Summary of the Best Rewards Credit Cards This Month

Chase Sapphire Preferred® Card

Why this is one of the best rewards credit cards: The Chase Sapphire Preferred Card might appeal to you if you are often dining and traveling. Those purchases earn 3X points on dining and 2X points on all other travel purchases, plus more. One of this card's chief benefits kicks in when you redeem points for travel through Chase Ultimate Rewards portal. Points are worth 25% more when you choose this option. See our full review.

Blue Cash Preferred® Card from American Express

Why this is one of the best rewards credit cards: This card earns 6% cash back on select U.S. streaming subscriptions; 6% cash back at U.S. supermarkets on up to $6,000 in purchases (then 1%); 3% cash back at U.S. gas stations and on transit; and 1% cash back on other purchases. Cardholders can also earn $300 in statement credits after making $3,000 in purchases on the card within six months of opening the account. See our full review.

Chase Freedom Flex℠

Why this is one of the best rewards credit cards: If you’re looking for a rewards card with 5% cash back on up to $1,500 each quarter in rotating bonus categories you activate, this is a good choice. Chase Freedom Flex also offers 5% cash back on travel purchased through Chase, 3% at drugstores and restaurants, including takeout and delivery, and 1% on other purchases year-round. Additionally, you can earn 5% cash back on grocery store purchases (not including Target(R) or Walmart(R) purchases) on up to $12,000 spent in the first year. See our full review.

Chase Freedom Unlimited®

Why this is one of the best rewards credit cards: Chase Freedom Unlimited charges no annual fee and earns 5% cash back on travel purchased through Chase Ultimate Rewards, 3% cash back on dining and drugstore purchases and 1.5% cash back on all other purchases. Additionally, you can earn 5% cash back on grocery store purchases (not including Target(R) or Walmart(R) purchases) on up to $12,000 spent in the first year. If you get this card and spend $500 within three months of opening it, you can earn a $200 bonus. See our full review.

Discover it® Cash Back

Why this is one of the best rewards credit cards: Discover it Cash Back is a good choice for making the most of cash back rewards. You can earn 5% cash back each quarter in rotating categories, such as Amazon.com, grocery stores, restaurants, gas stations and when you pay using PayPal, up to the quarterly maximum when you activate. All other purchases earn unlimited 1% cash back. Discover charges no annual fee and matches all the cash back you earned at the end of your first year as a cardholder. See our full review.

Capital One SavorOne Cash Rewards Credit Card

Why this is one of the best rewards credit cards: The Capital One SavorOne Cash Rewards Credit Card offers 3% cash back on dining, entertainment and grocery purchases, and 1% back on all other purchases. You can earn a $200 cash bonus after spending $500 on your card in the first three months. This card charges no annual fee and provides a 0% introductory APR on purchases for 15 months and a variable APR of 14.99% to 24.99% thereafter. See our full review.

Delta SkyMiles® Gold American Express Card

Why this is one of the best rewards credit cards: If Delta is your preferred airline, this card can help you earn free award flights faster. Delta purchases and purchases at restaurants and U.S. supermarkets earn 2 miles per dollar, and you'll earn 1 mile per dollar on all other purchases. You'll also get your first checked bag free on Delta flights, priority boarding on Delta flights and 20% savings as a statement credit when you charge Delta in-flight purchases. See our full review.

Blue Cash Everyday® Card from American Express

Why this is one of the best rewards credit cards: The Blue Cash Everyday Card from American Express earns 3% cash back on up to $6,000 annually at U.S. supermarkets and then 1% back; 2% back at U.S. gas stations and select U.S. department stores; and 1% back on other purchases. You can receive a $200 statement credit after you spend $2,000 on your card in the first six months. This card charges no annual fee and comes with a 15-month 0% annual percentage rate on purchases and then a variable APR of 13.99% of 23.99% based on creditworthiness. See our full review.

Hilton Honors American Express Card

Why this is one of the best rewards credit cards: The Hilton Honors American Express Card is designed for travelers who want to earn big rewards for Hilton purchases. You can earn seven Hilton Honors bonus points per dollar when you stay at Hilton hotels and five points per dollar at U.S. supermarkets, at U.S. gas stations and at U.S. restaurants. All other eligible purchases earn three points per dollar. This card charges no annual fee and offers complimentary Silver status in the Hilton Honors rewards program as a perk. See our full review.

Wyndham Rewards® Earner℠ Card

Why this is one of the best rewards credit cards: The Wyndham Rewards Earner Card offers five points per dollar on Wyndham purchases, including hotels. Gold membership in the Wyndham Rewards program is automatically included so you can enjoy extras like late checkout and preferred room choices. You'll also earn five points per dollar on eligible gas purchases, two points per dollar on eligible dining and grocery purchases and one point per dollar everywhere else. See our full review.

What Should You Expect From Rewards Credit Cards?

Using rewards credit cards can be a fun and lucrative endeavor. Here's what you need to know about these cards:

Rewards earnings. Most rewards cards offer at least two points per dollar or 2% cash back on bonus categories.

Sign-up bonus value. You can earn a sign-up bonus worth at least $200 from 57% of rewards cards.

Annual fee. You'll pay no annual fee or have it waived the first year with 65% of rewards cards, but about 13% charge an annual fee of more than $100.

APR. About 9% of rewards cards have a minimum APR of 14.99% or lower; nearly 75% have a minimum APR of between 15% and 18.99%.

Benefits. Rewards card benefits are often generous, with many cards offering travel accident insurance, priority boarding, free checked bags and hotel status, as well as travel credits and other valuable cardholder perks.

What Are the Different Types of Rewards Credit Cards?

Rewards credit cards for consumers are one of three types: cash back, points or miles. Other rewards cards are designed for business spending. The rewards you can earn depend on the card you have.

Cash back credit cards. A cash back credit card pays back a certain percentage of what you spend, similar to a rebate. You can choose from two types of cards. Flat-rate cards earn the same amount of cash back no matter what you buy. Cards with bonus categories give you chances to get more money back in certain spending areas that may rotate or remain the same.

Rotating bonus categories usually change quarterly, and cardholders may need to activate the categories. Cash back rates vary based on what you select. For instance, some cards with bonus categories could offer 3% cash back or more for spending at gas stations, grocery stores and restaurants.

Rewards points. Instead of cash back, a rewards card may earn a certain number of points for every dollar spent. The base rate is typically one point per dollar. Point values depend on many factors, including the issuer, the purchase and the way you use your points. Points can be redeemed for everything from cash back to travel to merchandise, and travel often delivers the best redemption value.

Miles. This type of rewards card delivers airline miles instead of dollars or points as rewards. Typically, the more you spend on the card, the more miles you earn. For example, you might receive 1 mile for every dollar you spend. Although a co-branded airline card allows you to use your miles only with a partner airline, a general travel rewards credit card earns miles and points you can apply toward many types of travel purchases.

Business rewards credit cards. You can choose from cards that offer miles, points or cash back rewards for every dollar you spend on your business. These cards earn either flat-rate rewards or rewards in bonus categories, such as office supplies or telecommunication services.

As with their consumer cousins, business rewards credit cards may offer sign-up bonuses worth hundreds of dollars for new cardholders who meet spending minimums. The cards can also come with accounting tools that can help you better manage your expenses.

How Do Rewards Credit Cards Work?

With a rewards credit card, you earn points or cash back credits for each dollar you spend. Your points can be redeemed for travel, cash back or other options, such as gift cards.

Credit card companies have offered rewards credit cards since the early 1980s, when airlines developed credit card loyalty programs for frequent flyers. Rewards programs are incentives for consumers to use cards for purchases, but issuers also use rewards to encourage cardholder loyalty. Co-branded rewards cards tied to airlines or retailers, for instance, provide brand perks to create an incentive for you to spend more than you might have otherwise.

What Are the Pros and Cons of a Rewards Card?

Rewards Credit Card Pros

Rewards Credit Card Cons

How to Choose the Best Rewards Credit Card

If the sheer number of card choices is making your head spin, you are probably not alone. Here is some help to pick the right rewards card in six steps:

1. Compare credit card rewards programs. Choosing a rewards credit card best suited to your needs starts with looking at your spending habits. If you drive more than you fly, for example, a gas card that offers savings at the pump will be more useful than a co-branded airline credit card. On the other hand, a rewards credit card that earns cash back on everyday purchases is best if your spending is spread across categories such as grocery stores, restaurants and gas stations.

You can begin to narrow your search by matching rewards cards to your spending habits. Aim to select a card that makes earning rewards easy as you buy items at places where you already shop.

You'll want to make sure you understand the different types of rewards – cash back, points and miles – and how you can redeem them. Some cards earn one point for every dollar you spend, and others earn points only when you spend, for example, at gas stations or supermarkets. Look at your spending to see which cards could earn the most rewards or discounts for you.

2. Calculate your rewards-earning potential. Examining your spending habits can also help estimate how much you can earn with a rewards credit card. Tally your overall spending and identify the categories where you spend the most.

Next, choose either a card with rewards in bonus categories or flat-rate rewards. A card with bonus categories can boost your rewards earnings but requires you to track and activate the categories.

If you don't want to worry about bonus categories, you could instead pick a flat-rate card that earns the same amount of rewards on every purchase. Look for a card that earns more than one point per dollar on every purchase.

You may decide to use more than one credit card strategically. When you're buying groceries, for instance, you may choose the card that gives extra points in that category but the card with a good flat rate for other purchases.

3. Factor in sign-up bonuses. Rewards cards frequently offer large bonuses to attract new users, but they have spending minimums to earn them. You'll have to track how much you've spent using your credit card to know when you meet the requirement.

Just make sure you use regular expenses to hit the spending minimum and avoid credit card debt, which will be a much bigger challenge than chasing a sign-up bonus.

Some people practice churning, or repeatedly opening and closing credit cards to earn sign-up bonuses. With lots of sign-up bonuses available, churning can be attractive, but significant drawbacks come along with the practice. If you plan to churn credit cards, you risk overspending and possibly damaging your credit score after you close accounts. Protect your credit by avoiding this activity.

4. Determine rewards program redemption value. The redemption value is what your points or miles are worth in dollars, and values vary for different rewards programs.

Doing the math when you're evaluating rewards programs is important. You may have a higher redemption rate for travel or merchandise, for example, than for cash back or gift cards.

Here are a few examples:

Redemption options also differ by rewards program. Some programs offer statement credits, and others allow you to redeem your rewards directly toward purchases or into bank accounts.

Certain credit card rewards programs let you transfer points or miles to partner programs. If your card earns Chase Ultimate Rewards points, for example, you can transfer them 1-to-1 to airline and hotel travel partners. You can also transfer Ultimate Rewards points from one Chase card to a few others.

5. Subtract annual fees. Rewards cards with the best sign-up bonuses and most valuable perks usually have annual fees. Keep in mind that paying an annual fee doesn't make sense if you don't earn enough rewards in a year to offset it.

You'll need to crunch the numbers. How much would you earn on a card with no annual fee and a lower rewards rate versus a card with an annual fee but better rewards?

If you can maximize other cardholder benefits, the annual fee may be worth it, even if you lose money. For some cardholders, intangible rewards, such as priority boarding, may be important.

6. Learn about cardholder benefits. These can be valuable. Purchase protection and extended warranty coverage, for example, can come in handy if you need to repair or replace an item you bought with your card.

How to Maximize Credit Card Rewards

Making the most of your rewards card is easy to do as long as you have a plan. Using credit wisely, planning your spending and taking advantage of sign-up bonuses can help you get more rewards for your money.

What Are the Best Practices for Using Rewards Credit Cards?

A major part of maximizing rewards is using your credit card responsibly. These best practices can help you get the most out of your rewards card:

Knowing how your rewards programs work gives you more earning power because you can start to use your cards strategically.

Some credit cards with rewards allow you to pool points within your household so you can move points between rewards accounts on the same rewards program. This can be useful if you need more points for a reward, want to spend some leftover points or want to keep points active but cancel a card.

You can also maximize rewards by combining cards, including all of your points, from the same issuer.

Are Credit Card Rewards Taxable?

You can breathe a sigh of relief because your credit card rewards are not taxable, regardless of whether they are points, miles or cash back credits. The IRS views rewards as rebates rather than income, according to Experian, one of the three major U.S. credit bureaus.

Cardholders usually spend more to get rewards than the value of the rewards, which is why the IRS categorizes them as discounts instead of earnings.

The rules are the same for business credit cards, except that you will need to subtract the value of rewards from deductions you plan to take.

Best Rewards Credit Cards Methodology

U.S. News has been helping consumers make money decisions for decades. For our Best Rewards Credit Cards list, we factor in overall satisfaction data, ease and flexibility of rewards redemption, rewards earning rates, rewards redemption values, annual fees, APRs, sign-up bonus values, cardholder benefits, foreign transaction fees, and balance transfer fees. The satisfaction data is based on an annual nationwide survey.

Whether you’re looking to pay no annual fee or want a premium card with loads of perks, our list of the Best Rewards Credit Cards features the top options available. Before you decide, though, take stock of how you spend and what card benefits are important to you. Select a credit card that offers you the best value.

Rewards Credit Cards FAQs