Best rewards credit card for August 2023

Whether you’re a lounge hound at the airport, you like getting discounts on groceries and dining, or you simply want to get cash back on your purchases, rewards credit cards are a great way to get valuable benefits and perks on all of your spending.

There are no shortage of rewards cards in the market, ranging from straightforward cashback programs to complicated systems that require users to track and manage bonus categories in order to maximize potential benefits. Some cards are cobranded hotel or airline cards with specific rewards for that company.

With so many options, it can be hard to know which is the best rewards credit card for you. To help narrow down your list, here’s a look at seven rewards cards that we think are worth considering.

The Venture Rewards card is the choice for frequent travelers who want a straightforward rewards program. It offers flexibility for cardholders to earn miles on all their spending and to redeem them for travel, cash back, or other rewards.

• Earn 5x miles on hotels and rental cars booked through Capital One’s travel portal and 2x miles on all other purchases
• Two free lounge visits per year to Capital One Lounges or its more than 100 partner lounges
• Flexibility to redeem miles for travel through the Capital One travel portal, for cash back, or transfer them to one of Capital One’s partner airline loyalty programs

• None of the large U.S. carriers are on the current list of airline partners available for mile transfers
• No additional credits for things like Global Entry or checked bags

The Chase Sapphire Preferred Card is a great credit card for folks new to the travel rewards game, since it has a relatively low annual fee ($95) and offers flexible rewards that you can redeem through the Chase travel portal or transfer to a range of airline or hotel loyalty programs.

• Earn 5x reward points on travel purchased through Chase Ultimate Rewards, 3x points on dining, some online grocery purchases, and some streaming services; 2x points on travel not booked through Chase; and 1x point on all other purchases
• $50 statement credit each year for hotel stays booked through Chase Ultimate Rewards
• Six months free Instacart membership

• Could earn more rewards with other cards for travel booked outside of Chase
• No airport lounge access

The American Express Gold Card pays higher-than-average rewards for restaurants, groceries, and some travel purchases and provides a credit for Uber, making it well suited for globetrotters who tend to spend a lot in these categories.

• Earn 4x Membership Rewards Points for spending at U.S restaurants and U.S. supermarkets (up to $25,000 per year in purchases); 3x points for plane tickets booked either directly through the airlines or via Amextravel.com; 1x points on all other purchases
• $10 monthly Uber credit (to put toward rides or orders from Uber Eats) after linking the card to your Uber account, $10 monthly credit to use with Grubhub or certain restaurants (enrollment required for both of these benefits)
• Access to American Express “Preferred Access” for entertainment, which gives cardholders a chance to purchase premier seats at events like concerts and professional sports
• Terms apply

• $250 annual fee (see rates and fees)
• Cardholders get only two complimentary lounge visits per year

Since the VentureOne rewards card pays a flat 1.25 points per dollar spent, there’s no need to track reward categories or activate bonuses.

• Earn 5x rewards for hotels and rental cars booked through Capital One Travel, and 1.25x rewards for all other purchases
• No annual fee
• Cardholders have flexibility to redeem their points for travel, cash back, or other rewards.

• Those who spend a lot on travel and dining might get better reward rates with other cards
• The current list of airline partners available for mile transfers does not include any of the large U.S. carriers.

In addition to the ability to earn flexible rewards, the Platinum Card from American Express provides a range of travel-related perks, including airline fee and hotel credits, lounge access, and automatic gold status with Marriott and Hilton hotel loyalty programs.

• Earn 5x points on flight booked directly with airlines or through the American Express travel portal, 5x points on prepaid hotels booked through the travel portal, and 1x points on all other purchases (terms apply)
• Statement credits for hotels (up to $200 per year for partner hotels; Hotel Collection requires a two-night minimum stay), digital entertainment (up to $240 per year), Walmart+ membership ($155 per year), Uber ($15 per month), airline fees (up to $200 per year), Equinox membership ($300 per year), Saks Fifth Avenue (up to $100 per year), and CLEAR Plus ($189 per year)
• Access to 1,400 American Express airport lounges

• The $695 annual fee is the highest on our list

The Citi Custom Cash card automatically tracks your spending each month and awards you 5% cash back on your largest category (up to $500 in spending per month).

• $0 annual fee
• Earn 5% cash back for your top spending category each billing cycle (up to $500 in spend) and 1% cash back on all other purchases
• You can maximize the rewards available to you on this card without having to keep track of or activate bonus categories

• The $500 limit on bonus categories each month may be low for some big spenders
• 3% foreign transaction fee makes this card a poor choice for frequent international travelers

Like its sister card, the Capital One Venture Rewards card, the Capital One Venture X Rewards card offers flexibility for cardholders to earn rewards on all their spending and to redeem them for travel, cash back, or other rewards, as well as lounge access and other travel-related benefits.

• Earn 5x miles on hotels and rental cars purchased through Capital One’s travel portal and 2x miles on all other purchases
• Unlimited access to Capital One lounges for the cardholder and two guests
• $300 travel credit and $100 credit for Global Entry or TSA PreCheck

• $395 annual fee
• The current list of airline partners available for mile transfers does not include any of the large U.S. carriers

A rewards credit card is a card that provides benefits, in the form of cash back or points you can redeem for travel or purchases, tied to the amount of money that you spend with the card. There may be limits on the amount of rewards you can earn overall or within specific categories.

Each reward card has different rules for earning rewards. In general, however, you receive points or cash back for overall spending, or on specific categories, according to the terms of your cards. The points that you earn have a value that you can put toward travel, gift cards, or other purchases.

The best way to maximize your credit card rewards will depend on the terms of your card. Look for a card that offers the best rewards for those categories in which you spend the most. You may want to run the numbers on cards that have annual fees to see whether the value of the potential perks or rewards offsets the cost of the fee.

No, credit card rewards are not taxable. The IRS does not consider rewards “income.”

Yes, credit card rewards can be worth it in many cases. However, credit card rewards are not worth it if you carry a balance month-to-month on your card. That’s because the cost of interest on that balance is likely higher than any rewards you might receive.

Editorial Disclosure: All articles are prepared by editorial staff and contributors. Opinions expressed therein are solely those of the editorial team and have not been reviewed or approved by any advertiser. The information, including rates and fees, presented in this article is accurate as of the date of the publish. Check the lender’s website for the most current information.

This article was originally published on SFGate.com and reviewed by Lauren Williamson, who serves as Financial and Home Services Editor for the Hearst E-Commerce team. Email her at [email protected].