Finding the best credit card for rewards has been a game-changer for me financially. With so many options available, I wanted a card that genuinely gives back for my everyday spending. If you’re on the hunt for maximum perks, cashback, travel points, or other incentives, let me walk you through everything I’ve learned about picking the best credit card for rewards.
Why Choose a Rewards Credit Card?
I used to use a basic credit card without even thinking about what I was missing out on. Once I discovered reward cards, I realized how much value I could get just from using the right card for groceries, gas, and travel.
The best credit card for rewards helps you earn cashback, travel miles, gift cards, or even statement credits. It’s like getting paid to spend smartly.
Types of Rewards Credit Cards
1. Cashback Credit Cards
These are my favorite when I want straightforward value. You spend and get a percentage back—simple as that. Some cards give a flat rate, while others have higher percentages for specific categories like groceries or dining.
2. Travel Rewards Credit Cards
When I travel, I always use my travel rewards card. These cards offer points or miles for airline tickets, hotels, and rental cars. Many even offer no foreign transaction fees, airport lounge access, and trip protection.
3. Points-Based Rewards Credit Cards
These cards let you earn points that can be redeemed for merchandise, gift cards, or even transferred to airline and hotel partners. I personally find these cards more flexible if used right.
How to Choose the Best Credit Card for Rewards
1. Assess Your Spending Habits
I looked at where I spend most of my money—groceries, gas, dining—and picked a card that offered bonus rewards in those categories. That’s the secret to making a rewards card work for you.
2. Consider the Annual Fee
Some of the best credit card for rewards options come with annual fees. But I don’t let that scare me. If the rewards I earn outweigh the fee, it’s still worth it. For instance, if I spend enough to earn $500 in rewards on a $95 annual fee card, I’m still winning.
3. Look for a Big Welcome Bonus
Most top-tier cards offer a generous sign-up bonus if you spend a certain amount within the first few months. I make sure to hit that minimum to grab that free extra value.
Top Picks for the Best Credit Card for Rewards
1. Chase Sapphire Preferred® Card
I consider this a top choice. With a big welcome bonus and 2x points on travel and dining, it’s perfect for someone like me who travels and eats out often. The points are flexible, and transferring them to travel partners adds even more value.
2. Capital One Venture Rewards Credit Card
I love how straightforward this card is. You earn 2x miles on every purchase, and redeeming miles is easy. It also includes TSA PreCheck or Global Entry credit, which is a lifesaver at the airport.
3. American Express Gold Card
If you dine out and shop for groceries often, this is gold—literally. I earn 4x Membership Rewards® points at restaurants and U.S. supermarkets. It also offers tons of perks for foodies.
4. Citi Double Cash® Card
This is my favorite no-annual-fee option. You get 2% cash back—1% when you buy, 1% when you pay. Simple and efficient. It’s perfect if you don’t want to think about bonus categories.
5. Blue Cash Preferred® Card from American Express
I got this for the amazing 6% cash back at U.S. supermarkets (up to a limit). It also gives 6% on select streaming services and 3% on transit. It’s made for everyday living.
How to Maximize Your Rewards
1. Use the Right Card for the Right Purchase
I always carry a few cards and choose based on the category. For example, I use my Amex Gold for dining and my Blue Cash for groceries. That way, I get maximum returns on my spending.
2. Pay in Full Monthly
I never carry a balance. Interest charges can erase all your reward gains. The best strategy is to treat your rewards card like a debit card and pay it off every month.
3. Monitor Rotating Categories
Some cards offer 5% cash back on rotating categories like gas or online shopping. I set calendar reminders to activate and use them.
Common Mistakes to Avoid
1. Ignoring the Annual Fee
Sometimes people avoid cards with fees, thinking they’re a waste. But I’ve learned that if the card aligns with your spending, it can earn much more than its cost.
2. Missing Payments
A late payment can destroy your credit score and forfeit rewards. I always set up auto-pay so I never miss one.
3. Not Redeeming Wisely
Some cards give poor value when you redeem for merchandise or gift cards. I usually redeem points for travel or direct statement credits for the best return.
Final Thoughts: Best Credit Card for Rewards
The best credit card for rewards is one that aligns with your lifestyle. For me, combining travel and cashback cards gives me the most value. I treat my cards like financial tools—not just spending enablers.
Doing your research, tracking your spending, and using the right card for the right purpose can help you earn hundreds or even thousands of dollars a year in rewards.
If you’re just getting started or want to compare offers, you can check NerdWallet’s rewards card rankings here for up-to-date and in-depth comparisons.
Bonus Topic: Sell Annuity Payments
While we’re on the subject of smart money moves, another financial option that helped me was choosing to sell annuity payments. If you’re receiving structured payments over time but need a lump sum now—for debt, investment, or life changes—selling annuities can be a helpful solution.
You can find more details about this at Annuity.org’s guide on selling payments.