In our book, the very best rewards credit cards available at any particular time are going to take into consideration the following: everyday rewards, bonus opportunities for new cardholders, extra perks and credits, and the card’s annual fee (if any). Here are our rewards credit card picks for this month:
- Wells Fargo Active Cash – A simple rewards formula: 2% cash back on everything you buy with the card. No annual fee. While there are other 2% “flat” cash-back credit cards on the market, this one currently wins because it also has a potential new cardholder bonus of $200.
- Citi Custom Cash Card – This rewards credit card automatically gives you 5% cash back in the spending category where you spend the most each month, and 1% cash back in all other categories. Potential 5% spending categories include: restaurants, gas stations, grocery stores, select travel, select transit, select streaming services, drugstores, home improvement stores, fitness clubs, and live entertainment. Note that the 5% cash back is capped at a maximum of $500 in purchases in that category, so if you make a huge purchase in one of those categories, only the initial $500 is going to get that 5% rebate. No annual fee. Also includes a $200 bonus opportunity for new cardholders.
- Capital One SavorOne Rewards – Cash back credit card gives you a 3% rebate in a variety of categories, including grocery stores, restaurants, entertainment purchases, and most streaming services. 1% back on any other purchases. No annual fee. $200 bonus opportunity.
- Blue Cash Preferred from American Express – Offers 6% cash back at grocery stores (on up to $6000 per year, no Walmart or Target), 6% back on streaming services, 3% on gas and transit, 1% everywhere else. New cardholder bonus of up to $350 (see website as Amex changes bonuses frequently). Annual fee of $95 but worth it if you’ll spend over $3200 per year in the 6% cash-back categories.
- Chase Sapphire Preferred – In all honesty, this card is only OK for everyday rewards, but as long as it continues to offer a 100,000-point bonus for new cardholders (worth at least $1000 in cash back and possibly even more if used for travel), we have to include it on this list. Note that you have to spend $4000 in three months in order to earn that bonus. In terms of everyday rewards, you’ll get a modest 2 points per dollar spent on dining and travel, 1 point per dollar everywhere else. It should also be noted that this card is often used as a gateway to Chase’s better travel rewards redemptions, meaning it gives you access to travel transfer partners like United, Southwest, Hyatt, etc., or alternately you might use your points through Chase’s travel portal (run by Expedia) and get a 25% boost on the points’ value (each point becomes worth 1.25 cents). Also important to note is the card’s $95 annual fee.
- US Bank Cash+ Visa – This cash back credit card gives you 5% cash back in two spending categories of your choice, and 2% cash back in another category of your choice, with all other purchases getting 1% cash back. The potential spending categories for 5% cash back include TV/Internet/Streaming Services, Cell Phone Providers, Home Utilities, Furniture Stores, Electronics Stores, and 7 other category options. The 2% categories are Grocery Stores, Gas Stations, or Restaurants. Note that there is a cap on the 5% categories of $2000 per calendar quarter; any spending you do in those categories beyond $2000 would earn 1%. No annual fee. New cardholder bonus opportunity of $150.
- Navy Federal More Rewards – (Note that you must qualify to become a member of Navy Federal Credit Union to get this card.) You’ll get nice rewards on everyday spending categories with this NFCU card: 3 points per dollar (equivalent to 3% cash back) on supermarket purchases, restaurant purchases, gas purchases, and transit purchases. 1 point per dollar on any other purchases. No annual fee. Last we checked, a potential 15,000-point ($150) new cardholder bonus was available. (NFCU changes bonus offers frequently; be sure to check current offer if interested in this card.)
- Bank of America Customized Cash Rewards – While not as strong as some of the other cards on this list, its secret weapon is that you can get 3% cash back in a purchasing category of your choice, and one of those choices is “online shopping,” a category that other credit cards just don’t have. Beyond the 3% choice category, you get 2% back at grocery stores and wholesale clubs, 1% everywhere else. Note that there is a $2500 quarterly cap on those 3% & 2% categories, which means if you spend over $2500 in those categories combined in a calendar quarter, all purchases after $2500 earn just 1%. This card has no annual fee. New cardholder bonus opportunity of $200.