In the competitive world of credit cards, finding the best rewards credit card can significantly enhance your spending power and financial benefits. With a myriad of options available, 2018 saw some standout cards that offered exceptional rewards, flexible points, and various perks tailored to different spending habits. In this post, we will delve into the top contenders, comparing their features, benefits, and ideal use cases.
Why Choose a Rewards Credit Card?
Using a rewards credit card can provide you with various advantages. Here are a few compelling reasons:
- Cashback: Earn a percentage of your spending back as cash rewards, which can be redeemed for statement credits or deposits.
- Travel Points: Accumulate points for travel, including flights, hotels, and car rentals. Some cards even provide bonus points for specific travel purchases.
- Flexible Redemption: Most rewards credit cards offer multiple options for redeeming your points, including gift cards, merchandise, or travel expenses.
- Introductory Offers: Many cards come with attractive bonuses, including sign-up bonuses that can jump-start your rewards accumulation.
Top Rewards Credit Cards of 2018
1. Chase Sapphire Preferred
Annual Fee: $95 (waived the first year)
Rewards Rate:
- 2x points on travel and dining
- 1 point per dollar on all other purchases
Sign-Up Bonus: 50,000 points after spending $4,000 in the first 3 months
Benefits:
- Points can be transferred to numerous travel partners.
- Trip cancellation insurance and no foreign transaction fees.
The Chase Sapphire Preferred was consistently praised for its versatile points system, making it a top choice for travelers and food enthusiasts. The ability to transfer points to airline partners significantly increased the value of points, particularly for frequent flyers.
2. Discover it® Cashback Match
Annual Fee: $0
Rewards Rate:
- 5% cashback on rotating categories (up to $1,500 each quarter)
- 1% on all other purchases
Sign-Up Bonus: Cashback matched at the end of your first year
Benefits:
- No annual fee and no foreign transaction fees.
- Easy-to-use mobile app to track rewards.
Discover’s unique Cashback Match program meant that new cardholders doubled their cashback in their first year, making this card especially appealing for budget-conscious consumers. The rotating categories allowed users to maximize rewards based on their spending habits.
3. American Express Gold Card
Annual Fee: $250
Rewards Rate:
- 3x points on dining
- 3x points on flights booked directly
- 1 point on all other purchases
Sign-Up Bonus: 35,000 points after spending $4,000 in the first 3 months
Benefits:
- Extensive travel protections, including baggage insurance.
- Access to exclusive events and pre-sales.
The American Express Gold Card catered to food lovers and travelers alike, offering exceptional earning potential in both dining and travel sectors. Its premium perks justified its higher annual fee, especially for frequent diners.
4. Citi Double Cash Card
Annual Fee: $0
Rewards Rate:
- 1% cashback on purchases
- 1% cashback when you pay your bill
Benefits:
- No category restrictions and simple reward structure.
- No foreign transaction fees.
The Citi Double Cash Card appealed to those who preferred straightforward cashback without worrying about categories. This card allowed users to earn rewards both at the time of purchase and when paying off their balance.
5. Capital One Venture Rewards Credit Card
Annual Fee: $95 (waived the first year)
Rewards Rate:
- 2x miles on every purchase
Sign-Up Bonus: 50,000 miles after spending $3,000 in the first 3 months
Benefits:
- Miles can be used to erase travel purchases or transferred to airline partners.
- No foreign transaction fees.
Capital One’s Venture card was ideal for frequent travelers who appreciated the simplicity of earning miles on every dollar spent. The flexibility in redemption, combined with the robust sign-up bonus, made it one of the best travel credit cards in 2018.
Factors to Consider When Choosing a Rewards Credit Card
Selecting the best rewards credit card for your needs requires careful consideration of several factors:
- Spending Habits: Analyze your spending patterns. If you dine out frequently, cards offering higher dining rewards could be beneficial.
- Annual Fees: Balance the value of rewards earned against the cost of annual fees. Sometimes a no-annual-fee card can provide sufficient rewards.
- Rewards Redemption: Investigate how easy it is to redeem rewards and whether the redemption options meet your preferences.
- Sign-Up Bonuses: Look for cards that offer attractive sign-up bonuses, as these can provide significant value right from the start.
Conclusion
In 2018, several rewards credit cards stood out in the marketplace, each catering to different consumer needs. The Chase Sapphire Preferred and American Express Gold Card were fantastic for travelers, while the Discover it® Cashback Match and Citi Double Cash Card appealed to cashback enthusiasts. The Capital One Venture Rewards Credit Card combined simplicity and flexibility, making it a strong contender for frequent travelers.
Ultimately, the best rewards credit card for you will depend on your personal spending habits, lifestyle, and financial goals. Take the time to evaluate the options, and you can reap the benefits of owning a rewards credit card that adds value to your everyday purchases.
