What is a Good Rewards Credit Card?
Reward credit cards have become popular financial tools for consumers looking to maximize their spending benefits. Whether you're seeking cashback on everyday purchases, travel rewards for your next vacation or points for online shopping, the right reward credit card can significantly enhance your financial strategy. Here's a comprehensive look at the top reward credit cards available in 2025.
5 Popular Reward Credit Cards
1. Chase Sapphire Preferred Card
The Chase Sapphire Preferred stands out as one of the most popular travel reward cards. Cardholders earn 2x points on travel and dining purchases, plus 1x points on all other spending. The card's true value lies in its redemption flexibility. Points can be redeemed through the Chase Travel portal at 1.25 cents per point, effectively boosting your rewards value.
- Pros: Excellent transfer partners, strong bonus categories, no foreign transaction fees and comprehensive travel insurance.
- Cons: $95 annual fee, requires good to excellent credit and has limited everyday spending rewards.
- Interest rate: Variable APR typically ranges from 21.49% to 28.49% based on creditworthiness.
2. Chase Freedom Unlimited
The Chase Freedom Unlimited is our pick for the best cash-back credit card because of its elevated rewards rate on all your purchases. This card offers a flat 1.5% cashback on all purchases with no category restrictions, making it ideal for those who want simplicity without sacrificing rewards.
- Pros: No annual fee, consistent reward rate, generous intro APR period and no rotating categories to track.
- Cons: Lower reward rate compared to category-specific cards and requires Chase relationship for maximum value.
- Interest rate: Intro APR of 0% for 15 months on both new purchases and balance transfers, then variable APR.
3. Capital One Venture X Rewards Credit Card
The Capital One Venture X Rewards Credit Card offers 2x miles on every purchase and unlimited 5X miles on hotels, vacation rentals and rental cars booked through Capital One Travel.
- Pros: High sign-up bonus, airport lounge access, annual travel credit and no foreign transaction fees.
- Cons: High annual fee ($395), requires excellent credit and the benefits may not justify cost for light travelers.
- Interest rate: Variable APR typically ranges from 19.74% to 29.74%.
4. Wells Fargo Autograph Journey Card
The Wells Fargo Autograph Journey Card stands out among general-purpose travel cards because it pays its highest rewards rates on travel bookings made directly with airlines and hotels. This unique feature makes it particularly valuable for travelers who prefer booking directly with providers.
- Pros: High rewards on direct bookings, no annual fee, cell phone protection and comprehensive travel benefits.
- Cons: Lower rewards on non-travel purchases, requires good credit and it's a newer card with a limited track record.
- Interest rate: Variable APR typically ranges from 20.24% to 29.99%.
5. Bank of America Customized Cash Rewards
The Bank of American Customized Cash Reward card allows cardholders to choose their bonus category, earning up to 3% cashback in their selected category. It also offers 3% cash back on drugstore purchases and dining at restaurants (includes takeout and eligible delivery service) are among the popular category options.
- Pros: Customizable bonus category, no annual fee and potential for higher rewards with Bank of America relationship.
- Cons: Limited to one bonus category, $2,500 quarterly cap on bonus earnings and requires good credit.
- Interest rate: Variable APR typically ranges from 17.74% to 27.74%.
Current Interest Rate Environment
Credit card interest rates have reached concerning levels in 2025. For new cards, the average APR is up to 24.3%, according to LendingTree, with the average APR for all accounts in the second quarter of 2025 was 21.16%. These high rates make it crucial to pay balances in full each month to avoid interest charges.
Choosing the Right Reward Card
When selecting a reward credit card, consider your spending patterns, travel habits and financial goals. Cards with annual fees often provide higher rewards rates and premium benefits, but only make sense if the rewards value exceeds the fee cost. For casual users, no-annual-fee cards like the Chase Freedom Unlimited provide consistent value without ongoing costs.
Pay attention to sign-up bonuses, which can provide substantial initial value, but focus on long-term earning potential based on your spending habits. Category-specific cards work well if your spending aligns with bonus categories, while flat-rate cards offer simplicity and consistent rewards.
Managing Reward Cards Responsibly
Regardless of which reward card you choose, responsible usage is essential. With a good APR for a credit card is below 13%, most reward cards carry higher interest rates that can quickly erode any rewards earned if you carry a balance. Always pay your full statement balance by the due date to avoid interest charges and maximize your rewards value.
The key to successful reward card usage lies in treating it like a debit card: only spend what you can afford to pay off immediately. This approach allows you to earn valuable rewards while maintaining good financial health and avoiding the debt trap that high interest rates can create.