The Best Travel Rewards Credit Cards for Each Bonus Category

The Best Travel Rewards Credit Cards for Each Bonus Category

Despite all of the advanced techniques for generating travel rewards, people are still surprised to hear that daily spending on credit cards is the most reliable way to earn points and miles. The key is to use cards that earn the most rewards for each particular spending category.

In today’s post, I want to look at the the best card for each of the major spending categories. Note that this post only covers personal points cards — see these two additional posts for the best business card and cash-back card picks for each bonus category:

The Best Cash-Back Card for Each Bonus Category The Best Business Card for Each Bonus Category In This Post

Dining in the US — American Express® Gold Card

Return: 4 Membership Rewards points per dollar at US restaurants. Points are worth 1.9 cents apiece according to TPG’s latest monthly valuations, so you’re getting a return of 7.6%.

Current Bonus: 25,000 points when you spend $2,000 in the first three months. Plus, for new cardmembers who apply by Jan. 9, 2019, receive 20% back as a statement credit at US restaurants within the first three months of cardmembership, up to $100.

Benefits: This card is a revamp of the older Premier Rewards Gold Card from American Express, and while the annual fee was raised from $195 to $250, it also offers several new perks and improved bonus categories. Earn 4x points at US supermarkets, on up to $25,000 per year in purchases; then 1x, 3x points on flights booked directly with airlines and through amextravel.com and 1 point per dollar on everything else. Get up to $120 in dining credits each year when you pay with the Gold card at participating partners (up to $10 in statement credits each month). Get up to $100 per calendar year in statement credits toward airline incidental fees.

Annual Fee: $250

For more information on the Amex Gold Card, see these posts:

New Amex Gold Card Offers 4x on US Restaurants and Supermarkets, Annual Dining Credit Why Families Need the New Amex Gold Card Credit Card Review: American Express Gold Card Dining Abroad — Chase Sapphire Reserve

Return: 3 Ultimate Rewards points per dollar on all travel and dining. Points are worth 2 cents apiece according to TPG’s valuations, so you’re getting a return of 6% when you eat out. You’ll earn 3x points on dining both in the US and abroad, but for dining in the US, the Amex Gold card offers a higher return.

Current Bonus: 50,000 points when you spend $4,000 on purchases in the first three months.

Benefits: This card made a huge splash when it was released in 2016. Since it earns you 3x points at restaurants (and on travel), it’s an unbeatable option for dining out. The Ultimate Rewards program offers you the ability to transfer points to 13 travel partners, including British Airways, Hyatt, Marriott, Southwest and United. And Sapphire Reserve cardholders can receive 1.5 cents per point when they redeem for travel through the Chase Ultimate Rewards travel center, which opens up several interesting possibilities. The card also offers a Priority Pass Select airport lounge membership and a $300 annual travel statement credit, and it waives foreign transaction fees.

Annual Fee: $450

For more information on the card and the Ultimate Rewards program, see these posts:

Why the Chase Sapphire Reserve’s Annual Credit Is Far Better Than the Competition Travel Credits Post Instantly With Chase Sapphire Reserve 10 Best Ways to Use 100,000 Ultimate Rewards Points

Hotels — Capital One Venture Rewards Credit Card

Return: 10x miles on hotels booked and paid through Hotels.com at the Hotels.com/Venture link. That equals a 10% return, and if you stack that with the Hotels.com Rewards program to earn one free hotel night for every 10 you book, you’re effectively getting a 20% return.

Current Bonus: 50,000 points when you spend $3,000 in the first three months.

Benefits: Earn 2x miles on all other purchases. Get a Global Entry or TSA PreCheck application fee credit. No foreign transaction fees.

Annual Fee: $95 (waived the first year)

For more information on the Venture Rewards card, see these posts:

Capital One Venture Rewards Card Review 6 Reasons to Get the Capital One Venture Rewards Card

Airfare — The Platinum Card® from American Express

Return: This card offers an outstanding 5x Membership Rewards points on airfare booked directly with the airline or with American Express Travel. These points are worth 1.9 cents each, giving you rewards worth 9.5% of your purchase. Additionally, you’ll earn 5 points per dollar spent on airfare and prepaid hotels booked through Amextravel.com when paying with The Business Platinum Card from American Express OPEN.

Current Bonus: 60,000 bonus points after spending $5,000 on new purchases within three months of account opening.

Benefits: This card offers a variety of airport lounge access options, including to American Express Centurion lounges and Delta Sky Clubs (the latter only when you’re flying Delta) plus Priority Pass Select lounge membership. You also get a $200 annual air travel fee credit and Gold status with Starwood (and therefore Marriott) and Hilton hotels. Membership Rewards points transfer to 17 different airline partners along with Choice, Hilton and the combined Marriott program. This card waives foreign transaction fees.

Annual Fee: $550

For more information on this card, see these posts:

Maximizing Benefits With the Amex Platinum Card 10 Things to Do When You Get Amex Platinum Credit Card Review: The Platinum Card from American Express The Chase Sapphire Reserve is an ideal pick for travel spending, such as a stay at the Park Hyatt Siem Reap. General Travel — Chase Sapphire Reserve

Return: 3 points per dollar on all travel (and dining), equal to a return of 6% when you use this card to pay for airlines, hotels, rental cars and other purchases that Chase counts as travel.

Current Bonus: 50,000 points when you spend $4,000 on purchases in the first three months.

Benefits: 3x points on all travel purchases is a huge benefit, made even better by the Ultimate Rewards program’s solid selection of 1:1 transfer partners. As mentioned above, Sapphire Reserve cardholders can also redeem points for 1.5 cents apiece through the Chase Ultimate Rewards travel portal, and the card offers an $300 annual travel statement credit that applies to a wide variety of purchases.

Annual Fee: $450

For more information on this card, see these posts:

5 Ways to Save Points on Travel With the Chase Sapphire Reserve Why the Chase Sapphire Reserve Card Is Ideal for Living or Traveling Abroad Break-Even Point on the Chase Sapphire Reserve Card The Amex EveryDay Preferred Card gets you 3x points at US supermarkets. Image courtesy of Justin Sullivan via Getty Images. Groceries — Amex EveryDay® Preferred Credit Card from American Express

Return: 3x points at US supermarkets on up to $6,000 each year; then 1x, plus a 50% points bonus each statement period that you make 30 or more transactions, for a total of up to 4.5x points. At a value of 1.9 cents per point, these rewards could be worth 8.55% of your purchases. Note that the Amex Gold Card is another strong option with a higher annual cap, earning 4x points at US supermarkets on up to $25,000 spent per year in purchases. However, the EveryDay Preferred Card offers a higher return (8.55% vs. 7.6%) when you factor in the 50% points bonus for making 30 or more transactions.

Current Bonus: 15,000 bonus points when you use your card to spend $1,000 in purchases within three months of account opening.

Benefits: 2x points at US gas stations and a 50% bonus on all points received when you make 30 or more transactions in a statement period. You can transfer points to 17 different airlines that partner with the Membership Rewards program. Note that this card does charge a 2.7% foreign transaction fee, so you won’t want to use it for purchases abroad (but the 3x category is only good for US supermarkets, anyway).

Annual Fee: $95

Earn 3x points on gas with the Citi ThankYou Premier Card. Image courtesy of Wendy Yanez via Getty Images. Gas — Citi ThankYou Premier Card

Return: 3x points on all travel including gas. These points are worth 1.7 cents each, which equals a 5.1% return for your gas purchases.

Current Bonus: 60,000 bonus points after spending $4,000 within three months of account opening.

Benefits: 2x points on dining out and entertainment. Transfer points to miles with several airline programs as well as Hilton and Sears. Points are also worth 1.25 cents each toward airfare booked through the ThankYou Travel Center. This card also waives foreign transaction fees.

Annual Fee: $95 (waived the first year)

For more information on this card, see these posts:

Redeeming Citi ThankYou Points for Maximum Value Maximizing Citi ThankYou Rewards for Domestic Flights You Can Now Transfer Citi ThankYou Points to JetBlue Office Supplies — Ink Business Cash Credit Card

Return: 5% back (or 5x Ultimate Rewards points) on purchases from office supply stores and on cellular phone, landline, internet and cable TV service. The 5%/5x rewards are limited to your first $25,000 in combined spending each account anniversary year. If you also hold a premium, Ultimate Rewards-earning card like the Chase Sapphire Preferred Card, Chase Sapphire Reserve or the Ink Business Preferred Credit Card, you can combine your rewards from the Ink Business Cash Credit Card and transfer them to travel partners. Since TPG values these points at 2 cents apiece, you can get up to a 10% return on office supply purchases.

Current Bonus: $500 cash back after you spend $3,000 in the first three months.

Benefits: 2% cash back/2x rewards on the first $25,000 spent at gas and restaurants each account anniversary year. Now that the Ink Plus Business Card is no longer offered to new applicants (it’s been replaced with the Ink Business Preferred Card), this card is the only way to earn 5x transferable rewards points on office supplies. Note that this card charges a 3% foreign transaction fee.

Annual Fee: $0

For more information on this card, see these posts:

8 Reasons to Get the No-Fee Chase Ink Cash Card Merchants That Qualify for 5x Points With Chase Ink Non-Bonus Spending — Chase Freedom Unlimited

Return: 1.5% cash back (or 1.5x points) on all purchases, with no limits. While this is technically a cash-back card, if you have another Chase card that offers transfers to Ultimate Rewards partners, you can combine your rewards and redeem them as points. Since these points are worth 2 cents each, you’re looking at a return of up to 3%.

Current Bonus: $150 bonus after spending $500 on new purchases within three months of account opening.

Benefits: This card come with a basic benefits package including purchase protection and price protection. Don’t use it for non-bonus spending outside of the US, since it does charge a 3% foreign transaction fee.

Annual Fee: $0

For more information on this card, see these posts:

Chase Details the Freedom Unlimited Card When Should You Use the Chase Freedom Unlimited Card? Based on TPG’s valuation, the Chase Freedom Unlimited Card offers an outstanding 3% return on all purchases, with no annual fee. Bottom Line

As you can see, the best credit card for any given purchase depends on whether you have the opportunity to earn bonus points or miles on the spending category. You don’t necessarily need all of these cards in your wallet; if you rarely make purchases at office supply stores, for example, you can probably skip the Ink Business Cash Credit Card. To help you determine the best card to use for a purchase based on the merchant and the options you currently hold, make sure to download the TPG To Go app.

Featured image courtesy of Le Meridien Bora Bora.