What is the best rewards credit card for you?
The idea behind credit card rewards is simple: As you make purchases, you earn rewards.
If you’re looking for a rewards credit card, you’ll find a lot of options to explore. There are travel cards, cash back cards and points cards. And cards within those categories may offer unique ways to earn and redeem rewards.
So which one is right for you? The answer depends on how you plan to use the card and where you’ll find value when you redeem rewards. Find out more about how different rewards cards work and how to choose the best card for you.
Key takeaways
- There isn’t one rewards card that’s a universal fit for everyone. The best rewards card for you is one that best aligns with your lifestyle, spending habits and needs.
- There are a few common types of rewards credit cards it can help to know about, including travel cards, cash back cards and points cards.
- Before applying for a new card, make sure you understand all of its terms, including fees, annual percentage rates (APRs), introductory offers and perks.
Types of rewards credit cards
There are a few common types of rewards cards that you’ll likely come across in your search. Here’s a closer look at how they each work.
Miles and travel rewards cards
A travel rewards credit card could be a great choice for people who travel regularly for work or play. You earn miles for purchases you make with your card. And depending on the card, those miles can be used to cover travel-related expenses. Keep in mind that some miles-earning cards may offer more flexibility on where and how you can redeem your rewards.
The Capital One Venture card is a travel rewards card that lets you earn unlimited double miles on every purchase and five miles per dollar on hotels and rental cars booked through Capital One Travel. Plus, Venture cardholders can earn 75,000 bonus miles by spending $4,000 on purchases within the first three months from account opening.1
Venture gives you flexible redemption options, like using your rewards to cover travel purchases, transferring miles to partner loyalty programs, booking trips through Capital One Travel, including Lifestyle Collection hotel stays, and more.2 And each Lifestyle Collection hotel booking comes with a suite of cardholder benefits on every booking, including a $50 experience credit to use during your stay.
Venture also gives cardholders access to even more perks and benefits, like reimbursement for Global Entry or TSA PreCheck®, 24-hour travel assistance and more.
Cash back rewards cards
Cash back rewards cards also let you earn rewards as you spend. But instead of miles, you earn cash back equivalent to a percentage of each qualifying purchase. Some cards offer larger percentages for certain categories, like dining and entertainment. With others, you may earn the same rewards rate on every qualifying purchase.
With the Capital One Quicksilver card, you earn unlimited 1.5% cash back on every purchase, every day. Whether you’re using your card to fill up at the gas station, buy pet food or snag a new pair of shoes, you’re earning as you buy.
If you’re looking to earn more cash back on dining and entertainment, check out the Capital One SavorOne card. With SavorOne, you earn unlimited 3% cash back on dining, entertainment, popular streaming services and at grocery stores, plus 1% on all other purchases.3 If you’re a major foodie or a person-about-town, this could be the card for you.
Capital One’s cash back credit cards also offer the flexibility to redeem the way you want. That could mean applying cash back toward a recent purchase, crediting your account to lower your balance or getting a check or gift card delivered to your home.4
Points rewards cards
Some rewards credit cards offer points rather than miles or cash back. How you earn or redeem points depends on the card. Some may be similar to a miles-earning card, while others may be more like a cash back card.
If you think a points card is right for you, make sure you understand any limits on how you can redeem rewards. And double-check that your points won’t expire before you have a chance to use them. Rotating rewards and bonus categories are also something to keep in mind.
How to choose the best rewards credit card
When it comes to deciding the type of credit card with the best rewards for your needs, it may help to review your spending and think about questions like:
- Are you dining out or ordering takeout regularly?
- Do you travel often? When you do, is it for work or pleasure?
- Do you go to concerts or sporting events frequently?
- Do you spend most of your money on groceries?
Once you understand where your money is going, you can start comparing cards that offer the types of rewards that align with your budget.
And if you’re working to improve your credit scores, the Capital One QuicksilverOne Rewards and Quicksilver Secured are rewards card options you may want to look into.
Are rewards cards worth it?
Each type of rewards card comes with its own benefits. But only you can determine which card is best for you. Here are a few questions to consider before you apply:
- Do the rewards fit your spending habits? The best rewards credit cards help you earn rewards for things you already buy. Some cards offer higher rewards in certain categories, like dining and entertainment. Others offer a flat rate for every purchase.
- How do you want to redeem rewards? If you want to redeem rewards for travel purchases, a travel rewards card might be the best choice. If you’d rather have the flexibility of cash back rewards, consider a cash back card.
- Do the rewards justify the annual fee? Some rewards cards come with an annual fee. Think about whether the rewards you may earn with the card are worth it.
- Do you understand the card’s terms? In addition to looking at the annual fee, you should make sure you understand all the card’s terms before you apply. This includes things like APRs, introductory offers and other perks. And don’t forget to look into the card’s other fees, like balance transfer fees and foreign transaction fees.
Credit card rewards FAQ
Learn more about choosing the best rewards credit card with these frequently asked questions.
Is it better to get cash back rewards or points?
There isn’t one better option when it comes to choosing between rewards credit cards that offer cash back or points. That decision really comes down to how you’ll use the card and what you qualify for. But points cards with rotating rewards might require more attention to ensure you’re getting the most out of them.
How do you know which credit card has the best rewards program?
Do your research on rewards credit cards to determine which option offers the rewards that meet your needs. You’ll also want to consider whether the card has an annual fee and whether there’s a minimum spending requirement for bonus rewards. Be sure to look closely at the benefits offered—and whether they outweigh any associated costs.
Are there any disadvantages to having a rewards credit card?
Some possible disadvantages of rewards credit cards include:
- Failing to redeem your rewards. You might get busy and forget to redeem the rewards you’ve earned. However, rewards don’t usually expire as long as your account is open and in good standing. And that’s the case with Capital One rewards cards.
- Not considering the annual fee. Some rewards credit cards charge an annual fee when you open the card, so it’s a good idea to make sure the rewards you receive outweigh it.
- Overspending to maximize rewards. If you find yourself using your credit card too often in an attempt to max out the rewards offered, it could lead to a higher balance on your card that you may not be able to comfortably pay off in a timely manner. And that can result in accrued interest and potentially harm your credit scores.
Credit card rewards in a nutshell
The best rewards credit card for you is one that aligns with your lifestyle and spending habits. Whether you’re a globe-trotting adventurer, an avid foodie or someone looking for rewards for everyday purchases, there’s a rewards card out there for you.
Ready to explore some options? Check out Capital One’s rewards credit cards to find one that’s right for you. Then, you can see whether you’re pre-approved for card offers before you apply. Pre-approval is quick and doesn’t hurt your credit scores.