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Everyday spending is an important piece of the travel rewards puzzle. While it doesn’t offer the “get rich quick” feeling of a shiny 100,000-point sign-up bonus, it can help you top off your balance to get that next award or diversify your points into a different program you wouldn’t otherwise use much. Here are the cards that offer the best return on everyday non-bonus spending.
There are many credit cards on the market today, but only a handful are worth considering when it comes to non-bonus everyday spend. Here are eight of the top possibilities, ranked by value in the first year and assuming $20,000 in non-bonus spend during that year:
|Welcome Bonus||Annual Fee||Points Earned Based on $20,000 in Non-Bonus Spend||Total Return in First Year (based on TPG valuations)|
|Chase Freedom Unlimited||3x points (assuming you also have a full-fledged Chase Ultimate Rewards card) on purchases in the first year up to $20,000 spent; 1.5 points after that||$0||60,000 points||$1,200 (assuming you also have a full-fledged Chase Ultimate Rewards card)|
|Capital One Venture Rewards Credit Card||50,000 miles ($700 based on TPG valuations) once you spend $3,000 on purchases within the first 3 months from account opening||$95 (waived first year)||40,000 miles||$1,260|
|Barclaycard Arrival Plus World Elite Mastercard||70,000 miles ($735 after 5% rebate on redeemed miles) after spending $5,000 on purchases in the first 90 days||$89 (waived first year)||40,000 miles||$1,155|
|Amex EveryDay® Preferred Credit Card from American Express||15,000 Membership Rewards points ($300) after you spend $1,000 in qualifying purchases on the Card within your first 3 months of Card Membership||$95||30,000 points (assuming 30 transactions per month)||$805|
|The Blue Business℠ Plus Credit Card from American Express
||None||$0 (See Rates & Fees)||40,000 points||$800|
|Bank of America Premium Rewards credit card||50,000 points ($500) after you make at least $3,000 in purchases in the first 90 days of account opening||$95||30,000 points (or up to 52,500 points depending on your status in the Preferred Rewards program)||$705 to $930|
|Citi Rewards+ Card||15,000 points ($255 assuming you also have a full-fledged Citi ThankYou Rewards card) after spending $1,000 in purchases within 3 months of account opening||$0||At least 20,000 points||At least $595 (assuming you also have a full-fledged Citi ThankYou Rewards card)|
|Citi® Double Cash Card||None||$0||$400||$400|
And here are the same cards ranked by their effective return for non-bonus everyday spend in the second year and beyond:
|Annual Fee||Earning on Everyday Spend||% Return (Based on TPG valuations)|
|The Blue Business℠ Plus Credit Card from American Express
||$0||2x Membership Rewards on the first $50,000 in purchases each year, then 1x||4%|
|Chase Freedom Unlimited||$0||1.5x Ultimate Rewards||3% (assuming you also have a full-fledged Chase Ultimate Rewards card)|
|Amex EveryDay® Preferred Credit Card||$95||1x Membership Reward points, 50% bonus points after making 30 purchases in a billing statement. Terms apply.||3% (including 50% bonus)|
|Capital One Venture Rewards Credit Card||$95 (waived first year)||2x Venture Rewards miles||2.8%|
|Barclaycard Arrival Plus World Elite Mastercard||$89 (waived first year)||2x Arrival miles, 5% rebate when you redeem miles||2.11%|
|Citi® Double Cash Card||$0||2% cash back (1% cash back when you buy, plus an additional 1% when you pay for those purchases)||2%|
|Citi Rewards+ Card||$0||1x ThankYou Rewards (with all purchases rounded up to the nearest 10 points)||At least 1.7% (assuming you also have a full-fledged Citi ThankYou Rewards card)|
|Bank of America Premium Rewards credit card||$95||1.5x points (with up to a 75% bonus depending on your status in the Preferred Rewards program)||1.5% to 2.625%|
Let’s break these options down one by one, taking a look at how these returns are calculated and which options might be right for you personally.
Chase Freedom Unlimited
The Chase Freedom Unlimited has been around for a while, and savvy users know that it pairs perfectly with Chase’s premium credit card offerings. The Freedom Unlimited is currently offering a sign-up bonus of 3% back on up to $20,000 spent in your first year of card membership. But, if you also hold a premium Chase card, such as the Chase Sapphire Reserve, the Chase Sapphire Preferred Card or the Ink Business Preferred Credit Card, you can transfer the points from your Freedom Unlimited to one of these cards. Doing so will turn them into full-fledged transferable Ultimate Rewards points, worth 2 cents apiece based on TPG’s latest monthly valuations.
While the Freedom Unlimited is often easier to get approved for than most premium cards, it is subject to Chase’s 5/24 rule. This means that you’ll be automatically rejected if you’ve opened 5 or more new cards in the last 24 months. This is one of the many reasons I think the Freedom Unlimited is a perfect starter card, and a simple and easy introduction to the world of free travel. See our full card review for more information.
Capital One Venture Rewards Card
The Capital One Venture Rewards Credit Card earns 2 miles per dollar spent on all purchases. There is one exception though: you’ll earn 10 miles per dollar spent through January 2020 on hotel purchases made with your Venture card through Hotels.com/Venture. The card comes with a $95 annual fee, but the annual fee is waived the first year.
You can redeem your miles at a fixed rate of 1 cent each as statement credits to “erase” travel purchases you’ve made in the last 90 days or you can transfer your miles to a selection of airline partners. Based on TPG’s valuations, transferring to these partners could get you about 1.4 cents per mile in value, meaning the 2x earning rate on this card equals a 2.8% return. And, you’ll get a 14% return from hotel purchases made at Hotels.com/Venture with your card — which is on top of the 10% return you’ll also get from the Hotels.com Rewards program. Check out our full card review for more details.
Barclaycard Arrival Plus World Elite Mastercard
There are no bonus categories on the Barclaycard Arrival Plus World Elite Mastercard, but you’ll earn 2 miles per dollar for everything you pay for with the card. Arrival miles are only worth 1 cent each, so you won’t get oversized value for them, but you can apply them to any travel-related purchases made on your Arrival Plus card and receive a statement credit against that purchase, essentially wiping out the cost. You’ll also get a 5% rebate on all redeemed miles, making the effective ongoing return on this card 2.11% for everyday spend.
There’s one caveat to note with this card: Although you can use as little as 2,500 miles to offset your account’s account annual fee at one cent apiece, the minimum travel redemption amount is $100. So, you’ll need to have 10,000 Arrival miles at any given time in order to apply them toward a travel purchase and you can only apply miles toward travel purchases made in the previous 120 days. But with the massive 70,000-mile sign-up bonus currently available and the waived annual fee for the first year, it’s probably worth giving the card a shot. Check out the full card review for more information.
Amex EveryDay Preferred Card
The Amex EveryDay Preferred Credit Card from American Express can be a lucrative option if you’re willing to commit to it. In addition to 2x points at US gas stations and 3x at US supermarkets (up to $6,000 in purchases per year), you’ll earn a 50% point bonus each billing cycle you make 30 or more purchases. If you’re able to do this, you’ll effectively be earning 1.5 Membership Rewards points on everyday non-bonus spending. But, if you only make it to 29 purchases, you’ll be stuck earning 1 Membership Rewards point per dollar spent on non-bonus spend in that billing cycle.
You’ll have to take a look at your own spending history and see if you can consistently maximize this card, but even at its best, it still comes up somewhat short of the Blue Business Plus. The Everyday Preferred has a $95 annual fee while the Blue Business Plus has none, and obviously 1.5x is less than 2x. Still, it might be a good choice for those folks who can’t get a business card, or who might have more than $50,000 a year in credit card expenses.
The information for the Amex EveryDay® Preferred Credit Card has been collected independently by The Points Guy. The card details on this page have not been reviewed or provided by the card issuer.
Amex Blue Business Plus
The Blue Business Plus Credit Card from American Express is a relatively new addition to the Amex portfolio, but boy, does it pack a punch. This no annual fee credit card earns 2x Membership Rewards per dollar spent on all purchases, up to $50,000 in a year; then 1x. TPG values Membership Rewards points at 2 cents each, meaning that this card gives an unparalleled 4% return on all spend. Maxing out this card would earn you 100,000 Membership Rewards points a year, which TPG values at $2,000 and is certainly enough to unlock some pretty impressive redemption options.
Small business owners will also appreciate that this card borrows some of the best elements of Amex charge cards. Specifically, you have the potential to be able to spend beyond your pre-approved credit limit as long as you pay off the balance in full during the next billing cycle. The only downside of this card is that it’s a business card, not a personal card, so not everyone will be able to apply for it (though you may be more eligible than you think). See the full card review for more details.
Bank of America Premium Rewards credit card
This card becomes extra appealing for non-bonus spending if you have high standing in Bank of America’s Preferred Rewards program. If you have more than $100,000 in assets with BoFA (including investment and retirement accounts), you could get a 75% bonus on all points earning — meaning the 1.5x points you earn on non-bonus purchases with the Premium Rewards Card would be boosted to 2.625x points. The card has a $95 annual fee.
If you don’t have the requisite $100,000-plus in assets to secure the 75% bonus that comes with the Platinum Honors tier of the Preferred Rewards program, note that there are two lower tiers: Gold ($20,000-$50,000 in assets), which gets a 25% points bonus, equal to 1.875x points on non-bonus spending, and Platinum ($50,000-$100,000), which gets a 50% points bonus, equal to 2.25x points on non-bonus spending. Check out the full card review for more details.
Citi Rewards+ Card
The Citi Rewards+ Card earns basic ThankYou points that can be transferred to JetBlue at a 5:4 ratio or used toward travel booked through the Citi portal, gift cards or statement credits at a value of 1 cent each. But, if you have a premium ThankYou Rewards card, like the Citi Prestige or Citi Premier Card, the points become worth 1.7 cents each since then they can be combined with your full-fledged ThankYou points and transferred to more airline partners.
The points earned on each purchase are rounded up to the nearest 10 points, so purchasing a 50-cent pack of gum or $2 coffee will each earn you 10 points. These 10 points are worth 17 cents if you have a premium ThankYou Rewards card or 10 cents if not. So, the Rewards+ Card is especially useful if you make lots of small purchases. The Rewards+ Card also features Citi’s impressive shopping protections as well as 2x earning at gas stations and supermarkets and a 10% rebate on the first 100,000 points you redeem annually. See the full card review for more information.
While earning points and miles toward free travel is the way to earn the most lucrative credit card rewards, some people prefer the simplicity of cash back. For them, the Citi® Double Cash Card is an excellent choice. It comes with no annual fee and a total of 2% cash back on all purchases — 1% when you make a purchase, and an additional 1% when you pay for it on your statement. And, like the Rewards+ Card, it also offers Citi’s great shopping protections.
This card is as easy as it gets — no bonus categories, no points to redeem and no award space to chase. The one quirk to be aware of is that this card doesn’t waive foreign transaction fees, so you’ll want to use a different card when you’re traveling internationally or making overseas purchases. You also won’t earn outsized returns with this card since there’s no maximizing your points with cash back. See the full card review for more information.
The best card for you will depend on your spending habits, travel goals and the cards you already have for bonus category spending. Regardless of your specific situation, at least one of the cards on this list should be able to help you earn more on your everyday purchases that don’t fall into a bonus category.
The Blue Business Plus offers an impressive 4% return on general spending long-term, while the Capital One Venture Rewards Credit Card and Barclaycard Arrival Plus World Elite Mastercard both offer valuable sign-up bonuses paired with more than a 2% return on everyday spending long-term. The Chase Freedom Unlimited offers a non-conventional bonus and is an excellent choice if you already have a card that earns full-fledged Chase Ultimate Rewards. And the Bank of America Premium Rewards credit card is a solid option if you have high standing in Bank of America’s Preferred Rewards program. Each card is on the list for a specific reason, so you just have to pick the best one for your situation.
For rates and fees of the Blue Business Plus Card, please click here.
Featured image by ozgurcankaya / Getty Images.
This is The Points Guy’s permanent page for the best credit cards for everyday spending. Keep in mind you may see some reader comments referring to previous versions of this post below.
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TPG'S BONUS VALUATION: $600
CARD HIGHLIGHTS: No annual fee + earn 1.5% cash back on all purchases after you meet the $20,000 cap
- New Offer! Double Cash Back: Earn 3% cash back on all purchases in your first year up to $20,000 spent. After that earn unlimited 1.5% cash back on all purchases.
- 0% Intro APR for 15 months from account opening on purchases and balance transfers, then a variable APR of 17.24-25.99%. Balance transfer fee is 3% of the amount transferred, $5 minimum
- No minimum to redeem for cash back
- Cash Back rewards do not expire as long as your account is open
- Free credit score, updated weekly with Credit Journey℠
- No annual fee