11 Best Rewards Credit Cards in October 2024

What are Rewards Credit Cards?

Rewards credit cards are a popular financial product that incentivizes spending by offering various types of rewards, such as cash back, travel miles, or points that can be redeemed for merchandise, gift cards, or other perks. These cards are designed to give back a portion of what you spend, making everyday purchases more rewarding.

Benefits of Using Rewards Credit Cards

Using a rewards credit card can offer numerous benefits, including:

1. Cash Back: Receive a percentage of your purchases back as cash.
2. Travel Rewards: Earn miles or points that can be redeemed for flights, hotel stays, and other travel-related expenses.
3. Points: Accumulate points for each dollar spent, which can be redeemed for various rewards.
4. Sign-Up Bonuses: Many cards offer significant bonuses when you meet a spending threshold within the first few months.
5. Exclusive Perks: Access to exclusive events, purchase protections, extended warranties, and more.

How to Choose the Right Rewards Credit Card

Selecting the best rewards credit card involves evaluating your spending habits and financial goals. Consider the following:

• Spending Patterns: Choose a card that rewards you most for your regular expenses.
• Redemption Options: Ensure the rewards are valuable and easy to redeem.
• Fees and Interest Rates: Weigh the benefits against any annual fees and higher interest rates.
• Sign-Up Bonuses: Look for cards offering lucrative introductory bonuses.
• Additional Perks: Consider travel insurances, purchase protections, and other benefits.

Types of Rewards Credit Cards

Cash Back Credit Cards

Cash back credit cards return a percentage of what you spend directly to your account. Typically, they offer higher rewards on specific categories like groceries, gas, or dining.

Travel Rewards Credit Cards

Travel rewards credit cards earn points or miles for purchases, which can be redeemed for travel expenses such as flights, hotel stays, car rentals, and more. These cards often come with travel-related perks like free checked bags, priority boarding, and access to airport lounges.

Points-Based Rewards Credit Cards

Points-based rewards credit cards allow you to earn points on every purchase, which can be redeemed for a variety of options, including travel, merchandise, gift cards, and even cash back. These cards offer flexibility in how rewards can be used.

Key Features to Look For

Sign-Up Bonuses

Many rewards credit cards offer substantial sign-up bonuses, which can provide a significant value upfront. These bonuses often require you to spend a certain amount within the first few months of opening the account.

Reward Rates

Reward rates vary across different cards and can be structured as a flat rate on all purchases or higher rates on specific categories. It’s important to choose a card that aligns with your spending habits to maximize your rewards.

Annual Fees

While some rewards credit cards have no annual fees, others may charge a fee that is justified by the benefits and rewards offered. Always weigh the potential rewards against the cost of the annual fee.

Foreign Transaction Fees

If you travel frequently, consider a card that doesn’t charge foreign transaction fees. These fees can add up quickly when making purchases outside of your home country.

Introductory APR

Some cards offer an introductory APR period with low or 0% interest on purchases or balance transfers. This can be beneficial if you plan to carry a balance or make a large purchase soon after opening the card.

11 Best Rewards Credit Cards in October 2024

1. Chase Sapphire Preferred® Card

The Chase Sapphire Preferred® Card is renowned for its travel rewards and flexible redemption options. Cardholders earn 2x points on travel and dining and 1x points on all other purchases. The sign-up bonus is substantial, offering significant points when you meet the spending requirement in the first few months.

2. American Express® Gold Card

The American Express® Gold Card is ideal for foodies and travelers alike, offering 4x points at restaurants and U.S. supermarkets (up to a certain amount annually), and 3x points on flights booked directly with airlines. The card also comes with dining credits and travel benefits.

3. Capital One Venture Rewards Credit Card

The Capital One Venture Rewards Credit Card is known for its straightforward rewards structure, offering 2x miles on every purchase. Miles can be redeemed for travel expenses, making it a versatile choice for frequent travelers.

4. Citi® Double Cash Card

The Citi® Double Cash Card offers a simple and effective cash back program: earn 1% cash back on purchases and an additional 1% when you pay off those purchases. This card is great for everyday spending with no annual fee.

5. Discover it® Cash Back

The Discover it® Cash Back card features rotating quarterly categories where you can earn 5% cash back on up to a set amount of purchases, and 1% on all other purchases. Discover matches all the cash back you earn at the end of your first year, effectively doubling your rewards.

6. Blue Cash Preferred® Card from American Express

The Blue Cash Preferred® Card from American Express offers 6% cash back on U.S. supermarkets (up to a limit annually), 6% on select U.S. streaming subscriptions, 3% on transit, and 1% on all other purchases. This card is ideal for families with significant grocery and streaming expenses.

7. Bank of America® Premium Rewards® Credit Card

The Bank of America® Premium Rewards® Credit Card provides 2x points on travel and dining and 1.5x points on all other purchases. It also offers up to $200 in combined airline incidental and travel statement credits annually.

8. Wells Fargo Active Cash® Card

The Wells Fargo Active Cash® Card offers a flat 2% cash back on all purchases with no categories or caps. This simplicity, combined with no annual fee, makes it a strong contender for those looking for straightforward rewards.

9. The Platinum Card® from American Express

The Platinum Card® from American Express is a premium travel card offering 5x points on flights booked directly with airlines or through American Express Travel, and 5x points on prepaid hotels. It comes with a high annual fee but includes extensive travel benefits, including lounge access and travel credits.

10. U.S. Bank Altitude® Reserve Visa Infinite® Card

The U.S. Bank Altitude® Reserve Visa Infinite® Card offers 3x points on travel and mobile wallet purchases, along with a $325 annual travel credit. It’s a great option for tech-savvy travelers who frequently use mobile payments.

11. Hilton Honors American Express Surpass® Card

The Hilton Honors American Express Surpass® Card is tailored for frequent Hilton guests, offering 12x points on Hilton purchases, 6x points at U.S. restaurants, supermarkets, and gas stations, and 3x points on all other purchases. Cardholders also enjoy complimentary Gold status and other hotel perks.

Comparison of the Best Rewards Credit Cards

Rewards Structure

• Chase Sapphire Preferred® Card: 2x points on travel and dining, 1x on all other purchases.
• American Express® Gold Card: 4x points at restaurants and U.S. supermarkets, 3x on flights.
• Capital One Venture Rewards Credit Card: 2x miles on all purchases.
• Citi® Double Cash Card: 1% cash back on purchases, 1% when paying them off.
• Discover it® Cash Back: 5% on rotating categories, 1% on all other purchases.
• Blue Cash Preferred® Card from American Express: 6% on U.S. supermarkets and streaming, 3% on transit.
• Bank of America® Premium Rewards® Credit Card: 2x on travel and dining, 1.5x on all other purchases.
• Wells Fargo Active Cash® Card: 2% on all purchases.
• The Platinum Card® from American Express: 5x on flights and prepaid hotels.
• U.S. Bank Altitude® Reserve Visa Infinite® Card: 3x on travel and mobile wallet purchases.
• Hilton Honors American Express Surpass® Card: 12x on Hilton purchases, 6x at U.S. restaurants, supermarkets, and gas stations.

Annual Fees

• Chase Sapphire Preferred® Card: $95
• American Express® Gold Card: $250
• Capital One Venture Rewards Credit Card: $95
• Citi® Double Cash Card: $0
• Discover it® Cash Back: $0
• Blue Cash Preferred® Card from American Express: $95
• Bank of America® Premium Rewards® Credit Card: $95
• Wells Fargo Active Cash® Card: $0
• The Platinum Card® from American Express: $695
• U.S. Bank Altitude® Reserve Visa Infinite® Card: $400
• Hilton Honors American Express Surpass® Card: $95

Sign-Up Bonuses

• Chase Sapphire Preferred® Card: Earn 60,000 points after spending $4,000 in the first 3 months.
• American Express® Gold Card: Earn 60,000 points after spending $4,000 in the first 6 months.
• Capital One Venture Rewards Credit Card: Earn 60,000 miles after spending $3,000 in the first 3 months.
• Citi® Double Cash Card: No specific sign-up bonus.
• Discover it® Cash Back: Discover matches all cash back earned in the first year.
• Blue Cash Preferred® Card from American Express: Earn $300 after spending $3,000 in the first 6 months.
• Bank of America® Premium Rewards® Credit Card: Earn 50,000 points after spending $3,000 in the first 90 days.
• Wells Fargo Active Cash® Card: Earn $200 after spending $1,000 in the first 3 months.
• The Platinum Card® from American Express: Earn 100,000 points after spending $6,000 in the first 6 months.
• U.S. Bank Altitude® Reserve Visa Infinite® Card: Earn 50,000 points after spending $4,500 in the first 90 days.
• Hilton Honors American Express Surpass® Card: Earn 130,000 points after spending $2,000 in the first 3 months.

Reward Redemption Options

• Chase Sapphire Preferred® Card: Points can be redeemed for travel, cash back, gift cards, and more.
• American Express® Gold Card: Points can be used for travel, dining, and shopping.
• Capital One Venture Rewards Credit Card: Miles can be used for travel expenses or transferred to partner airlines.
• Citi® Double Cash Card: Cash back can be redeemed as a statement credit or direct deposit.
• Discover it® Cash Back: Cash back can be redeemed for statement credits, direct deposit, or gift cards.
• Blue Cash Preferred® Card from American Express: Cash back can be used for statement credits.
• Bank of America® Premium Rewards® Credit Card: Points can be redeemed for travel, cash back, and gift cards.
• Wells Fargo Active Cash® Card: Cash back can be used for statement credits or direct deposit.
• The Platinum Card® from American Express: Points can be used for travel, statement credits, and more.
• U.S. Bank Altitude® Reserve Visa Infinite® Card: Points can be used for travel, gift cards, and more.
• Hilton Honors American Express Surpass® Card: Points can be used for Hilton stays and other travel-related expenses.

Pros and Cons

When evaluating rewards credit cards, it’s important to weigh their advantages and disadvantages to determine which card best suits your financial needs and lifestyle. Here are the pros and cons of the top rewards credit cards listed:

Chase Sapphire Preferred® Card

Pros:

• High Earning Rates: 2x points on travel and dining.
• Flexible Redemption: Points can be transferred to multiple travel partners.
• Valuable Sign-Up Bonus: Substantial bonus points after meeting the spending requirement.

Cons:

• Annual Fee: $95, which may offset rewards if you don’t utilize the card benefits.
• Limited Bonus Categories: Only travel and dining earn bonus points.

American Express® Gold Card

Pros:

• Generous Rewards: 4x points at restaurants and U.S. supermarkets.
• Dining and Travel Credits: Annual credits that can offset the card’s annual fee.
• Flexible Points Redemption: Membership Rewards points can be transferred to numerous travel partners.

Cons:

• High Annual Fee: $250, which might not be justified if you don’t take full advantage of the benefits.
• Foreign Transaction Fees: Additional charges on international purchases.

Capital One Venture Rewards Credit Card

Pros:

• Simple Rewards Structure: 2x miles on every purchase.
• Flexible Redemption: Miles can be used for travel expenses or transferred to partner airlines.
• No Foreign Transaction Fees: Ideal for international travelers.

Cons:

• Annual Fee: $95 after the first year.
• Limited Bonus Categories: No elevated rewards on specific spending categories.

Citi® Double Cash Card

Pros:

• High Cash Back Rate: Earn 1% when you buy and an additional 1% when you pay.
• No Annual Fee: Great for those looking to maximize rewards without extra costs.
• Simple Redemption: Cash back can be redeemed as a statement credit or direct deposit.

Cons:

• No Sign-Up Bonus: Missing out on the initial rewards many other cards offer.
• Limited Perks: Fewer additional benefits compared to other rewards cards.

Discover it® Cash Back

Pros:

• Rotating 5% Categories: High cash back in categories that change quarterly.
• First Year Match: Discover matches all cash back earned at the end of the first year.
• No Annual Fee: No cost to hold the card.

Cons:

• Activation Required: Must activate bonus categories each quarter.
• Spending Caps: 5% cash back limited to $1,500 in purchases per quarter.

Blue Cash Preferred® Card from American Express

Pros:

• High Cash Back Rates: 6% at U.S. supermarkets and on select U.S. streaming services.
• Transit Rewards: 3% cash back on transit and at U.S. gas stations.
• Annual Credits: Potential to offset the annual fee with streaming and transit credits.

Cons:

• Annual Fee: $95, which might not be cost-effective for lower spenders.
• Limited to U.S. Purchases: High rewards rates apply mainly to U.S. spending categories.

Bank of America® Premium Rewards® Credit Card

Pros:

• Broad Rewards: 2x points on travel and dining, 1.5x points on all other purchases.
• Annual Travel Credits: Up to $200 in combined airline incidental and travel credits.
• Sign-Up Bonus: Generous bonus points for initial spending.

Cons:

• Annual Fee: $95, which could offset some of the rewards.
• Best for Existing Customers: Maximum rewards require having a Bank of America account.

Wells Fargo Active Cash® Card

Pros:

• Flat 2% Cash Back: On all purchases with no categories to track.
• No Annual Fee: Great for those who want rewards without extra costs.
• Introductory APR: Offers 0% APR on purchases and qualifying balance transfers for a limited time.

Cons:

• Limited Perks: Fewer additional benefits compared to premium cards.
• No Travel Rewards: Focuses purely on cash back.

The Platinum Card® from American Express

Pros:

• High Reward Rates: 5x points on flights booked directly with airlines or through Amex Travel.
• Extensive Travel Perks: Includes lounge access, travel credits, and concierge service.
• Significant Welcome Offer: Generous points after meeting the spending requirement.

Cons:

• High Annual Fee: $695, which may be prohibitive for some.
• Limited Reward Categories: High points earning is focused on travel-related purchases.

U.S. Bank Altitude® Reserve Visa Infinite® Card

Pros:

• High Points on Travel and Mobile Wallets: 3x points on travel and mobile wallet purchases.
• Annual Travel Credit: $325 that can be used to offset the annual fee.
• Flexible Rewards: Points can be used for travel, gift cards, and more.

Cons:

• Annual Fee: $400, which requires significant spending to justify.
• Complex Redemption: Best value is achieved through specific travel redemptions.

Hilton Honors American Express Surpass® Card

Pros:

• High Points on Hilton Purchases: 12x points at Hilton properties.
• Bonus Categories: 6x points at U.S. restaurants, supermarkets, and gas stations.
• Hotel Benefits: Complimentary Gold status and other perks.

Cons:

• Annual Fee: $95, which might not be justified if you don’t frequently stay at Hilton properties.
• Points Value: Hilton points can sometimes offer lower value compared to other loyalty programs.

Each of these rewards credit cards offers distinct advantages and potential drawbacks. Choosing the right card involves considering how the pros align with your spending habits and how the cons might impact your financial strategy. Always assess your financial needs and goals before deciding on the best rewards credit card for you.

Maximizing Your Rewards

Strategies for Earning More Rewards

1. Use Your Card for Everyday Purchases: Charge all your regular expenses to your rewards credit card to maximize points or cash back.
2. Take Advantage of Bonus Categories: Focus spending on categories that offer higher reward rates.
3. Combine Cards: Use multiple cards to take advantage of different rewards programs and bonus categories.

Tips for Redeeming Rewards Efficiently

1. Redeem for Maximum Value: Often, redeeming points or miles for travel offers better value than cash back or merchandise.
2. Monitor Expiration Dates: Ensure your rewards don’t expire by keeping track of expiration dates.
3. Use Reward Portals: Some credit card issuers offer bonus points when shopping through their online portals.

Avoiding Common Pitfalls

1. Carrying a Balance: Paying interest on a carried balance can negate the value of your rewards.
2. Overspending: Stick to your budget and avoid unnecessary purchases just to earn rewards.
3. Ignoring Fees: Be aware of annual fees, foreign transaction fees, and other charges that could offset your rewards.

FAQs about Rewards Credit Cards

What is the best rewards credit card for travel?

The Chase Sapphire Preferred® Card and The Platinum Card® from American Express are excellent choices for travel rewards, offering significant points on travel-related purchases and extensive travel perks.

Can I have multiple rewards credit cards?

Yes, you can have multiple rewards credit cards. This strategy can help you maximize rewards by leveraging different bonus categories and benefits offered by each card.

Do rewards credit cards have higher interest rates?

Generally, rewards credit cards can have higher interest rates compared to non-rewards cards. It’s essential to pay off your balance each month to avoid interest charges that could diminish the value of your rewards.

How do I redeem my credit card rewards?

Redeeming rewards varies by card issuer. Typically, you can redeem through the issuer’s online portal for travel, cash back, gift cards, or other options. Some cards also allow you to redeem directly at the point of sale.

Are rewards credit cards worth the annual fee?

Whether a rewards credit card is worth the annual fee depends on how much you can earn in rewards and benefits. If the value of the rewards and perks exceeds the cost of the fee, it can be worthwhile.

How can I maximize my credit card rewards?

Maximize your rewards by using your card for everyday purchases, focusing on bonus categories, and redeeming points or miles for high-value options like travel. Also, consider combining cards to take advantage of different rewards programs.

Conclusion

Summary of Key Points

Rewards credit cards can provide substantial benefits through cash back, travel rewards, and points-based systems. Selecting the right card involves considering your spending habits, financial goals, and the specific rewards structure that best suits your needs.

Final Recommendations

Evaluate the features, fees, and rewards structures of the top rewards credit cards to find the one that aligns with your financial lifestyle. Always use your card responsibly to maximize rewards and avoid unnecessary costs.