs at their leisure, or to cancel them altogether. There are lots of rules governing each credit card's rewards system, so make sure you're aware of those rules before you sign up for the card.

The best rewards programs are Delta SkyMiles for free flights, Wyndham Rewards for free hotel nights, Capital One Rewards for credit cards with a lot of cash back or miles, and apps like Swagbucks and Shopkick for online shopping rewards and discounts. There are roughly 4 billion U.S. consumers enrolled in customer rewards programs. But you can't just join them all. It would be too difficult to manage.

The best approach is to find a select number of standout options that suit your spending habits, shopping preferences, travel plans, etc. Fortunately, WalletHub has done a lot of research to help identify the top options in the most popular categories.

For example, WalletHub's latest Frequent Flyer Program Report concluded that Delta SkyMiles is the best airline rewards program because of notable features like 5 SkyMiles per $1 spent on Delta flights, flexible redemption options and miles that never expire. It's also free to join, as is the case with all major frequent flyer programs. The main downside is that the value of SkyMiles changes frequently.

Similarly, Wyndham Rewards is the best hotel rewards program because it enables members to quickly earn free nights at more than 9,000 properties in over 80 countries. After joining for free, members earn either 10 points per $1 spent directly on room costs or 1,000 points per hotel stay, whichever is higher. In addition, points redeemed for hotel stays cover taxes and fees. The main downside of Wyndham Rewards is that points expire four years after they post to your account.

There are lots of different types of rewards programs, though. You can check out some of the best, most popular options listed by category below. All of these rewards programs are free to join.

Best Airline Rewards Programs:

• Delta SkyMiles
• United MileagePlus
• JetBlue TrueBlue
• Southwest Airlines Rapid Rewards
• Hawaiian Miles
• Alaska Airlines Mileage Plan
• American Airlines AAdvantage
• Frontier Airlines
• Sun Country Airlines
• Spirit Airlines

Best Hotel Rewards Programs:

• Wyndham Rewards
• Radisson Rewards
• Best Western Rewards
• Choice Privileges
• Marriott Bonvoy
• Hilton Honors
• World of Hyatt
• Drury Rewards
• IHG Rewards Club

Best Credit Card Rewards Programs:

• Capital One Rewards
• Barclays Rewards
• U.S. Bank Rewards
• Citi ThankYou Points
• Navy Federal Credit Union
• Chase Ultimate Rewards
• Pentagon Federal Credit Union
• Bank of America Preferred Rewards
• PNC Bank Rewards
• Discover Cash Back Rewards
• Wells Fargo Go Far Rewards
• American Express Membership Rewards

Retailer Rewards Programs:

• Barnes & Noble Membership
• CVS ExtraCare
• Office Depot Rewards
• Target Circle
• My Best Buy Rewards
• Starbucks Rewards

Rewards Apps:

• MyPoints
• SwagBucks
• Belly
• Fronto
• Shopkick
• Checkout 51

Rewards Programs for Online Shopping:

• Rakuten Rewards (formerly Ebates)
• Mr. Rebates
• Coupon Cactus
• Drop

We clearly have a long list of free rewards programs available to us these days. But it's important to remember that not all rewards programs are equal. In some cases, you'll earn points with every dollar spent and redeem those points for future purchases. Other businesses may offer free or discounted items when you make purchases either in-store or from their website. Be aware also that not all rewards programs are free. A handful of rewards programs such as Amazon Prime change with a membership fee.

You should always read the fine print before you sign up for any rewards program. Familiarize yourself with earning rates, redemption rates and costs, if any, to make sure the program you're signing up for is worth it. You don't want to find a surprise membership fee or other hidden charges among your bills.

Chase Freedom Flex℠ is the best Chase credit card for bonus rewards on ongoing purchases, giving 5% on the first $1,500 spent per quarter in bonus categories that change every 3 months. 5% on travel purchased through Chase, 3% on dining at restaurants and drugstores, and 1% on all other purchases. Plus, the Chase Freedom Flex℠'s initial bonus is $200 for spending $500 in the first 3 months. And this card has a $0 annual fee.

The best Chase credit card initial bonus offer comes from the Chase Sapphire Preferred® Card: 60,000 points for spending $4,000 in the first 3 months. That can cover the card's $95 annual fee for several years, depending on how you redeem. Plus, this card's ongoing bonus is 2 points / $1 on travel and dining (1 point / $1 on everything else).

Plenty of credit cards give bonus cash back rewards in certain purchase categories. Cardholders may receive extra value on gas, groceries, dining, entertainment, wholesale clubs and more. Other cards have bonus categories that change every quarter, giving you the chance to earn big on different types of purchases every few months.  

Best credit cards with cash back bonus rewards:

• Blue Cash Preferred® Card from American Express
• Alliant Cashback Visa® Signature Credit Card
• Capital One® Savor® Cash Rewards Credit Card
• Blue Cash Everyday® Card from American Express
• Capital One SavorOne Cash Rewards Credit Card
• Discover it® chrome
• Discover it® Cash Back
• Chase Freedom Flex℠
• Bank of America® Cash Rewards credit card

Lots of credit cards with cash back bonus rewards on purchases also offer an initial cash rewards bonus for spending a certain amount in the first few months. Plus, it's good to remember that many credit cards without cash back bonus rates still give a solid cash back rate on all purchases.

The best Visa rewards card is the Chase Freedom Unlimited® because it has a $0 annual fee, offers great rewards and is on the Visa card network. Chase Freedom Unlimited rewards cardholders with $200 for spending $500 in the first 3 months, plus 1.5 - 5% cash back in ongoing rewards on purchases.

That said, choosing the right Visa rewards card for you depends on how you plan to use the card and redeem your rewards. People who travel a lot will want different cards than people who mainly charge gas and groceries, for example. Similarly, students will want cards that cater to their specific needs, as will business owners. Your choice of cards is limited by your creditworthiness, too. Luckily, there are options for everyone. 

Popular Visa Rewards Cards

• Capital One Venture Rewards Credit Card

• Chase Sapphire Preferred® Card

• Chase Freedom Unlimited®

• Bank of America® Travel Rewards Credit Card for Students

• Capital One® Spark® Cash for Business

The best Visa rewards cards provide the most value if you pay your monthly bill in full. If you carry a balance from month to month, interest charges could negate, if not wipe out completely, any rewards earned. Finally, it's worth noting that credit cards change networks from time to time, but all of the above cards are Visas as of the date of posting.

Choosing between cash back rewards and travel rewards ultimately comes down to your spending preferences, the perks that specific cards offer, and how you plan to redeem rewards earnings. In general, people looking for flexible redemption options and rewards with clear values that can't be changed by the card's issuer should choose cash back rewards. But frequent travelers who enjoy perks such as free flights, airport lounge access, and hotel room upgrades have the chance to earn more total value from travel rewards.

With travel rewards credit cards, the number of points or miles you'll need to redeem for a free flight or hotel night, for instance, varies from issuer to issuer and card to card. Points/miles can also lose their value any time the card's issuer decides to raise the number needed to get a certain dollar amount in redemption value. Cash back rewards, on the other hand, are easy to understand and will retain their value because they're already expressed in terms of dollars and cents.

All told, cash back rewards are the better way to go for most people. However, there are a number of variables to consider on both sides. Not everyone always needs to choose between cash back and travel rewards, either. Having both a cash back credit card and a travel rewards card in your wallet can make sense in some situations.

Cash Back vs. Travel Rewards Credit Cards

When choosing between cash back and travel rewards, it's important to be realistic in how you're going to use the card. And whichever type of rewards you pick, make sure to pay your bill in full each month, or else you could end up spending more in fees and interest than the rewards are worth.

Bottom Line: Cash Back vs. Travel Rewards

• You should get a cash back credit card if you want to earn everyday rewards and enjoy straightforward, flexible redemption options.
• You should get a travel rewards credit card if you travel multiple times per year and are confident you'll earn enough in rewards to cover the cost of the annual fee – without overspending.
• You should have both if you can manage more than one account responsibly and want the best collection of earning rates for your biggest spending categories. Just make sure you pay your balances in full each month.

As long as you use your credit cards responsibly, you have the potential to reap lucrative rewards on your everyday purchases. Just be sure to actually put those rewards to use. Rewards that go unredeemed defeat the purpose getting the card in the first place.

A rewards card is a credit card that gives points, miles or cash back, either for making purchases with the card or as a bonus for meeting a spending threshold in a certain time period. 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 also have a wide range of annual fees. Some of the best rewards cards have no annual fee, while others charge hundreds of dollars per year.

Reward card bonuses are usually a set amount of money or rewards units, and are given as a signup gift to new cardholders who meet an initial spending threshold within a few months to a year after opening the account. Some rewards cards also give bonuses for adding authorized users or as an anniversary perk.

The value of the ongoing rewards given for using the card - also called spending-based rewards - will depend on the credit card issuer and, to some degree, the type of rewards given. But the average rewards credit card will give 1% back on purchases. And most points and miles are worth 1 cent each. In general, credit card rewards can be redeemed for travel, merchandise, statement credits, and other things, depending on the card issuer.

That said, your mileage may vary on both miles and points. Unlike cash back, miles and points are subject to devaluation at any time. That means, for example, your card issuer could decide that your points are worth less than they were when you got your card, or that you need 2,500 more miles to start redeeming them. Most, if not all, credit card terms state that the card issuer has this right, and they can do it whenever they want.

Other Types of Rewards Cards

In addition to paying for purchases with rewards credit cards, consumers can save money using a loyalty rewards card when shopping. Many resorts, hotels, and retailers have loyalty programs, and they'll often have a corresponding loyalty card or number that you can present when you make a purchase.

CVS and Office Depot are two retailers with good loyalty card programs. The loyalty card keeps track of your eligible purchases and any rewards you've earned. Loyalty cards aren't credit cards, but they are a good way to rack up rewards for hotels or retailers you visit often.

Store credit cards and co-branded credit cards – which are affiliated with specific retailers and organizations – can also be used in conjunction with loyalty rewards cards to help you save as much as possible with your favorite brands.

Finally, you might hear gift cards referred to as reward cards, especially those awarded as a prize or incentive, or as credit in lieu of a refund.

Each credit card company has its own rewards program. And each credit card rewards program has a unique reputation. Some are known for good customer service. Others are notable for offering rewards cards to people with less-than-good credit. You can find the latest rankings in WalletHub's annual Credit Card Rewards Study, which reviews major credit card rewards programs based on earning potential, eligibility, transparency and more. The study also includes scores and rankings for individual cards.

Given that your ultimate goal should be to find the single best rewards card for your needs, your focus should be more at the card level than the issuer or rewards program level. The quality of a rewards program matters in the sense that it impacts what you can redeem your earnings for and how much they're worth when you do. But a credit card's core terms – annual fee, rewards earning rates, etc. – are what matter most.

With that being said, the first step in choosing the right rewards program is asking yourself this question: Do I rack up 30,000+ airline miles or 20+ hotel nights per year?

If your answer is “yes,” get one of WalletHub's best travel rewards credit cards. Most people will be better off with a card that's equally rewarding no matter where you book travel accommodations. But if you always fly with the same airline or stay at the same hotel chain, it's worth at least considering that company's credit card.

If you answered “no,” we recommend getting the best cash back credit card for your spending habits. Credit card companies can easily devalue points/miles by increasing the number that you need to redeem for certain items. That makes saving them up for infrequent redemption a bit risky. But issuers can't play the same games with cash. Cash back rewards also give you versatility in that you can redeem earnings for any type of expense by getting a statement credit.

The best reward card app is probably Stocard. Stocard is a free app that lets you input the information of all your store loyalty rewards cards, which allows you to use your app instead of carrying around a wallet full of cards. You can input each loyalty rewards card's information manually or scan its barcode using the app (depends on the type of rewards card). Then, when it's time to pay, you can have the cashier scan the barcode on the app or type in the card's ID number to access your reward card.

Stocard is available for free on the Apple Store and Google Play store. One other thing to note – the app isn't just for loyalty rewards cards. Stocard can also store gift cards, Passbook/Apple Wallet Passes and airline tickets. It doesn't work with credit cards, though.

If you have a rewards credit card, the best reward card app is the app of your credit card issuer. Downloading it will let you manage every aspect of your credit card account on the go. You can do all kinds of things, from paying your bill to checking your rewards to adding an authorized user. And you'll be able to log in using the same information as your online account.

The best 2% rewards credit cards are the Citi® Double Cash Card – 18 month BT offer and the Capital One Venture Rewards Credit Card. They each give 2 rewards per $1 spent, but cover all the different types of credit card rewards. Citi® Double Cash Card gives you 2% cash back. Capital One Venture gives you 2 miles per $1 on all purchases.

In other words, Citi® Double Cash Card is the best 2% cash back credit card. Capital One Venture is the best double miles credit card. And the best double points credit card would have to be the Chase Sapphire Preferred® Card.

2% rewards credit cards that give the 2% rate on everything, like Citi® Double Cash Card and Capital One Venture, are hard to find. Most of the time, the higher rate will be in a bonus category, like with Chase Sapphire Preferred. But if you make frequent purchases in that category, these cards can be well worth your time.

Here are the best 2% rewards credit cards:

• 2% cash back: Citi® Double Cash Card.

  $0 annual fee. Good credit needed.

• 2 miles per $1: Capital One Venture.

  60,000 miles bonus for spending $3,000 in the first 3 months. $95 annual fee. Good credit needed.

• 2 points / $1 on travel and dining: Chase Sapphire Preferred.

  1 point / $1 on all other purchases. 60,000 points bonus for spending $4,000 in the first 3 months. $95 annual fee. Good credit needed.

• 2% cash back on all purchases: Capital One® Spark® Cash for Business.

  $500 bonus for spending $4,500 in the first 3 months. $95 annual fee, waived the first year. Good credit needed.

• 2% cash back at restaurants and gas stations: Discover it® Secured Credit Card.

  2% cash back rate applies to first $1,000 spent per quarter in those categories combined. 1% cash back on other purchases. Cash rewards earned the first year get doubled. $0 annual fee. For good credit.

• 2 points / $1 at supermarkets: The Amex EveryDay® Credit Card from American Express.

  2 points / $1 on first $6,000 spent per year at supermarkets. 1 point / $1 on other purchases. 10,000 points bonus for spending $1,000 in the first 3 months. $0 annual fee. Good credit needed.

• 2 miles / $1 on Delta purchases, at restaurants and at U.S. supermarkets: Delta SkyMiles® Gold American Express Card.

  1 mile / $1 on other purchases. $99 annual fee, waived the first year. Good credit needed.

• 2% cash back at restaurants and gas stations: Discover it® Student chrome.

  2% cash back rate applies to first $1,000 spent per quarter in those categories combined. 1% cash back on other purchases. Cash rewards earned the first year get doubled. $0 annual fee. For students with limited history.

As you can see, there are even 2% rewards credit cards for people with bad or limited credit. But most cards will only give you the higher rate on certain categories.

There are also many credit cards that will give you higher than 2% rewards rates on some purchases, such as Chase Sapphire Reserve®, Discover it® Cash Back and the Blue Cash Everyday® Card from American Express. But you'll need good or excellent credit to get them. And most come with fairly high annual fees.