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Yahoo
05-05-2025
- Business
- Yahoo
Top travel credit cards for 2025
Travel credit cards aren't only for jet-setting world travelers. You can score deep discounts and valuable perks whether you only fly once per year or you're determined to check off multiple bucket list destinations. The key is choosing the right travel credit card for you. That means an annual fee that fits your budget and rewards that align with your regular expenses and travel preferences — as well as great benefits to keep maximizing value each time you travel. Why we like it: The Capital One Venture card is a winning travel card for earning and redeeming miles, no matter how you like to travel. The simple 2x miles on every purchase can help you earn toward future trips with everything you buy. And redemptions are just as far-reaching: You can use miles to book future trips through Capital One Travel, reimburse yourself for travel purchases you make with your card, or transfer miles to Capital One's 15+ travel partners. It has only a few added benefits, including a credit toward TSA PreCheck or Global Entry fees, Five Star Status with Hertz rental cars, and a $50 experience credit when you book a stay with the Lifestyle Collection hotels. But the Venture card's value really comes from how simple it is to maximize the miles you earn and redeem. If you're looking for a flexible way to get the best value on travel without committing to a booking site, travel brand, or type of trip, this card is tough to we like it: The Chase Sapphire Preferred Card has a solid welcome offer and rewards on a mix of travel and everyday categories, so you can rack up points no matter how often you vacation. On top of that, you'll get an anniversary points bonus worth 10% of your overall spending from the past year. But you'll get the most value from this card when it's time to redeem. Points redeemed for travel through Chase Travel℠ get a 25% boost — so 10,000 points would be worth $125, for example. Perks such as up to $50 in statement credits each anniversary year for hotels booked through Chase Travel and partner benefits with Lyft, DoorDash, and Peloton can also save you money at home or while traveling. And if you have a Chase cash-back card like the Chase Freedom Unlimited® or Chase Freedom Flex®, you can pool the rewards you earn with those cards with your Chase Sapphire Preferred and take advantage of the redemption boost across your we like it: Premium travel cards are often reserved for only very frequent travelers who can afford to pay high annual fees while still getting enough value from airport and travel benefits to make the cost worth it. We like the Capital One Venture X Rewards Credit Card because it has no shortage of great perks and rewards, but offers a relatively lower annual fee. Plus, it has the same straightforward rewards and flexible redemption options as the regular Venture card. As for those great perks, you'll get a $300 annual travel credit for bookings with Capital One Travel; 10,000 bonus miles each year after your first anniversary; a credit for TSA PreCheck or Global Entry fees; access to Capital One Lounges and partner lounge networks; a $100 experience credit when you book stays with the Premier Collection; Hertz President's Circle status; and more. Combined, these perks more than outpace the card's annual fee — but consider your travel plans to ensure you'll be able to take full advantage and get the maximum possible value from your Venture X we like it: You might not expect a travel credit card to offer some of the best rewards on your most frequent budget items, but the American Express Gold Card does just that. With 4x points at restaurants worldwide (up to $50,000 in purchases annually) and 4x points at U.S. supermarkets (up to $25,000 in purchases annually), it's easy to earn rewards on your year-round food spending to put toward an upcoming trip — in addition to travel rewards categories. The Amex Gold Card's added benefits can also help you save at home and while traveling. These include up to $50 in statement credits semi-annually (up to $100 per year, with enrollment) when you use your card at a restaurant on Resy in the U.S.; up to $7 in monthly statement credits (up to $84 per year, with enrollment) for U.S. Dunkin purchases; up to $10 in monthly statement credits (up to $120 per year, with enrollment) when you use your card at Grubhub, The Cheesecake Factory, Goldbelly, and Five Guys; and more. Combined with travel savings, travel rewards, and flexible redemption options (including transferring to Amex's partner travel programs), Amex Gold offers great value even if you travel only a few times per we like it: The U.S. Bank Altitude Connect may be a no annual fee card, but the rewards and perks it offers can bring just as much value as more costly options. Like the other cards on our list, you can earn rewards across a range of travel and everyday categories: 5x points on prepaid hotels and rental cars booked through U.S. Bank's Altitude Rewards Center; 4x points on other travel and at gas stations or EV charging stations (up to $1,000 spent per quarter); 2x on dining purchases, streaming services, and grocery stores; and 1x on everything else. Redemption options may be slightly more limited than other cards on our list, but you can redeem rewards for a deposit to your U.S. Bank account, travel, gift cards, and more. Beyond rewards, added benefits also offer major value, especially for a no annual fee card. These include a statement credit toward TSA PreCheck or Global Entry fees and complimentary Priority Pass Select membership for airport lounge access (four free visits per year). Finally, a 0% intro APR on balance transfers for the first 12 billing cycles after account opening (17.25%-28.24% variable APR after that) could be useful if you're looking to pay down some existing debt over a few months but want a card that you can continue to use for travel longer-term. Why we like it: The Citi Strata Premier card is another travel card with a straightforward rewards structure but plenty of potential value. Earning rewards is simple — get 10x points when you book hotels, rental cars, and attractions through and 3x points across other hotel purchases, air travel, restaurants, supermarkets, gas stations, and EV charging stations (everything else earns 1x points). In addition to redemptions through and for gift cards, you can transfer points to Citi's partner airline programs. You might get the most value from this card if you stay at hotels often, but you aren't loyal to any single hotel chain and don't mind booking through Citi's travel portal. You can combine the 10x points on hotels booked through with the card's $100 annual hotel benefit, which gives you $100 off a single booking of $500 or more through each calendar year. Then, get the full redemption value for your points by using them to book future award stays through the portal. Why we like it: The Bank of America Premium Rewards Credit Card works a bit like a flat rewards card — with a boost. You'll earn 2x points on travel and dining with an unlimited 1.5x on everything else, which means you're still getting the 1.5x multiplier no matter what you use your card to buy at home or away. Even better, you may be eligible to increase your rewards earnings even more. If you're a Preferred Rewards member with Bank of America, you can earn 25% to 75% extra on every purchase, depending on your combined balances across eligible deposit and investment accounts. That could increase your travel and dining rewards to 2.5x to 3.5x and everything else to 1.87x to 2.62x per dollar. The Premium Rewards card's welcome bonus and annual fee align with the others on our list, but you'll also get some statement credits that can help increase your value beyond points. There's a credit toward TSA PreCheck or Global Entry fees every four years and an annual credit up to $100 for airline incidental charges like seat upgrades, in-flight purchases, and more. Bank of America has no travel transfer partners, but you can redeem your points for statement credits, gift cards, and travel purchases through the Bank of America Travel Center. General travel cards like the ones above can be great for scoring points and miles toward any type of travel. But if you always prefer flying with a certain airline or booking with a specific hotel chain, a co-branded travel card might be more rewarding. We included hotel and airline cards in our overall travel card ratings, and the cards below are the top-scoring options. Just remember: a co-branded travel card only makes sense if you fly often enough with that airline or stay frequently enough at the hotel to justify its value over a more general card. Make sure you look at your recent travel and any upcoming plans before deciding. The Alaska Airlines Visa Signature card has a solid welcome offer and rewards on a combination of everyday spending and Alaska purchases — plus it offers an affordable way to score Alaska's Companion Fare every year. You'll earn a $99 Companion Fare (plus taxes and fees) each account anniversary when you spend at least $6,000 in the year prior, or about $500 per month. With 3x rewards on Alaska Airlines spending and 2x on gas, EV charging, cable, streaming services, and local transit (plus 1x on everything else), you can meet that threshold with a combination of travel and everyday purchases while boosting your rewards. If you're already a Bank of America customer with an eligible Bank of America checking or savings account or an eligible investment account with Merrill, you can get even more annual value from a 10% annual rewards bonus on the miles you earn. Say you spent the $6,000 you need to earn Companion Fare on purchases in the 2x rewards category — you'd earn 12,000 points on your spending and an additional 1,200 with the relationship bonus to put toward a future Alaska you're planning a trip to Hawaii, the Hawaiian Airlines World Elite Mastercard can offer amazing savings on your trip. In addition to the bonus miles you'll get from the welcome offer, you'll also get a one-time companion discount for 50% off a roundtrip coach ticket between Hawaii and North America. Even after the one-time discount, you'll still save when you fly to Hawaii with a $100 companion discount every account anniversary which also applies to roundtrip travel between Hawaii and North America on Hawaiian Airlines. The purchases you make with the airline earn 3x miles per dollar. Even when you're not flying to Hawaii, you can earn miles toward a future trip with 2x miles on gas, dining, and eligible grocery store purchases (plus 1x on everything else).United and Chase offer multiple co-branded card options for frequent United Airlines flyers, but we like the The New United Quest Card for a few reasons. The annual fee is higher than some other options, but you'll get plenty of benefits that can help make up the cost if you fly United at least a few times per year. Perks you can use when you travel includ a $200 United travel credit and 10,000-mile award flight discount on each account anniversary; a 10,000-mile award flight discount after spending $20,000 each calendar year; a $100 property credit when you book Renowned Hotels and Resorts for United Cardmembers; 1 Premier-qualifying point for every $20 you spend (up to 18,000 PQPs per calendar year) toward Premier status with United; and more. In addition, get a solid welcome bonus and a wide range of ongoing rewards, from 3x miles on United purchases, 2x miles on other travel, dining, and select streaming services, and 1x on everything else. For travelers who prefer to stay in IHG Hotels (which includes brands like InterContinental, Kimpton, Crowne Plaza, Holiday Inn, and more), the IHG One Rewards Premier Credit Card offers a solid balance of rewards potential and annual benefits. You can earn up to 26x points on IHG hotel stays; 5x points on travel, dining, and at gas stations; and 3x points on everything else. For the added benefits, you'll get more value the more you spend with your card and stay at IHG properties. Annual perks include automatic Platinum Elite status (qualify for Diamond when you spend at least $40,000 in a calendar year); an anniversary free night worth up to 40,000 points; a $100 statement credit and 10,000 points when you spend $20,000 in a calendar year; your fourth night free on eligible reward stays; and up to $50 United TravelBank Cash each calendar year when you connect your card to your United MileagePlus account. As one of the most extensive hotel programs in the world, a co-branded Marriott credit card can be a great tool for traveling the world no matter what type of property you prefer. With the Marriott Bonvoy Boundless Credit Card, you'll get benefits when you stay, like an annual free night award (worth up to 35,000 points) and a path to elite status with 15 Elite Night Credits each calendar year plus one additional Elite Night Credit for every $5,000 you spend. On top of that, get automatic Silver Elite status and Gold Status if you spend $35,000 in a calendar year. You'll earn the most points toward future Marriott stays when you make purchases with Marriott, at up to 17x points per dollar, but you can also get rewarded for everyday spending at home, with 3x points on the first combined $6,000 at gas stations, grocery stores, and on dining. Everything else earns 2x points per dollar. All information about the Marriott Bonvoy Boundless Credit Card has been collected independently by and is no longer available through Yahoo Finance. If you're a Hyatt traveler, the World of Hyatt Credit Card has plenty to offer for savings on your hotel and resort stays. For ongoing rewards, you'll earn up to 9x points on purchases at Hyatt hotels; 2x points at restaurants, on airline tickets purchased directly with airlines, local transit and commuting, and fitness club and gym memberships; and 1x points on everything else. Compared to other co-branded travel cards, this lineup of rewards categories is pretty unique, which could make it a good pick if those categories line up with your budget while at home or when you travel. Like the hotel cards above, the World of Hyatt card also has plenty of potential annual savings on your Hyatt spending. You'll get a free night each year after your account anniversary for any Category 1-4 hotel or resort, another free night at a Category 1-4 property when you spend at least $15,000 in a calendar year, automatic Discoverist status, five qualifying nights per year toward your next-highest status, and 2 more qualifying night credits for every $5,000 in purchases with your card. Travel credit cards offer points and miles rewards on your spending, which you can use toward travel-related redemptions, such as flights, hotel stays, and car rentals. You'll often earn the highest rewards rate on travel purchases with a travel credit card, though many also offer boosted rewards on everyday purchases like groceries, gas, and more. Many travel cards also provide travel benefits and perks, which could include airport lounge access, annual travel or airline credits, companion airfare, or elite status with an airline or hotel loyalty credit cards are worth it if you get enough value from the card's benefits and rewards to outweigh any potential costs, such as an annual fee. Unlike some other rewards cards, like cash-back credit cards, travel cards are more likely to carry annual fees in exchange for their high rewards rates and annual benefits. They might not be worth it if you don't travel enough to take advantage of these card benefits and rewards. However, a travel card can still be worth it if you're not a frequent traveler. Even if you travel only once or twice per year, you can accumulate points throughout the year to offset your airfare and hotel costs when you do go on a you're comparing travel credit cards, it can be useful to separate them into two distinct types: general travel rewards cards and co-branded airline and . With a general travel credit card, you'll have a number of flexible redemption options when you're ready to redeem your points and miles. You may also have a broader range of benefits. Some general travel credit cards include: Chase Sapphire Preferred Card Capital One Venture X Rewards Credit Card American Express Gold Card Travel card issuers generally have their own travel portals, like Chase Travel or American Express Membership Rewards. You can use these to book flights, hotels, rental cars, and more. They may also have a number of travel partners, to which you can directly transfer points or miles. For example, American Express Membership Rewards points transfer to Delta SkyMiles at a rate of 1: flexibility of general travel cards means you can travel with any number of different airlines or hotel brands and get the best bang for your buck. Each time you're ready to book, simply shop around between the portal or partners and compare the best options for your specific travel plans. These credit cards also allow other redemption options, such as statement credits, gift cards, and cash back. But you'll generally get the best value by redeeming points or miles for travel. Airline and hotel credit cards are typically co-branded between the card issuer and the airline or hotel chain. Here are a few examples: Alaska Airlines Visa Signature credit card United Quest Card Marriott Bonvoy Boundless Credit Card These cards are best suited for travelers who prefer to fly with a specific airline or stay at a certain hotel chain. Maybe you live near a hub airport, frequent a destination where a specific airline offers the most direct flight options, or you enjoy the perks of a specific hotel's loyalty program. Instead of flexible rewards points or miles, you'll earn points or miles within the airline or hotel rewards program, like Marriott Bonvoy points or American Airlines AAdvantage miles — and get a boosted rewards rate when you spend directly with the airline or hotel. These cards often offer a faster path to elite status tiers within these programs as well. You'll typically get the best redemption rate when you use rewards for flights with the airline or stays at a hotel, but many programs offer other redemptions, too. Some airline and hotel rewards programs may even allow you to transfer your points and miles to other travel partners like you can with general travel rewards programs. The added benefits of co-branded cards are designed to appeal to loyal airline or hotel customers. For example, your airline card may get you priority boarding, upgrades, free checked bags, and in-flight discounts. And your hotel card may offer early check-in or late checkout, annual free night awards, and on-site credits. Co-branded travel cards aren't for everyone, but they can add a lot to your travel experience if you have a strong airline or hotel preference. Here are a few key details to look for in any new travel credit card: No matter your budget, there's a travel credit card with an annual fee that fits. You can find solid no annual fee options, like the U.S. Bank Altitude Connect Visa Signature card. But there are also plenty of premium travel cards with steep fees — The Platinum Card® from American Express, for example, may set you back $695 per year (see rates and fees) but comes with an abundance of valuable benefits and perks that can potentially give you even more value back each year. The most important thing to keep in mind when deciding whether an annual fee is worth it for you is whether you can get enough out of the rewards and benefits to outweigh the cost — without spending more than you otherwise would or can afford. For new cardholders, a sign-up bonus can offer major first-year value. These bonuses may be worth anything from 10,000 to over 100,000 bonus points or miles — which can translate to hundreds of dollars in rewards value. However, you should compare the terms of the bonus to your own budget before you apply. For example, you may need to spend $4,000 within the first three months of opening your card before you can earn the 60,000 bonus points. If that's not within your typical spending, be careful not to take on debt to meet the spending threshold. Accruing high interest on balances can quickly outpace even the best bonus. One smart strategy is opening a new travel credit card when you're booking a trip you've been saving for. You may already be prepared to spend more than usual, which can help you reach the bonus requirement faster. Plus, you can earn rewards on those travel purchases to put toward future trips. Also look out for limited-time offers from top travel credit cards. Occasionally, issuers will increase the welcome bonus for a period of time — if you see a promotional offer that fits within your budget, that could be a great time to apply for a new card. Rewards are one of the biggest reasons for many people to open a travel credit card. Earning rewards with travel cards often works in one of two ways. You'll either earn rewards on your everyday spending (groceries, gas stations, restaurants) to redeem toward future travel, or earn rewards on your travel spending to put toward future travel. Some cards offer a combination of these rewards, but knowing which type of spender you are can be useful. If your monthly budget is largely dedicated to everyday spending, you may get more value from the former. But if you travel frequently and spend a lot of money on flights, hotels, and rental cars, you can quickly rack up more points with travel-based rewards categories. Many travel rewards credit cards — especially the most premium cards with high annual fees — really shine when it comes to added perks and benefits. These benefits can help you offset the annual fee and save money each time you travel. Take the $395 annual fee Capital One Venture X Rewards Credit Card, for example. Each year, you'll get a $300 annual credit for bookings through Capital One Travel and 10,000 bonus miles (equal to $100 towards travel) on your account anniversary. Already, that's enough to wipe out the annual cost — before accounting for any rewards and other benefits (like up to $120 in fee credits toward TSA PreCheck or Global Entry and Priority Pass Select airport lounge membership). Just remember: Choose a card with benefits that help you save on purchases you would still have made otherwise. If you tend to arrive shortly before takeoff and don't care about airport lounge access, you won't actually get the $200 potential value from that benefit. One unique aspect of travel credit cards is the protections you can get as a cardholder when you travel. Common protections offered by travel credit cards include trip cancellation and interruption insurance, car rental insurance, trip delay reimbursement, baggage delay insurance, access to emergency assistance services, and more. As long as you pay for your travel expenses with the card (booking flights, hotels, tours, etc.) you can qualify for these travel protection benefits. Like any coverage, though, you should make sure to read the fine print of what your individual card offers. These benefits can vary greatly between different travel cards, so make sure to look for details in your card rewards credit cards can make a great addition to your wallet, even if you only travel a few times per year. Be sure to compare different travel card options to find the combination of annual fee, rewards, benefits, and sign-up bonus that works best for your travel plans and spending. There may be a few reasons why a travel credit card isn't right for you, though: You're already in credit card debt. Avoid adding another card — especially one with a potentially high annual fee — to your wallet if you already have high-interest debt. Eliminating those balances will help you save a lot more in interest than any value travel rewards could offer. You don't want to keep up with a rewards strategy. Travel credit cards can be most lucrative if you maximize how you earn and redeem rewards. If you don't want to spend the time strategizing bonus categories and the best redemption options, a credit card with a simpler rewards structure may be better for you. You don't have great credit. Travel credit cards generally require a good-to-excellent credit score to qualify for approval. If your credit isn't in a great place right now, focus on improving your score before you apply for a new card. If you are ready to open a travel credit card, time your application wisely. The spending thresholds to earn your welcome bonus can be high, so you may want to plan your application around your next trip. The money you've already saved can help you score the bonus when you book your travel, and you'll also earn bonus points or miles for your next trip. If you're new to travel credit cards, the Capital One Venture Rewards Credit Card is a great place to start — you can earn 2x miles on everything, and it's easy to redeem your miles through Capital One's travel portal. Before you apply for any new travel card though, look at your frequent spending and travel to find the best one for your individual goals. When traveling abroad, look for credit cards that don't charge foreign transaction fees. All of the cards on the list above waive foreign transaction fees, so you won't have to worry about extra charges when you use them to travel internationally. One thing to keep in mind while traveling abroad is worldwide acceptance of your card. It can be useful to travel with more than one credit card on different card networks (these include Visa, Mastercard, American Express, and Discover). For a premium travel experience, the Capital One Venture X Rewards Credit Card is our top pick. However, there are other premium travel cards with valuable benefits for travelers — including annual credits, elite status, bonus rewards, and more — for higher annual fees. We began our search for the best travel cards with a list of 70 credit cards that offer travel rewards and benefits. This list includes general travel cards with flexible rewards programs, as well as co-branded hotel and airline cards that earn points and miles within a specific program. Our methodology focuses on cards that offer the greatest value to the broadest range of cardholders — without a significant annual cost. We start with each card's welcome offer, which we rate based on the value of the bonus, the spending required to qualify, and a ratio comparing the bonus points or miles earned to the card's annual fee. The more you're spending to own the card, the more value we believe you should get in return. Another large portion of the overall ratings is rewards and ongoing benefits. We give preference to cards with rewards categories that span both travel and everyday spending (gas stations, supermarkets, dining, streaming services, etc.) to help ensure you can maximize points even when you're not on-the-go. We also consider redemption options for each card, with the most flexible rewards programs earning higher scores. Finally, we compare travel benefits like annual statement credits, airline status and award nights, companion offers, and other ongoing perks that might make opening a travel card worth it over the long-term. We also look at each card's annual fee, ongoing APR, credit score access, and foreign transaction fees — as well as issuer-specific information like customer service contact information, mobile app user ratings, and fraud protections. These are details we evaluate for every type of credit card. The final picks on our list are the travel credit cards with the highest overall ratings given each of the criteria above. We sort out general travel cards first — these are the options that make up the primary list, because they are more flexible for a larger number of travelers. But we also include top-scoring hotel and airline co-branded cards. These are great options for some travelers, though you should consider how often you travel with the hotel or airline before you consider one of these cards.
Forbes
30-04-2025
- Business
- Forbes
Maximize Your Wallet: Best Cards To Use With Chase Sapphire Preferred
Batman and Robin, peanut butter and jelly—some things are just better in pairs, including the best credit card combinations. The Chase Sapphire Preferred® Card is one that, while powerful on its own, can give you next-level value when coupled with the right partner. There's a long list of attributes that make the Sapphire Preferred such a stellar product and one of the best rewards cards on the market, so let's get into it: For all the Sapphire Preferred's strengths, there's still room for improvement. For example: This is where pairing the Sapphire Preferred with another credit card can take your points earning to the next level. The Chase Freedom Unlimited® is a no annual fee card with simple yet versatile rewards earning: 5% cash back on travel purchased through Chase Travel℠, 3% cash back on eligible dining and drugstores and 1.5% on all other purchases. It's a solid card on its own, but when paired with the Sapphire Preferred, it becomes a powerful tool for maximizing every dollar you spend. What makes this pairing so effective is how well the two cards complement each other. The Sapphire Preferred shines in categories like travel and dining, while the Freedom Unlimited picks up everything else with a minimum above-average return of 1.5X. Instead of settling for the Sapphire Preferred's underwhelming 1X on nonbonus purchases, you can route that spending through the Freedom Unlimited and boost your base earnings by 50%. Since both cards earn Chase Ultimate Rewards® points, combining them means you not only earn more, you also unlock better redemption value through the Sapphire Preferred's 25% travel portal boost or its valuable airline and hotel transfer partners. The no annual fee Chase Freedom Flex® brings rotating 5% bonus categories to the table, making it a trusty sidekick for your Sapphire Preferred. While it earns just 1% back on most purchases, the real value lies in its quarterly bonus categories, where you can earn 5% back on things like gas, grocery stores and online shopping. You'll earn 5% cash back on up to $1,500 in combined purchases in categories that rotate quarterly (requires activation), 5% cash back on travel purchased through Chase Travel℠, 3% cash back on dining and drugstores and 1% cash back on all other purchases. The Sapphire Preferred doesn't offer rotating categories, so the Flex fills a valuable gap, especially if your spending habits shift throughout the year. And like the Freedom Unlimited, it earns Chase Ultimate Rewards® points that become far more valuable once moved to the Sapphire Preferred. That means you can earn 5X points on select categories and redeem those points at a boosted 1.25 cents through Chase Travel—or transfer them to travel partners for even bigger wins. On the surface, the Sapphire Preferred and Capital One Venture X Rewards Credit Card (rates & fees) may look like competitors, but together they cover nearly every rewards gap. While the Sapphire Preferred focuses on bonus categories and point transfers, the Venture X offers flat-rate simplicity with 2X miles on every purchase—plus premium travel perks like lounge access and annual credits. Where the Sapphire Preferred lacks luxury travel features, the Venture X delivers: Partner Lounge Network access, Capital One Lounge access and a $300 annual travel credit for bookings through Capital One Travel. That travel credit, plus a 10,000-mile anniversary bonus, help make up for the $395 annual fee (rates & fees). Access to Capital One's transfer partners means you have even more options when it's time to book your dream trip. If you don't mind managing two issuers, this duo gives you premium travel perks, solid base earnings on every purchase and access to two of the most valuable rewards ecosystems. The Chase Sapphire Preferred® Card is an impressive standalone travel card, but it becomes far more powerful when paired with the right partner—or two. Whether you want to earn more on everyday spending, take advantage of rotating bonus categories or enjoy premium travel perks, combining it with cards like the Freedom Unlimited, Freedom Flex or Venture X can help you earn more, redeem better and get the most from every dollar. Find the best Chase credit card for your needs. As long as you pay your cards on time, avoid carrying a balance and practice good credit habits, having multiple credit cards will not negatively impact your credit score. It can even help your score over time. You don't have to stop at two cards to maximize your rewards and benefits. Take the Chase Trifecta, for example, where you can combine some of Chase's best cards, like the Chase Sapphire Reserve® or Preferred, with the Chase Freedom Flex and Chase Freedom Unlimited. Having a premium Ultimate Rewards card paired with no-annual-fee cash-back cards can unlock better earnings and more valuable redemption options. Chase doesn't publish the exact score needed to be eligible for the Sapphire Preferred, but as a premium credit card, you'll need at least a good credit score (at least 670 on the FICO scoring scale).
Yahoo
10-04-2025
- Business
- Yahoo
Which credit card rewards are better: Cash back or points?
Rewards credit cards are a great way to get the most out of your spending habits by earning valuable cash back, points, or miles. Cash-back credit cards tend to be easier to use due to straightforward rewards programs with simple earning and redemption rates. However, you might prefer a travel rewards card for its redemption options, such as flights and hotel stays. Many travel credit cards also have increased perks and benefits, including travel insurance or airport lounge access. The best credit card rewards aren't a matter of cash-back vs. points — what you earn largely comes down to your spending habits, lifestyle, and personal preference. Cash-back credit cards are rewards cards that earn cash back on eligible purchases. For example, a cash-back card with a 2% rewards rate will earn 2% back on your purchases. That might seem small, but it can add up over time. The average American household spent over $20,000 on food and transportation in 2022, according to the Bureau of Labor Statistics. If you spent $20,000 in a year on a 2% cash-back card, you would earn $400 in cash-back rewards. It depends on the card and credit card company, but standard cash-back redemption options include: Statement credits Deposits into bank accounts Covering past purchases Mailed checks Gift cards Some cards, such as the Chase Freedom Unlimited®, include travel bookings as a redemption option. That means you can use cash-back rewards for travel-related redemptions, like flights and hotel stays. Cash rewards: You can earn valuable cash back for making eligible purchases with your cash-back card. In addition, cash-back rewards programs are often easier to use and understand than travel rewards programs. Welcome bonuses: It's common for cash-back cards to provide a welcome offer or sign-up bonus to new cardholders. You typically have to meet a spending requirement to earn the bonus. Low annual fees: Many cash-back cards have low (under $100) or no annual fees, keeping your yearly card membership costs down. 0% intro APR offers: Cash-back cards have some of the best 0% intro APR offers on purchases and balance transfers. Foreign transaction fees: Most cash-back cards charge foreign transaction fees, making them poor choices for international travel. Limited redemptions: Travel redemption options are more uncommon on cash-back cards. Fewer perks and benefits: You typically won't find as robust travel benefits on cash-back cards, including travel insurance, airport lounge access, and annual travel credits. We recommend cash-back credit cards if you prefer earning cash rewards on your purchases, want a low annual fee, and want to take advantage of a 0% intro APR offer. These cards aren't great for frequent travelers because of foreign transaction fees and limited travel redemption options. This embedded content is not available in your region. Why we like it: The Capital One Savor is an excellent card for earning cash back in many everyday categories, including grocery stores, dining, and entertainment. If your typical spending habits align with these categories, this could be the perfect addition to your wallet. Read our full Capital One Savor Cash Rewards review Why we like it: If you want a simple cash-back card, look no further than the Citi Double Cash. This card has a straightforward rewards rate that works on all eligible purchases. It could be all you need if you don't want to juggle multiple cards. Read our full Citi Double Cash review Why we like it: The Amex Blue Cash Everyday makes sense if you want a simple cash-back card for everyday shopping. We especially like that online shoppers can earn elevated rewards on and other online retailers. Read our full Amex Blue Cash Everyday review Points and miles credit cards earn travel rewards on eligible purchases. These cards often provide various redemption options, but their rewards are designed for travel bookings, such as flights and hotel stays. Travel rewards vary by card and credit card issuer, which can be confusing for travel card beginners. For example, 10,000 points on one card might offer a different value than 10,000 points on another. However, it's easy to determine the value of your rewards if you have a specific redemption in mind. Suppose you want to book a flight that costs $150 or 10,000 miles. If you divide $150 by 10,000, you get 0.015. That means your miles are worth 1.5 cents per mile for that specific redemption. Anything above one cent per mile could be considered decent value, though some rewards' standard value might already be higher than that. Standard credit card points and miles redemption options include: Travel bookings Transfers to travel partners Covering past travel purchases Statement credits Mailed checks Gift cards Note that the redemption value for available redemptions varies by credit card. However, a general rule of thumb is that you'll get the most value when redeeming points to book travel or transfer rewards to travel partners. Travel rewards: If you're a frequent traveler, nothing beats earning valuable points or miles on your existing purchases. Turning gas station and grocery purchases into flights and hotel stays on your next trip is incredibly rewarding. Welcome bonuses: Welcome offers on the best travel credit cards tend to be more significant than cash-back card bonuses. Increased perks and benefits: The best rewards credit cards provide a wide range of benefits, including travel credits, airport lounge access, travel insurance, and more. It's also common for travel cards to waive foreign transaction fees. More redemption variety: It's common for travel cards to have many of the same redemption options as cash-back cards, such as statement credits and gift cards. In addition, you can also have multiple travel-related redemptions. No 0% intro APR offers: Most travel cards don't provide intro APR offers on purchases or balance transfers. Potential for high annual fees: Premium and luxury travel cards have high annual fees, often exceeding $300 or more annually. You must determine if it's worth paying an annual fee to use a card's benefits and rewards. More complicated rewards: Points and miles values vary depending on the rewards program and how you plan to use them. Learning can be confusing at first, but it can pay off with big savings on travel expenses. We recommend points and miles credit cards if you want to earn travel rewards to help offset significant travel expenses, such as flights and hotels. You can use these cards to make everyday purchases and the rewards you earn can help fuel your next vacation. In addition, travel credit cards are essential for international travel since most don't charge foreign transaction fees. They also provide travel insurance and luxury travel perks, such as airport lounge access. Why we like it: The Wells Fargo Autograph provides an exceptionally high rewards rate for a card with a $0 annual fee. Even better, its spending categories align with many everyday expenses, including dining, gas, and transit. If you want a low-stress but rewarding travel card, the Wells Fargo Autograph could be the right choice for you. Why we like it: The Capital One Venture Rewards makes a strong case for anyone who values simplicity. It doesn't have confusing bonus categories and earns an elevated rate on all eligible purchases. In addition, you get added perks like access to transfer partners and receiving up to a $120 credit for TSA PreCheck or Global Entry applications. Read our full Capital One Venture Rewards review Why we like it: The Chase Sapphire Preferred has been one of the most popular travel credit cards for years because of its low annual fee and top-notch travel benefits. That includes getting 25% more value when your points are redeemed for travel through the Chase Travel℠ portal. You can also transfer points to various travel partner loyalty programs, including Southwest Airlines Rapid Rewards, World of Hyatt, and Virgin Atlantic Flying Club. Read our full Chase Sapphire Preferred review With cash-back cards, you typically get exactly what the earning rate says. If a card earns 2% cash back on everything, that's what you'll get for making purchases. With points and miles, your rewards value might vary by redemption. For example, 10,000 points could equal $125 toward travel or $100 cash back. Booking travel through Chase Travel℠ is one of the best ways to use your Chase Ultimate Rewards points with certain Chase cards. For example, 60,000 points on the Chase Sapphire Preferred are worth $750 toward travel redeemed through Chase Travel, whereas those points would only be worth $600 if redeemed for cash back. Depending on the redemption, some credit card rewards are worth over $0.01 per point, offering more value than most cash-back cards. That's often the case when transferring points to travel partners with valuable rewards programs. For example, you can typically get more than $0.01 per point on redemptions you make with Air Canada, Southwest Airlines, and Virgin Atlantic. This article was edited by Rebecca McCracken Editorial Disclosure: The information in this article has not been reviewed or approved by any advertiser. All opinions belong solely to Yahoo Finance and are not those of any other entity. The details on financial products, including card rates and fees, are accurate as of the publish date. All products or services are presented without warranty. Check the bank's website for the most current information. This site doesn't include all currently available offers. Credit score alone does not guarantee or imply approval for any financial product.
Yahoo
03-04-2025
- Business
- Yahoo
Best rewards credit cards for 2025: Earn top cash back, points, and miles
Why we like it: Though it does charge $95 annually (unlike some other cards on our list), the Chase Sapphire Preferred is a great example of a rewards credit card that can have value far beyond its annual fee. You can easily make up the cost whether you travel often or only a few times per year. Rewards categories cover both travel and everyday spending, you'll get up to $50 in annual credits for Chase Travel℠ hotel bookings, and each year you'll enjoy a 10% points bonus. But what really sets the Chase Sapphire Preferred apart is redemption value. After earning your points in bonus categories, you can redeem them in the Chase Travel portal at a boosted rate of 1.25 cents per point. Chase also has a huge list of airline and hotel transfer partners you can transfer points to at a 1 to 1 ratio. These include domestic airlines like JetBlue and Southwest, international programs like Emirates and Flying Blue Air France KLM, and hotel brands like Marriott and Hilton. This card can also make a great pair with a Chase cash-back card like the Chase Freedom Unlimited® or Chase Freedom Flex®. You can combine the points you earn across each card's rewards categories and make the most of your boosted redemptions or transfer to your preferred partners to save even more on your next we like it: When it comes to maximum cash back potential, the Blue Cash Preferred Card from Amex is at the top of our list. Based on average American spending, you can get nearly $600 cash back from this card each year. Even if you just max out the 6% earnings at U.S. supermarkets by spending $6,000 in a calendar year, you'll get $360 back on your grocery bills. While earning rewards throughout the first year, you can also take advantage of a great 0% intro APR offer on new purchases and balance transfers. Plus, it has one of the top welcome offers among cash-back cards right now. Combined with the Blue Cash Preferred's everyday rewards, you'll find no shortage of first-year and long-term value from this we like it: The Capital One Savor Cash Rewards card has some of the most versatile rewards categories from a cash-back card today. It earns 3% cash back across a few main categories: grocery stores, dining, entertainment, and popular streaming services. But those categories cover a broad range of purchases. These broad categories even help make the Capital One Savor a solid choice for travel — something we don't typically say about cash-back credit cards. The 3% entertainment category can go a long way toward bringing down the price of travel activities; eligible purchases include museums, professional sporting events, theatre events, amusement parks, zoos, and other tourist attractions. Plus, you'll pay no foreign transaction fees on purchases you make abroad, including purchases in other 3% rewards categories like dining at we like it: It doesn't get easier to earn travel rewards than with the Capital One Venture card. With 2x miles on every purchase, you can easily rack up rewards toward future travel with everyday purchases and travel bookings alike. We also like the flexibility of the miles you earn. You can choose to book an upcoming trip through Capital One Travel using miles, transfer miles to Capital One's 15+ airline and hotel partners, or use miles to get statement credits toward any travel purchase you make with your card. A relatively low annual fee, a few solid annual credits, and a highly valuable welcome bonus (which can help you save a significant amount on your next trip) make the Capital One Venture one of the best travel credit cards available we like it: Chase Freedom Unlimited is another one of the best cash-back cards available today with great crossover value for travel rewards. Its minimum 1.5% back on every purchase (plus higher earnings in rewards categories) can be great for making sure you get the most out of every dollar you spend. When you're ready to redeem, you can opt for cash rewards or use your rewards as Chase Ultimate Rewards points to book travel through Chase Travel. If you have a Chase Sapphire Preferred Card or Chase Sapphire Reserve® in your wallet, you can also pool your points together and get the boosted redemption rates those cards offer. For example, say you earn $300 cash back in a year with your Chase Freedom Unlimited, or 30,000 points. You could transfer them to your Chase Sapphire Reserve account, which earns a redemption value of 1.5 cents per point through Chase Travel. Now, your original 30,000 points are worth up to $450 of travel. The Chase Freedom Unlimited also has some of the best perks from a cash-back card today, including a solid introductory 0% APR on new purchases and balance transfers, no annual fee, and a strong cash welcome bonus based on your we like it: The U.S. Bank Altitude Connect may not be the best-known rewards credit card out there, but it has the potential to offer far beyond what you might expect from a no-annual-fee travel card. Its rewards categories span travel booked through the issuer's Altitude Rewards Center as well as a strong 4x rewards on other travel purchases. And though the 4x rewards on gas or EV charging is capped after $1,000 spent each quarter, you could still earn up to $160 by maxing out the rewards quarterly. Dining, streaming services, and grocery stores round out the rewards categories at 2x per dollar. But its benefits really help the U.S. Bank Altitude Connect stand apart from other no-fee travel cards. You'll get a statement credit toward TSA PreCheck or Global Entry fees every four years and annual airport lounge access (four complimentary visits per year) with Priority Pass Select membership — a perk typically reserved for more premium travel credit cards. Plus, earn a solid welcome bonus with a relatively low spending requirement as a new cardholder and enjoy an introductory 0% APR on new purchases and balance transfers. Why we like it: The Citi Strata Premier has a whopping five spending categories that earn an unlimited 3x points on each dollar you spend. Even among the best rewards credit cards, many only offer that much in two or three categories — while others with higher earning rates typically cap the amount of rewards you can earn annually. But if your regular budget is often focused across these rewards categories, the sky is the limit on how many points you can earn annually with this card. Citi Strata Premier is also great for hotel rewards, especially if you're not committed to a single hotel loyalty program and can use the issuer's booking portal. Not only will you get 10x points on hotels (plus rental cars and attractions) booked through but you'll get up to $100 back once per calendar year on hotel bookings over $500 (not including taxes and fees) that you make through the site. Plus, other hotel spending is included among the 3x categories to help you also earn rewards on rooms you book directly with hotels. A good credit card with rewards that suit your spending can help you save money on daily expenses, earn free or discounted travel, and get annual benefits that put money back into your pocket year after year. The best credit card with the best rewards for you should always offer valuable incentives — points, miles, or cash-back rewards and other benefits — for the money you're already spending. You could, for example, earn rewards on everyday spending and keep redemptions simple by using cash-back rewards. But if you're a jet-setter and don't mind strategizing redemption options, you may prefer to earn points or miles you can use for future flights and hotel stays. Or, like many spenders, you might instead do a little bit of both and use different credit cards for maximizing purchases. Just remember that your rewards card is still a high-interest credit card. Earning great rewards only works if you're not carrying a balance — which can quickly lead to expensive credit card debt. Find a card that rewards your regular purchases and track your budget so you don't overspend each month. You can save a lot of money with rewards, but only if it's not costing you in interest at the same time. To find the best rewards credit card for you, you can start with the types of rewards, how to earn them, and the most valuable ways to use them. Credit card rewards programs differ depending on the issuer and specific card you choose. Some may offer the same value for any redemption (gift cards, cash, travel, etc.), while others may give a much higher value for one redemption over another. Always read the terms of your card's rewards program to know what you can get for each redemption. The three most common types of credit card rewards include points, miles, and cash back: Credit cards that earn points are often part of a larger rewards program, such as American Express Membership Rewards or Chase Ultimate Rewards. You can earn at least one point per dollar on every purchase with your card, then get extra points in specific bonus categories. These categories may range from various travel spending to dining out, streaming services, and more. Points are a flexible rewards currency. You can often redeem them for statement credits, booking travel, gift cards, and more. Some rewards programs even allow you to transfer your points to travel partner loyalty programs. Many points-earning cards are travel rewards credit cards, so you'll often find travel redemptions are most valuable. Best for: Credit card points are great if you want the most flexibility in how you redeem your rewards — they're particularly beneficial if you prefer a range of redemption options rather than being restricted to cash back or specific travel brands. Cards with points rewards are also generally good for travelers, since they tend to offer great earning rates and redemptions on travel. Sign-up bonuses: Many credit cards offer lucrative bonuses for new cardholders after spending a certain amount within the first few months. Regular purchases: Cardholders typically earn points for every dollar they spend on eligible purchases. Bonus categories: Some cards offer higher point rates for specific categories, like travel, dining, streaming subscriptions, or gas stations. Shopping portals: Many credit card issuers have online shopping portals where users can earn extra points by shopping with partner retailers. Dining programs: Some card issuers have dining reward programs that give extra miles when you dine at partner restaurants. Special promotions: Occasionally, issuers might run promotions or partnerships where cardholders can earn additional points for a limited time. Related: How to reserve a table at the hottest restaurants with your credit card General travel cards with flexible rewards or co-branded cards for specific airline loyalty programs may earn miles rewards. They often earn the best rewards rates on travel spending, though you'll find many with everyday bonus categories too. You can typically redeem miles for travel expenses, including airfare. If your miles-earning card is an airline card, you may have the option to use your rewards for upgrades, checked bags, lounge access, and other benefits. Best for: Credit card miles are ideal for frequent travelers. They cater to individuals who are looking to offset their travel expenses and enjoy travel perks like elite airline status, airport lounge access, priority boarding, and free checked bags. Because many cards that earn miles are co-branded airline cards, they're a good choice for travelers who prefer flying with a specific brand each time. Sign-up bonuses: Many miles-based credit cards offer a sizable chunk of miles as a bonus for new users who meet a certain spending threshold after opening an account. Everyday purchases: Typically, cardholders earn a set number of miles for every dollar they spend. Travel-related expenses: Many travel credit cards offer additional miles for expenses related to travel, like booking flights, hotels, or car rentals. Sometimes these bonus rewards require booking through a specific platform. Promotional campaigns: Issuers may run limited-time offers where spending in certain categories or with certain partners can yield bonus miles. Related: How to earn elite airline status with a credit card Cash back may be the most straightforward form of credit card rewards. Cash-back credit cards offer a percentage of each purchase you make back as a reward. Rewards categories generally focus on everyday spending, like grocery stores, gas stations, drugstores, or streaming services. When you're ready to redeem your cash back, you can trade it for a statement credit or receive the cash value as a check or bank account deposit. Best for: Cash-back credit cards are ideal for simple rewards and a tangible, immediate return on your spending. They are especially beneficial for those who may not travel frequently and prefer a clear-cut, monetary reward over points or miles. Sign-up bonuses: Some cash-back cards offer a bonus cash reward for new users who spend a specific amount within the first few months. Everyday purchases: Cardholders earn a defined percentage back on all qualifying purchases. Category-specific rewards: Many cash-back cards offer higher percentages for specific categories, such as groceries, gas, or dining. Rotating categories: Some cards offer higher cash-back rates on categories that change periodically, requiring cardholders to activate these categories to earn the bonus. Shopping through issuer portals: Similar to points-based cards, some cash-back cards allow users to earn additional rewards by shopping through the issuer's online portal with partner retailers. Whether or not you should open a rewards card depends on your individual goals. If you don't already have great credit, you may have difficulty qualifying for the best rewards credit cards — though there are some solid rewards cards you can get approved for while building credit. Check if you're preapproved before you apply for a new card. This can give you an idea of your likelihood of approval without impacting your credit score. Related: How to check your credit score You should also be in the habit of paying down your balances in full and on time each month before you open a new rewards credit card. These cards carry high interest rates — you might be assigned an APR of 20% or more on any balances you carry. Even with the best rewards rates and redemptions, you won't be able to make up those interest charges in rewards value. Always use your rewards card to make purchases within your budget so you're not left with high debt balances in exchange for points, miles, or cash back. Finally, make sure a rewards credit card can actually help you save money over the long term. Review your monthly expenses to identify where you spend the most, whether it's at the grocery store, dining out at restaurants, filling up at gas stations, or booking travel. When you know your most frequent expenses, you can choose a card that rewards those specific categories more generously. A high-value welcome bonus or long introductory APR can save you a lot of money as a new cardholder. But don't forget to compare these perks alongside long-term benefits and rewards to ensure you're getting the most from your new rewards credit card year after year. Start your search for the best rewards credit card by considering these eight major factors: Some rewards credit cards charge no annual fee, while others may have fees ranging from under $100 to over $500. You may also find some rewards credit cards waive the annual fee cost for the first year. The point isn't the fee itself. The one question you need to ask is: "Will the benefits I get offset the cost?" In addition to the annual fee, stay on top of any other fees you could take on with your new rewards credit card. For example, if you plan to use your card to earn rewards on vacation abroad, make sure there are no foreign transaction fees. These fees could add between 1% to 3% on top of each international purchase and lower the value of any rewards you'll earn. Other fees to consider include balance transfer fees, late fees and penalties, cash advance fees, and more. Knowing when you may be charged these fees — and how you can avoid them — can help you avoid extra charges over time. Read more: Credit card fees explained — 8 types you should know Before applying for a new card, know how much you can expect to earn with it over time. You can do this by comparing your regular spending to the rewards offered. For example, if you're researching a flat-rate 1.5% unlimited cash-back card and you spend roughly $500 on purchases each week, here's what your approximate annual return will be: $500 per week x 52 weeks = $26,000 in annual spending $26,000 x .015 (1.5% cash back) = $390 cash rewards While some rewards credit cards offer blanket points, miles, and cash back for every purchase, not all of them do. Some have tiered programs where you earn more in one category and less in another. For example, say Credit Card X offers the following spending categories: 5x points on gas and grocery store purchases 3x points on dining and takeout 1x points on everything else If you often cook at home and commute to work by car, this could be a great way to make the most of your frequent grocery trips and gas station fill-ups. On the other hand, if you prefer dining at restaurants or ordering takeout over buying groceries and you take public transportation to work, there's likely a different rewards card that's a better fit for your spending. Credit card welcome bonuses can help you earn hundreds of dollars in rewards value as a new cardholder. If you have a cash-back credit card, you'll typically get a cash bonus after meeting a spending threshold. For credit cards that earn points or miles, you'll earn bonus rewards you can put toward travel and other redemption options after you meet the spending requirement. Here's the potential downside: You usually have to spend a certain amount within a given time frame to receive the bonus (example: spend $500 in the first 3 months and receive $200 cash back). If you fail to make your payments on time or don't spend the required amount during the introductory window, you forfeit the bonus. The value of your credit card rewards depends a lot on the available redemptions. Don't forget to compare your card's redemption options alongside its rewards categories. A good rule of thumb is to look for a redemption value of at least 1 cent per point or mile. This is equivalent to the value of cash back rewards. But you can get much more than that with many rewards cards. For example, some offer a boosted value for your points or miles when you use them to book travel via the issuer's credit card rewards program. Top credit card rewards programs today include American Express Membership Rewards, Chase Ultimate Rewards, and Capital One Travel. Compare: Amex vs. Chase points — Who has the best rewards program? Another way to get the best value is by transferring your rewards. You can transfer the points you earn from your rewards card to airline and hotel partners, then redeem through those loyalty programs. Depending on your travel plans, this is a great way to get the maximum value toward a future trip. Introductory 0% APR offers can give you a free pass from interest charges on your card balances throughout the intro period. The 0% APR applies to new purchases or balance transfers (or both). But keep the end date of your offer in mind. Once the intro period expires, you'll start to accrue interest on any outstanding balances at your card's ongoing APR. The average credit card APR today is over 22% (on cards with revolving balances), according to the Federal Reserve. Make sure you have a plan to pay down your balances before the intro period ends so you can avoid taking on any high interest debts. For the best chances of getting approved for a rewards credit card, you'll need to meet some criteria that proves your creditworthiness to credit lenders: A higher-than-average credit score (exceptional in some cases) An established credit history (proving that you can use credit responsibly) That being said, don't waste a hard credit inquiry on a card that is presumably out of your credit realm. For example, if you're a beginner with no established credit, you'll have a much better chance of getting a student credit card or a secured credit card than a high annual fee premium travel card. Some credit card companies offer preapprovals on select cards, which you can use to avoid a potential (temporary) hit to your credit. This will let you know if you have a good chance of getting approved without a hard credit inquiry. You can earn rewards with every swipe of your credit card, but how much? These are the five steps you can apply to almost any transaction: Identify the reward rate: Check your credit card's terms and conditions. For example, the rewards rate could be 2% flat cash back for every purchase. Determine the purchase amount: This would be the total amount you spent. Let's say your bill was $100. Multiply the purchase amount by the reward rate: $100 x 0.02 = $2. Consider any caps or limits: Some cards have a maximum reward limit per month or year. Ensure your calculated reward doesn't exceed this limit. Keep in mind, some transactions won't earn credit card rewards, including: Balance transfers/balance transfer fees Cash advances Lottery tickets or casino gaming chips Interest payments Fees of any kind, including an annual fee Unauthorized or fraudulent charges There's no shortage of ways to redeem your credit card points. Though redemptions vary depending on the specific card and issuer, here are some of the most common options: Statement credit: This is a credit for the value of your rewards applied directly to your credit card balance. Some rewards cards only apply statement credits to specific types of purchases, like travel spending. Direct deposit into your bank account: Transfer the cash value of your rewards directly into a linked bank account. A check: You'll receive a check in the mail for the cash value of your rewards, which you can deposit into a bank account or cash. Gift cards: Trade your rewards for preloaded cards that you can use for purchases at specific retailers or a group of retailers. Tickets to events: Use your rewards for access to concerts, sporting events, and more. Charitable donations: Put your rewards toward a monetary contribution to a nonprofit organization or cause. Travel: Book flights, hotels, rental cars, and more using credit card points and miles through your credit card rewards program. Travel upgrades: You can also use rewards to enhance your travel experiences by upgrading a flight seat or getting a room upgrade at a hotel. Travel transfers: Transfer your points or miles to partner hotel and airline loyalty programs and book travel directly. Want to know more about choosing the best credit card with rewards that fit your spending? The answers to these frequently asked questions may help: A rewards credit card is a type of card that earns cash back, points, or miles on purchases. Some rewards cards offer a flat rewards rate on every purchase, while others have boosted bonus rewards rates in specific categories. Rewards categories can vary, but often cover a range of everyday spending (groceries, dining, gas, streaming services) or travel (airfare, hotel stays, rideshares, car rentals). To find out what credit card has the best rewards, you'll need to look at your own spending and preferences. For example, a cash-back rewards credit card like the Blue Cash Preferred from American Express may be best for someone who spends a lot of their budget at U.S. supermarkets, while the Capital One Venture Rewards Credit Card may work better for someone with variable spending who likes to travel. A co-branded travel rewards card may be ideal for someone who has one preferred airline or hotel, while the Chase Sapphire Preferred Card could be a better option for someone who wants different travel booking options through a flexible rewards program. Before you decide on a new rewards card, think about your spending habits, how you want to redeem rewards, and other card details to find the option that holds the maximum value for you over time. Rewards credit cards typically require good-to-excellent credit (or a FICO score of at least 670) for the best chances of approval. This is true for top cash-back credit cards, travel credit cards, and other popular rewards credit cards. If you don't already have a great credit score, there are some cards for building credit that offer some rewards. Read more about today's best secured credit cards and best student credit cards for a look at credit-building cards with rewards. With today's best credit card welcome offers, you can earn hundreds of dollars in rewards value. Some premium cards even have welcome bonuses with a potential value of $1,000 or more. In addition to ongoing sign-up bonuses, you can occasionally find boosted, limited-time credit card welcome offers too. Rewards credit cards are worth it if you can get more value from the card's benefits and rewards than you pay for the annual fee. If you choose a card with rewards and benefits for purchases you already make, you can often far outpace the annual fee cost in rewards value. For some people, a rewards card with no annual fee at all may be even more worth it. However, rewards cards are often not worth it if you carry a balance. Even the best credit card rewards can't compete with interest charges well over 20% APR. Focus on paying down existing credit card debt before you use a new rewards credit card to save on spending. The value of your points can vary depending on your card's rewards program and the redemption option you choose. For example, cash-back credit cards typically earn a percentage of your purchase back, which you can redeem for the cash value in the form of statement credits, gift cards, or a check. But credit cards that earn points or miles often have more flexible redemption options. Under the issuer's rewards program, your points might be worth more toward travel than if you use them for statement credits. If there's an option to transfer your rewards to travel partners, that could boost your value even more. In general, a good way to make sure you're getting a good value for your points is to aim for at least 1 cent per point when you redeem. Credit card rewards are generally considered rebates on your spending, so you don't need to pay taxes on your points, miles, or cash back. However, there are a few exceptions, including referral bonuses and other rewards that don't require you to spend anything to earn them. If you're not sure whether you owe taxes on the rewards you earn, make sure you speak with a tax professional before you file your return. To find the best rewards credit cards available today, we compiled a list of cards from major issuers that earn either cash back, points, or miles rewards. This list is made up of general rewards cards. It does not include credit cards for small business owners, co-branded travel credit cards, and secured or student credit cards. This allowed us to focus on the most valuable rewards options for the broadest range of cardholders. In total, we compared more than three dozen rewards credit cards for this list. To compare rewards value, we looked at both how you earn rewards and how you redeem them. The cards with the most flexibility — multiple ways to earn, higher rewards multipliers, different redemption options — were ranked highest. We also evaluated any annual benefits and the value of the card's welcome bonus compared to its annual fee cost. We gave additional points to cards with no foreign transaction fees and with 0% APR offers for new purchases. These are valuable benefits no matter what type of rewards card you have. For one, eliminating foreign transaction fees helps guarantee the full value of your rewards when traveling abroad. And a 0% APR offer can add first-year value for new cardholders. You'll get the option to pay down a large expense — like a vacation booking or a home improvement project — over time while earning rewards. From there, we evaluated the factors we look for in any credit card. These include each card's ongoing APR, annual fee, mobile app experience, customer service options, and fraud prevention. The final picks on the list above are the top-ranking cards from this rubric that we believe can add value to anyone's wallet and spending over the long term. Editorial Disclosure: The information in this article has not been reviewed or approved by any advertiser. All opinions belong solely to Yahoo Finance and are not those of any other entity. The details on financial products, including card rates and fees, are accurate as of the publish date. All products or services are presented without warranty. Check the bank's website for the most current information. This site doesn't include all currently available offers. Credit score alone does not guarantee or imply approval for any financial product.
