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Best Rewards Credit Card | Cash back – Flat-rate Rewards

The best rewards credit card, come in two main varieties, which are cash-back cards and travel cards. While the cash-back cards pay you back a percentage of the amount of each transaction, travel rewards credit cards, on the other hand, gives you points for miles for each dollar you spend. Rewards earned, can be redeemed for free flights, hotel stays etc.

It goes to say that when it comes to rewards credit card, no single rewards card is right for everyone. It all boils down to how you spend money and what kind of rewards matter to you.

Best  Rewards Credit Card | Cash back – Flat-rate Rewards

While some travel rewards cards are supper-flexible and offer you points you can use to pay for any travel expense – any seat on any flight, any room in any hotel, etc., other cards are tied to a particular airline or hotel brand.

The points here  can be used only with that brand (even though they also usually offer perks that general-purpose cards can’t match).

Cash back – flat-rate rewards + sign-up bonus

Capital One® Quicksilver® Cash Rewards Credit Card

This card, was the original 1.5% cash back card that comes with a compelling blend of feature and $0 annual fee.

What Fees Apply?

  • Annual Fee – $0
  • Rewards Rate – 1.5%
  • Intro Offer – $150

Required Credit Score

690 –  850 (Good  –  Excellent)

What’s Good?

  • Earn unlimited 1.5% cash back on everything.
  • Cardholders can redeem their cash back in any amount at any time.
  • Comes with an outstanding 0% introductory APR offer as well as a nifty sign-up bonus
  • There a one-time $150 cash bonus after you spend $500 on purchases within 3 months from account opening.
  • No annual or foreign transaction fees.

What’s not so Good?

Offer of a 1.5% flat rewards rate which some cards have exceeded. This means, that you can get higher rewards rates on other cards in specific categories.

Cash back – families (groceries, gas, commuting, streaming)

Blue Cash Preferred® Card from American Express

The Blue Cash Preferred® Card from American Express is what you should go for if groceries, GA and/or commuting are amongst your most common expenses.

What Fees Apply?

  • Annual Fee  –  $95
  • Rewards Rate  –  1%-6%
  • Intro Offer  – $250

Required Credit Score

690 – 850 (Good – Excellent)

What’s Good?

A great card that offers industry-leading rewards at U.S. supermarkets – 6% cash back on up to $6,000 in spending per year (then 1%) – supplemented by 3% cash back at U.S. gas stations and on transit (including things like taxis, rideshares, buses, trains, tolls and parking).

Revel 6% cash back on select U.S. streaming subscriptions.

Every other purchases earns 1% back. Another icing on the cake, is a welcome bonus which adds to the appeal.

What’s not so Good?

Comes with a high annual fee. But note that, if you spend at least $31 a week at U. S. supermarkets, the cash back will offset it.

Card may not be accepted everywhere.

Cash back – bonus categories

Discover it® Cash Back

A solid cash back card wit a new cardmember bonus and bonus categories, like $0 annual fee, solid 0% intro APR period etc.

What Fees Apply?

  • Annual Fee – $0
  • Rewards Rate  –  1%-5%
  • Intro Offer –  Cashback Match™

Required Credit Score

690 – 850 (Good – Excellent)

What’s Good?

Broad range of bonus categories which user’s activate each quarter, enabling them earn 5% cash back at places like restaurants, grocery stores as well as gas stations.

Enjoy a distinctive sign-up bonus, where Discover matches all the cash back you have earned at the end of your first year instantly. No signing up, and no limit to how much is matched.

What’s not so Good?

May be difficult to keep track of the changing bonus categories, and recalling to opt in to them every three months.

Travel rewards – bonus categories

Chase Sapphire Preferred® Card

The Chase Sapphire Preferred® Cardis a travel rewards card that offers points on dining and traveling.

What Fees Apply?

  • Annual Fee –  $95
  • Rewards Rate –  1x-5x
  • Intro Offer  –  60,000

Required Credit Score

690-850 (Good – Excellent)

What’s Good?

Get 2 points per dollar spent on dining and travel and 1 point per dollar spent on everything else.

Points earned, are worth 1.25 cents apiece when you redeem them for travel booked via Chase, alternatively, you can transfer them to several other loyalty programs, including United, Southwest, Marriott and Hyatt.

Ultimate Rewards® points, transferred to this card from other Chase cards can be redeemed the same way.

Chase Sapphire Preferred® Card, also comes with a fantastic sign-up bonus.

What’s not so Good?

Rewards earned on your spending, are valuable in themselves, thus if you are looking for other perks like free checked bags on flights, free hotel upgrades or instant travel credits, you’d be better off with a branded airline or hotel card.

Get the rewards you need from the cards that gives them. Credit cards are not a necessity, but if you must have one, then you must be handsomely rewarded for doing so. Choose the right card.

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