Posted by: Alina Comoreanu

There is a big difference between simply getting a rewards credit card and finding the best offer for your needs. Finding any old rewards card is easy. Hundreds of offers are available, and even people with bad credit can qualify for some of them. But with numerous rewards currencies to choose from and various restrictions to watch out for, the best rewards card isn’t always so obvious.

Given that the right rewards credit card is worth more than its weight in gold, WalletHub analyzed the market to help people make truly informed choices. We compared every non-cobranded consumer rewards credit card from the 20 largest issuers (65 total offers). Specifically, we evaluated each card’s eligibility requirements, rewards earning and redemption policies, and expected rewards value.

Below, you check out our findings, plus a breakdown of the best rewards credit cards from each major issuer and some tips for choosing the right rewards card. Some of the cards listed on this page originate from our partners, but that did not impact our conclusions. Offers are accurate as of May 14th, 2019.

1. Main Findings
2. Best Rewards Credit Cards By Issuer
3. Tips for Choosing a Rewards Card
4. Detailed Rewards Policies By Issuer
5. Methodology
6. Ask the Experts

Main Findings

 

Best & Worst Overall: Capital One has the best credit card rewards program for the fifth consecutive year, earning an average WalletHub score of 91%.

 

Earning Potential: The best rewards credit card can yield up to $1,243 more than the worst rewards card over the first two years.

 

Strategic Redemption: Redeeming credit card rewards for travel is the best deal for the fifth straight year, yielding 21% more value than merchandise, the worst option.

 

Earning Policies: Capital One leads the way with no earning limits and rewards that neither expire nor are forfeited if you miss a payment.

 

Redemption Policies: Credit card companies seem content to continue using redemption restrictions to limit the cost of rewards programs. None scored above 79%.

 

Eligibility & Transparency: Barclays, Navy Federal Credit Union, and BECU set the clearest expectations by stating rewards terms and restrictions upfront.

 

Rewards Minimums: 60% of credit cards require cardholders to earn a minimum amount of rewards before redeeming.

 

 

Conditional Rewards: 31% of rewards credit cards have earning rates that vary based on amount spent or time period.

 

 

Best Rewards Credit Cards By Issuer

WalletHub crunched the numbers, calculating how much the average person would earn with each card, after fees, over the first two years of use. We used a two-year timeframe to level the playing field between cards that offer first-year promotions (i.e., an initial bonus and/or a waived annual fee) and those that don’t.

Issuer (Total Rewards Cards*)	Best Card	2-Year Value of Best Card	Best Card’s Score (out of 21)
Capital One(6 rewards cards)	Capital One® Venture® Rewards Credit Card	$2,068	18.1666666666667
Barclays(1 rewards card)	Barclaycard Arrival® Plus World Elite Mastercard®	$1,990	15.5
US Bank(6 rewards cards)	U.S. Bank Altitude™ Reserve Visa Infinite® Card	$1,816	15
Citi(4 rewards cards)	Citi Premier Card	$1,791	16.6666666666667
Navy Federal Credit Union(4 rewards cards)	Visa Signature® Flagship Rewards Credit Card	$1,760	16.5
Alliant Credit Union(2 rewards cards)	Alliant CU Visa® Signature Card	$1,702	13.5
Chase(5 rewards cards)	Chase Sapphire Preferred® Card	$1,546	18.2666666666667
Pentagon Federal Credit Union(3 rewards cards)	PenFed Pathfinder Rewards American Express® Card	$1,538	14.5
Bank of America**(3 rewards cards)	Bank of America® Premium Rewards® Credit Card	$1,534	17.5
PNC Bank(3 rewards cards)	PNC Premier Traveler® Credit Card	$1,495	14.2
Discover(4 rewards cards)	Discover it® Miles	$1,440	18.0
Wells Fargo(3 rewards cards)	Wells Fargo Propel American Express® Card	$1,313	18.8
American Express(7 rewards cards)	Blue Cash Preferred® Card from American Express	$1,131	14.0
TD Bank(2 rewards cards)	TD First Class Visa Signature® Credit Card	$1,098	14.5
First National Bank(2 rewards cards)	First National Bank of Omaha American Express® Card	$1,060	15.0
SSFCU(2 rewards cards)	Power Cash Back World Mastercard®	$1,060	14.5
Fifth Third Bank(1 rewards card)	TTRIO® Credit Card from Fifth Third Bank	$1,000	14.0
BECU(1 rewards card)	BECU Cash Back Visa® Credit Card	$960	15.5
USAA(4 rewards cards)	Cashback Rewards Plus American Express®	$960	18.5
BB&T(1 rewards card)	BB&T Spectrum Cash Rewards	$825	11.5

*We considered all non-cobranded consumer rewards cards offered by each issuer. Detailed scoring for other cards considered in this report can be obtained by request. **Bank of America: Customers enrolled in Preferred Rewards can increase their bonus by 25-75 percent, based on their banking relationship.

Remember, a card’s value figures to change based on your spending habits and the latest terms. Initial bonuses may be limited-time promotions, for example.

For more great offers, check out the complete list of WalletHub’s best rewards credit cards of 2019.

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Tips for Choosing a Rewards Card

Rewards cards aren’t one size fits all. But these tips will help you find the plastic that’s tailor-made for your wallet.

1. Determine How You’ll Use It – Do you want a rewards card for all everyday expenses? Or do you want a card just for certain types of spending, such as travel purchases? It’s important to answer these questions early on because it will tell you what terms and types of cards to focus on. For example, some rewards cards offer a consistent earning rate across all spending categories. Others give you more value when you buy certain things or redeem a certain way.

   So figure out what exactly you’re looking for. Once you know that, it will be easy to decide whether a given credit card has what you need.

2. Consider Both Earning & Redemption Value – It’s impossible to evaluate a rewards credit card if you don’t know how much its rewards are worth. This is obvious with cash back credit cards, but it can be tough to tell with points and miles cards. The easiest way to see how much a credit card’s points or miles are worth is to compare the number needed for a particular item (e.g., a flight) to the cost of that item if purchased independently. For example, if you need 40,000 miles for a $400 flight, the miles would be worth a penny apiece.
3. Avoid Unnecessary Hassle – If you’re the forgetful type, stay away from cards with rotating bonus rewards categories. Such cards require you to sign-up for new bonus categories each quarter. And if you don’t, you’re unlikely to earn more than the market average that quarter.
4. When In Doubt, Think Cash Back – You’ll never have to wonder about the rate at which you’re earning rewards with a cash back credit card. You’ll never have to worry about rewards devaluation, either. After all, you’ll be earning rewards in terms of dollars and cents.

   It’s a different story with points and miles cards, however. It’s hard to tell how much they’re worth. And that’s partly because credit card execs can jack up the number needed for a free flight, hotel room, statement credit, etc., whenever they please.

5. Don’t Rule Out Annual Fees – Often times, cards with annual fees offer better initial bonuses and higher earning rates than free cards. So don’t discount a card simply because it charges a fee, especially if it’s low. Just make sure the extra rewards you’ll earn are worth more than the fixed costs you have to pay.

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Detailed Rewards Policies By Issuer

 

Qualifying Factor	Max Points	American Express	Bank of America	Barclays	Capital One	Chase	Citi	Discover	PNC Bank	US Bank	Wells Fargo	Fifth Third Bank	USAA	Navy Federal Credit Union	TD Bank	First National Bank	BB&T	Pentagon Federal Credit Union	SSFCU	Alliant Credit Union	BECU
Offers Automatic Program Enrollment	1.0	1.0	1.0	1.0	1.0	1.0	1.0	1.0	0.7	1.0	1.0	1.0	1.0	1.0	1.0	1.0	1.0	1.0	1.0	1.0	1.0
Offers 100% Transparency In Displaying Redemption Rate Details For Non-Members	1.0	1.0	0.3	1.0	0.7	0.0	0.3	0.3	0.3	0.3	0.0	0.0	0.5	1.0	0.0	1.0	0.0	0.0	0.0	1.0	1.0
Does Not Advertise Points/Miles Cards as Cash Back Cards	1.0	0.6	1.0	1.0	1.0	0.6	1.0	1.0	1.0	1.0	1.0	0.0	1.0	1.0	0.5	0.0	1.0	1.0	1.0	1.0	1.0
Issuer Informs Customer of Remaining Rewards at Time of Account Closure	1.0	1.0	1.0	1.0	1.0	1.0	1.0	1.0	1.0	1.0	1.0	1.0	1.0	1.0	0.0	0.0	0.0	1.0	0.0	0.0	1.0
No Minimum Spending Required To Earn	0.5	0.5	0.5	0.5	0.5	0.5	0.5	0.5	0.5	0.5	0.5	0.5	0.5	0.5	0.5	0.5	0.5	0.5	0.5	0.5	0.5
No Overall Earning Limit Imposed	1.0	1.0	1.0	1.0	1.0	1.0	1.0	1.0	1.0	1.0	1.0	1.0	1.0	1.0	1.0	1.0	1.0	1.0	1.0	1.0	1.0
Earning Rate Does Not Vary Depending On Amount Spent or Time Period	1.0	0.3	0.7	1.0	1.0	0.6	0.8	0.3	0.7	0.8	0.5	0.0	0.8	1.0	1.0	1.0	0.0	1.0	1.0	0.5	1.0
No Sign-up Required for Bonus Categories	1.0	1.0	1.0	1.0	1.0	0.8	1.0	0.5	1.0	0.8	1.0	1.0	1.0	1.0	1.0	1.0	1.0	1.0	1.0	1.0	1.0
Ability to Combine Earnings Across Your Accounts	0.5	0.5	0.3	0.0	0.5	0.5	0.4	0.4	0.2	0.3	0.5	0.5	0.5	0.0	0.0	0.5	0.0	0.0	0.5	0.0	0.0
Ability to Share Earnings With Other Members	0.5	0.0	0.3	0.5	0.5	0.5	0.4	0.4	0.0	0.3	0.5	0.5	0.5	0.0	0.0	0.5	0.0	0.0	0.0	0.0	0.0
Earnings Are Granted Despite Account Inactivity	0.5	0.5	0.5	0.0	0.5	0.5	0.4	0.5	0.5	0.5	0.5	0.5	0.5	0.5	0.5	0.5	0.5	0.5	0.5	0.5	0.5
Earnings Are Granted Despite A Missed or Late Payment	0.5	0.0	0.5	0.0	0.5	0.5	0.0	0.5	0.5	0.0	0.0	0.5	0.5	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0
Earnings Do Not Expire By Date	0.5	0.5	0.5	0.5	0.5	0.5	0.5	0.5	0.3	0.2	0.3	0.0	0.5	0.5	0.5	0.5	0.0	0.2	0.5	0.0	0.5
Expired Earnings Can be Reinstated (Free of Charge)	0.5	0.5	0.5	0.5	0.5	0.5	0.5	0.5	0.3	0.0	0.3	0.5	0.5	0.5	0.5	0.5	0.0	0.0	0.5	0.0	0.5
Ability to Utilize Transfer Partners	1.0	0.4	0.0	0.0	0.2	0.4	0.4	0.0	0.0	0.0	1.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0
Ability to Utilize Transfer Partners is Free of Charge	0.5	0.0	0.0	0.0	0.2	0.0	0.4	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0
Ability to Use Earnings to Offset Any Travel Purchase or Receive Cash Back Without Sacrificing Value	1.0	0.4	1.0	1.0	1.0	1.0	1.0	1.0	0.7	1.0	1.0	1.0	1.0	1.0	1.0	1.0	1.0	1.0	1.0	0.5	1.0
Statement Credit Can Be Applied to Full Balance (instead of matching to specific charges)	0.5	0.2	0.3	0.5	0.5	0.5	0.5	0.5	0.5	0.5	0.5	0.5	0.5	0.5	0.5	0.5	0.5	0.5	0.5	0.5	0.5
No Minimum Threshold Required to Redeem For Cash Back	1.0	0.0	0.0	0.0	1.0	1.0	0.0	1.0	0.3	0.3	0.8	0.0	0.5	0.3	0.0	0.0	1.0	0.3	0.0	0.0	0.0
Offers Automatic Redemption of Earnings	0.5	0.0	0.3	0.0	0.3	0.0	0.0	0.0	0.0	0.0	0.5	0.5	0.5	0.0	0.0	0.3	0.0	0.0	0.5	0.0	0.0
Offers Low Redemption Value Volatility	1.0	0.8	0.8	0.0	0.7	0.5	0.5	0.7	0.7	0.3	0.6	1.0	0.8	1.0	1.0	0.9	1.0	1.0	0.7	0.7	1.0
Rewards Value Per $1 Spent	5.0	4.0	5.0	5.0	5.0	5.0	5.0	5.0	5.0	5.0	5.0	4.0	4.0	5.0	4.5	4.0	3.0	5.0	4.0	5.0	4.0
TOTAL SCORE	21.0	14.2	16.6	15.5	19.1	16.9	16.4	16.5	15.2	15.0	17.4	14.0	17.1	16.8	13.5	14.7	11.5	15.0	14.2	13.2	15.5
PERCENTAGE SCORE*	1.0	0.7	0.8	0.7	0.9	0.8	0.8	0.8	0.7	0.7	0.8	0.7	0.8	0.8	0.6	0.7	0.5	0.7	0.7	0.6	0.7/

*Percentage Score is calculated by dividing the Total Score by 21 points.

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Methodology

This report analyzed the rewards credit cards offered by the 20 largest credit card issuers, by outstanding balances. Information about each issuer’s non-cobranded consumer rewards cards was collected from the issuers’ websites. Once data collection was complete, we scored each card using the rubric listed below, which is comprised of four main categories:

1. Eligibility & Transparency – Max 4 points
2. Earning Policies – Max 6.5 points
3. Redemption Policies – Max 5.5 points
4. Rewards Value Per $1 Spent – Max 5 points

We averaged the individual scores for each issuer’s cards to arrive at overall issuer scores, which we then converted to percentages. Finally, we reached out to the public relations departments of each issuer to confirm our findings, and all of them did so. Data is accurate as of May 14th, 2019.

Rewards Value Per $1 Spent - Max 5 pointsTotal - Max 21 points

Qualifying Factor	Maximum Amount of Points Awarded	How To Calculate Points Awarded
Eligibility & Transparency - Max 4 points
Offers Automatic Program Enrollment	1	Award max point if the card qualifies for this factor.
Offers 100% Transparency In Displaying Redemption Rate Details For Non-Members	1	Award max point if the card qualifies for this factor.
Does Not Advertise Points/Miles Cards as Cash Back Cards	1	Award max point if the card qualifies for this factor.
Issuer Informs Customer of Remaining Rewards at Time of Account Closure	1	Award max point if the card qualifies for this factor.
Earning Policies – Max 6.5 points
No Minimum Spending Required To Earn	0.5	Award max point if the card qualifies for this factor.
No Overall Earning Limit Imposed	1	Award max point if the card qualifies for this factor.
Earning Rate Does Not Vary Depending On Amount Spent or Time Period	1	Award max point if the card qualifies for this factor.
No Sign-up Required for Bonus Categories	1	Award max point if the card qualifies for this factor.
Ability to Combine Earnings Across Your Accounts	0.5	Award max point if the card qualifies for this factor.
Ability to Share Earnings With Other Members	0.5	Award max point if the card qualifies for this factor.
Earnings Are Granted Despite Account Inactivity	0.5	Award max point if the card qualifies for this factor.
Earnings Are Granted Despite A Missed or Late Payment	0.5	Award max point if the card qualifies for this factor.
Earnings Do Not Expire By Date	0.5	Award max point if the card qualifies for this factor.
Expired Earnings Can be Reinstated (Free of Charge)	0.5	Award max point if the card qualifies for this factor.
Redemption Policies – Max 5.5 points
Ability to Utilize Transfer Partners	1	Award 0 points if card has no ability, 1/3 points if card has 1-10 transfer partners, 2/3 points if card has 11-20 transfer partners or 1 point if card has 21+ transfer partners.
Ability to Utilize Transfer Partners is Free of Charge	0.5	Award max point if the card qualifies for this factor.
Ability to Use Earnings to Offset Any Travel Purchase or Receive Cash Back Without Sacrificing Value	1	Award max point if the card qualifies for this factor.
Statement Credit Can Be Applied to Full Balance (instead of matching to specific charges)	0.5	Award max point if the card qualifies for this factor.
No Minimum Threshold Required to Redeem For Cash Back	1	Award max point if the card qualifies for this factor.
Offers Automatic Redemption of Earnings	0.5	Award max point if the card qualifies for this factor.
Offers Low Redemption Value Volatility	1	Where possible, we took the average redemption values for these categories: travel, cash back, gift cards & merchandise, and subsequently, calculated the variance across them. Award 1 point if the variance is 0, 0.8 points if the variance is under 2%, 0.6 points if the variance is under 3%, 0.4 points if the variance is under 6%, 0.2 points if the variance is under 7% and 0 points if the variance is 7% or more.
Rewards Value Per $1 Spent*	5	≤ $379 = 0 $380 – 569 = 1 $570 – 759 = 2 $760 – 949 = 3 $950 – 1,139 = 4 $1,140 + = 5

*Rewards Value Explanation:

We identified the best card from each issuer by calculating the two-year monetary value of each offer’s rewards (including initial bonuses), minus any annual fees.

When calculating the card’s rewards value, we picked the best redemption option – travel, gift cards, cash back or merchandise – and used the average value for that redemption option to convert rewards currency into dollar terms.

We used the following spending data from the U.S. Bureau of Labor Statistics, which you can find below, to calculate each card’s monetary value. Exact values were used whenever possible, but in certain cases – such as “Travel” – we combined categories such as “Airlines,” “Hotels,” “Other Lodging” and “Public and Other Transportation” to create a more digestible list. We assumed that half of one’s utility expenses would be charged to a credit card, as certain types – electric bills, for example – typically aren’t plastic plastic-eligible. “Other” spending represents the sum of small household spending categories: healthcare, apparel and housekeeping supplies, for instance.

Annual Consumer Spending By Category

Category	Annual Spending
Gas	$1,909
Groceries	$4,049
Restaurants	$3,154
Hotels	$798
Airfare	$623
Entertainment	$2,913
Drug Stores	$707
Utilities	$1,384
Movies	$118
Other	$16,355
Total	$32,010

Sources: U.S. Bureau of Labor Statistics (Consumer Expenditures in 2016 Report).

Ask the Experts

1. Do you think the average person realizes how much is at stake when shopping for a credit card? (A new WalletHub study found that the best rewards credit card can yield over $1,000 more than the worst rewards card over the first two years.)
2. 60% of rewards credit cards prevent cardholders from redeeming until they've earned a certain minimum amount in rewards - why hasn't competition eliminated such practices over the years?
3. What types of people would you recommend to seek out / avoid the 31% of rewards credit cards with earning rates that vary depending on amount spent or time period?
4. Are you surprised that 74% of people think cash back is the best kind of credit card rewards?

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• Morgan Ward Assistant Professor of Marketing at Southern Methodist University, Cox School of Business
• Brad D. Carlson Associate Professor of Marketing at Saint Louis University, John Cook School of Business
• Hooman Estelami Professor of Marketing at Fordham Schools of Business
• Alexander Chernev Professor of Marketing at Northwestern University, Kellogg School of Management
• Catharine M. Curran Associate Professor of Marketing in the Charlton College of Business at University of Massachusetts Dartmouth

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