Best Rewards Credit Card

Definitely, Best rewards credit card offer different types of benefits, rates and offers, so it is challenging task to decide which is best. Different currencies and complex rules of earning & redemption of makes more difficult to choose the best. Hence, We will try to give you a detail and comprehensive overview of different cards so that you could easily pick a best rewards credit card. 


First, after analyzing hundreds of best rewards credit card, we have shortlisted only a few that are best. Thus, our experts have taken into account following factors for study;

  • Annual fee
  • Welcome bonus
  • Rewards offered
  • Rewards redemption
  • Rewards rate
  • Additional benefits

Following this, we have worked hard to shortlist some cards in the market. However some people may yet face difficulty in picking best one.  In such a case more detail information is available here in other topics. To learn more you have facility to contact us.

What is best rewards credit card?

Surprisingly, Best rewards credit card is a tool to maximize your earning. Without a doubt, cardholder has opportunity to earn specific percentage for each dollar spent at qualifying purchases. . In brief, rewards are not limited to cash back, points or miles. It also includes sign up bonus, discounts and protections.  Summing up, for getting full package of benefits, you should have in-depth knowledge of offers, package and period. Here, we will discuss in detail that which card is offering which type of benefits and rewards. We will also discuss that how to get rewards? How to redeem rewards.

How best rewards credit cards works?

When card is used, normally processing fee is charged. In most cases that fee is paid by vendor and include in the price of goods or services. However in rare cases it is separately charged by customer. This fee is earning of card network companies for their services. Rewards are offered by credit card issuers such as bank to increase their customers. These rewards are paid from the earning of processing charges.


Second major source of earning of card issuer is high markup that charges when full due payment is not made within due dates. In the case of non-payment penalty charges are also source of income for the credit card issuers. To pay rewards to customer, card issuers cut their income to create brand loyalty for their customers. By this way, both, customer and card issuer enjoy more earning. 

How rewards can be earned?

Market has multiple cards with multiple rewards. Rewards are usually offered at eligible purchases only. Some purchases have high rate of rewards while some have normal rate of rewards. Cash equivalent purchases such as gift card or direct cash item purchases do not offer rewards. Rewards may be in term of cash back, points or miles and relates with each dollar spent. When rewards are in form of miles or points, you should look its redemption policy and expiry date of rewards. 

Should is get best rewards credit card?

Each card is not best for everyone. First of all, you have considered your buying behavior. If you are a travel lovers, than most suitable card is that have offering of maximum miles. Similarly if you are a retailer, you should pick a card that maximum rewards for groceries or every purchases. If you are a brand loyal than specific store card may be best choice. Market has wide variety of card with wide range of rewards. Decision is complex but you have considered your buying behavior to make this pick easy. 

Different types of best rewards credit card

Accordingly, there are three types of rewards that are cash back, miles or points. But two rewards are popular that are cash back and miles. Miles are offered for travel lovers. Miles are offered with joint venture of card issuer and Airline Company or hotels. In the business world, every one wants to maximize his earning.


Rewards are best tool to create brand loyalty and to increase clientage. Normally cash back rewards are for specific eligible purchases, and similarly points or miles redemption is offered for specific airline or hotel. For deep understanding, we will discuss each reward one by one.

1. Cash Back Rewards

To illustrate, cash back reward is offered for specific and eligible purchases. Some categories such as groceries, gas and dinning have higher rate of cash back rewards. Now, reward may be a straight percentage of purchase amounts. In this case, for gas dinning, cardholder will get 5% cash back and 1% cash for every other purchase. This example shows that rewards are in shape of structure. You also have to consider sign up bonus and specific event discounts to maximize your earnings. We will discuss different structures of cash back. 

a. Straight Cash Back Rewards

Straight cash back is straight rate for all purchases. For example cardholder will earn 1% cash at all purchases. You will get 1% of purchases amount as a cash back reward. Following are some examples of straight cash back rewards.

  • Capital One Quicksilver cash rewards credit card. (Card holders will 1.5% cash back on every purchase).
  • Wells Fargo Active Cash Card. (Cardholder will earn 2% cash back reward at every dollar spent).
  • Citi Double Cash Card. (Cardholder will get 2% cash back at all purchases).
b. Complex Cash Back Rewards

Complex Cash Back Reward structure have special cash back rate at specific category & straight rate at all other purchases. It is combination of two or more different rates for different categories. Store cards have such features because they offer special rate for own store purchases and normal cash back rate for all other purchases. Following are some examples of complex cash back rewards.

 Cash Freedom Unlimited Credit Card. (Cardholder have opportunity to earn 5% at travel purchases through Chase Ultimate Rewards. Cardholder can earn 3% cash back at eligible dinning & drug purchases. Cardholder will also earn 1.5% on all other purchases.

Costco Visa Credit Card.  Costco Visa Credit Card is a Store Visa Card. With this card, you have opportunity to get 4% cash back at eligible gas & EV Charging purchases. But this rate is for the first year and up to $7,000, after that rate will be revised as 1%. Further cardholder will earn 2% cash back reward at Costco purchases and 1% at all other purchases.

So before picking a credit card, always analyze your buying behavior. For example if you do not own a car, never pick such a card that has special rewards just for gas or car purchases.

c. Rotating Cash Back Rewards

Such rewards are usually for special category and for specific time period. Cardholder will earn higher rate of cash back during the specific time at eligible purchase. , thereafter normal rate will work. Example of rotating cash back rewards is as follows.


Discover it Cash Back. With this card, you will earn 5% cash back reward in each quarter up to purchases of $1,500, thereafter straight rate of 1% will apply. 

2. Miles or Travel Rewards

As a result, these rewards may be in shape of points or miles at eligible purchases. These earned rewards usually can be redeemed only with partner or associated hotels or airline companies. Hotels & airline companies want create loyalty for their customers that is why such rewards are introduced for travel, air tickets, hotel rooms, cruises and taxi. 

How Travel Credit Card Works?

Travel credit cards offer points or miles that have same pattern of straight cash back rewards. However instead of cash, you usually got points or miles for each dollar spent. Similarly you also get sign up bonus in shape of miles or points. You can use these earned points for air tickets, hotel rooms, resorts, cruise, lounge access or taxi booking. 

3. Business Credit Card Rewards

Now a days world have become global village and business are being converted to digitalization. Business credit cards and rewards for this segment are important. These credit cards and rewards are designed specifically for the businesses. Whether you have small scale or large scale business, these rewards will create worth for you, your business and employees.

These rewards are fruitful that it can meet your personal expenses. These credit cards protect your business from fraud and help in maintain correct database & record of sales & purchases. With such cards, you can keep a close eye at employee, and can track their buying behavior also.


Consequently, these rewards are helpful to keep your business finance separate. Rewards are tax free income. Due to these rewards, businesses can offer special discount to their customers to beat competitors. Moreover, businesses are provided many tools by credit card issuers to manage business.

How to pick the Best Rewards Credit Card?

Picking a best credit card with best rewards is a difficult task and a very complicates decision. However we are hopeful that out study will help you and will make your decision easy. For picking a best rewards credit card, you have to consider following factors; 

1. Annual Fee

After analyzing your own buying behavior and buying habit, this is important factor to consider. Some cards have higher annual fee but perks & benefits are awesome. Compare your buying behavior with benefits you can get and its annual fee. Now observe that whether earned benefits are setting off annual fee or not. If you are not getting benefits more than annual fee and go towards other card that have zero annual fees. In such a case you have sacrifice some gain of rewards but eventually your gain is higher. 

2. Sign Up Bonus

It is important factor for decision.  Sign up bonus is sometime called as a welcome bonus. It may be in shape of cash, points or miles. According to your need, compare it with annual fee and rate of reward. 

3. APR

APR is very important to consider before applying a card. Some cards offer you 0% intro APR for specific time normally six months to 36 months. You can buy a product in easy installment for specific period without any mark up.

Regular APR is charged when you failed to pay due amount within due date. Each card has different APR rate.

4. Foreign Transaction Fee

If you make routine foreign payments, than you should essentially consider this factor. Normally foreign transaction fee is 3% to 5%. All cards do not allow you foreign transaction. 

Credit card rewards are taxable or not?

In this case, you should consult your tax advisor. But according to our study, rewards are tax free as IRS considers it rebate. While sign up bonus are taxable.

Pros and Cons of Rewards Credit Card

Following are Pros and Cons of Rewards Credit Card

Pros of Rewards Credit Card
  • First, You will earn cash back, miles or points with each dollar spent at purchases.
  • Second, You have opportunity to get sign up bonus or welcome bonus.
  • Finally, Rewards include many benefits and perks such as VIP Lounge access, warranty & fraud protection.
Cons of Rewards Credit Card
  • Normally, card with higher rewards have higher annual fee and APR. Higher rewards are usually for specific categories, which may be beyond your need.
  • Rewards could be expired if not redeemed within stipulated time or with specific category.
  • You needed in-depth knowledge of credit cards available in the market for earning the rewards and redeeming the rewards.