The best rewards credit cards of September 2023

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Picking the right rewards credit card may feel overwhelming. That's because there are so many different options that it's hard to know which is best for you.

To relieve some of the stress, CNBC Select analyzed 111 popular rewards cards using an average American's annual spending budget and digging into each card's perks and drawbacks to find the best of the best based on your consumer habits.

You don't have to be an aggressive points optimizer to enjoy the perks that come with a good rewards credit card. With the right card and good financial habits (paying your balance off on time and in full each month), you can earn $2,000 or more in rewards over five years (and that's after the annual fee). That breaks down to roughly $400 to $500 a year (a little higher the first year if you take advantage of a welcome bonus), and it's money you can use to buy more groceries, book airline travel or splurge on a new iPad.

Many of these cards also provide additional perks, such as discounts at select retailers, travel insurance, annual statement credits and more that make using a rewards card truly worthwhile. (See our methodology for more information on how we choose the best rewards cards.)

• Best rewards credit card: American Express® Gold Card
• Runner-up: Capital One Venture Rewards Credit Card (see rates and fees)
• Best for cash back: Chase Freedom Unlimited® Card
• Best for luxury travel: Chase Sapphire Reserve®
• Best for groceries: Blue Cash Preferred® Card from American Express
• Best for no annual fee: Citi® Double Cash Card
• Best for online shopping: Prime Visa
• Best for rotating bonus categories: Chase Freedom Flex℠

Who's this for? If you love food, the American Express® Gold Card could be the ideal rewards card for you. Whether you dine out or cook at home, this card earns a competitive 4X points per dollar spent at restaurants and 4X points at U.S. supermarkets (on up to $25,000 per year in purchases, then 1X). Plus, travelers can benefit from the 3X points on flights booked directly with airlines or on Amextravel.com.

The value of Membership Rewards® points varies depending on how cardholders redeem them. You can use them in a variety of ways, from paying with points at checkout at retailers like Amazon to redeeming for gift cards or a statement credit to booking travel. (See more on how the value of points is calculated.)

Cardholders also receive an annual dining credit of up to $120 ($10 a month) at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, Milk Bar and select Shake Shack locations (enrollment required). Terms apply. There are also *no foreign transaction fees.

This card does have a *$250 annual fee, but it can be reduced to effectively $130 if you take advantage of the $120 dining credit each year. Then, the rewards you earn help further "pay" for the card.

Gold Card members can also participate in Amex Offers, where you can earn statement credits or bonus Membership Rewards® points at select retailers. For example, an offer for Wine.com states: "Spend $50 or more, get $10 back." These limited-time offers are location-based and additional terms apply.

*See rates and fees

Who's this for? The Capital One Venture Rewards Credit Card offers the best rewards rate on select hotel purchases: Earn 5X miles per dollar on hotel and rental cars booked through Capital One Travel, which is a great flat rate. Plus earn 2X miles per dollar on every other purchase.

While Venture does come with a $95 annual fee, it's low compared to some other rewards cards, with some annual fees up to $550. (See rates and fees)

In addition to rewards, every four years cardholders receive a credit for a Global Entry or TSA PreCheck application, up to $100. Cardhodlers also receive two complimentary Capital One Lounge visits per year or to 100+ Plaza Premium Lounges through the Partner Lounge Network. If you travel often, these are a great perk that can save you time and money.

This card has no foreign transaction fees and comes with a bunch of additional travel perks, such as 24-hour travel assistance services and an auto rental collision damage waiver. (See rates and fees)

*Terms, conditions and exclusions apply. Refer to your Guide to Benefits for more details.

Who's this for? The Chase Freedom Unlimited® Card, our top cash-back card, is ideal for anyone looking for a simple way to maximize cash back on everyday spending. Cardholders earn 5% cash back on travel purchased through Chase Ultimate Rewards®, 3% on drugstores and dining at restaurants (including takeout) and 1.5% on all other purchases.

If you want to maximize rewards within the first few months of account opening, there's a generous welcome bonus: On up to $20,000 spent in the first year, cardholders earn an additional 1.5% on all categories.

This card has no annual fee, and you can benefit from a 0% APR for the first 15 months from account opening on new purchases and balance transfers (after, 20.49% - 29.24% variable APR). There's an intro balance transfer fee of either $5 or 3% of the amount of each transfer, whichever is greater, on transfers made within 60 days of account opening. After that it's either $5 or 5% of the amount of each transfer, whichever is greater.

Who's this for? If you're a frequent traveler looking to make your flights and hotel stays more luxurious, the Chase Sapphire Reserve® should be on your radar. This card is geared toward frequent travelers, offering points on dining and travel worldwide and no foreign transaction fees.

The value of Chase rewards points varies depending on how you use them. If you redeem points for cash and gift cards, each point is worth $.01, which means that 100 points equals $1 in redemption value. (See more on how the value of points is calculated.)

When you use points through Chase Pay® for a statement credit to cover all or part of a purchase made at participating Chase Pay® merchants (Amazon, for instance), each point is worth $.008, which means that 100 points equals $.80 in redemption value. Redemption values for other reward options may be worth more or less than this.

The value of points increases 50% when you redeem for travel on Chase Ultimate Rewards®. For example, 60,000 points are worth $900 toward airfare, hotels, car rentals and cruise reservations when you redeem through Chase Ultimate Rewards®. This is a great way to maximize the value of your rewards and makes this card stand out from the pack.

You can get even better value if you transfer your points to one of Chase's travel partners. For instance, you're likely to get the best value by moving your points to loyalty programs such as World of Hyatt and Air Canada Aeroplan. That said, you need to do your research before transferring points since the value can also drop when transferring to certain travel partners, like IHG One Rewards.

While this card offers great rewards and benefits, it does come with a hefty $550 annual fee. However, if you take advantage of all the annual credits, you can come out well ahead of the fee. There's an annual $300 travel credit, as well as a $100 credit for Global Entry or TSA PreCheck application fees cardholders can redeem every four years. And the Priority Pass™ Select membership, which gives you access to more than 1,000 lounges in 500 cities worldwide, has a value of about $429.

If you're worried about this card's high annual fee, you might also want to look into the Chase Sapphire Preferred credit card. At $95 per year, you'll still earn solid rewards rates on travel and dining, your points will be worth 25% more when you redeem them on qualifying travel purchases through Chase Ultimate Rewards, and you can transfer points to the same partners.

Who's this for? The Blue Cash Preferred® Card from American Express is a great choice for anyone who regularly spends big at grocery stores and gas stations. The rewards program is tailored to these purchases and offers some of the best cash-back rates available.

Cardholders who have cut the cord can also take advantage of high cash back on select U.S. streaming services (6%). The list of eligible streaming subscriptions is longer than most, including Audible, Kindle Unlimited, MLB.TV and more.

In addition to cash back, cardholders can earn statement credit at select businesses through Amex Offers. For example, you can spend $75 or more and get $15 back at Jane restaurant in New York City. These limited-time offers are location-based and additional terms apply.

While cardholders only earn 1% cash back for travel-related purchases, you can benefit from travel perks, such as car rental loss and damage insurance*. However, this card isn't the best choice for traveling outside the U.S., since purchases made abroad incur a 2.7% fee. (See rates and fees).

Also, wholesale clubs like Costco and superstores such as Walmart and Target aren't considered eligible grocery stores on the Blue Cash Preferred. If you frequently shop at these retailers, you might want to look at their respective store credit cards.

Who's this for? The Citi® Double Cash Card is a solid choice if you're looking to maximize your money without having to worry about rotating rewards categories or joining a credit union. Earn 1% cash back on all purchases and 1% when you pay off your bill.

There's no annual fee and an easy-to-use cash-back program with no activation required and no limit to how many points you can earn. Cardholders can redeem cash back for checks or statement credits once they've earned $25 worth of points. Plus, if you forget to pay your card, Citi will waive your first late fee. (Though we always recommend you pay off your card on time and in full each month.)

The Citi® Double Cash Card offers cardholders a 0% APR for the first 18 months on balance transfers initiated within four months of opening an account. After the intro period ends, there's a 19.24% - 29.24% variable APR.

In addition to the cash-back rewards, there are a number of special cardmember programs, including Citi Entertainment℠, which gives cardholders first access to purchase tickets for thousands of concerts and events. The card also provides access to Citi® Identity Theft Solutions, a service that will help you if you're a victim of identity theft.

Who's this for? Frequent shoppers on Amazon and at Whole Foods will want to look into the Prime Visa. All purchases made by Prime members at Amazon and Whole Foods get a robust 5% cash back. The card also offers a $100 Amazon.com gift card upon approval as a one-time bonus.

In addition to the generous 5% cash back at those two retailers, the card gives users 2% back on purchases made at restaurants, gas stations and drugstores and 1% back on all other purchases.

As the name implies, you must have an eligible Prime membership to apply for this card ($139 for an annual membership and $14.99 for a monthly membership). If you don't, opt for the Amazon Visa, which doesn't require a Prime membership and still offers 3% cash back at Amazon and Whole Foods.

Who’s this for? If you’re looking to maximize cash-back rewards, consider a rotating bonus category card like the Chase Freedom Flex℠. This card offers 5% cash back on up to $1,500 in combined purchases in bonus categories each quarter you activate, then 1%. The cash-back calendar changes every quarter. (Learn more about how Chase classifies bonus category purchases.)

In addition to rotating rewards, you can earn 5% cash back on travel booked through the Chase Ultimate Rewards® portal, 3% cash back on dining at restaurants and at drug stores and 1% cash back on all other purchases.

You can benefit from World Elite Mastercard benefits, such as cell phone protection and Fandango credits. Plus, the Freedom Flex card has no annual fee and offers a competitive 0% intro APR for the first 15 months on new purchases and balance transfers (after, 20.49% - 29.24% variable APR). There's an intro balance transfer fee of either $5 or 3% of the amount of each transfer, whichever is greater, on transfers made within 60 days of account opening. After that it's either $5 or 5% of the amount of each transfer, whichever is greater.

Rewards credit cards come in all shapes and sizes, so it's important to take some time to choose the card that best matches your spending habits. You want a card that will reward you for your everyday purchases without having to adjust your spending to maximize card rewards.

You should decide if you're willing to pay an annual fee for a card, since this can help narrow down choices. Rewards cards can have annual fees up to $550, which can be worthwhile, but not for everyone. Make sure you do the math to see if an annual fee is within your budget and if it can be outweighed by the card's benefits.

Next you should figure out what type of rewards you want to earn and if you want a simple rewards program or one that may require some work. If you want a straightforward card, there are generic rewards cards that offer the same amount of rewards on all purchases, which require little planning. But if you want to maximize rewards in common spending categories, such as travel, dining and gas, consider bonus rewards cards that offer over 5% back on purchases and may require activation.

It's also a good idea to consider the card's welcome offer. Some of the best rewards credit cards come with large welcome bonuses for new cardholders worth hundreds of dollars. And if you're planning a big purchase, look for cards with a 0% APR offer — this way, you can still earn rewards but will have more than a year without interest charges to pay off the purchase.

Rewards aside, consider the added card perks, such as annual statement credits, lounge access and 0% APR periods, that can provide enhanced value.

There are several different kinds of rewards cards. Rewards credit cards typically provide one of three reward structures: cash back, points or miles. The way you earn and redeem rewards varies based on the type of credit card you open.

• Cash back: Receive a percentage of spending back, directly related to how much you spent. Spend $100 on a 1% cash-back card, earn $1 in cash back.
• Points and miles: Earn points or miles on purchases. The value of one point or one mile isn't always equal to one cent. They might be worth more or less than a penny depending on the credit card you have and the way you redeem rewards. Typically, you can earn points and miles on travel rewards credit cards.

Additionally, rewards cards can be broken down into three groups based on how you earn rewards:

• Flat-rate rewards: This type of rewards credit card comes with a single rewards rate that applies to all purchases. For example, the Citi® Double Cash Card earns 2% cash back on everything you buy ( earn 1% cash back on all purchases and 1% when you pay off your bill)
• Bonus categories: These credit cards offer an elevated rewards rate in certain spending categories. For instance, the Chase Sapphire Reserve® from our list of the best travel rewards credit cards offers 10X points on hotels and car rentals and 5X points on flights booked through Chase Ultimate Rewards, plus 3X points on dining and all other travel purchases. Any purchases outside of these categories only earn 1X points.
• Rotating categories: This type of card offers a higher rewards rate in specific bonus categories that change every quarter. The Chase Freedom Flex℠ is a great example. This cash rewards credit card earns 5% back in rotating categories on up to $1,500 in purchases made each quarter (then 1%). You need to activate the categories every quarter to earn bonus cash back.

In addition to the value of cash back, points and miles varying, redemption options also fluctuate. You may be able to redeem for a statement credit, travel, gift card, merchandise or more, depending on the card you have.

In order to make the most of your rewards card, you should familiarize yourself with the benefits and fees. Take note of any annual fees and the APR associated with your account, as well as the rewards rates and added perks, such as annual statement credits.

Once you're familiar with the terms of your card, you can start to take full advantage of them. That may include setting reminders to use the $120 dining credit provided by the American Express® Gold Card or submitting a Global Entry application with the Capital One Venture Rewards Credit Card to receive up to $100 credit.

If you have multiple credit cards, consider the rewards offered by each card before deciding which to use. Let's say you have the Citi® Double Cash Card and Chase Sapphire Reserve®. Use the Chase Sapphire Reserve® for all your travel and dining expenses to earn 3X points, then use the Citi® Double Cash Card for everything else to earn an effective 2% cash back: 1% when you buy and 1% after you pay your bill.

Finally, pay attention to rewards values when choosing redemption options. While rewards on cash-back credit cards maintain consistent value no matter how you spend them, that's rarely the case with travel rewards credit cards. Often, travel rewards are worth less if redeemed on non-travel purchases. On the other hand, if you transfer your rewards points or miles to one of the eligible loyalty programs your card issuer partners with, you can sometimes increase the value of your points.

At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every credit card review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of credit card products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics. See our methodology for more information on how we choose the best rewards credit card.

To determine which rewards credit cards offer the best value, CNBC Select analyzed 111 of the most popular credit cards available in the U.S. that offer rewards programs, from cash back to points and miles. We compared each card on a range of features, including rewards, welcome bonus, introductory and standard APR, balance transfer fees and foreign transaction fees, as well as factors such as required credit score and customer reviews when available. We also considered additional perks, the application process and how easy it is for the consumer to redeem points.

Select teamed up with location intelligence firm Esri. The company's data development team provided the most up-to-date and comprehensive consumer spending data based on the 2019 Consumer Expenditure Surveys from the Bureau of Labor Statistics. You can read more about their methodology here.

Esri's data team created a sample annual budget of approximately $22,126 in retail spending. The budget includes six main categories: groceries ($5,174), gas ($2,218), dining out ($3,675), travel ($2,244), utilities ($4,862) and general purchases ($3,953). General purchases include items such as housekeeping supplies, clothing, personal care products, prescription drugs and vitamins, and other vehicle expenses.

CNBC Select used this budget to estimate how much the average consumer would save over the course of a year, two years and five years, assuming they would attempt to maximize their rewards potential by earning all welcome bonuses offered and using the card for all applicable purchases. All rewards total estimations are net the annual fee.

It's important to note the value of a point or mile varies from card to card and based on how you redeem them. When we calculated the estimated returns, we assumed that cardholders are redeeming points/miles for a typical maximum value of 1 cent per point or mile. (Extreme optimizers might be able to achieve more value.)

Our final picks are weighted heavily toward the highest five-year returns since it's generally wise to hold onto a credit card for years. This method also avoids giving an unfair advantage to cards with large welcome bonuses.

While the five-year estimates we've included are derived from a budget similar to the average American's spending, you may earn a higher or lower return depending on your shopping habits.

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For rates and fees of the American Express® Gold Card, please click here.

For rates and fees of the Blue Cash Preferred® Card from American Express, please click here.

Information about Amazon credit cards has been collected independently by Select and has not been reviewed or provided by the issuer prior to publication; if you purchase something through Select links, we may earn a commission.

For Capital One products listed on this page, some of the above benefits are provided by Visa® or Mastercard® and may vary by product. See the respective Guide to Benefits for details, as terms and exclusions apply.

*Eligibility and Benefit level varies by Card. Terms, Conditions and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by AMEX Assurance Company. Car Rental Loss or Damage Coverage is offered through American Express Travel Related Services Company, Inc.