5 Good Rewards Credit Cards
Reward credit cards have revolutionized the way we approach everyday spending by transforming routine purchases into valuable benefits. These financial tools offer cardholders the opportunity to earn points, miles or cash back on their regular expenses, effectively providing a return on money they would spend anyway. Understanding the types of good rewards credit cards helps you choose the right option to maximize financial benefits.
1. Cash Back Credit Cards
Cash back credit cards remain the most straightforward reward option for many consumers. These cards typically offer a percentage of your purchases returned as cash, either as a statement credit, direct deposit or check. The Chase Freedom Unlimited offers 1.5% cash back on all purchases with no annual fee and a welcome bonus of $200 after spending $500 in the first three months. The card carries a variable APR ranging from 20.49% to 29.24%.
For those seeking higher returns in specific categories, the Citi Double Cash Card provides 1% cash back when you make a purchase and an additional 1% when you pay it off, effectively earning 2% on all purchases. This card has no annual fee but maintains a variable APR of 19.24% to 29.24%.
The Blue Cash Preferred Card from American Express takes a different approach, offering 6% cash back at US supermarkets (up to $6,000 per year), 6% on select US streaming subscriptions, 3% at US gas stations and 1% on other purchases. It carries a $95 annual fee.
2. Travel Rewards Credit Cards
Travel reward cards cater to frequent travelers and those who aspire to explore the world using points or miles. The Chase Sapphire Preferred Card stands out as a popular choice, offering 2x points on travel and dining purchases and 1x points on everything else. New cardholders can earn 60,000 bonus points after spending $4,000 in the first three months. This is worth $750 when redeemed through Chase Ultimate Rewards. The card has a $95 annual fee and APR ranging from 21.49% to 28.49%.
For premium travelers, the Chase Sapphire Reserve elevates the experience with 3x points on travel and dining, plus extensive travel benefits including airport lounge access and travel insurance. The card requires a $550 annual fee but offers a $300 annual travel credit and 75,000 bonus points after meeting the spending requirement. The APR ranges from 22.49% to 29.49%.
3. Airline-Specific Credit Cards
Airline credit cards provide loyalty benefits and miles within specific airline programs. The Delta SkyMiles Gold American Express Card offers 2x miles on Delta purchases, restaurants and US supermarkets, plus 1x miles on other purchases. New members can earn 40,000 bonus miles and a $100 statement credit after spending $2,000 in the first six months. The card has a $99 annual fee and variable APR of 18.24% to 27.24%.
The Southwest Rapid Rewards Priority Credit Card appeals to Southwest Airlines frequent flyers with 3x points on Southwest purchases, 2x points on rideshare and transit, plus 1x points on other purchases. The card offers 65,000 bonus points after spending $5,000 in the first three months and includes four upgraded boardings per year. It carries a $149 annual fee with an APR range of 18.24% to 26.24%.
4. Hotel Rewards Credit Cards
Hotel credit cards provide elite status benefits and free nights at specific hotel chains. The Marriott Bonvoy Boundless Credit Card offers 2x points on Marriott purchases and 1x points on other purchases, plus automatic Silver Elite Status. New cardholders receive 75,000 bonus points after spending $3,000 in the first three months. The card has a $95 annual fee and APR ranging from 18.24% to 25.24%.
5. Business Rewards Credit Cards
Business owners can leverage specialized reward cards designed for commercial expenses. The Chase Ink Business Preferred Credit Card provides 3x points on travel, shipping purchases, internet, cable and phone services, plus advertising purchases on social media and search engines (up to $150,000 combined per account anniversary year). The card offers 100,000 bonus points after spending $15,000 in the first three months and carries a $95 annual fee.
Application Process and Considerations
Applying for good rewards credit cards typically requires good to excellent credit scores (generally 670 or higher). The application process involves providing personal information, income details and employment status. Most applications receive instant decisions, though some may require additional verification.
Before applying, consider your spending habits, payment discipline and ability to avoid carrying balances. Reward credit cards often carry higher interest rates than basic cards, so it is crucial to pay off balances monthly to avoid negating the value of earned rewards.