The Top Credit Card Rewards Programs

Credit card rewards programs come in two categories — cash and points. Cashback programs are based on a percentage of each transaction. Points programs are the same, except they pay in points, which can then be applied to hotels, flights, and even merchandise.

Rewards programs incentivize customers to choose a specific credit card and spend more on it. The rewards are like a currency where the credit card company sets the value. Rewards aren't dollar for dollar. They are generally a much lower percentage but offer enough value to keep customers incentivized. Let's look at a few of the top credit card reward programs.

Chase Freedom Unlimited®  — This Chase card is a cashback rewards program. For the first year, customers can earn an additional 1.5% on each transaction up to $20,000 in spending. There is no annual fee with this card. In addition to the 1.5% reward, cash back rewards are as follows:

• 6.5% on travel purchased through Chase Ultimate Rewards®.
• 4.5% on drugstore purchases, dining at restaurants, including takeout and eligible delivery services.
• 3% on all other purchases.

Chase Sapphire Preferred® Card — Points-based rewards program with a cash out option. Customers can earn 60,000 points when they spend $4,000 in the first 3 months. 60,000 points translate to:

• Airfare — $750
• Hotels — $750
• Cash — $600

Points can be earned by spending in the following categories:

• Restaurant purchases — 3x points on dining, including eligible delivery services, takeout and dining out.
• Travel purchases — $50 Annual Ultimate Rewards Hotel Credit. 5x points on travel purchased through Chase Ultimate Rewards®.
• Lyft purchases — Earn 5x points on Lyft rides through March 31, 2025.
• Everyday purchases — 3x points on select streaming services and online grocery purchases.
• Annual points perk — 10% anniversary points boost.

This card does have a $95/yr fee.

Wells Fargo Active Cash® Card — Cash-based rewards program. Customers who spend $1,000 in the first 3 months will earn a $200 cash back reward. After that, purchases will earn 2% in cashback rewards. There's no annual fee with this card.