If you’re looking for a credit card you have hundreds if not thousands of choices, but not all offer the best credit card rewards.
A credit card can be a great personal finance tool, helping you earn money back on your regular purchases. It’s an incredibly easy way to earn passive income, but you must find the credit cards with the best rewards.
Best Cash Reward Credit Card: Citi Double Cash
Some credit cards pay you cash as a reward. There’s nothing confusing about it – you know exactly how much you get, and the Citi Double Cash card pays you well.
You earn cashback two ways with the Citi card:
- 1% cash back on all purchases
- 1% cash back on all balances you pay
You get a total of 2% cash back; it just depends on when you pay your balance when you earn the funds.
Pros:
- No categories to track – you earn a total of 2% on all purchases
- No annual fee
- 0% APR for 18 months on balance transfers
Cons:
- No welcome bonus or introductory APR
- You need excellent credit to qualify
Best Credit Card Rewards for Groceries and Gas: Blue Cash Preferred AMEX
If you have a large family or drive a lot, you probably want to earn cash back on the things you spend the most money on – groceries and gas. The card pays a shocking 6% cash back on groceries up to $6,000 per year and 3% on gas purchases. It also pays 6% back on streaming services, which most families have today.
Pros:
- Great rewards rate on groceries and gas
- No annual fee for the first year
- Pays a $300 bonus if you spend $3,000 in the first 6 months
Cons:
- There is a cap on your earnings and once you hit it, your reward goes down to 1%
- You need excellent credit to qualify
Best Rewards Credit Card with Rotating Categories: Chase Freedom Flex
If you don’t mind (or even enjoy) tracking rotating categories each month, you might enjoy the Chase Freedom Flex. It pays 5% cash back on purchases within each quarter’s categories plus 5% back on travel, 3% on restaurants and drug stores, and 1% on everything else.
The biggest hurdle is remembering to activate the categories you want each quarter. If you don’t activate them, you don’t earn 5% even if it’s a bonus category that quarter.
Pros:
- Travel, dining, and drug store bonuses never change
- 0% APR on purchases for the first 15 months
- You can transfer your rewards to other Chase reward cards
Cons:
- You only earn rewards if you register for the bonus categories
- There is a limit of $1,500 spending in each category which isn’t much
Best Travel Rewards Credit Card: Bank of America Travel Rewards Credit Card
If you travel often, using a travel rewards credit card is a great idea. You’ll get points to use on travel, lowering your out-of-pocket expenses for things like plane fare, hotels, and car rental.
The Bank of America Travel Rewards credit card lets you use points for other ‘travel necessities’ too. They don’t limit you to hotel and plane fare, so it’s a rewarding card. You can earn 1.5 points per $1 spent in any category. Each mile equals 1 cent toward your travel expenses.
Pros:
- Pays 25,000 bonus points if you spend $1,000 in the first 90 days
- You can book your travel on any website or with any company with no blackout dates
- 0% introductory APR for 15 months
Cons:
- The rewards on travel are low (1.5 points per dollar spent) which may not be enough for frequent travelers
- The bonus is lower than many other travel cards
Best Credit Card Rewards for Average Credit: Capital One QuicksilverOne
The Capital One QuicksilverOne credit card requires only fair credit, which is usually around a 630 – 660 credit score. You can earn unlimited cash back year-round and don’t have to worry about rotating categories. If you’re looking for credit cards with the best rewards but have less than perfect credit this is your answer.
Pros:
- You can earn unlimited cash back, no caps
- You can be approved for a higher credit limit in 6 months
- It’s a great credit card to boost your credit score
Cons:
- There’s a $39 annual fee
- The APR is high at 26.99%
Best Credit Card Rewards for Students: Discover it Student Cash Back
Students can earn credit card rewards too, but it’s not as common or as easy for students typically. But the Discover it Student Cash Back credit card makes it easy for students to earn credit card rewards.
Because it’s a student credit card, you don’t need perfect credit or a long credit history, but you can still take advantage of the 5% cash back in various categories. The categories do change every quarter, so you have to keep track of them, but Discover makes it easy.
Pros:
- Earn 5% cash back on special categories and 1% cash back on all other purchases
- No annual fee
- Discover will match all cashback earned in the 1st year dollar for dollar
Cons:
- You must activate the categories you want to spend in each quarter to get the 5% cash back
- There’s a limit on your earnings, you only earn 5% on up to $1,500 spending in each quarter, then it drops to 1%
Final Thoughts
Finding the best credit cards with the best rewards takes a little time. Think about where you shop most often, how much you spend, and if paying an annual fee is worth it.
If you travel often, you may want to look at travel reward cards, but make sure they offer benefits you’ll use or that work to your benefit. For example, some cards only pay travel rewards if you book your travel through the credit card company’s travel company, which not everyone wants to do.
Do your research, decide which card is right for you and enjoy the rewards!