From all the posts you read online, it’s easy to think that great rewards credit cards are everywhere. But, are they really great deals?
Deciphering credit card rewards programs can be a challenge — starting with what types of incentives you earn. Certain credit cards offer cash back while other focus on travel rewards and still others let you apply points to any type of purchase.
With all of those options, how do you choose the right rewards credit card for you? To help you on your card selection journey, here’s a look at some of the best programs around.
Chase Sapphire Preferred
When you need flexible travel options, the Chase Sapphire Preferred card is a great pick. Instead of tying you to just one airline, you can use your rewards points with nearly any carrier.
You don’t have to deal with restrictions on hotels either, making it a highly accommodating travel rewards card.
And the earnings are easy to understand: You get two points for every dollar on travel and dining purchases and one point per dollar on everything else. Plus, if you spend enough during your first quarter, you get a massive 50,000-point bonus.
Discover It Card
The Discover It rewards credit card with cash-back match is incredibly simple. You get 1 percent cash back on every purchase, no matter where you shop.
Plus, you can earn 5 percent cash back on specific categories, like grocery stores, restaurants, or even purchases on Amazon.
Bonus categories shift on a quarterly basis. But, if you time your purchases right, you can make a bundle in cash back. Plus, you get a cash-back match at the end of your first year, helping the bonuses to add up.
Citi Double Cash Card
If you don’t want to deal with multiple tiers of rewards on different categories but still want to enjoy cash-back benefits, then a flat-rate option is ideal.
The Citi Double Cash Card gives you 1 percent cash back when you shop and an additional 1 percent cash back when you make a payment. That makes it one of the easiest rewards systems around.
American Express Blue Cash Preferred
Offered by American Express, the Blue Cash Preferred rewards credit card gives you more cash back in household spending categories — starting with an astonishing 6 percent cash back on your first $6,000 in supermarket spending every year.
Plus you earn 3 percent at gas stations and certain department stores. Everything else you 1 percent cash back.
Qualifying for Great Rewards Credit Cards
If you want to qualify for one of the cards above, you’ll typically need good to excellent credit.
However, each company manages their own requirements, so make sure to read the fine print before applying.
Readers, do you have a favorite rewards credit card or loyalty program — or are you considering signing up for any? Please tell us about them in the comments section beneath this post.
Looking for more great tips about credit cards? Give these articles a try:
- How to Transfer Money From a Credit Card to a Bank Account
- How to Raise Your Credit Score by 200 Points
- How Do Credit Card Companies Make Money?
- Credit Card Delinquencies Soar
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