Best Rewards Credit Card

I have like 7 credit cards. That sounds excessive and honestly it kind of is. But after years of trying different reward strategies, I have figured out what actually works and what is just marketing nonsense.

Here is my honest breakdown of rewards cards – the good ones, the overhyped ones, and how to actually pick one that makes sense for you.

The Three Types That Matter

Cash Back Cards

Simplest option. Spend money, get a percentage back. No point systems to decode, no transfer partners to research. Just dollars.

I like these for people who want to set it and forget it. My mom uses a simple 2% cash back card and probably comes out better than me with all my optimization because she never forgets to use the right card.

The downside? Lower ceiling. You are capped at whatever percentage they offer. Usually 1.5-2% flat or up to 5% in specific categories.

Points Cards

More complicated. You earn points that can be worth different amounts depending on how you redeem them. Transfer to airlines, book through portals, cash out at a worse rate.

These can be more valuable if you put in the effort. I have gotten 2-3 cents per point value on some redemptions. But I have also seen people let points expire or redeem for gift cards at terrible rates.

Travel Cards

Really just points cards focused on travel redemptions. Often have annual fees but come with perks – lounge access, travel insurance, free checked bags.

Worth it if you travel a lot. Waste of money if you take one trip a year.

What I Actually Use

My system is not for everyone but here is how it works:

Main card: Chase Sapphire Preferred. Use it for travel, dining, and anything that does not have a better option. Points transfer to airlines which I value.

Grocery card: Amex Blue Cash Preferred. 6% at supermarkets up to $6k/year. That is capped but still beats anything else for groceries.

Everything else: A flat 2% card for random purchases that do not fit bonus categories.

Is this optimal? Probably not perfectly. Is it better than just using whatever card is in my pocket? Definitely.

Cards Worth Considering

Chase Sapphire Preferred

This is the card everyone recommends and for good reason. $95 annual fee but the sign-up bonus usually covers that for a couple years. Points transfer to good airline partners. 3x on dining and travel.

I have had this for 5 years. Gotten probably $3000+ in value from it through smart redemptions. The fee is worth it for me.

Citi Double Cash

Simple 2% on everything. No categories to track, no annual fee. This is what I recommend to people who do not want to think about credit cards.

My brother uses this exclusively. He probably leaves some value on the table versus optimizing, but he never misses rewards from using the wrong card.

Capital One Venture

2x miles on everything, easy to redeem. Good for people who want simplicity plus travel focus. Annual fee is $95 but waived first year.

I almost switched to this from the Sapphire but the Chase transfer partners are better for how I travel.

Amex Gold

4x on restaurants and groceries. That is really good if those are your biggest categories. Annual fee is steep ($250) but you get dining credits that offset some of it.

I considered this but could not justify the fee for my spending patterns. If you eat out constantly and buy expensive groceries, the math works.

Discover it Cash Back

5% rotating categories, no annual fee. The kicker – they match all your cash back the first year. So that 5% becomes 10%.

Great starter card. I had this in college and it taught me to pay attention to bonus categories.

How to Actually Pick One

Forget what credit card blogs say about maximum value. Here is what actually matters:

Look at your spending. Pull up 3 months of statements. Where does your money actually go? If it is mostly Amazon and random stores, a flat rate card beats fancy category bonuses.

Be honest about effort. Will you actually track which card to use for which purchase? Will you monitor rotating categories? If not, go simpler.

Consider annual fees carefully. That $95 fee needs to return more than $95 in value. If you are not sure, start with no-fee cards.

Check sign-up bonuses. These can be worth $500-1000 if you meet the spending requirement. But do not spend extra just to hit a bonus.

Mistakes I Have Made

Having too many cards. At one point I was trying to optimize 9 different cards. Spent more mental energy tracking than I earned in extra rewards. Simplified to 3 main ones.

Chasing sign-up bonuses. Opened cards just for bonuses, let them sit unused, forgot about them. Not worth the credit score impact and hassle.

Ignoring redemption value. Earned a bunch of points then cashed out at 0.6 cents per point value because I wanted money not travel. Should have just used a cash back card.

Carrying a balance once. Negated months of rewards instantly. If you carry balances, rewards cards are a trap. Focus on paying off debt first.

The Real Best Card

Here is the thing nobody wants to admit: the best rewards card is the one you will actually use correctly.

A perfect points optimization strategy you cannot follow is worth less than a simple 1.5% card you use for everything.

I know people who earn way more rewards than me with simpler setups because they are consistent. And I know people with premium cards who waste value because they cannot track everything.

Start simple. Maybe one card with decent rewards across the board. See if you can handle tracking spending. Then add complexity if you want.

And always, always pay the full balance every month. Interest charges will eat your rewards faster than any bonus category can earn them.