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Credit Cards with the Best Rewards

Which Rewards Credit Cards Are Best?

We’re glad you asked. However, the question of which rewards credit card is best is not one we can answer easily…

That’s because the value of each credit card’s perks and points varies from person to person.  To start, you can use our free credit card rewards optimization engine. That will calculate which single card would earn you the most rewards on your annual spend.

Points Credit Cards vs. Miles Credit Cards vs. Cash Back Credit Cards

The first question you have to answer is if you are happy to do a bit of work to maximize your rewards. We personally average any where from 3-5% (sometimes more!) in rewards back from credit card spend. But that involves a fair bit of effort to apply for a range of cards with various bonus categories, know which cards to use where, and learn the best ways to redeem points towards travel.

If you want to maximize your rewards and are happy to put in some effort, keep reading. But if you honestly find that to be too much effort, select a Cash Back Credit Card that earns at least 2%. The Citi Double Cash Card and Fidelity Rewards Visa Signature both earn 2% for consumer credit cards while the Spark Business Cash from Capital One and American Express Blue Business Cash Card earn 2% back for businesses.

The Savor Rewards from Capital One is also a good choice for those that like cash but spend a lot dining out.

Next, let’s dispel a myth about airline and hotel credit cards. Many of them have great perks like free checked bags and can be worth carrying. But because they earn miles tied to one airline and aren’t transferable (aside from Marriott points!), they aren’t the most flexible.

So that leaves….

Transferable Points Credit Cards

There are four major banks issuing credit cards that earn “transferable points.” These are the best way to get the most rewards for your buck if you plan to redeem your points for travel.  

You can explore all four major bank cards here:

Credit Cards That Earn Chase Ultimate Rewards Points

Credit Cards That Earn American Express (Amex) Membership Rewards Points

Credit Cards That Earn Capital One Miles

Credit Cards That Earn Citi ThankYou Points

But which should you focus on?

That’s going to be up to you (and I advise that if you want to really learn about each type of points that you join our MilesTalk group on Facebook where we can talk in very granular detail!). That said, here are some pros and cons to each:

Chase Ultimate Rewards

Chase Ultimate Rewards points are, in many ways, a good place for beginners to start. In fact, if you asked us for ONE best starting card for someone wanting to get started in miles and points, it would be the Chase Sapphire Preferred Card. Chase Ultimate Rewards points can be transfered to a variety of airlines, including United, as well as the Hyatt hotel chain where they can get you excellent value.  They can also be cashed out for 1.25 to 1.5 cents per point in value via their travel portal.

The only catch is that to transfer points to airlines or hotels, you’ll need a card with a $95 or higher annual fee. The Chase Sapphire Preferred CardChase Sapphire Reserve, and Chase Ink Preferred all allow points transfers. What’s better, though, is that once you have any of those 3 Chase cards, you can combine points from other Chase cards (that have no annual fees and higher points earnings in select categories) to maximize your rewards.

You can also read our comprehensive guide to Chase Ultimate Rewards here: Chase Ultimate Rewards: How to Earn and Redeem with Transfer Partners.

Another thing we like about Chase is how easy it is to use their benefits. For example, the Chase Sapphire Reserve comes with an annual $300 travel credit. Any travel charges count and the credits are automatic – no registration required!

If you are just getting started in miles and points, please read about the 5/24 rule. Because of this rule, we generally advise starting with business credit cards, as business credit cards (with the exception of Capital One and Discover) do not count against this.

American Express Membership Rewards Points

There are many cards that can earn American Express Membership Rewards points. While most of them have annual fees, the  Blue Business Plus Credit Card from American Express has no fee and will forever keep alive any Membership Rewards points you earn – as long as you keep that card open!

Membership Rewards has a lot of great airline partners. While they have three hotel partners, the transfer rates are not very good, so we advise sticking to airline transfers. With a bit of effort, you could use 125,000 points to go around the world in Business Class! (Hint: You’d need to transfer your Amex points to ANA and find award availability for each flight first!)

You can see all American Express Membership Rewards Transfer Partners and Transfer Times.

We like that points transfers from American Express tend to be instant. We also like the Amex Offers, by far the industry leading dscount program tied to a credit card. Just login to your account and check out the offers which are often in the range of 20% off purchases at various merchants.

Capital One Miles

The latest entrant to transferable points, Capital One has a range of transfer partners and a very simple program.

With cards like the Venture from Capital One and the Spark Miles Business Credit Card from Capital One, you’ll earn an easy to track 2 Capital One Miles per 1 dollar spent. You can then transfer them to one of 15 airline partners (no hotels). You will receive, in most cases, 1.5 airline miles for every 2 that you transfer (with some exceptions, which transfer at 1 mile for every 2 Capital One Miles).  That is like earning 1.5 transferable airline miles per dollar spent. Also note that through January 2020, the Venture from Capital One credit card earns 10x points on hotels.com purchases via their special link, meaning you can earn 7.5 airline miles per dollar spent on hotels at hotels.com with that card.

Citi ThankYou Points

And last, but certainly not least, are Citi’s ThankYou points. These are a somewhat more advanced level points currency, for a variety of reasons. From the Transfer Partners and Transfer Time page, we see they are the only bank points that transfer to Turkish Airlines, EVA Air, Garuda Indonesia, and Malaysia’s Enrich programs. Avianca (to book Star Alliance awards with no fuel surcharges) and Cathay Pacific (for Oneworld flights) can also provide excellent transfer opportunities.

So Which Rewards Card is Best?

That remains your call! The credit card rewards optimization engine is still the best place to see what cards would earn your own spend the most in rewards. But if you said that you were still lost, want points to spend for travel, and just wanted one card to get started with, you won’t go wrong starting with the Chase Sapphire Preferred Card.

Below are more of our favorite cards, ranked by the value of their new card bonuses. 

 

Don’t Miss Out On Limited time Offers

Credit card companies regularly offer limited time increased signup bonus offers on their credit cards. They also sometimes change card benefits or otherwise change up their card lineups.
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