According to the 2019 Experian Consumer Credit Review, the average American holds four active credit cards. With the Federal Reserve planning to continue raising interest rates on central banks into 2023, American consumers are looking for every financial benefit they can find when they apply for a new credit card.
Fortunately, credit card companies understand this and have shifted their focus to providing valuable reward programs to cardholders. Discover the credit cards that will give you the most worthwhile rewards programs for 2023.
Common Credit Card Rewards
While not all credit cards issued to consumers will offer rewards, the most attractive cards will offer some sort of program. Typically, cards will focus on rewarding holders for certain purchases, such as those made on travel or at grocery stores. Common purchase types that may earn cardholder rewards include:
- Hotel, flight, or rental car bookings
- Restaurant purchases
- Grocery purchases
- Gas purchases
- Airline or hotel incidentals
Each card will have different redemption options for the rewards earned, so check which card issuer terms apply to your purchases. Some redemption options offered by some credit cards include:
- Cash back
- Flights
- Hotel stays
- Rental cars
- Account credits
- Discounts
Credit Cards with the Best Travel Rewards: 2022
Travel reward cards award purchases with credits, such as points or miles, to be used on travel. Many travel card rewards offer discounts on travel expenses, flights, hotels, and rental cars booked with your travel points. Others may provide additional reward points for using the card on travel expenses or waive foreign transaction fees.
There are also more specialized rewards cards, such as those issued by specific airlines, hotels, or retail stores. These cards typically reward users heavily for purchases made with associated brands. Currently, the credit cards offering the most attractive travel rewards packages are the American Express Hilton Honors Aspire Card and the Chase Sapphire Preferred Card.
American Express Hilton Honors Aspire Card
The American Express Hilton Honors Aspire Card offers a top-tier reward package if you’re a frequent traveler who loves to stay at high-end hotels. While the card will set holders back a $450 yearly annual fee, the rewards package more than makes up for it.
Headlining the card’s host of benefits is the instant enrollment into Hilton’s Diamond package, which earns cardholders the right to access Hilton’s exclusive executive lounge, automatic room upgrades, complimentary high-speed internet access, and a long list of other benefits. Typically, it would take travelers over 20 stays with Hilton to earn Diamond status.
You’ll also receive a free night’s stay at a Hilton, a $250 credit for purchases made at Hilton resorts, and a $250 airline fee incidental credit each year your account is open.
The card’s bonus points arrangement is also quite attractive. With the Hilton Honors Aspire Card from American Express, account holders will receive the following bonuses:
- 150,000 Hilton Honors reward points after spending $4,000 in the first three months after opening
- 14x Hilton Honors points on purchases at Hilton Portfolio hotels or resorts
- 7x Hilton Honors points on flights booked directly with the airline or with amextravel.com
- 7x Hilton Honors points on car rentals booked with select companies
- 7x Hilton Honors points on select U.S. restaurants
- 3x Hilton Honors points on other qualifying purchases
You’ll need at least a 700 credit score to qualify for this card, and the variable APR will fall somewhere between 19.99% and 28.99%.
Chase Sapphire Preferred Card
For regular travelers who don’t want to be pinned to a specific hospitality brand, the Chase Sapphire Preferred Card offers a versatile travel rewards program. With a $550 annual fee and a variable APR between 20.74% and 27.74%, it isn’t the cheapest card on the market, but its benefits are strong enough to make it an excellent choice.
One unique benefit of the Sapphire Preferred Card is that it includes access to over 1,300 airport VIP lounges scattered across more than 500 cities. You’ll also be reimbursed for Global Entry, TSA PreCheck, or Nexus fees.
Cardholders will be granted a $300 travel credit every year, usable on a variety of travel expenses. The card’s reward structure is also geared toward incentivizing travel, with points awarded for:
- 5x points on flights purchased through Chase Ultimate Rewards
- 10x points on hotels and rental cars purchased through Chase Ultimate Rewards
- 3x points on other travel expenses
- 10x points on eligible dining purchases
- 3x points on other food services, like delivery services
- Point per dollar spent on all other purchases
Credit Cards with the Best Cash Back Rewards: 2022
Cash back rewards cards are the most common type of reward card. These cards reward you with cash-redeemable points bonuses after you spend certain amounts of money.
Some cards offer reward points on all purchase types with different point tiers, with the purchase categories sometimes changing by the month. Others offer more generous rewards but limit point accumulation to certain purchases and balance transfers. For 2023, the credit cards with the best cash back rewards programs are the Chase Freedom Flex and the Capital One Venture X Rewards credit cards.
Chase Freedom Flex
The Chase Freedom Flex is a versatile cash back card that rewards users with points for various purchase types. Users will not pay an annual fee, and the card offers a variable APR between 18.74% and 27.49%. However, users receive a 0% introductory APR for the first 15 months.
While the $200 welcome bonus is not the largest in the cash back card sector, the Chase Freedom Flex’s flexible point accumulation system is attractive to a range of users. The cash back on travel provided by the Freedom Flex rivals even the most exclusive travel cards. There are competitive reward structures for other purchases, including:
- Earn 3% cash back on dining purchases, including delivery services
- Earn 3% cash back on drugstore purchases
- Earn unlimited 1% cash back on all other purchases
Another major benefit of the Freedom Flex card is Chase’s rotating quarterly bonus categories, providing additional reward points after you spend threshold amounts on each quarter’s designated bonus category.
The only drawback to this card is that all travel bookings must be purchased through Chase Ultimate, or you’ll forfeit the additional 5% cash back bonus. Users with good or excellent credit ratings will likely be approved for the card.
Capital One Venture X Rewards Credit Card
For consumers who love to travel but want the benefits of a cash back card, the Capital One Venture X Rewards Card is an elite choice. While the card charges a $350 annual fee, you’ll earn 75,000 bonus miles (equal to $750 in travel expenses) after spending just $4,000 in the first three months from account opening. The Venture X offers a variable interest rate between 19.99% and 26.99%.
Users will earn 10x miles on any hotel or rental car booked through Capital One’s travel program and unlimited double miles on all other purchases. The Venture X miles can be used for a range of travel expenses, such as hotels, rental cars, flights, and more, and you’ll even receive $100 towards TSA PreCheck or Global Entry.
Beyond these benefits, you’ll receive up to $300 in cash back for purchases through Capital One’s travel program and 10,000 ($100) in bonus miles every year.
The biggest downside to the card is that the Capital One travel program is still relatively new and adding partnerships. You’ll also need an excellent credit score to be approved.
In Conclusion
These cards offer users tremendous value regardless of which credit company you choose. These cards have you covered, from exceptional cash back values to traveling and entertainment expenses. For more information about credit cards and the value they can provide, check out smartreadz.com and establish yourself as a smart credit card holder.
