6 Best Rewards Credit Cards of 2023

Chase Sapphire Reserve® Credit Card

This card has an annual fee of $550 but if you are a frequent traveler the perks you get could very well be worth the fee. It comes with a variety of credits, redemption perks, and travel protections.

Earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $900 toward travel when you redeem through Chase Ultimate Rewards®

Ongoing Rewards

The Chase Sapphire Reserve® Credit Card also makes it easy to earn points with your travel spending. You’ll get:

10X points on hotels, car rentals, and dining booked through Chase Ultimate Rewards®
10X points on Lyft rides through December 31st, 2024
5X points on flights booked through Chase Ultimate Rewards®
3X points on other travel and dining
1X points on everything else

Redemption

If you book your travel through the Chase Ultimate Rewards® portal your points will have an increased value of 50%. There are no black out dates or travel restrictions when booking through Chase Ultimate Rewards®.

You can also transfer your points to other airline and hotel loyalty programs at a 1:1 ratio. So, if you can find a better deal on a different program, you can move your points there with no loss of value.

Other Perks

The main extra perk is that you will get a $300 annual travel credit to spend on any travel you wish. This takes the net annual fee down to just $250. You’ll also get a statement credit of up to $100 every four years for Global Entry or TSA PreCheck®.

If you enroll in Priority Pass™ Select you’ll have access to over 1,300 lounges in over 500 cities worldwide.

If you like food delivery, you can get a year of complementary access to DashPass and Instacart+. Instacart+ members will also get a $15 monthly statement credit until July 2024. (Memberships will automatically renew.)

Travel Insurance and Protections

There are also no foreign transaction fees and a variety of insurance and protections while you travel. Note that you must use the Chase Sapphire Reserve® to book your trip to qualify for coverage.

Trip Cancellation/Interruption Insurance will reimburse non-refundable travel expenses up to $10,000 per person and $20,000 per trip if your trip is cut short or canceled due to illness, severe weather, or other covered situations.

Trip Delay Reimbursement will reimburse you up to $500 per ticket if your flight is delayed more than six hours or the delay requires an overnight stay. The reimbursement will cover expenses such as meals and lodging.

Auto Rental Collision Damage Waiver is primary which means that if you get in an accident with your rental car, you will not have to involve your personal auto insurance.

Lost Luggage Reimbursement will reimburse you for up to $3,000 per passenger for luggage that is lost or damaged by the airline.

Shopping Protections

Shopping protections extend to items purchased on the Chase Sapphire Reserve.

Purchase Protection will reimburse you up to $10,000 per claim if your purchase is damaged or stolen within 120 days of purchase. Claims are limited to $50,000 per year.

Return Protection will reimburse you up to $500 per item if the store will not take back the item you wish to return within 90 days of purchase. Claims are limited to $1,000 per year.

Extended Warranty Protection will extend the manufacturer’s warranties that are three years or less by an additional year.

Learn More about the Chase Sapphire Reserve Card.

Blue Cash Preferred® Card From American Express

The Blue Cash Preferred® Card From American Express is an excellent way to earn cash back on your everyday expenses. In fact, unlike most cards weighted more towards dining, entertainment, and travel, this one is weighted towards gas and groceries. See Rates & Fees.

There is an annual fee of $95 ($0 intro annual fee in first year).

Earn a $250 statement credit after you spend $3,000 in purchases on your new Card within the first 6 months.

You will also get a 0% APR on purchases and balance transfers for the first 12 Months 18.99% - 29.99% Variable will apply after that.

If you use the “Plan It®” feature, which allows you to break up large purchases into monthly installments, you will receive $0 in fees for the first 12 months from account opening. After that, new plans will have a 1.33% monthly fee.

Ongoing Rewards

You can earn even more cash back when you spend using your Blue Cash Preferred® Card From American Express.

6% cash back on groceries, up to $6,000 per year in purchases at U.S. supermarkets
6% cash back on select U.S. streaming subscriptions
3% cash back on transit, which includes gas, taxis, rideshare, parking, tolls, trains, buses, and more.
1% cash back on everything else

Cash back is redeemed as a statement credit.

Pay It Plan It®

The American Express Pay It Plan It® feature is a payment option that allows cardholders choose to pay off specific purchases over a fixed period of time, typically ranging from three to 24 months, with a fixed monthly payment and a fixed interest rate.

Plan It® allows cardholders to select eligible transactions and then split them into smaller payments with a fixed monthly fee. This is an alternative to paying the full balance, and it can be helpful for budgeting or managing large purchases over time.

Pay It®, on the other hand, is a separate feature that allows cardholders to make quick payments toward their account balance. With Pay It®, cardholders can make a payment towards their account balance, usually equal to or less than their minimum payment, directly from their mobile device or through the Amex app. This can be a convenient way to manage payments and avoid late fees or interest charges.

Other Perks

You can earn a $7 monthly credit on an eligible Disney Bundle subscription where you spend $12.99 or more. (This includes Disney+, Hulu, and ESPN+). That equals $84 per year in credits, which almost covers the entire annual fee. Enrollment is required.

Return Protection will reimburse you up to $300 per item if a seller will not take an item back. Protection covers the first 90 days of owning an item that was purchased on your Blue Cash Preferred® Card From American Express. Claims are limited to $1,000 per year per card.

Travel Insurance and Protections

Since this is a cash back card and not a travel card the travel protections are limited.

Car Rental Loss and Damage Insurance is available but it is secondary insurance. This means that you will first make a claim on your personal car insurance. Rental car insurance from Amex will only kick in once you’ve reached the limits on the primary insurance.

Global Assist® Hotline is available if you are more than 100 miles from home and need assistance. This hotline can help with emergency cash, missing luggage assistance, medical referrals, and more.

Chase Freedom Unlimited® Credit Card

What’s great about the Chase Freedom Unlimited® Credit Card is that you can earn a decent amount of cash back without paying an annual fee.

Earn an additional 1.5% cash back on everything you buy (on up to $20,000 spent in the first year).

You will also get a 0% APR for 15 Months on purchases and balance transfers. You’ll pay 19.74% - 28.49% Variable after that.

Ongoing Rewards

You’ll also earn cash back on your everyday spending.

5% on travel purchases booked through the Chase Ultimate Rewards® portal
5% on Lyft rides through March 31st, 2025
3% on dining at restaurants (including takeout and eligible delivery services)
3% on drugstore purchases
1.5% on all other purchases

Cash back can be redeemed as a statement credit or direct deposit. If you link your card to Amazon you can use your cash back directly on Amazon for purchases. You can also use your rewards to book travel through the Chase Ultimate Rewards® portal.

Other Perks

Purchase Protection will cover your items for 120 days after purchase from damage or theft. You can be reimbursed up to $500 per claim. Claims are limited to $50,000 per account.

Three months of complimentary DashPass, from DoorDash if you sign up before December 31st, 2024. You’ll receive unlimited deliveries for $0 delivery fee and reduced service fees. Afterwards, you will be automatically enrolled in DashPass for 50% off for the next nine months.

Three months of complimentary Instacart+ if you sign up before July 31st, 2024. This gives you unlimited deliveries for $0 delivery fee and reduced service fees. You will also receive $10 quarterly statement credits for your Instacart+ purchases through July 31st, 2024. Afterwards, you will be automatically enrolled in an annual membership.

Extended Warranty Protection will extend the manufacturer’s warranties that are three years or less by an additional year.

Travel Insurance and Protections

Trip Cancellation/Interruption Insurance will reimburse you for non-refundable costs up to $1,500 per person and $6,000 per trip if your trip is cancelled or cut short by illness, severe weather, or other covered situations.

Auto Rental Collision Damage Waiver is available but secondary. This means you will first have to make a claim on your personal car insurance.

Travel and Emergency Assistance is available if you are traveling and have an emergency.

Learn More about the Chase Freedom Unlimited Card.

Capital One Quicksilver Cash Rewards Credit card

This is another great cash back card with no annual fee.

The Capital One Quicksilver Cash Rewards Credit card kicks off with an easy bonus - Earn a one-time $200 cash bonus after you spend $500 on purchases within 3 months from account opening.

You will also get a 0% intro APR for 15 months on purchases and balance transfers. Regular interest rate of 19.74% - 29.74% (Variable) will apply after that.

Ongoing Rewards

You’ll earn 1.5% cash back on all purchases. If you are looking for an easy to manage cash back card, this is it.

Also get 5% cash back on hotels and rental cars booked through Capital One Travel.

Cash back can be redeemed as a statement credit or you can be mailed a check. If you link your card to Amazon or PayPal you can use your cash back rewards directly on those platforms.

Other Perks

With the Capital One Quicksilver Cash Rewards Credit Card you’ll get up to six months of Uber One for free. Offer ends 11/14/2024. Uber One gives you 5% off Uber rides. You’ll also get 10% off orders and $0 delivery fees from Uber Eats.

Extended Warranty Protection will extend the manufacturer’s warranty on eligible items purchased with your card.

Master RoadAssist® covers you have a covered accident while traveling. You must have purchased your fare with your Capital One Quicksilver Cash Rewards Credit Card.

For Capital One products listed on this page, some of the above benefits are provided by Visa® or Mastercard® and may vary by product. See the respective Guide to Benefits for details, as terms and exclusions apply.

Chase Sapphire Preferred® Credit Card

The Chase Sapphire Preferred® Credit Card is great for travelers who aren’t ready to commit to a premium travel card. It has good travel benefits for a reasonable $95 annual fee.

You’ll earn 80,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $1,000 when you redeem through Chase Ultimate Rewards®.

Ongoing Rewards

You’ll also earn points through your everyday spending.

5X points on travel booked through the Chase Ultimate Rewards® portal
5X points on Lyft rides through March 31st, 2025
3X on select streaming services, dining, and online grocery purchases (Target and Walmart are excluded)
2X on all other travel purchases
1X on all other purchases

Each year, you’ll also earn bonus points equaling 10% of your total purchases. So, if you make $3,000 in purchases, you’ll earn an additional 300 bonus points as an annual bonus.

You’ll also receive a $50 annual credit Ultimate Rewards® Hotel Credit that you an apply towards a hotel booking through the Chase Ultimate Rewards® portal.

My Chase Plan

With My Chase Plan, you can choose a specific transaction of $100 or more and pay it off over a set period of time for a fixed monthly fee rather than monthly interest.

To use My Chase Plan, you will need to log in to your Chase account and select an eligible purchase for which you would like to create a plan for. Then, you can choose a plan length ranging from 3 to 18 months and see the fixed monthly payment amount each plan.

Other Perks

Purchase Protection will cover your items for 120 days after purchase from damage or theft. You can be reimbursed up to $500 per claim. Claims are limited to $50,000 per account.

One year of complimentary DashPass, from DoorDash if you sign up before December 31st, 2024. You’ll receive unlimited deliveries for $0 delivery fee and reduced service fees.

Six months of complimentary Instacart+. This gives you unlimited deliveries for $0 delivery fee and reduced service fees. You will also receive $15 quarterly statement credits for your Instacart+ purchases through July 1st, 2024.

No foreign transaction fees.

Travel Insurance and Protections

Trip Delay Reimbursement will reimburse you up to $500 per ticket if your flight is delayed more than 12 hours or the delay requires an overnight stay. The reimbursement will cover expenses such as meals and lodging.

Auto Rental Collision Damage Waiver is primary which means that if you get in an accident with your rental car you will not have to involve your personal auto insurance.

Learn More about the Chase Sapphire Preferred Card.

Southwest Rapid Rewards® Priority Credit Card

The Southwest Rapid Rewards® Priority Credit Card is a popular travel card due to their Companion Pass perk and reasonable $149 annual fee.

Earn 50,000 bonus points after spending $1,000 on purchases in the first 3 months from account opening.

Companion Pass

The companion pass is the goal of all Southwest Rapid Rewards® Priority Credit Card members. This feature allows you to choose one person to fly with you for free. So anytime you book a ticket your chosen companion can fly for just the cost of fees and taxes, which is $5.60 one way.

To earn the companion pass you need to take 100 one-way flights, or earning 135,000 points. Once you qualify your companion can fly with you for the rest of the calendar year, and the next year.

Ongoing Rewards

You can earn points through your everyday spending.

Earn 3X points on Southwest® purchases.
Earn 2X points on local transit and commuting, including rideshare.
Earn 2X points on internet, cable, and phone services; select streaming.
Earn 1X points on all other purchases

On your card anniversary, you’ll receive 7,500 points on your card anniversary as well as a $75 annual travel credit.

Other Perks

When available you can upgrade your boarding four times per year.

You’ll also earn 25% back on inflight purchases.

Travel Insurance and Protections

Baggage delay insurance will reimburse you for essential items you need to purchase if your bag is delayed over six hours. Claims are limited to $100 per day for a maximum of three days.

Lost luggage reimbursement will reimburse you up to $3,000 per passenger if your luggage is lost or damaged by the airline.

Shopping Protections

Purchase protection will reimburse you up to $500 per claim if your new purchase is lost or damaged within 120 days of purchase. Claims are limited to $50,000 per account.

Extended warranty protection will extend manufacturer’s warranties that are three years or less for an additional year.

Learn More about the Southwest Rapid Rewards Priority Card.

Pros and Cons of Rewards Credit Cards

Rewards: One of the biggest benefits of rewards credit cards is the ability to earn rewards, such as cashback, points, miles, or other perks, for making purchases with the card.
Sign-up bonuses: Many rewards credit cards offer sign-up bonuses for new cardholders who meet a minimum spending requirement, which can be a great way to earn a substantial amount of rewards quickly.
Additional benefits: Some rewards credit cards come with additional benefits such as travel insurance, purchase protection, or extended warranty coverage.
Perks: Some rewards credit cards offer exclusive perks such as access to airport lounges, concierge services, or special event invitations.

Fees: Some rewards credit cards come with annual fees, foreign transaction fees, or other fees that can reduce the value of the rewards earned.
Limited redemption options: Some rewards credit cards may have limited redemption options, making it difficult to redeem rewards for the benefits that you want.
Temptation to overspend: The temptation to earn rewards can lead to overspending, which can result in high balances and interest charges.
Complexity: Rewards credit cards can be complex, with different earning rates, redemption options, and rules for earning and redeeming rewards.

What Is a Rewards Credit Card?

A rewards credit card is a type of credit card that offers incentives or rewards to cardholders for using the card to make purchases.

These rewards can come in the form of cashback, points, miles, discounts, or other perks. The more you use the card, the more rewards you can earn, which can be redeemed for various benefits such as travel, merchandise, statement credits, or even cash. Rewards credit cards are designed to incentivize customers to use their card frequently and to build customer loyalty for the card issuer.

However, it’s important to use them responsibly and pay off the balance in full each month to avoid accruing interest charges.

How Do Rewards Credit Cards Work?

To earn rewards with a rewards credit card, you simply need to use the card to make purchases. Each time you use the card to buy something, you earn a certain number of rewards points, miles, or cashback, depending on the card’s rewards program. Some rewards credit cards offer bonus rewards for certain spending categories, such as gas, groceries, or travel.

Once you have earned enough rewards, you can typically redeem them for various benefits such as travel, merchandise, statement credits, or even cash. Redemption options and the value of rewards can vary depending on the card’s rewards program and the issuer.

How To Choose a Rewards Credit Card

Choosing a rewards credit card can be a bit overwhelming, as there are many options available with different rewards programs, fees, and benefits. Here are some factors to consider when choosing a rewards credit card:

Rewards program: Look for a rewards program that aligns with your spending habits and offers rewards that you will actually use. For example, if you travel frequently, you may want a card that offers travel rewards or miles.
Fees: Some rewards credit cards may come with annual fees or foreign transaction fees. Consider the fees associated with the card and make sure they don’t outweigh the value of the rewards you’ll earn.
Sign-up bonus: Many rewards credit cards offer a sign-up bonus for new cardholders who meet a spending requirement within the first few months of opening the account. Look for a card with a sign-up bonus that you can realistically meet.
Credit score: Some rewards credit cards require a higher credit score than others. Check the card’s eligibility requirements to make sure you qualify.
Redemption options: Look for a card with flexible redemption options that fit your needs. For example, if you want to redeem your rewards for cash back or statement credits, make sure the card offers that option.
Additional benefits: Some rewards credit cards offer additional benefits, such as travel insurance, purchase protection, or extended warranty coverage. Consider these benefits when choosing a card.

By considering these factors and comparing different rewards credit cards, you can choose a card that best fits your spending habits and offers rewards and benefits that you’ll actually use.

What Types of Rewards Can I Earn With a Credit Card?

There are several types of rewards that you can earn with a credit card. Here are some of the most common types:

Cashback: This type of reward offers a percentage of the purchase amount back to the cardholder as cash. Cashback rewards are typically a percentage of the purchase amount, and can be redeemed for statement credits, direct deposits, or physical checks.
Points: Points rewards are a type of currency that can be earned by making purchases with the card. Points can be redeemed for a variety of benefits such as merchandise, travel, gift cards, and more.
Miles: Miles rewards are earned by making purchases with the card and can be redeemed for air travel or other travel-related expenses. Miles rewards are typically associated with travel credit cards.
Points or cashback multipliers: Some credit cards offer extra rewards points or cashback for purchases made in specific categories, such as dining, gas, or groceries.
Discounts: Some credit cards offer discounts on specific purchases or at certain retailers. These discounts may be a percentage off the purchase price or a set dollar amount.
Perks: Some credit cards offer perks such as access to airport lounges, concierge services, or special event invitations. These perks may be exclusive to cardholders and are designed to enhance the cardholder’s lifestyle.

The type of reward you can earn with a credit card will depend on the card’s rewards program. It’s also important to make sure that you choose a card whose rewards match your lifestyle.

Is There a Limit to the Rewards I Can Earn With My Credit Card?

Not really. The average user will not come up against limits on earnings of rewards. There may be bonus categories that earn extra points up to certain limits, but you’ll still be able to earn points as regular spending after that limit is reached.

However, there can be “shadow” limits in place for those who abuse the programs. Trying to get around the rules may cause your points to be canceled and for you to be removed from the program.

For the average user, here are some common types of limits you may encounter with a rewards credit card:

Spending limits: Some rewards credit cards may have limits on the amount of rewards you can earn in a specific category or within a certain time frame, such as a month or a year. For example, they may offer extra cash back on gas for the first $500 spent on gas per month.
Redemption limits: Some rewards credit cards may have limits on the amount of rewards you can redeem at one time or within a certain time frame, such as a month or a year.
Account limits: Some rewards credit cards may have limits on the total rewards you can earn or redeem over the life of the account.

It’s important to read the card’s terms and conditions to understand the limits of the rewards program and how they may impact your ability to earn and redeem rewards.

Can I Redeem My Rewards for Cash?

Yes, in many cases, you can redeem rewards earned with a credit card for cash. However, the specifics of cash redemption options will depend on the card’s rewards program and terms and conditions. Here are some common ways you may be able to redeem rewards for cash:

Statement credit: Many rewards credit cards allow you to redeem rewards for statement credits, which can effectively reduce your account balance or provide you with cash back.
At the retailer: Some cards will link to your Amazon or PayPal account and you can use your rewards to pay for things when you shop.
Direct deposit: Some rewards credit cards may offer direct deposit options for cash redemption, allowing you to receive the cash directly into your bank account.
Check: Some rewards credit cards may offer the option to receive a physical check for cash redemption.

It’s important to note that the value of rewards when redeemed for cash may be lower than the value when redeemed for other rewards, such as travel.

Are There Any Fees Associated With Rewards Credit Cards?

Yes, all credit cards come with fees. If you are signing up for a rewards card there are two that you will want to be aware of when you sign up, the annual fee and the balance transfer fee.

Annual fees: Some rewards credit cards may have an annual fee. The annual fee can range from a few dollars to hundreds of dollars, depending on the card and its benefits. Be sure that the rewards you earn are worth more than the fee.
Balance transfer fees: Many cards charge a fee for transferring a balance from another credit card to the rewards credit card. The balance transfer fee is typically a percentage of the balance being transferred, often around 3-5%.

These two fees will impact that rewards right away. Of course, there are other fees such as a late payment fees and cash advance fees you may encounter later.

What Are the Requirements for Getting a Rewards Credit Card?

The requirements for getting a rewards credit card can vary depending on the issuer and the specific card. Here are some common requirements:

Good credit score: Many rewards credit cards require a good or excellent credit score, typically around 670 or higher. Your credit score is based on factors such as your payment history, credit utilization, and length of credit history.
Income: Credit card issuers may ask about your income and may require a minimum income level to qualify for a rewards credit card. The income requirement varies depending on the card and the issuer.
Age: You must be at least 18 years old to apply for a credit card. Some credit card issuers may require you to be at least 21 years old.
Credit history: Your credit history will be reviewed when you apply for a credit card. This includes factors such as your credit score, payment history, and length of credit history. A history of missed payments or high credit utilization may impact your ability to qualify for a rewards credit card.

It’s important to note that meeting these requirements does not guarantee approval for a rewards credit card. The issuer will also consider factors such as your debt-to-income ratio and other credit factors when deciding whether to approve your application.

Are Rewards Credit Cards Worth It?

It really depends on how you use the rewards credit card. If you pay the card off in full and on time every month and actually use the rewards you generate then yes, they can definitely be worth it.

If you struggle to pay the card off in full every month, or pay late, you are paying interest and fees that are offsetting the value of any rewards you will accumulate.

Also, if you tend to overspend when you use credit cards, or if you don’t use your rewards then rewards credit cards are probably not worth it.

How Do I Compare Different Rewards Credit Cards To Find the Best One for Me?

You’ll want to choose a card that best fits your normal spending habits. Look at your monthly budget and identify the categories where you spend the most money. This could include groceries, dining, travel, gas, or other categories. Knowing your spending habits will help you choose a rewards credit card that offers the most rewards for your preferred categories.

Once you know where you spend the most money look at the rewards programs offered by different credit cards and compare the rewards rate, redemption options, and any limitations or exclusions on earning and redeeming rewards. Pay attention to any sign-up bonuses or other special incentives offered by the card.

After you have a few cards picked out that will work for spending make note of the fees associated with each credit card, such as annual fees, foreign transaction fees, and balance transfer fees. Make sure the fees are worth the rewards.

If you are still torn between a few cards, look at the additional benefits offered by each credit card, such as travel insurance, purchase protection, extended warranty coverage, and other perks that may be valuable to you. This may make one card more attractive than the others.

How Can I Maximize My Rewards Earnings With a Credit Card?

Here are some tips to help you maximize your rewards earnings with a credit card:

Choose a card with rewards that align with your spending habits: Look for a rewards credit card that offers bonus rewards in the categories where you spend the most money. For example, if you spend a lot on groceries and gas, look for a card that offers extra rewards in those categories.
Use your credit card for all your purchases: Use your rewards credit card for all your purchases, including everyday expenses like groceries, gas, and dining out. This will help you earn rewards more quickly.
Pay your balance in full each month: To avoid interest charges and fees that can offset the value of your rewards, pay off your credit card balance in full each month.
Take advantage of sign-up bonuses: Many rewards credit cards offer sign-up bonuses that can be worth hundreds of dollars in rewards. Make sure you meet the spending requirements to earn the bonus.
Keep track of expiration dates: Some rewards have expiration dates or require you to redeem them within a certain timeframe. Make sure you keep track of these deadlines to avoid losing your rewards.
Use your rewards wisely: Choose redemption options that offer the most value for your rewards, such as travel, statement credits, or gift cards. Don’t redeem your rewards for items you don’t need or for a lower value than they’re worth.
Consider stacking rewards: Some credit cards offer additional rewards when you shop through their online shopping portals or link your card to other reward programs. Look for opportunities to stack rewards and earn even more.

Summary

The top rewards credit cards include those that offer generous sign-up bonuses, high rewards rates in popular spending categories, and flexible redemption options.

It’s important to choose a rewards credit card that aligns with your spending habits and financial goals. It also stresses the need to compare fees and other costs associated with each card, including annual fees, foreign transaction fees, and balance transfer fees.