Choosing the right rewards credit card can be a daunting task given their varying earning rates, reward types, and the rules around redemptions. Selecting the wrong one could mean missing out on potential benefits or cash. Here’s a selection of 10 top-tier rewards cards to consider:
1. CHASE SAPPHIRE PREFERRED CARD: This card offers a unique blend of high reward rates, flexibility in redemption, and is particularly beneficial for regular spenders in travel and dining categories. It also features a generous sign-up bonus and travel benefits.
Pros: High rewards for various spending categories and travel and shopping protections.
Cons: Involves an annual fee and doesn’t provide an introductory Annual Percentage Rate (APR) offer.
2. AMERICAN EXPRESS PLATINUM CARD: This card is perfect for frequent travelers seeking luxurious experiences. It provides extensive travel benefits, access to airport lounges, and a variety of rewards including Membership Rewards points.
Pros: Bonus categories, transfer partners, and luxury perks.
Cons: High annual fee of $695, complicated rewards, and requires a good to excellent credit score.
3. CAPITAL ONE VENTURE REWARDS CREDIT CARD: As a premium travel card, this card offers 2 – 5 miles per dollar spent and includes a generous initial benefit of 75,000 miles for spending within the first three months.
Pros: Reasonable annual fee compared to category peers, easy-to-earn miles.
Cons: Lack of specific travel partners and hotel status benefits.
4. CITI PREMIER CARD: An excellent choice for those interested in earning rewards on non-travel and travel purchases. Cardholders earn triple points on hotels and airfares as well as other popular categories like dining, supermarkets, and gas stations.
Pros: Bonus categories, and no expiry of rewards.
Cons: Involves an annual fee and requires a good to excellent credit score.
5. DISCOVER IT CASH BACK: Moderate spenders who’re willing to activate and track the 5% rotating categories could unlock substantial rewards outside of its regular 1% earning rate.
Pros: Rotating quarterly bonus categories, a match of all cash back earned in the first year.
Cons: Bonus allocation limits, activation requirements for bonus categories, and a low base reward rate.
6. BANK OF AMERICA PREMIUM REWARDS CREDIT CARD: A solid option for frequent travelers, particularly those already banking with Bank of America. Offers extensive travel credits and benefits.
Pros: Attractive sign-up bonus, better rewards on travel and dining, high-quality travel protections.
Cons: Annual fee requirement and the need for a good/excellent credit score.
7. WELLS FARGO ACTIVE CASH CARD: This card offers an unlimited 2% cash rewards rate on purchases and doesn’t charge an annual fee, rivaling top flat-rate cash back cards on the market.
Pros: Impressive rewards rate, no annual fee, introductory APR period.
Cons: No bonus categories.
8. HILTON HONORS AMERICAN EXPRESS SURPASS CARD: A dream for Hilton loyalists, providing substantial rewards on Hilton purchases and other benefits. The card boasts a generous suite of benefits, particularly for those frequenting Hilton properties.
Pros: Over $600 in annual statement credits and uncapped free standard night rewards at participating properties.
Cons: High annual fee, high standard and penalty APR, and points have a lower value than most rewards programs.
9. CHASE FREEDOM UNLIMITED: This card stands out for its simple cash back program, no annual fee, and useful bonus categories.
Pros: No annual fee, introductory APR period and high rewards rate.
Cons: Requires a good/excellent credit score.
10. SOUTHWEST RAPID REWARDS PREMIER CREDIT CARD: Ideal for regular Southwest Airlines fliers, offering benefits like bonus points and anniversary bonuses.
Pros: No foreign transaction fee, earning points towards A-list status, and unlimited reward seats.
Cons: High standard APR, no introductory APR offer, and annual fee.
Before applying for any credit card, it’s essential to evaluate your spending habits, travel preferences, and financial goals to select the card that best suits your unique situation. Also, remember to check for recent changes in terms, conditions or reward structures on the issuer’s website.
(source: smartasset.com)
