Are Credit Card Rewards Worth It?

What Is a Rewards Credit Card?

A rewards credit card is a credit card that offers you rewards when you use the card for purchases.

Rewards cards essentially work the same as non-rewards credit cards. Your transactions are added together at the end of each billing cycle, and you can pay off the statement balance in full to avoid accruing interest. Or, you can pay less than the full amount and revolve part of your balance—but the revolved portion and your new purchases start to accrue interest.

Learn more: How Do Credit Cards Work?

Types of Credit Card Rewards

Rewards credit cards can be categorized in different ways. There are three basic types of rewards that you can earn from using your card: cash back, points and miles. Additionally, there are four common ways that card issuers structure a card's rewards rates.

Cash Back

A cash back credit card lets you accrue cash back rewards from your purchases. You might be able to redeem your cash back rewards for a statement credit to offset credit card purchases, a check or a direct deposit into a bank account.

Best rewards cards of 2026

Compare cards from our partners that earn points, cash back or miles on everyday spending.

Offers from our partners

Advertiser Disclosure

(170)Rated 4.52 out of 5 stars, 170 reviews

89%

would recommend

Blue Cash Preferred^® Card from American Express

Intro bonus:

As High As $300 Cash Back. Find Out Your Offer.

You may be eligible for as high as $300 cash back after spending $3,000 in purchases on your new Card in the first 6 months. Welcome offers vary and you may not be eligible for an offer. Cash back is received as Reward Dollars, redeemable for statement credit or at Amazon.com checkout. Terms Apply.

Intro APR:0% on Purchases and Balance Transfers for 12 months

Ongoing APR:19.49%-28.49% Variable

Rewards:

1% - 6% (cash back)

Earn 6% cash back at U.S. supermarkets on up to $6,000 per year in eligible purchases (then 1%), 6% cash back on select U.S. streaming subscriptions, 3% cash back at eligible U.S. gas stations and on transit (including taxis/rideshare, parking, tolls, trains, buses and more) purchases and 1% cash back on other purchases. Cash Back is received in the form of Reward Dollars that can be redeemed as a statement credit and at Amazon.com checkout.

Annual Fee:$0 intro annual fee for the first year, then $95.

ApplyView detailsRates and fees

Terms Apply

(58)Rated 4.88 out of 5 stars, 58 reviews

98%

would recommend

Costco Anywhere Visa^® Card by Citi

Ongoing APR:18.74% - 26.74% (Variable)

Rewards:

1% - 5% (cash back)

Earn 5% cash back rewards on gas at Costco and earn 4% cash back on other eligible gas and electric vehicle (EV) charging purchases for the first $7,000 combined spend per year, and then 1% thereafter. 3% cash back on restaurants and eligible travel purchases and eligible travel, including Costco Travel. 2% cash back on all other purchases from Costco and Costco.com. 1% cash back on all other purchases.

Annual Fee:$0

ApplyView detailsRates and fees

Avant^® Cashback Rewards Mastercard^®

Ongoing APR:35.99%*

Rewards:

1% (cash back)

Cash back will be awarded as points redeemable for a statement credit

Annual Fee:$75 first year; then $99/year

ApplyView detailsRates and fees

(888)Rated 3.89 out of 5 stars, 888 reviews

73%

would recommend

Credit One Bank^® Platinum Rewards Visa^® Card

Ongoing APR:29.74% Variable

Rewards:

1% (cash back)

Earn 1% cash back rewards on eligible gas, grocery purchases and mobile phone service, internet, cable and satellite TV services, terms apply

Annual Fee:$39

ApplyView detailsRates and fees

Terms Apply

(23)Rated 4.74 out of 5 stars, 23 reviews

91%

would recommend

Hilton Honors American Express Surpass^® Card

Intro bonus:

130,000 Points

Earn 130,000 Bonus Points plus a Free Night Reward after you spend $3,000 in purchases on the Hilton Honors American Express Surpass^® Card in the first 6 months of Card Membership. Offer ends 01/13/2027.

Ongoing APR:19.49%-28.49% Variable

Rewards:

3x - 12x (Points per dollar)

Earn 12X Hilton Honors Bonus Points for each dollar of eligible purchases charged on your Card directly with a hotel or resort within the Hilton portfolio. Earn 6X Hilton Honors Bonus Points for each dollar of eligible purchases on your Card at U.S. restaurants, at U.S. supermarkets, and at U.S. gas stations. Earn 4X Hilton Honors Bonus Points for each dollar of U.S. Online Retail purchases. Earn 3X Hilton Honors Bonus Points for all other eligible purchases on your Card.

Annual Fee:$150

ApplyView detailsRates and fees

Terms Apply

(65)Rated 4.58 out of 5 stars, 65 reviews

88%

would recommend

Delta SkyMiles^® Blue American Express Card

Intro bonus:

10,000 Miles

Earn 10,000 bonus miles after you spend $1,000 in purchases on your new Card in your first 6 months.

Ongoing APR:19.49%-28.49% Variable

Rewards:

1x - 2x (Miles per dollar)

Earn 2X Miles per dollar at restaurants worldwide, plus takeout and delivery in the U.S. Earn 2X Miles per dollar spent on Delta purchases, and 1X Mile on all other eligible purchases.

Annual Fee:$0

ApplyView detailsRates and fees

Terms Apply

(3)Rated 3.67 out of 5 stars, 3 reviews

Bank of America^® Premium Rewards^® credit card

Intro bonus:

60,000 Points

Receive 60,000 online bonus points - a $600 value - after you make at least $4,000 in purchases in the first 90 days of account opening.

Ongoing APR:19.49% - 27.49% Variable

Rewards:

1.5x - 2x (Points per dollar)

2 points for every $1 spent on travel and dining purchases, 1.5 points for every $1 spent on all other purchases

Annual Fee:$95

ApplyView details

(42)Rated 4.62 out of 5 stars, 42 reviews

Bank of America^® Unlimited Cash Rewards credit card

Intro bonus:

$250

Limited Time Offer! $250 online cash rewards bonus after you make at least $1,000 in purchases in the first 90 days of account opening.

Intro APR:0% Intro APR for 15 billing cycles for purchases, and for any balance transfers made in the first 60 days

Ongoing APR:17.49% - 27.49% Variable

Rewards:

1.5% (cash back)

1.5% cash back on all purchases

Annual Fee:$0

ApplyView details

Show more Show less

See all our best rewards credit cards for 2026.

Points

Many card issuers use points as the currency for their rewards program. Some card issuers even have cash back credit cards that give you points that are worth 1 cent each. Additionally, you might earn points with a hotel card, store card or certain airline cards. Depending on the card and program, you might be able to redeem your points for different types of rewards, such as travel, cash back, gift cards or merchandise.

Miles

Rewards miles are the same as points, but airline credit cards and a few card issuers' rewards programs use "miles" as their rewards program's currency. With airline rewards cards, your miles get added to your airline loyalty program and you can redeem them based on that program's rules.

Learn more: Cash Back vs. Points: Which Rewards Credit Card Is Better?

4 Common Rewards Structures

Many rewards cards structure their rewards program in one of four ways:

• Flat-rate rewards: You earn the same amount of rewards on all your purchases. For example, 2 points, miles or cents per dollar you spend.
• Tiered rewards: You earn bonus rewards when you make purchases from certain merchants or within specific categories, such as dining or travel.
• Rotating bonus rewards: Earn a high bonus rewards rate, such as 5 points per dollar, on specific categories that the card issuer changes throughout the year. There may be a limit on the bonus rewards you can earn each quarter.
• Dynamic bonus rewards: Earn bonus rewards on purchases in specific categories that you can choose and change throughout the year. Alternatively, the categories might automatically adjust based on your spending.

You'll still earn rewards on eligible purchases in non-bonus categories if your card has a tiered, rotating or dynamic rewards structure. However, you often only earn 1 point per dollar you spend on non-bonus-category purchases.

Learn more: Transactions That Don't Earn Credit Card Rewards

Advantages of Credit Card Rewards

Although the specifics will depend on the type of rewards card you use, most rewards credit cards offer several benefits.

Rewards on Everyday Purchases

Earning rewards on purchases you were going to make anyway is one of the main benefits that rewards credit cards offer. Depending on the card, its bonus categories and how you redeem your rewards, you might get 1% to over 5% back on your purchases.

Intro Bonuses and Interest Rate Offers

Many rewards cards offer an intro bonus to new cardholders who meet certain requirements, such as spending a minimum amount of money during their first few months with the card. You also might receive a low or 0% introductory annual percentage rate (APR) on purchases and/or balance transfers during an introductory period, such as 12 or 21 months.

Purchase-Related Benefits

Many rewards cards also offer additional purchase protections and benefits. For example, your rewards card might offer complimentary travel insurance, return protection and extended warranties on eligible purchases. Some premium rewards cards also offer primary rental car insurance when you use the card to pay for your rental. Similar coverage might cost you up to $45 a day or more if you purchase it from the rental car agency.

Additional Cardholder Benefits

You might get a lot of value from the other benefits that a rewards card offers. These can vary widely, but the best benefits include things like monthly or annual statement credits that can cover or offset certain purchases. Many airline, hotel and store rewards cards also have brand-specific benefits, such as free checked bags, annual room vouchers and status in a loyalty program.

Disadvantages of Credit Card Rewards

Consider the cons before you apply for a new rewards credit card.

May Have High Interest Rates

Rewards cards may have a higher APR than non-rewards cards. You can avoid accruing interest on your purchases if you pay off your balance in full each month. But once you start carrying a balance, the revolved balance and new purchases could accrue interest daily. If you don't tend to pay your bill in full, a low-interest credit card could be a better alternative.

Could Lead to Overspending

It can be easier to justify a purchase if you're earning rewards, but overspending can lead to revolving a balance and paying interest. If you struggle with compulsive shopping or tend to max out your credit cards, it might be best to avoid rewards cards—or credit cards altogether.

Learn more: How to Avoid Credit Card Overspending

Top Cards Require Good Credit

The top rewards cards tend to require good to excellent credit scores, and they won't be options for everyone. Rewards cards that only require poor or fair credit are available, but they tend to offer lower rewards rates and fewer benefits, and may have higher APRs. You could use one of these to help build your credit and then apply for a premium card once you're ready.

Unexpected Devaluations or Lost Rewards

Points and miles rewards programs can experience unexpected devaluation, such as when an airline changes a redemption requirement from 20,000 to 25,000 miles for a flight. Some rewards can also expire. Even if your rewards don't expire, credit card issuers can take back rewards if they decide you're gaming their rewards program or when they close your card.

Learn more: Credit Card Hacks to Avoid

Do Rewards Cards Build Credit?

Rewards credit cards can affect your credit scores the same as other types of credit cards.

Paying your monthly bill on time and only using a small portion of your available credit can help you build credit. If you use a large portion of your credit limit, paying down the balance before the end of your statement period might help you maintain a low credit utilization rate, which can help your scores.

Missing payments and having a high credit utilization rate—even if you pay your monthly bill in full—can hurt your credit scores. You may also see a small credit score drop when you open a card because applying can lead to a hard inquiry, and the new account will lower the average age of your credit accounts. But, if you manage your accounts well, your scores will tend to improve over time.

Should You Get a Rewards Credit Card?

A rewards credit card may be a good fit if you pay in full, avoid overspending and choose a card whose rewards match your regular purchases.

Although rewards cards aren't a good fit for everyone, you could consider getting a rewards credit card if:

• You'll use the card for everyday purchases that you were going to make anyway.
• You can generally afford to pay off your credit card bill in full each month.
• You only get a rewards card with an annual fee if the benefits outweigh the cost.
• You learn to understand how the program works, what transactions earn rewards, when rewards might expire and the best redemption options.

Tip: If you don't want to get a credit card that's OK too. You can still build your credit without a credit card and try to get a personal loan if you need to borrow money for an emergency.

What to Look for in a Rewards Credit Card

Card issuers often offer multiple types of rewards credit cards with different fees and rewards structures. If it seems like a rewards card is a good fit, the real question may be which rewards card to get.

You can compare the options to see which might work best based on where you'll use the card, how much you'll spend, what types of rewards you want and how much time you want to spend researching the rewards program.

Additionally, rewards cards with the highest rewards and most benefits usually have an annual fee. Consider whether a higher rewards rate or extra cardholder benefits are worth the cost, or if you'd prefer a rewards card with no annual fee instead.

Learn more: How to Choose a Credit Card in 4 Steps

Monitor Your Credit and Compare Card Offers

Narrowing down the list of potential credit cards to find the best options can be tough, especially if you're not sure which cards you'll likely get based on your credit score. You can check your credit report and FICO^® Score^Θ for free through Experian to get a clear sense of where you stand. From there, Experian's credit card comparison platform can help you review rewards card offers customized to your unique credit profile. That can help you compare your options to find the best fit for your current spending and goals.