16 best rewards credit cards of June 2023

Our Expert Take

Chase Sapphire Preferred Card: Best for beginner travelers

Why we love it: This is one of the most popular beginner travel rewards cards out there. You can earn a lot of points on a broad range of categories, and the low $95 annual fee makes this card worth keeping both in the first year and beyond.

Who should use it: This card is an ideal choice for someone who takes a few trips a year and wants to maximize their earning on travel and dining purchases.

Points and miles valuations: Chase Ultimate Rewards points are valued by TPG at 2 cents per point, one of the highest valuations for any bank rewards currency. You can also use the points to book travel in the Chase travel portal at 1.25 cents per point.

Why it’s in my wallet: “The Chase Sapphire Preferred has been in my wallet for 5-plus years and is the midlevel rewards credit card that I recommend to people. It usually has a pretty solid sign-up bonus, with points that can be transferred to some of my favorite loyalty programs, like British Airways Executive Club and World of Hyatt. The strong earn rate on dining and travel as well as streaming services makes it a good choice for a millennial like me. Finally, I like using this card when renting cars, as it provides primary car insurance and a little more piece of mind.” — Matt Moffitt, senior credit cards editor

Alternative card option: The Capital One Venture Rewards Credit Card offers a flat 2 miles per dollar spent on most purchases, with bonus miles when booking hotels and rental cars through Capital One’s travel portal. Both cards have the same $95 annual fee.

Check out the full card review for the Chase Sapphire Preferred.

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Official application link: Chase Sapphire Preferred.

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Capital One Venture X Rewards Credit Card: Best for airline rewards

Why we love it: This is one of the best value premium travel rewards cards out there. It offers lounge access to you and up to four authorized users, all for a reasonable $395 annual fee. Most of that is offset by a $300 annual travel credit, and you’ll receive 10,000 bonus miles each year, which more than covers the rest.

Who should use it: This card is suited to frequent travelers who want lounge access and transferable miles for maximum-value travel redemptions.

Points and miles valuations: Capital One miles are valued by TPG at 1.85 cents per mile. This is higher than Citi ThankYou points but slightly lower than points from Chase and American Express.

Why it’s in my wallet: “With an annual fee that is $300 less than the Amex Platinum, the Capital One Venture X is my favorite travel credit card. The card comes with an annual $300 Capital One travel portal credit, which I use to book flights. That effectively brings the annual fee down to $95 per year. Cardholders enjoy a Priority Pass Select membership, as do authorized users (you get four of them at no cost). I use my Venture X to earn 2 points per dollar (a 3.7% return, based on TPG’s valuations) in spend categories where most cards would only accrue 1 point, such as auto maintenance, pharmacies and medical bills.” — Kyle Olsen, points and miles reporter

Alternative card option: The popular Chase Sapphire Reserve earns more bonus points on travel and dining purchases but comes with a higher $550 annual fee. Chase Ultimate Rewards points are worth slightly more than Capital One miles.

Check out the full card review for the Capital One Venture X.

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Official application link: Capital One Venture X.

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The Platinum Card® from American Express: Best for luxury benefits

Why we love it: This card offers the best lounge access options of any premium travel rewards card and a high earn rate on airfare. It also comes with a plethora of statement credits that can offset the high $695 annual fee (see rates and fees).

Who should use it: This card is ideal for frequent travelers who spend a lot on airfare purchases and want access to a wide range of lounges along with a large number of lifestyle perks.

Points and miles valuations: Amex points are among the most valuable out there (worth 2 cents each, based on TPG’s valuations) and can be transferred to an impressive 20 travel partners.

Why it’s in my wallet: “While this card has a high annual fee, it more than justifies itself for frequent travelers like me. The lounge access options that come with the Platinum are unrivaled by competitors. I put all my flights — whether bought with cash or points — on this card to earn 5 points per dollar spent (on up to $500,000 on these purchases per calendar year) and trip protection insurance. I make sure to take full advantage of the Uber, Saks Fifth Avenue, Hulu/Disney+ and Clear Plus credits (enrollment is required). And, honestly, pulling a Platinum card out of your wallet to pay for something does feel pretty fancy.” — Matt Moffitt, senior credit cards editor

Alternative card option: The Chase Sapphire Reserve earns more points on travel (except flights) and dining purchases and comes with a lower $550 annual fee. However, the Amex Platinum has better lounge access options.

Check out the full card review for the Amex Platinum.

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Official application link: Amex Platinum.

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Capital One Venture Rewards Credit Card: Best for airline rewards

Why we love it: The main attraction of this card is its flat earning structure of 2 miles per dollar spent on all purchases. You’ll also get two Capital One lounge passes a year and a TSA PreCheck or Global Entry credit every four years, all for a low $95 annual fee.

Who should use it: This card is suited to travelers who take a few trips a year and want a simple points-earning structure with the potential to maximize their rewards.

Points and miles valuations: Capital One miles are valued by TPG at 1.85 cents per mile when they’re transferred to one of Capital One’s travel partners. You can also redeem your miles for travel purchases at 1 cent per mile.

Why it’s in my wallet: “The Capital One Venture is a great card that can add value to pretty much anyone’s wallet. I use it to earn 2 points per dollar on the purchases that fall outside my other cards’ bonus categories. The annual fee is low, Capital One miles are easy to redeem and the card does come with a few nice perks, including TSA PreCheck/Global Entry application fee reimbursement.” — Madison Blancaflor, senior content operations editor

Alternative card option: The main competitor to this card is the Chase Sapphire Preferred Card, which earns more points on dining, streaming and online grocery purchases. However, it earns half the rate of the Venture Rewards on everyday purchases and does not include any lounge passes.

Check out the full card review for the Capital One Venture.

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Official application link: Capital One Venture.

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Blue Cash Preferred® Card from American Express: Best for US streaming rewards

Why we love it: This is a lucrative cash-back card for those who spend a lot on groceries, gas, transit and streaming. You’ll also earn statement credits for select monthly subscriptions with Disney and Equinox (enrollment required; terms apply).

Who should use it: This card is best suited to someone looking for a lot of cash back on groceries, gas, transit and streaming.

Points and miles valuations: This is a cash-back card, meaning it does not earn points or miles. Cash back is received in the form of Reward Dollars that can be redeemed for statement credits.

Why it’s in my wallet: “The Blue Cash Preferred Card is the card I recommended to my parents when they were looking for a new cash-back rewards card for their groceries. My parents prefer the simplicity of cash-back rewards, and I knew they’d benefit from earning 6% cash back on up to $6,000 per year in purchases at U.S. supermarkets. Compared to the 1.5% cash back they were earning on these purchases, the elevated earnings easily justified adding the Blue Cash Preferred to their wallet.” — Katie Genter, senior points and miles writer

Alternative card option: If you want a flat cash-back rate on all purchases, then the Citi® Double Cash Card (see rates & fees) is a great option, offering 2% back on every transaction — 1% when you buy and another 1% when you pay your bill.

Check out the full card review for the Blue Cash Preferred.

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Official application link: Blue Cash Preferred.

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American Express® Gold Card: Best for dining rewards at restaurants

Why we love it: This is the best card for those looking to earn bonus points at supermarkets and restaurants. You have an array of valuable transfer partners, while the dining and Uber statement credits help offset the considerable $250 annual fee (see rates and fees).

Who should use it: This card is a great addition to the wallets of those who want to earn a lot of points when dining out and grocery shopping.

Points and miles valuations: Amex points are among the most valuable out there, at 2 cents per point, and can be transferred to an impressive 20 travel partners.

Why it’s in my wallet: “Groceries and dining at restaurants are two of my top spending categories, and I love that the Amex Gold rewards those purchases with 4 points per dollar (up to $25,000 in spending at U.S. supermarkets). When you factor in the $10 dining credit and $10 in Uber Cash each month, the $250 annual fee is a net cost of $10.” — Senitra Horbrook, credit cards editor

Alternative card option: There are few direct competitors to this card, but it’s worth checking out the Chase Sapphire Preferred and Sapphire Reserve cards, which offer more points for travel purchases but fewer bonus points for groceries and dining.

Check out the full card review for the Amex Gold.

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Official application link: Amex Gold Card.

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Capital One Quicksilver Cash Rewards Credit Card: Best for cash back

Why we love it: This card earns a flat rate of 1.5% cash back on all purchases, which is easily redeemable and requires no minimum. It also has no annual fee and waives foreign transaction fees when used outside the U.S.

Who should use it: This is a good card for those who prefer to keep their rewards simple. However, the Quicksilver’s rewards aren’t quite as flexible as those of some of its competitors, so if you plan to expand your card portfolio at some point, then you may want to consider a different card.

Points and miles valuations: This card earns cash back instead of points or miles. You can redeem cash back earned on this card as a statement credit, check or gift card, or you can apply it directly to a specific charge on your statement.

Why it’s in my wallet: “This is my oldest credit card, but I’ve kept it open for more than just its history to aid my credit score. With no annual fee and a fair earning structure, it’s a good option for purchases that don’t fall into bonus categories on my other credit cards. I’m happy knowing I’ll never earn less than 1.5% back on spending.” — Ryan Smith, credit cards writer

Alternative card option: When it comes to earning cash back, you’ll do better with the Citi Double Cash Card, which earns 2% on all purchases (1% when you buy and 1% as you pay) and also has no annual fee — though it does incur foreign transaction fees.

Check out the full card review for the Capital One Quicksilver.

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Official application link: Capital One Quicksilver.

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Blue Cash Everyday® Card from American Express: Best for cash-back beginners

Why we love it: This is a great card if you want to bonus cash back on groceries, gas and online shopping with no annual fee. Rewards are easily redeemed at a fixed rate, eliminating guesswork on whether you’re getting good value from your earnings. You’ll also earn statement credits with Disney and Home Chef.

Who should use it: This is a solid cash-back card for many, especially students and credit card beginners with low monthly budgets.

Points and miles valuations: This card earns cash back instead of points or miles. You earn cash-back rewards in the form of Blue Cash reward dollars, which you can redeem for statement credits with no minimum redemption amount.

Why it should be in your wallet: If groceries, gas and online shopping are among your largest spending categories, this is a great starter card to help you dip your toes into the world of credit card rewards.

Alternative card option: If you want higher earning rates on a similar card, the Blue Cash Preferred Card from American Express may be a better choice. You’ll get expanded bonus spending categories and additional perks, though you’ll want to be sure the card’s $95 annual fee (see rates and fees) starting in year two is worth it.

Check out the full card review for the Blue Cash Everyday Card.

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Official application link: Blue Cash Everyday.

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Chase Freedom Unlimited: Best for flexible rewards

Why we love it: This is a great first card to apply for, earning a solid 1.5% cash back on most purchases, as well as bonus cash back on dining and drugstore purchases and travel booked through Chase’s portal.

Who should use it: This is a perfect card for both beginner and advanced travelers. Those who have an Ultimate Rewards points-earning credit card can convert their cash back into points for maximum value.

Points and miles valuations: This card earns cash back, which can be redeemed as a statement credit or for a direct deposit into most U.S. checking and savings accounts. However, if you have a card like the Chase Sapphire Preferred or Reserve, you can convert your cash back into points, increasing its value.

Why it’s in my wallet: “The Chase Freedom Unlimited is a great option, especially for anyone with a card like the Sapphire Preferred or Sapphire Reserve. It has solid bonus categories but also gives 1.5% back on all other purchases. And, if you have a higher-end Chase card, you can effectively convert these cash-back earnings into fully transferable Ultimate Rewards points.” — Nick Ewen, director of content

Alternative card option: This card’s sister product, the Chase Freedom Flex, offers the same 3% bonus categories but also has a 5% cash-back tier. However, this only applies to rotating quarterly categories after activation, and it’s capped at $1,500 per quarter. You’ll want to look at your spending patterns to decide which card makes better sense for you.

Check out the full card review for the Chase Freedom Unlimited.

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Official application link: Chase Freedom Unlimited.

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Ink Business Unlimited Credit Card: Best for freelancers

Why we love it: This is one of the best business cards with no annual fee because it earns 1.5% back on every purchase without needing to keep track of bonus categories.

Who should use it: This card is a good match for anyone who doesn’t want to expend mental energy juggling spending categories.

Points and miles valuations: Your cash back can become significantly more valuable if you also have a premium Ultimate Rewards card. That’s because you can combine Chase points from your accounts and then transfer them to the Ultimate Rewards program’s airline and hotel partners.

Why it’s in my wallet: “I have the Chase Ink Business trilogy — the Ink Business Cash, Ink Preferred and Ink Unlimited cards. The first two cards maximize my points-earning on things like office supply, internet and phone purchases, while the Ink Unlimited covers everything else with a flat 1.5% earn rate. The fact that I have the Ink Preferred means I can convert my cash back from the Ink Unlimited into more valuable Chase Ultimate Rewards points. This no-annual-fee card will stay in my wallet for years to come.” — Matt Moffitt, senior credit cards editor

Alternative card option: The Blue Business® Plus Credit Card from American Express is the only no-annual-fee business credit card that can potentially be more valuable. It offers 2 Membership Rewards points per dollar spent (on up to $50,000 in annual spending, then 1 point), and these points are immediately transferrable to partners; you don’t need to carry another card to enable this functionality.

Check out the full review for the Chase Ink Business Unlimited.

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Official application link: Ink Business Unlimited.

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Capital One SavorOne Cash Rewards Credit Card: Best for entertainment rewards

Why we love it: This card earns excellent cash back on meals, groceries and entertainment without having to pay an annual fee. Additionally, if you also have a card like the Venture or Venture X, you can transfer your cash-back rewards from the SavorOne into fully transferable miles.

Who should use it: This is a good starter card for enthusiastic foodies, avid streamers and regular concertgoers — especially for international travelers, since the card has no foreign transaction fees.

Points and miles valuations: You’ll typically get maximum value from your cash back by converting it into Capital One miles and transferring to one of its travel partners. However, if you want simplicity, you can also redeem cash back with this card by requesting a statement credit, check or gift card, as long as you’ve reached the $25 threshold.

Why it should be in your wallet: For no annual fee, you’re getting an excellent return on a variety of purchases — both in and out of the U.S.

Alternative card option: Chase’s Freedom Flex offers 5% back on travel purchased through the Chase portal and 3% on dining and drugstore purchases. It also has valuable rotating quarterly categories, earning 5% cash back (on up to $1,500 in combined purchases each quarter) after activation.

Check out the full card review for the Capital One SavorOne.

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Official application link: Capital One SavorOne. 

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Citi Custom Cash℠ Card: Best for flexibility

Why we love it: This is a solid cash-back card with no annual fee. It differentiates itself from other options on the market by providing the unique ability to earn up to 5% back on your top spending category each billing cycle (on up to $500 in total purchases).

Who should use it: This card is suited to credit card newbies and those who want a card that will help them maximize purchases that don’t fit into traditional bonus categories.

Points and miles valuations: You can request a statement credit or direct deposit for your cash back at any time. However, if you’re requesting a check, there is a minimum rewards balance of $5 (or 500 points). If you also have a Citi Premier or Prestige card, you can unlock the option to convert your points into miles with Citi’s hotel and airline transfer partners, increasing their value.

Why it should be in your wallet: If you have varied spending habits and want a card that automatically adjusts based on your purchases, this card could be a great fit.

Alternative card option: The Citi Double Cash is excellent for beginners since you’ll earn 1% when you buy and 1% when you pay off your bill (for a total of 2% cash back on all your purchases). Plus, you’ll enjoy the uncapped earning potential on the Double Cash if your spending exceeds the $500 limit on the Citi Custom Cash (see rates & fees).

Check out the full card review for the Citi Custom Cash.

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Official application link: Citi Custom Cash.

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Bank of America® Travel Rewards credit card: Best for Bank of America customers

Why we love it: This card’s main benefit is its simplicity, with no bonus categories, earning caps or transfer partners. It offers an unlimited 1.5 points for every dollar spent on all purchases everywhere, plus there are no foreign transaction fees. The earn rate is boosted if you qualify for the Bank of America Preferred Rewards program.

Who should use it: Any existing Bank of America customer, especially those who qualify for the Preferred Rewards program, should strongly consider this card as an introduction to points and miles.

Points and miles valuations: To get maximum value for your cash back, redeem it as a  statement credit for travel or dining purchases (starting at a minimum of 2,500 points).

Why it’s in my wallet: “I’m happy earning 1.5 points per dollar spent on all purchases on a card without an annual fee. I can’t pay for everything in life with transferable points, and it’s nice to have a card with fixed-value points for those situations. I use this card for travel purchases where I need to pay in cash, then I can reimburse myself with the points.” — Ryan Smith, credit cards writer

Alternative card option: If you have access to Bank of America’s Preferred Rewards and you value the issuer’s simple earning model, the Bank of America® Premium Rewards® credit card is a better option, offering more bonus points and redemption options. Or, if you’re not a Bank of America customer, the Chase Freedom Unlimited is a good choice.

Check out the full card review for the Bank of America Travel Rewards card.

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Official application link: Bank of America Travel Rewards credit card.

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Ink Business Preferred Credit Card: Best for maximizing business purchases

Why we love it: This card offers one of the highest sign-up bonuses of any business card and has a low $95 annual fee. Plus, it earns valuable Ultimate Rewards points on a variety of business expenses.

Who should use it: This card is geared toward small-business owners who want to maximize points-earning on business expenses. It’s also great for those who regularly run into problems with their cellphone, as it provides cellphone protection.

Points and miles valuations: Chase points are among the most valuable out there, worth 2 cents per point, according to TPG’s valuations. They can be transferred to any of Chase’s 14 airline or hotel partners.

Why it’s in my wallet: “I originally signed up for the Ink Business Preferred primarily for its sign-up bonus. But, over the last year, I’ve found myself making it my go-to card when booking travel. After all, the Ink Business Preferred earns 3 points per dollar spent on travel and provides excellent travel protections, including trip delay protection and rental car insurance.”  — Katie Genter, senior writer

Alternative card option: This card’s main competitor is the American Express® Business Gold Card, which offers 4-points-per-dollar bonus categories that automatically reflect your highest spending areas, such as airfare, gas and shipping. However, its biggest downside is its relatively high $295 annual fee (see rates and fees).

Check out the full card review for the Chase Ink Business Preferred.

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Official application link: Ink Business Preferred.

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Chase Sapphire Reserve: Best for frequent travelers

Why we love it: This card offers luxury perks and valuable rewards, with high earning rates on travel and dining and an easy-to-use $300 travel credit to help offset the annual fee.

Who should use it: This is a great choice if you want to upgrade your travel lifestyle with lounge access, statement credits and travel protections.

Points and miles valuations: This card earns incredibly valuable Ultimate Rewards points, which TPG pegs at 2 cents per point when transferred to hotel and airline partners. They can also be redeemed directly for flights at a rate of 1.5 cents per point.

Why it’s in my wallet: “I’ve had the Sapphire Reserve for years, and it’s going to stay in my wallet for the near future. I get $300 off travel every year along with great earning rates on travel and dining (3 points per dollar) and varied travel protections that can reimburse me when things go wrong. By leveraging other cards in the Ultimate Rewards ecosystem, I’m also able to maximize the earnings across all my purchases.” — Nick Ewen, director of content

Alternative card option: If you want a premium travel card with a lower annual fee, the Capital One Venture X Rewards Credit Card offers access to Priority Pass, Plaza Premium and Capital One lounges. You’ll also enjoy insurance protections and earn a minimum of 2 miles per dollar spent on all purchases.

Check out the full card review for the Chase Sapphire Reserve.

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Official application link: Chase Sapphire Reserve.

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Chase Freedom Flex: Best for rotating rewards

Why we love it: This is one of the best cash-back credit cards around thanks to phenomenal earning rates across a variety of spending categories. Plus, there’s no annual fee to worry about. The card becomes potentially even more valuable when you pair it with a Chase Ultimate Rewards credit card.

Who should use it: The Chase Freedom Flex is a great all-around credit card for beginners and fans of cash back. It’s easier to be approved for than many top-tier cards from Chase and American Express.

Points and miles valuations: Rewards are earned in the form of points worth 1 cent each, which is why this card is considered a cash-back credit card. However, if you hold a Chase Sapphire Preferred, Chase Sapphire Reserve or Ink Business Preferred Credit Card, you can pool your points into one Chase Ultimate Rewards account, giving you access to the full Chase Ultimate Rewards program’s redemption value.

Why it’s in my wallet: “As a points and miles enthusiast, I’m happy to keep up with the rotating quarterly categories that earn 5% cash back. I get the most value from this card when I can max out the $1,500 quarterly limit on Amazon, Target and PayPal purchases. My top tip for this card is to make sure that you ‘activate’ the categories every quarter so that you can maximize your points-earning.” — Matt Moffitt, senior credit cards editor 

Alternative card option: For those who don’t like the prospect of activating quarterly categories or who don’t think they’d be able to maximize those categories, the Chase Freedom Unlimited may be the better option.

Check out the full card review for the Chase Freedom Flex.

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Official application link: Chase Freedom Flex.

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Chase Aeroplan Credit Card: Best airline card for flexible redemptions

Why we love it: With its strong earning rate and incentives to spend on the card beyond earning the sign-up bonus, the Aeroplan credit card is worth considering for many points and miles enthusiasts.

Who should use it: This card is best for intermediate and advanced points collectors, especially those who already have Chase Ultimate Rewards points, which can be used to top up your Aeroplan account. It’s ideal for those who travel on Air Canada and its Star Alliance partners, including United Airlines.

Points and miles valuations: Aeroplan points are some of the most valuable airline points out there, valued at 1.5 cents per point by TPG. You can use your points to fly on a wide range of partners, and the Aeroplan program has tons of sweet spots.

Why it’s in my wallet: “Aeroplan is, by far, my favorite airline loyalty program. I have gotten a lot of value out of using Aeroplan points to fly in business class on airlines like Swiss, EVA Air and Oman Air. This card also earns a solid rate on grocery and dining purchases.” — Matt Moffitt, senior credit cards editor 

Alternative card option: Also from Chase, the Sapphire Preferred is an all-time favorite and has the same $95 annual fee as the Aeroplan card. It offers much more flexibility in being able to transfer your Chase points to 14 airline and hotel partners. Given current application restrictions, it’s best to get the Sapphire Preferred before applying for the Aeroplan card.

Check out the full card review for the Aeroplan Credit Card.

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Official application link: Aeroplan Credit Card.

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What is a rewards credit card?

Rewards credit cards are credit cards that earn rewards, typically in the form of points, miles or cash back, on your spending that is charged to the card. There are a wide variety of rewards credit cards (with an array of annual fee price points) that offer all sorts of rewards currencies in various amounts on different spending categories. 

How to choose a rewards credit card

There is no perfect answer for what is the “best” rewards credit card for everyone, but there are things to look for in finding the best card for you.

When determining which rewards credit card is right for you, consider how applicable the rewards type, earning rates, annual fee and benefits are to your lifestyle. Ideally, you want to choose a card that will provide both a great welcome bonus and long-term value. 

What types of credit card rewards can you get?

There are a variety of rewards credit cards geared toward different spending categories. All of the cards listed below earn some type of rewards, but the rewards differ from card to card. 

Transferable points

This type of rewards card generally earns rewards in the issuer’s currency, which can then be transferred to certain partners to maximize value. For example, the Chase Sapphire Preferred Card earns Ultimate Rewards points, which can be redeemed in multiple ways via the Chase Ultimate Rewards portal but can also be transferred to one of Chase’s travel partners, such as United Airlines, Southwest Airlines or Hyatt. Rewards cards that earn transferable points and miles are highly valued because of their redemption flexibility. 

Cash-back rewards

This is the most straightforward type of reward. With a cash-back rewards card, you will earn a percentage back on each purchase that you make with the card. This reward can be redeemed for cash (via a statement credit, check, etc.) at a later date, hence the “cash-back” name. Although cash back has a fixed value, unlike some of the transferable currencies, it can be lucrative if you have aligned your cash-back card’s earning rates with your spending patterns.

For example, the Blue Cash Preferred® Card from American Express earns 6% cash back at U.S. supermarkets, on up to $6,000 per year in purchases (then 1%). If you are already spending $6,000 on groceries a year, having the Blue Cash Preferred can help you get up to $360 back on your current spending. The card also offers a higher rate of cash back on U.S. streaming subscriptions, on transit and at U.S. gas stations. 

Hybrid rewards

Hybrid cards are a newer type of rewards credit card. These cards earn cash back when used alone but can be paired with other cards to convert those cash-back rewards to more valuable points. 

A prime example of the type of card that can earn hybrid rewards is the Chase Freedom Unlimited. You’re earning cash back on purchases with that card, but those rewards can be converted to more valuable Chase Ultimate Rewards points when you pair the Unlimited with an eligible premium Chase card that earns transferable Ultimate Rewards points. 

Rewards with loyalty programs

If you are a frequent traveler with a specific hotel brand or airline, a rewards card aligned with its loyalty program may be a good fit for you. Most of the time, these cards also come with brand-specific benefits like complimentary elite status (for hotel cards) or priority boarding and waived fees for checked baggage (for airline cards). These currencies aren’t as flexible as transferable currencies in that they generally have to be used within that one program, but they can still be highly valuable — especially if the benefits associated with having the card save you money or help you earn a higher elite status within a program. 

How to redeem credit card rewards

Once you have decided on your rewards credit card and earned the welcome bonus, it is time to see what you can do with those credit card rewards. How you should redeem your rewards will depend on the type of your rewards card and your goals. 

Cards that earn transferable points can provide the most valuable rewards but can also be the most difficult to utilize when learning how to redeem rewards for maximum value. If you have a trip coming up and are hoping to use transferable points to book your flights or hotels, you can use TPG’s monthly valuations to determine if a redemption you have in mind is worth your points. TPG also has redemption guides to help get you started with most of the main loyalty programs. Some travels are better booked with cash or with cashlike equivalent rewards. 

Cash-back cards offer the easiest redemption option, as it is typically a cash amount that can either be redeemed on your statement balance or directly deposited into your account. 

What are credit card points or miles worth?

The value of a point or mile varies widely across the many travel brands out there. TPG uses a combination of the cash cost of a mile, the average cost of awards in a given program, and our own expertise from decades of earning and redeeming rewards to determine the value of a point or mile. 

TPG’s monthly valuations are a great guide to understand the average valuation of the various points and miles currencies.  

What are the most popular credit card rewards programs?

There are many credit card rewards programs available, but major players in the rewards credit card space are American Express, Capital One, Chase, Citi, Wells Fargo and Bank of America.

Chase Ultimate Rewards

Chase Ultimate Rewards is one of the top rewards programs for good reason. TPG values these points at an average of 2 cents each when used with travel partners such as United Airlines and Hyatt. You can also use the points at a fixed value (at a rate that depends on which Chase cards you hold) to book travel via the Ultimate Rewards travel portal.

Top cards that earn Ultimate Rewards points: 

• Chase Sapphire Reserve 
• Chase Sapphire Preferred
• Ink Business Preferred

American Express Membership Rewards

Another top rewards program is American Express Membership Rewards, where points are also valued at 2 cents each when used with travel partners. Amex has the most extensive network of airline and hotel transfer partners — 22 — of the top issuer programs, and you can sometimes find transfer bonuses available for some of these partners. Of course, you can also redeem points through Amex’s travel portal, though often at a lower rate than maximizing a transfer partner.

Top cards that earn Membership Rewards points: 

• The Platinum Card® from American Express
• American Express® Gold Card
• The Business Platinum Card® from American Express

Citi ThankYou Rewards

Citi ThankYou points aren’t quite as valuable on average as Chase and Amex points in the eyes of TPG (we value the points at 1.8 cents each), but there is still a lot to like about this program. There are some great transfer partners available through Citi ThankYou, including Avianca LifeMiles, Etihad Guest and Virgin Atlantic Flying Club.

Top cards that earn ThankYou points:

• Citi Premier® Card
• Citi Rewards+® Card 

Capital One 

Capital One has 15-plus airline and hotel program partners, including high-value options like Air Canada Aeroplan, Avianca LifeMiles and Turkish Airlines Miles&Smiles.

Top cards that earn Capital One miles:

• Capital One Venture X Rewards Credit Card
• Capital One Venture Rewards Credit Card
• Capital One VentureOne Rewards Credit Card
• Capital One Spark Miles for Business
• Capital One Spark Miles Select for Business 

Cash-back rewards cards honorable mentions

Not all rewards cards require transfer partners. A great cash-back rewards card is a great wallet addition for people who want to keep their rewards simple but still be rewarded for everyday spending. 

Top cards that earn cash back: 

• Wells Fargo Active Cash Card
• Blue Cash Preferred Card from American Express
• Citi Custom Cash℠ Card
• Chase Freedom Unlimited
• Bank of America Customized Cash Rewards credit card
• Citi Double Cash® Card

How to maximize your rewards credit card

Start by looking at your major spending categories and ensure your rewards card is aligned with your spending patterns. Then, ensure you are earning the type of rewards that align with your goals. For example, if you want to go to Europe, earning Southwest Airlines points is probably not the best match. Knowing your spending habits and redemption goals is key to maximizing your rewards. Choosing a card that helps you earn rewards on what you already spend the most on will help you maximize your earnings. 

Optimize your rewards redemptions

There are many ways to redeem your rewards from cards that earn transferable points, cards with loyalty programs and hybrid cards. Many issuers offer an online travel booking portal you can use to book flights, hotels and car rentals with your rewards. Often, this sort of redemption will give you a fixed rate of return for your points.

Other cards allow you to transfer your points or miles to individual loyalty programs so you can enjoy flexibility and potentially get maximum value for your points.

Cash-back rewards have a fixed value and can typically be redeemed for statement credit or as a direct deposit to your bank account. 

Earn your sign-up bonus

One of the key factors to consider when choosing a rewards card is the available sign-up bonus. Sign-up bonuses are offered to new cardmembers who meet a spending limit within a prescribed timeline, and the bonus is typically larger than what an average cardholder will earn through general spending. 

We generally don’t recommend applying for a rewards credit card if you don’t think you can comfortably achieve the spending for the sign-up bonus. Those bonuses are a key part of earning credit card rewards.

Adjust your rewards strategy to match your spending

To optimize your rewards earnings, it is important to know your spending habits and capitalize on them. If you are a world traveler who spends a lot on high-end hotels and airline tickets, consider the Amex Platinum or the Chase Sapphire Reserve. On the other hand, if you’re a foodie that loves cooking and eating out, the Amex Gold or Blue Cash Preferred may be better choices. 

We’ve curated a list of great rewards card options to consider, but it is up to you to choose the one that best fits your spending patterns. 

Don’t carry a balance

Rewards cards are not for everyone. While having a rewards card can help you earn on your current spending, it may not make sense for you if you struggle to pay off your existing cards. Interest accrued on a balance will likely cancel out any value you’ll have earned in points or rewards from the card, so if you routinely need to carry a balance, a rewards card may not be the best card for you.

Most rewards cards require a credit score of 690 or above. If your credit score is lower than required for a rewards card or you are struggling to pay an existing credit card balance, you might be better off considering a zero-interest card or one that is good for balance transfers.

Pair cards to earn even more

Sometimes looking inside your wallet is the best way to build your rewards strategy. There are many credit card issuers that allow you to combine and carry multiple cards from the same rewards family. This can help maximize your rewards earning and redeeming strategies. 

For example, many TPGers have the “Amex Trifecta,” which is the Amex Platinum, Amex Gold and Blue Business Plus cards. These are all great stand-alone options from Amex, but combined they can help you earn thousands of Membership Rewards points each year, alongside other travel perks and benefits. There is also a “Chase Trifecta”. 

Methodology

When choosing the best rewards credit cards, we looked at multiple factors, with welcome offers, earning rates and annual fees topping the list of our main considerations. We also assessed each rewards card’s redemption flexibility, the type of rewards earned, simplicity and any perks that come with having each card.

For rates and fees of the Amex Gold Card, please click here.
For rates and fees of the Amex Platinum Card, please click here.
For rates and fees of the Blue Cash Preferred, please click here.
For rates and fees of the Blue Cash Everyday, click here.