Best rewards credit cards for your lifestyle

Rewards credit cards come in two main varieties. Cash-back cards pay you back a percentage of each transaction. Travel rewards cards give you points or miles that you can redeem for free flights, hotel stays and more. The right rewards credit card for you is all about how you spend money and what kind of rewards you value.

• Chase Sapphire Preferred® Card (see rates and fees)
• Capital One Venture Rewards Credit Card
• The Platinum Card® from American Express
• Ink Business Preferred® Credit Card (see rates and fees)
• Ink Business Unlimited® Credit Card (see rates and fees)
• Citi Strata Premier℠ Card (see rates and fees)
• Chase Freedom Unlimited® (see rates and fees)
• Blue Cash Preferred® Card from American Express
• American Express® Gold Card
• Bilt Mastercard®* (see rates and fees)

Rewards credit cards offer you some type of “reward”—typically cash back, points, or travel miles—for every dollar you spend, sometimes up to certain limits. Depending on the card, you can then use your rewards in a variety of ways.

Rewards cards constitute a significant segment of the current credit card market, catering to a wide range of preferences. These cards not only feature diverse reward structures but also differ in the methods available for redeeming rewards and the types of rewards that can be obtained. Generally, rewards can be exchanged for checks, statement credits, merchandise from the card issuer, gift cards, and travel benefits. At the conclusion of each billing cycle, your rewards balance is displayed on your credit card statement.

Many credit card companies also offer introductory bonus rewards to try to entice you to sign up. Those offers may involve hundreds of dollars in incentives once you reach a certain spending threshold, along with an introductory 0% APR for the first several months, and no fees for the first year.

1. Evaluate Your Spending Patterns

Begin by reviewing where and how you spend the majority of your money. Are you frequently dining out, commuting, or traveling? Do you spend heavily on groceries, gas, or online subscriptions? Your primary spending categories should guide your choice. For example:

• Frequent travelers may benefit most from travel rewards or airline-specific cards.
• Daily commuters and families may prefer cashback cards focused on gas and groceries.
• Online shoppers or subscription users can consider cards with enhanced points for digital services.

2. Define Your Reward Preference

There are typically three types of rewards structures:

• Cashback – Offers a percentage of your purchases returned as cash or statement credit.
• Points – Redeemable for travel, merchandise, or gift cards.
• Miles – Primarily used for flights, hotels, and other travel-related expenses.

Understanding which reward type aligns with your preferences will help narrow down your options.

3. Consider the Sign-Up Bonus

Many top credit cards offer generous welcome bonuses if you meet a minimum spend within the first few months. These bonuses can deliver hundreds of dollars in value. However, ensure the required spending aligns with your regular expenses to avoid unnecessary purchases or debt.

5. Check Redemption Flexibility

Some cards restrict how you redeem your rewards, while others offer more versatility. If flexibility is important to you:

• Look for cards that allow you to transfer points to multiple travel partners.
• Consider whether you can redeem for cash, travel, gift cards, or merchandise.
• Review if there are any blackout dates or restrictions on redemption.

6. Review Foreign Transaction Fees

If you travel internationally or make purchases from foreign merchants, be sure to select a card with no foreign transaction fees. These fees typically range from 1% to 3% of each transaction and can add up quickly.

7. Assess Credit Score Requirements

Most high-rewards cards require good to excellent credit (typically a FICO score of 670 or higher). Before applying, check your credit score to ensure you qualify. Applying for cards you’re not eligible for can negatively impact your credit through hard inquiries.

8. Look for Added Perks and Protections

Premium rewards cards often come with a suite of added benefits, such as:

• Extended warranties and purchase protection
• Travel insurance and rental car coverage

When choosing a rewards credit card, the variety of options—each with unique welcome bonuses, annual fees, earning rates, and perks—can feel overwhelming. To simplify your decision, start by defining how you plan to use the card and which type of rewards you prefer: cash back or points and miles. If you’re new to the rewards space, starting with a straightforward cash-back credit card may be ideal before progressing to more complex travel rewards credit cards that involve transfer partners and redemption strategies.

Always assess a card’s welcome bonus with context. For example, a 75,000-point bonus could be worth significantly more than $750 in cashback, depending on how the points are redeemed. Tools like monthly point valuations can help estimate their real value.

Also, analyze your spending habits—do you spend more on dining, groceries, or travel? Choose a card that aligns with those categories and avoid cards that charge foreign transaction fees if you travel internationally.

They can be a great way to save a bit of money, but it’s important to pay your balance every month so interest charges don’t wipe out the value of the rewards. For example, if you have a card that provides 3% cash back on certain purchases, you are effectively getting a 3% discount on those purchases. However, if you carry a balance, you’ll be required to pay interest on that balance at a rate that almost certainly exceeds the value of those rewards.