Navigating the world of rewards credit cards can be tricky due to their varied offerings. How they earn, what they reward, and the stipulations attached can make for a complex comparison. However, missing out on the top-tier options could mean you’re forgoing a treasure trove of perks and even substantial monetary rewards. Here’s our compilation of the top 10 rewards cards and their particular pros and cons.
CHASE SAPPHIRE PREFERRED CARD
The Chase Sapphire Preferred Card offers a desirable combination of high rewards rates and flexible redemption, making it a gem for regular travelers and food enthusiasts. Despite a modest annual fee, the card grants a generous sign-up bonus as well as impressive travel benefits.
PROS & CONS:
Pro: High rewards on multiple spending categories, extensive travel, and shopping protections.
Con: Annual fee and absence of an introductory APR offer.
AMERICAN EXPRESS PLATINUM CARD
The American Express Platinum Card is the quintessential companion for frequent travelers who value style. Apart from premium travel advantages and access to airport lounges, it offers a broad spectrum of rewards, incorporating Membership Rewards points.
PROS & CONS:
Pro: Bonus categories, transfer partners, and luxury perks.
Con: Hefty annual fee of $695, intricate rewards system and necessitates good/excellent credit score.
CAPITAL ONE VENTURE REWARDS CREDIT CARD
The Capital One Venture Card is a noteworthy contender amongst elite travel cards, awarding between 2 – 5 miles for every dollar spent. It presents an alluring initial bonus of 75,000 miles for spending $4,000 within the initial three months. Its straightforward rewards structure allows for easy accumulation and utilization of miles.
PROS & CONS:
Pro: Lower annual fee compared to peers, annual travel credit, and anniversary miles.
Con: Limited domestic airline affiliation and hotel status benefits.
CITI PREMIER CARD
The Citi Premier® Card is an exceptional option for earning rewards on travel and other daily purchases. With the card, you earn 3X points on hotel and air travel, as well as on other preferred categories.
PROS & CONS:
Pro: Bonus categories and rewards won’t expire.
Con: Annual fee and requires good/excellent credit score.
DISCOVER IT CASH BACK
The Discover It Cash Back card is ideal for moderate spenders who prefer to activate and keep track of the 5% rotating categories and the quarterly spending cap.
PROS & CONS:
Pro: 5% cash back on quarterly rotating spending categories and cashback match after first year.
Con: 5% bonus rate limited to $1,500 per quarter and bonus categories must be activated quarterly.
BANK OF AMERICA PREMIUM REWARDS CREDIT CARD
The Bank of America Premium Rewards credit card suits frequent travelers seeking flexibility in rewards, especially if they hold significant balances with Bank of America. It boasts a noteworthy rewards program and travel benefits.
PROS & CONS:
Pro: Sign-up bonus and more points on travel and dining.
Con: Annual fee and requires good/excellent credit.
WELLS FARGO ACTIVE CASH CARD
The Wells Fargo Active Cash offers an unrestricted 2% cash rewards rate on purchases, making it a formidable competitor among top flat-rate cash back cards.
PROS & CONS:
Pro: High rewards rate and no annual fee.
Con: No bonus categories.
HILTON HONORS AMERICAN EXPRESS SURPASS CARD
Geared towards Hilton hotel regulars, this card awards significant points on Hilton purchases and additional perks. It’s designed for high spenders who frequent Hilton often enough to exploit the perks accrued via the complementary Diamond status.
PROS & CONS:
Pro: Over $600 in annual statement credits and free standard night award.
Con: High annual fee, high regular and penalty APR.
CHASE FREEDOM UNLIMITED
Chase Freedom Unlimited features a simple cash back program with a flat rate on all purchases, supported by handy bonus categories, adaptive rewards, and an attractive welcome offer.
PROS & CONS:
Pro: No annual fee and High rewards rate.
Con: Requires good/excellent credit.
SOUTHWEST RAPID REWARDS PREMIER CREDIT CARD
The Southwest Rapid Rewards Premier Credit Card caters to frequent flyers of Southwest Airlines, adding perks such as bonus points, anniversary bonuses, and a $75 annual travel credit.
PROS & CONS:
Pro: No foreign transaction fee and points towards A-list status.
Con: High regular APR, no introductory APR offer, and annual fee.
WRAPPING UP
Before opting for a credit card, carefully assess your spending habits, travel preferences and financial objectives. Find a card that speaks to your lifestyle and aligns with your financial goals. Always keep in mind to refer to the card issuer’s website to stay updated on changes in terms and conditions or reward structures.
