Best Rewards Credit Cards of the Year

Many credit cards feature attractive reward programs aimed at enticing users to choose them. These incentive-based offers often promise lucrative returns on your spending. However, understanding what these rewards truly entail and how they work can be complex.

Reward valuation depends on two key factors: the earning rate—which determines how many points, miles, or cashback you earn per dollar spent—and the redemption rate, which indicates the value of those rewards when redeemed.

The earning rate varies among cards and can be optimized for specific purchase categories. These rates often include associated fees and benefits. The redemption rate, also known as the burn rate, measures how much value you get from your points or miles, typically around one cent per point or mile. To estimate your reward's worth, multiply the earned rewards by their redemption value.

• Capital One Venture Rewards: Flat 2 miles per dollar with no annual fee for the first year.
• BankAmeriCard Travel Rewards: 1.5 points per dollar spent.
• Chase Sapphire Preferred: 1 point per dollar, with bonus points for travel and dining.
• Discover It Miles: 1.5 miles per dollar, unlimited, and matches miles earned.
• Citi Double Cash: 1% cashback on all purchases and another 1% when paying off the credit card.
• Blue Cash Preferred: Offers cash back on groceries, streaming, and more.
• Chase Freedom: 5% cashback in rotating categories with no annual fee.
• Ink Business Cash & Preferred: Business cards offering great rewards on office expenses and travel.
• Capital One Spark Cash for Business: 2% cashback on business expenses.

For example, the Chase Sapphire Preferred rewards program offers one point per dollar spent, with increased rewards for travel-related expenses and dining worldwide. Sign-up bonus of 50,000 points can be converted into $625 when redeemed via Chase Ultimate Rewards. The Chase Freedom card offers 5% cashback in rotating categories and a $150 bonus after spending $500 in the first three months. The Capital One Venture Rewards provides limitless 2X miles on all purchases, plus a 40,000-mile sign-up bonus, ideal for travel. The Barclaycard Arrival Plus grants double miles on all spending, with miles redemption options for travel, cash, and gifts. Discover It Miles offers unlimited 1.5X miles on all purchases, with no annual fee and no blackout dates, allowing flexible travel redemption options. The BankAmericard Travel Rewards provides 1.5 points per dollar and a sign-up bonus of 20,000 points.