Scroll down for an updated list of the best rewards credit cards available today.
Earning rewards from my credit card use is one of the main reasons I even have a credit card. I enjoy the card’s other benefits, too. Like purchase protection, accessibility, and credit history building. Still, the rewards are the best part. The way I see it is that a credit card reward is simply money I would be leaving on the table, had I not used the card. It’s free money. As long as you spend as you normally would, avoid fees and interest payments, and cash out your rewards timely, it’s a big win.
There are all types of credit card rewards too. In fact there are both different ways to earn rewards along with different ways to cash the rewards out. For instance, you could have a gas rewards card that pays you an increased percentage to purchase gasoline, and then you could cash in those reward points for cash, or a number of other things. My favorite type of rewards card is the kind that pays you cash. With my cash back credit card I get a check each year for my credit card spending. It’s nice.
Some cards let you increase the amount of rewards you can earn based on the type of spending you are doing, or if you purchase things through their network. Be careful when making this type of purchase. You want to make sure you aren’t paying more for the item or service because you bought it through one of the credit card companies rewards merchants.
In an ideal world, I’d have a credit card that paid me 5% cash back on everything I spend money on. It would have no rewards cap or limit. I’d be allowed to use the card for literally every purchase. This would include my mortgage, all my utilities, my food and other living expenses. Considering I might have 50K in spending every year, that would mean I would earn $2,500 in cash back rewards. Wow!
But that’s in a perfect world. Here in the real world, we’ve got to make the most of what we’re given. And the below list of credit cards are some of the best rewards cards on the market today. Find the right combination of card, reward type, payout type, and any other factors that can provide you the most benefit at the end of the year.