Which Credit Card Rewards Are Best for You?

Not all credit cards offer rewards programs, but if you have one that does, you can enjoy some enticing benefits. Picture earning free travel, concert tickets, a flat-screen TV, or even assistance with college tuition, mortgage payments, or your retirement fund. Before signing up for a rewards program, be sure to review the details, including interest rates and annual membership fees.

The Capital One No Hassle Cash Rewards card comes with no monthly membership fee. You can earn 2% cash back on gas and groceries and 1% on all other purchases. Rewards can be applied to your balance or redeemed for cash back in the form of a check or gift card. However, this card requires excellent credit and has an ongoing APR of 14.9%.

The Platinum Card from American Express has no APR but requires a yearly membership fee of $450 and excellent credit.

You earn one point for every dollar spent and double points for booking airfare online. Additionally, you can earn a 25,000-point bonus if you spend $1,000 or more each month for three consecutive months.

Points can be redeemed for travel, concierge services, resort and boutique benefits, and access to exclusive events.

Capital One’s MTV Visa Rewards card offers five points for every dollar spent on entertainment, video game rentals and purchases, music and concerts, and sporting events. You earn two points for dining out, fast food, and coffee shop purchases, and one point for all other purchases.

There’s no annual fee, and you only need good credit to qualify, but the card carries a 16.9 percent APR. Additionally, you receive a 25-point bonus each billing cycle you keep your account in good standing.

If you love shopping, the American Express Preferred Rewards Gold card offers cash rewards and shopping points.

There’s a $125 annual fee and no APR, and those with excellent credit can earn one point for every dollar spent. Additionally, when you spend $500 in a three-month period, you receive 10,000 points redeemable for a $100 gift card. These points can be used for shopping, entertainment, and exclusive sporting event and concert tickets.

For avid travelers (when international travel resumes), the Wells Fargo Propel Amex is a standout choice. It features no annual fee, a 0% introductory APR, and abundant points. You earn 3X points on dining out, ordering in, gas, rideshares, and transit. Plus, you rack up significant rewards on hotels, flights, and car rentals. Another perk is no additional fees for international purchases—a boon for frequent flyers. The only drawback is the minimum redemption of 2,500 points and less-than-ideal balance transfer terms.

Families with growing appetites might find the Blue Cash Preferred Amex card appealing. It grants 6% cash back on groceries (up to $6,000 annually), along with 6% back on streaming services and 3% back on gas and transit, including rideshares. Plus, there’s a $300 welcome bonus if you spend $3,000 in the initial six months. While the annual fee is waived for the first year, it’s $95 thereafter. Additionally, enjoy a 0% APR for the initial 12 months (excluding balance transfers).

If you’re an Amazon aficionado, this Visa card could be a perfect fit. While there’s no annual fee, you must be an Amazon Prime member to enjoy the perks. You’ll receive 5% back on purchases at Amazon.com and Whole Foods stores, along with 2% back at most restaurants, gas stations, and drugstores. Plus, upon approval, you’ll snag a $100 Amazon gift card with no spending requirement, ready to use immediately!

We’ve provided a few strong examples to kickstart your search. Yet, these four options merely scratch the surface of available rewards cards. With dozens, even hundreds, of choices out there, it’s crucial to explore all your options before making a decision. Here are a few additional factors worth considering.

In today’s world, it seems like there’s a credit card rewards program tailored to every interest. If you’re a busy parent managing a large household, you might gravitate towards cards offering substantial discounts or cashback on groceries. For avid travelers, seeking out cards with air miles or hotel perks can fuel future adventures. Movie buffs, concert enthusiasts, and tech aficionados can find rewards cards aligned with their passions. It’s essential to choose a rewards program that resonates with your lifestyle and preferences. Opt for perks that bring you joy rather than ones you won’t fully utilize.

As you’ve noticed, each rewards card comes with its own set of features. Some may have annual fees, while others don’t. Interest rates also vary widely. Your spending habits should guide your choice of card.

For instance, if you use your card sparingly, paying a hefty $450 annual fee might not be worthwhile, considering the modest rewards you’ll accrue over a year. To offset such fees, you’d need to use your card extensively.

Likewise, if you often carry a balance from month to month, high-interest charges can quickly negate any rewards earned. It’s fruitless to accumulate points or miles if you can’t clear your balance monthly; you’ll end up losing money in the process.

You’ve likely come across commercials where one travel miles program criticizes its competitors for being too restrictive with their terms and conditions. While these ads may seem like “attack ads,” there’s a valuable lesson to learn:

“Know all the details of your reward program!”

Imagine saving up miles for that dream trip to Italy, only to find out that the airline partners of your reward program don’t fly there. Or discovering that your rewards can’t be used for a family vacation to Disney because it’s not a qualifying resort company. These are hypothetical examples, but they illustrate the importance of understanding the specifics of your credit card rewards program before signing up.

There are numerous rewards programs available, each tailored to suit the cardholder’s lifestyle. Nowadays, you can typically apply online and receive approval within 60 seconds. However, it’s important to note that most programs require good to excellent credit for approval.

Before committing to the first offer you come across, take the time to research your options. Each credit card company offers a range of cards and rewards programs, so it’s essential to find one that aligns with your preferences. Opting for a rewards program with a low annual percentage rate, no annual fee, and attractive rewards can help you maintain a high credit score while enjoying various perks responsibly.