Interested in adding the latest tool to your economical utility belt? There are loads of rewards credit cards to select from—but your selection will depend on your economical goals, spending habits, and credit score.
We’ve curated a choice of rewards credit cards, ranging from straightforward choices to premium selection, whether you’re simply looking for cashback or you wish to book a lie-flat first class seat to Asia.
Rewards credit cards
For useful spenders, a rewards card can be a lucrative tool. We’ve rounded up our best picks among cards in 12 types. For each card, we’ve included the yearly fee, if it charges one, and the sign-up bonus if one is provided. Except where noticed, rewards do not have expiration dates or caps, and the travel cards do not charge external transaction fees. Fees, rewards and other options are subject to change, so before you apply for a card, check its present terms with the issuer.
You may note that our list of the perfect cards differs from many other reviewers. That’s because we crunch the numbers on a broader kind of cards, such as those performed by credit unions and smaller banks.
TIME Stamp’s best rewards credit cards
The Capital One Venture X Rewards Credit Card is a useful rewards card because of its everyday earning energy, premium travel advantages, and ability to offset its yearly fee. It earns an unlimited 2x miles on every buy, so I utilize it for everyday purchases without needing to remember bonus types. If I book a move through Capital One, I can earn up to 10x miles on my booking. When traveling, I have complimentary gain to airport lounges for me and two guests, plus I’m saved in case my travel plans go astray. And the card’s $300 yearly travel credit and 10,000 anniversary miles readily cover its $395 yearly fee.
Types Of Reward Credit Cards
A rewards credit card provides cash back, numbers or miles on your everyday spending. Some cards may also provide other characteristics, such as an intro 0% APR promotion, insurance protections, travel perks and more. Here’s a fast breakdown of the various kinds of credit card rewards you can gain.
Cash back credit cards typically provide straight cash back on your buys, making it easy to know how much worth you’re getting with each buy. These cards utilized to offer only one percent back for each dollar spent, but that reward method has ticked up to 1.5% to 2% recently. According to report, “Two percent cash back is like the gold standard for keeping it standard.”
Note, however, that although some credit cards are bought as cash back cards, they may provide points that you can redeem for cash back and in other methods.
Points credit cards provide a fixed number of points for each dollar you spend, with some cards providing more points on certain buys.
One example of a points system is Chase Ultimate Rewards, which grants you to use your rewards to gain cash back, purchase gift cards, book travel, shop online and more. Another program is a hotel loyalty program, which limits your redemptions to award remains and related choices. Even some airlines use the name “points” for their stock.
How to Earn Credit Card Rewards
Many rewards credit cards provide welcome bonuses to latest cardholders when you meet a low spending need. For example, you may gain $200 after you spend $500 in three months or 60,000 points when you spend $3,000 in three months.
You can also gain cash back, points or miles when you utilize your card to make buys. There are three different methods a rewards program can be structured.
With this kind of rewards card, you’ll gain the same rewards rate — say, 1.5% back or two miles per dollar — on every buy. If you wish a standard approach to rewards, this choice may be appealing.
A tiered rewards credit card provides various rewards rates on different spending types. For instance, you may gain three points per dollar on travel and dining, two points per dollar on petroleum and one point per dollar on all other buys.
These cards can be the best way to gain a lot of cash back, points or miles on some of your best budget types.