Best Rewards Credit Cards of January 2023

Rates up to date as of January 3, 2023.

As excessive inflation persists, customers are in search of methods to offset painful will increase within the worth of groceries, gasoline and different finances staples. One technique is to make use of a rewards bank card that pays you cashback, factors or miles on each buy you make. Our assessment of the very best rewards bank cards discovered rebates as excessive as 6% on grocery store spending and 5% on gasoline. For leisure spending, we’ve uncovered rewards of as much as 5% on eating out, journey and purchasing. If you need a no-fuss card that pays a strong fee on each buy, you’ll discover choices right here that provide 2%.

Generally, rewards bank cards are greatest suited to those that repay their card stability in full every month, particularly as rates of interest rise. Otherwise, you’ll possible be hit with steep curiosity expenses that stamp out any positive aspects from card rewards. If you’d wish to refinance high-rate credit-card debt, take a look at our information to the very best balance-transfer bank cards.

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We’ve chosen the highest playing cards in 9 classes. Whether you need a cash-back card that provides easy rewards, a card that gives perks for vacationers or an acceptable card for college students, small-business homeowners or customers, it’s best to have the ability to discover a satisfying possibility right here.

Our Review Methodology

For every card, now we have calculated a typical annual rebate based mostly on spending patterns within the U.S. Bureau of Labor Statistics Consumer Expenditure Survey and assuming $25,000 spent on the cardboard yearly (except in any other case famous). For playing cards that don’t waive their annual charge the primary yr, we’ve subtracted the annual charge from the money worth of the annual rebate. We have additionally thought-about elements akin to ease and adaptability of incomes and redeeming rewards and whether or not you have to be a member of a membership or monetary establishment to use for a card. Except the place famous, rewards do not need expiration dates or caps, and the travel-oriented playing cards don’t cost foreign-transaction charges.

Interest charges, charges, rewards and different phrases listed on this article are topic to alter. Before you apply for a bank card, test its present phrases and situations with the issuer.

Best for Flat-Rate Cashback: Wells Fargo

Interest fee: 0% for 15 months, then 19.24% to 29.24%
Annual charge: None
Top rewards fee: 2% again on every little thing you purchase
Other advantages: as much as $600 per declare of safety in your mobile phone towards harm or theft for those who pay your month-to-month wi-fi invoice with the cardboard. Pay a $25 deductible, and stand up to 2 paid claims per 12 months.
Redemption: assertion credit score, money on the ATM with a Wells Fargo debit/ATM card (in $20 increments), reward playing cards ($25 increments), or a credit score to a qualifying Wells Fargo bank card, checking account or mortgage.
Sign-up bonus: $200 again for those who spend $1,000 within the first three months
Typical annual rebate: $500

See Kiplinger’s information to the best cashback credit cards

Best for cashback in rotating classes: U.S. Bank

Interest fee: 0% for 15 months, then 18.74% to twenty-eight.74%
Annual charge: None
Top rewards fee: 5% again in two classes you select every quarter. Choices embody cellular service suppliers; shops; quick meals; TV, web and streaming providers and residential utilities (notice: some utility suppliers cost an additional charge for those who pay your invoice with a bank card).
Other advantages: 5% again on pay as you go journey reservations made via U.S. Bank’s Rewards Travel Center and a pair of% again in a single class of alternative amongst three choices: grocery shops, eating places, or gasoline stations and electric-vehicle charging stations. All different spending earns 1% again.
Redemption: an announcement credit score, a deposit right into a U.S. Bank checking or financial savings account, or a U.S. Bank pay as you go debit card ($25 minimal redemption). Cashback expires after three years.
Sign-up bonus: $200 again for those who spend $1,000 within the first 120 days
Typical annual rebate: $530

Best for savers: Fidelity

Interest fee: 18.24%
Annual charge: None
Top rewards fee: 2% again on each buy once you deposit rewards into an eligible Fidelity account
Other advantages: cashback charges for Fidelity Wealth Management shoppers are greater: 2.25% for these with $250,000 to $1 million in eligible property, 2.5% for these with $1 million to $2 million, and three% for these with $2 million or extra. You may alternate factors for journey, merchandise, reward playing cards or assertion credit, however the factors are usually not value as a lot for such redemptions.
Redemption: You can divide rewards amongst as much as 5 accounts—together with a brokerage, money administration, well being financial savings, or retirement account, 529 college-savings plan, donor-advised fund, Fidelity Go robo-adviser account—and even direct cashback into the account of a member of the family or good friend (donor-advised funds are excluded).
Typical annual rebate: $500

Best no charge card for journey rewards: Chase Freedom

Interest fee: 0% for 15 months, then 18.74% to 27.49%
Annual charge: None
Top rewards fee: Five factors per greenback spent on journey reservations made via Chase Ultimate Rewards
Other advantages: 5% money again on Lyft rides via March 2025, three months of free membership to SprintPass (normally $10 a month), which waives the supply charge and reduces service charges on eligible orders via food-delivery service DoorDash. After three months, you’re mechanically enrolled for 9 months of SprintPass membership at a fee of 50% off (you may cancel membership anytime). Cardholders additionally get three free months of Instacart+ membership, which comes with no supply charge and diminished service charges on eligible orders via the Instacart grocery-delivery service ($99 a yr) after three months, you’ll be mechanically enrolled in an annual membership except you cancel. Through July 2024, cardholders who’re enrolled with Instacart+ stand up to $10 in quarterly assertion credit for eligible Instacart purchases.
Redemption: Redeem factors at a fee of a penny every for money again, reward playing cards or journey.
Sign-up bonus: $200 again for those who spend $500 within the first three months. 5% again on grocery retailer purchases (excluding Walmart and Target) for the primary $12,000 spent within the first yr
Typical annual rebate: 45,277 factors, value $453

Best journey rewards card with charge: Capital One Venture

Interest fee: 20.24% to twenty-eight.24%
Annual charge: $95
Top rewards fee: Five miles per greenback spent on sure Capital One Travel reservations
Other advantages: Cardholders get two free yearly visits to Capital One’s airport lounges or lounges within the Plaza Premium Group, a credit score of as much as $100 each 4 years to reimburse the appliance charge for Global Entry or TSA PreCheck expedited airport safety screening and Five Star standing with rental-car firm Hertz.
Redemption: Redeem miles at a penny every for assertion credit on journey purchases or to e book a brand new journey reservation via Capital One. Transfer miles to greater than 15 journey loyalty packages (together with British Airways Executive Club and the Choice Privileges resort program). The worth of miles varies if usedfor cashback or reward playing cards.
Sign-up bonus: 75,000 miles for those who spend $4,000 within the first three months
Typical annual rebate: 56,000 factors, value $465 after subtracting the annual charge

See Kiplinger’s information to the best travel credit cards

Best for versatile journey redemptions: Chase Sapphire

Interest fee: 19.74% to 26.74%
Annual charge: $95
Top rewards fee: Five factors per greenback on journey bookings that you just make via Chase Ultimate Rewards and two factors per greenback on different journey spending; three factors per greenback on eating, on-line grocery purchases (excluding Target, Walmart and wholesale golf equipment) and choose streaming providers and one level per greenback on different spending
Other advantages: as much as $50 in assertion credit every year for resort stays booked via Ultimate Rewards. On every account anniversary, you get a ten% factors bonus in your complete purchases made the earlier yr. Five factors per greenback spent on Lyft rides via March 2025 and at the very least a yr of free membership to SprintPass (usually $10 a month). You additionally get six months of complimentary membership to Instacart+ (usually $99 a yr).
Redemption: Points are redeemable at a fee of 1.25 cents every for journey booked via Ultimate Rewards in addition to assertion credit on purchases in rotating classes via the Pay Yourself Back program; just lately, eligible spending included Airbnb bookings and donations to pick out charities. Or alternate factors at a fee of a penny every for money again or reward playing cards
Sign-up bonus: 60,000 factors for those who spend $4,000 within the first three months
Typical annual rebate: 43,291 factors, value $446 in journey redemptions after subtracting the annual charge

Best for premium rewards: Capital One Venture X

Interest fee: 21.24% to twenty-eight.24%
Annual charge: $395
Top rewards fee: 10 miles per greenback spent on lodges and rental automobiles booked via Capital One Travel
Other advantages: Five miles per greenback on flights booked via Capital One Travel, and two miles per greenback on all different purchases, 10,000 bonus miles in your account anniversary every year, as much as $300 (assertion credit score) for bookings made via Capital One Travel, free entry to greater than 1,400 Priority Pass and Plaza Premium airport lounges, complimentary entry for you and two company to Capital One’s airport lounges
Redemption: Sign-up bonus: 75,000 miles for those who spend $4,000 within the first three months

Best airline journey rewards: Southwest Rapid Rewards

Interest fee: 20.24% to 27.24%
Annual charge: $149
Top rewards fee: three Rapid Rewards factors per greenback spent on Southwest purchases
Other advantages: two factors per greenback on purchases with Rapid Rewards resort and car-rental companions, native transit and commuting (together with ride-sharing providers), on web, cable and cellphone providers, and choose streaming providers. All different spending earns one level per greenback. Perks additionally embody as much as 4 airline upgrades per yr; 1,500 tier-qualifying factors towards A-List standing for every $10,000 spent on the cardboard; and 25% again on in-flight purchases. Cardholders get a yr of free membership to SprintPass (usually $10 a month).
Sign-up bonus: 75,000 factors for those who spend $3,000 within the first three months
Typical annual rebate: 33,315 factors, value about $320 after subtracting the annual charge

Best for college students: Capital One SavorOne

Interest fee: 19.24% to 29.24%
Annual charge: None
Top rewards fee: 3% again on restaurant, leisure, streaming and grocery purchases
Other advantages: Cardholders get 3% money again on eating, leisure (together with ticket purchases at film theaters, amusement parks, skilled sporting occasions, bowling alleys and extra), sure streaming providers and at grocery shops. They additionally get 8% money again on purchases via the Capital One Entertainment ticketing platform in addition to on Vivid Seats ticket purchases and 5% again on resort and rental-car bookings via Capital One Travel. All different spending earns 1% again.
Redemption: any cashback quantity as a test or assertion credit score
Sign-up bonus: $50 again for those who spend $100 within the first three months
Typical annual rebate: $70 (assuming $3,000 spent yearly)

Read Kiplinger’s information to the best reward cards for students