Chase Sapphire Reserve®

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Chase Sapphire Reserve®

3.22 out of 5 rating339 Reviews339 Reviews

Apply NowRates & Fees

Regular APR

19.49% - 27.99% (V)

Annual Fee

$795

Rewards Rate

i

• Earn 8x points on all purchases through Chase Travel℠, including The Edit℠ and 4x points on flights and hotels booked direct. Plus, earn 3x points on dining worldwide & 1x points on all other purchases

1 - 8 points / $1

Bonus Offer

i

Earn 150,000 bonus points after you spend $6,000 on purchases in the first 3 months from account opening.

150,000 points

Credit Score

Excellent

More Details

Rewards Details

• Earn 150,000 bonus points after you spend $6,000 on purchases in the first 3 months from account opening.
• Get $3,000 in annual value with Sapphire Reserve.
• Earn 8x points on all purchases through Chase Travel℠, including The Edit℠ and 4x points on flights and hotels booked direct. Plus, earn 3x points on dining worldwide & 1x points on all other purchases
• $300 annual travel credit as reimbursement for travel purchases charged to your card each account anniversary year.
• Access over 1,300 airport lounges worldwide with a complimentary Priority Pass™ Select membership, plus every Chase Sapphire Lounge® by The Club with two guests. Plus, up to $120 towards Global Entry, NEXUS, or TSA PreCheck® every 4 years
• Get up to $150 in statement credits every six months for a maximum of $300 annually for dining at restaurants that are part of Sapphire Reserve Exclusive Tables.
• Get complimentary Apple TV+, the exclusive streaming home of Apple Originals. Plus Apple Music — all the music you love, across all your devices. Subscriptions run through 6/22/27 — a value of $288 annually

Additional Info

• Count on Trip Cancellation/Interruption Insurance, Auto Rental Coverage, Lost Luggage Insurance, no foreign transaction fees, and more.
• Member FDIC
• More Details & Reviews About Chase Sapphire Reserve®

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Chase Sapphire Reserve® is worth getting if you are a high-spending frequent traveler with excellent credit who spends a lot of time in airport lounges. With Chase Sapphire Reserve, the average person would earn over $2,000 in net rewards value over the first two years of use, according to WalletHub's calculations. That’s with the card’s annual fee factored in, too.

If you spend at least $6,000 in the first 3 months after opening an account, Chase Sapphire Reserve will be worth it initially because that will earn you the card’s initial bonus of 150,000 points. The bonus alone will cover the $795 annual fee for at least the first year. Taking advantage of the $300 annual travel credit, complimentary access to a network of 1,300+ airport lounges and other valuable perks will also go a long way toward making the card worth owning.

Furthermore, as is the case with most rewards cards, you need to pay your bill in full every month, or else Chase Sapphire Reserve’s high APR will wind up eating away at your savings.

I plan to apply for Chase Sapphire Reserve before my next international trip. The big initial bonus is one of the main things drawing me to this card. I can use the cost of the trip to qualify for the initial bonus, which I can then use to pay for another trip. Or, if I apply far enough in advance, I can use the bonus to pay for my international flight. A first-class upgrade sure would be nice, if the prices make sense at the time.

Another thing that attracts me to Chase Sapphire Reserve is the airport lounge access it gets you. Yes, a lot of cards now offer airport lounge access, but few combine it with such good rewards. The ability to lounge in comfort and get my application for Global Entry paid for will definitely make my trip abroad more enjoyable.

1. 150,000 Bonus Points

   If you normally spend more than $2,000 per month and have a trip coming up in a few months, Reserve’s hefty bonus will save you a bundle. Charging at least $6,000 to the Reserve Card in the first 3 months after account opening will earn you 150,000 bonus points.

   That’s more than what the average card with an initial bonus gives you, according to WalletHub’s latest Credit Card Landscape Report. A lot of points don’t always translate into a lot of dollars, but Sapphire Reserve’s sure do. 150,000 points are worth up to $1,500 when redeemed for cash, gift cards, and travel.

2. Up To 8 Points per $1 Spent on Travel

   You will earn 8 points per $1 spent on purchases made through Chase Travel℠ (including The Edit℠), 4 points per $1 on direct bookings with airlines and hotels, 3 points per $1 on dining, and 1 point per $1 on all other purchases. So the more you spend in these bonus categories each month, the more likely Sapphire Reserve is for you.

3. $300 Annual Travel Credit

   You will automatically receive statement credits to cover the first $300 in travel purchases that you charge to the Sapphire Reserve Card each year. Credits will post to your account the same day qualifying purchases do and will appear on your monthly statement within 1-2 billing cycles.

   It’s also worth noting that you can get the most out of this feature by applying toward the end of the calendar year. Your first $300 credit applies to purchases made between the date of account opening and the end of your first December billing period. So if you get this card in October, for example, you’ll have $300 in travel to use by the end of the year (perhaps a bit sooner, depending on your billing cycle). And at that time, you’ll get a fresh $300 to use over the next 12 months. That would give you $600 in travel in just 15 months instead of 24.

4. Complimentary Airport Lounge Access

   Having the Sapphire Reserve Card offer you a complimentary membership with the airport-lounge operator Priority Pass Select. Membership would ordinarily cost at least $69 per year, but how valuable this perk actually proves to be depends on how often you frequent one of Priority Pass’s more than 1,300 lounges worldwide. Plus, you get access to every Chase Sapphire Lounge® by The Club for you and two guests.

5. Rebate for Global Entry or TSA PreCheck

   If you hate waiting in line for security at the airport, you’re going to like this. You can apply for TSA PreCheck at no cost, as Sapphire Reserve will refund the one-time $85 fee. Alternatively, if you’re an international traveler, Reserve will cover the $120 application fee for Global Entry or NEXUS, helping connect you to a smoother customs experience.

1. $795 Annual Fee

   Very few credit cards charge higher annual fees than Chase Sapphire Reserve. In fact, Reserve’s $795 yearly charge is about 28 times higher than the average credit card’s annual fee.

2. Potential For A Very High APR

   Granted, this card was not built for financing, but a $795 annual fee still should command a better rate than the average credit card for excellent credit (17.11% APR). That’s not the case, however. Reserve offers a regular APR that could be 19.49% to 27.99% (V), depending on creditworthiness.

1. Ability to Transfer Rewards Points

   If you have multiple Chase credit cards, you can transfer your rewards points between them at no cost. You’ll want to transfer them to your Sapphire Reserve account, not from it, though.

2. The Edit by Chase Travel℠

   As a Sapphire Reserve cardholder, you’ll have access to complimentary room upgrades, meals, discounts and other amenities at Chase’s hand-picked list of lodging establishments. Just make sure you don’t have to overpay on other aspects of your visit to offset these “free” perks.

3. Excellent Credit Required

   You need excellent credit to even have a chance at qualifying for the Chase Sapphire Reserve Card. If you’re unsure whether your credit measures up, check your latest score for free on WalletHub.

The Chase Sapphire Reserve Card isn’t the only plane in the sky as far as travel rewards credit cards are concerned. So we crunched the numbers on how Reserve compares to its top competitors. You can check out our findings below.

Chase Sapphire Reserve®	Capital One Venture Rewards Credit Card	Chase Sapphire Preferred® Card	Chase Freedom Unlimited®
4.1WalletHub Rating WalletHub Rating 4.1 This card has been scored using WalletHub’s proprietary credit card rating system. We evaluated this card for various cardholder needs and picked the rating for the need with the highest score, which is "Earn Rewards." A score of 5 is the best a card can receive, and the rating for the card may vary on different pages where it is compared to other cards for different needs. Editor’s Rating 4.4 User Reviews 3.2 Market Comparison 4.1 fees: 1.3 rewards: 4.7 cost: 4.6 Other Features: 5.0	4.5WalletHub Rating WalletHub Rating 4.5 This card has been scored using WalletHub’s proprietary credit card rating system. We evaluated this card for various cardholder needs and picked the rating for the need with the highest score, which is "Earn Rewards." A score of 5 is the best a card can receive, and the rating for the card may vary on different pages where it is compared to other cards for different needs. Editor’s Rating 5.0 User Reviews 3.8 Market Comparison 4.4 fees: 2.9 rewards: 4.8 cost: 5.0 Other Features: 0.0	4.3WalletHub Rating WalletHub Rating 4.3 This card has been scored using WalletHub’s proprietary credit card rating system. We evaluated this card for various cardholder needs and picked the rating for the need with the highest score, which is "Earn Rewards." A score of 5 is the best a card can receive, and the rating for the card may vary on different pages where it is compared to other cards for different needs. Editor’s Rating 5.0 User Reviews 3.9 Market Comparison 4.2 fees: 2.9 rewards: 3.9 cost: 4.8 Other Features: 5.0	4.2WalletHub Rating WalletHub Rating 4.2 This card has been scored using WalletHub’s proprietary credit card rating system. We evaluated this card for various cardholder needs and picked the rating for the need with the highest score, which is "Earn Rewards." A score of 5 is the best a card can receive, and the rating for the card may vary on different pages where it is compared to other cards for different needs. Editor’s Rating 5.0 User Reviews 3.6 Market Comparison 4.2 fees: 3.8 rewards: 4.3 cost: 4.6 Other Features: 0.0
(339)	(2,758)	(3,577)	(916)
annual fee$795	annual fee$95	annual fee$95	annual fee$0
rewards rate Earn 8x points on all purchases through Chase Travel℠, including The Edit℠ and 4x points on flights and hotels booked direct. Plus, earn 3x points on dining worldwide & 1x points on all other purchases 1 - 8 points / $1	rewards rate Earn unlimited 2X miles on every purchase, every day Earn 5X miles on hotels, vacation rentals and rental cars booked through Capital One Travel 2 - 5 miles / $1	rewards rate Enjoy benefits such as 5x on travel purchased through Chase Travel℠, 3x on dining, select streaming services and online groceries, 2x on all other travel purchases, 1x on all other purchases 1 - 5 points / $1	rewards rate Enjoy 5% cash back on travel purchased through Chase Travel℠, our premier rewards program that lets you redeem rewards for cash back, travel, gift cards and more; 3% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery service, and 1.5% on all other purchases. 1.5 - 5% Cash Back
bonus offer Earn 150,000 bonus points after you spend $6,000 on purchases in the first 3 months from account opening. 150,000 points	bonus offer Enjoy a one-time bonus of 75,000 miles once you spend $4,000 on purchases within 3 months from account opening, equal to $750 in travel 75,000 miles	bonus offer Earn 75,000 bonus points after you spend $5,000 on purchases in the first 3 months from account opening. 75,000 points	bonus offer Earn a $200 Bonus after you spend $500 on purchases in your first 3 months from account opening $200
Purchase Intro APRN/A	Purchase Intro APRN/A	Purchase Intro APRN/A	Purchase Intro APR0% for 15 months
transfer intro aprN/A	transfer intro aprN/A	transfer intro aprN/A	transfer intro apr0% for 15 months Transfer Fee: Either $5 or 3% of the amount of each transfer, whichever is greater in the first 60 days (5%, min $5 after)
Regular APR19.49% - 27.99% (V)	Regular APR19.49% - 28.49% (V)	Regular APR19.24% - 27.49% (V)	Regular APR18.24% - 27.74% (V)
SponsoredApply Now Rates & Fees SponsoredApply Now Rates & Fees  Learn More	SponsoredApply Now Rates & Fees SponsoredApply Now Rates & Fees  Learn More	SponsoredApply Now Rates & Fees SponsoredApply Now Rates & Fees  Learn More	SponsoredApply Now Rates & Fees SponsoredApply Now Rates & Fees  Learn More

[edu-tiles firstvalue="1,500+" firstlabel="Credit Cards Scored" secondvalue="100" secondlabel="Point Rating System" thirdvalue="26" thirdlabel="User Needs Considered" fourthvalue="75,000" fourthlabel="Data Points Tracked"]

This Chase Sapphire Reserve® review is based on WalletHub’s proprietary 100-point credit card rating system. By using a consistent methodology to evaluate the Chase Sapphire Reserve® and all other cards, WalletHub’s credit card experts make it easy for people to compare their options and find the best credit cards for their needs.

The WalletHub rating system uses 16 key metrics grouped into seven categories: Fees, Rewards, Two-year Cost, Interest Rates, Approval Requirements, Special Features, and Reviews. Each metric has a maximum number of points allocated to it, based on the metric’s importance as determined by our editors. The points are added up to create an overall rating for the Chase Sapphire Reserve® out of a maximum of 100 points, which is then converted to a 5-point scale.

Ratings for each category reflect how close Chase Sapphire Reserve is to WalletHub’s definition of a 5-star credit card, which is based on market conditions and what we believe are reasonable terms. We compare Chase Sapphire Reserve to that standard to give a numerical approximation of how reasonable and competitive its terms are compared to other cards.

To learn more about how WalletHub rates credit card offers, check out our full credit card review methodology.  

About the Author

John S Kiernan

John Kiernan has covered the credit card industry for more than 15 years as a writer and editor for WalletHub. His work has been featured by major media outlets such as The Washington Post, Fox News and The New York Times and has been cited by industry regulators such as the Consumer Financial Protection Bureau.

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Below, you can learn more about how credit card rewards work, from earning rewards to redeeming them. You can also check out tips for avoiding common mistakes and choosing the right rewards card for your needs.

1. What Is a Rewards Credit Card?
2. Popular Rewards Credit Cards
3. Types of Credit Card Rewards
4. How to Choose a Credit Card for Rewards
5. How to Earn Credit Card Rewards
6. How to Redeem Credit Card Rewards
7. Is a Rewards Credit Card Worth It?
8. What to Watch Out for With Rewards Credit Cards
9. Credit Card Rewards Statistics
10. Ask the Experts: The Value of Rewards Programs

A rewards credit card is a credit card that gives cash back, points, or miles to the cardholder when they charge purchases to the card. Credit cards with rewards are available to people of all credit levels, though the best ones tend to require good or excellent credit.

In addition to points, miles or cash back, some rewards credit cards offer annual fees as low as $0, 0% introductory APRs, and various other perks. There is no fundamental difference between a credit card with rewards and a credit card without rewards, other than your ability to save money on purchases.

Opinions and ratings are our own. This report is not provided, commissioned or endorsed by any issuer. WalletHub independently collected information for some of the cards on this page.

The Wells Fargo Active Cash® Card is the best rewards credit card overall, offering 2% cash rewards on purchases. It also gives an initial bonus of $200 cash rewards after spending $500 on purchases in the first 3 months.

On top of its stellar rewards, the Wells Fargo Active Cash has a $0 annual fee, which means all of your rewards go straight into your pocket. It has an introductory APR of 0% for 12 months from account opening on purchases and 0% for 12 months from account opening on qualifying balance transfers, too. The card’s regular APR is 18.49%, 24.49%, or 28.49% Variable and the balance transfer fee is 3% intro for 120 days from account opening, then up to 5% (min $5).

The Capital One Venture Rewards Credit Card is the best credit card for travel rewards because it gives 5 miles per $1 spent on hotels, vacation rentals and rental cars booked through Capital One Travel, 5 miles per $1 spent on Capital One Entertainment purchases, and 2 miles per $1 on all other purchases. Its initial bonus is 75,000 miles for spending $4,000 on purchases in the first 3 months - worth $750 in travel.

The card also comes with some great travel perks, like a credit for the application fee for TSA PreCheck or Global Entry, an experience credit when you book certain hotel rooms, and the ability to transfer points to many different travel loyalty programs.

The Blue Cash Preferred® Card from American Express is the best credit card for bonus cash back rewards because it gives as high as $300 cash back for spending $3,000 in purchases within the first 6 months (welcome offers vary and you may not be eligible for an offer; apply and, if approved, find out your offer amount and accept the card with your offer, spend $3,000 in 6 months, and receive the cash back in the form of Reward Dollars, which can be redeemed for a statement credit or at Amazon.com checkout). When it comes to ongoing rewards, it gives 6% cash back at U.S. supermarkets (up to $6,000 spent per year), 6% back on select U.S. streaming subscriptions, 3% back at eligible U.S. gas stations and on transit, and 1% back on other eligible purchases, received as rewards dollars (which can be redeemed as a statement credit and at Amazon.com checkout).

This card has a $0 introductory annual fee for the first year, after which it increases to $95. In addition, it has an introductory APR of 0% for 12 months on purchases and 0% for 12 months on balance transfers. The card’s regular APR is 19.49% - 28.49% (V) and the balance transfer fee is 3% (min $5).

The Upgrade Cash Rewards Visa® is the best rewards card for people with fair credit (a credit score of 640). It offers 1.5% cash back on all purchases, credited when you pay your bill. You can also get a bonus after opening a Rewards Checking Preferred account and making 3 debit card transactions. To top things off, the card has a $0 annual fee.

The Petal® 2 Visa® Credit Card is the best rewards card for people who have limited or no credit history. It gives 1% cash back on all eligible purchases, up to 1.25% back after 6 months of on-time payments, and 1.5% cash back after 12 consecutive months of paying on time. The card doesn’t offer an initial bonus, but it does have no fees whatsoever.

The Bank of America® Unlimited Cash Rewards Secured Credit Card is the best rewards card you can get with bad credit (a credit score below 640). It offers 2% cash back on all purchases for the first year, and 1.5% cash back thereafter. The card also has a $0 annual fee. In addition, you can get a credit limit of up to $5,000 by increasing your security deposit.

Credit card rewards give you an incentive to spend more money on your card by returning a percentage of your purchases back to you in the form of cash back, points or miles. You can then redeem your rewards for a variety of options, from statement credits to travel to gift cards.

Here’s how the process of earning and redeeming credit card rewards works:

1. You apply and get approved for a rewards credit card. You can browse the best rewards credit cards here on WalletHub.
2. You use the card to make purchases. You don’t have to do anything special during the transactions to earn rewards. The credit card company will award them automatically.
3. The credit card company gives you rewards. Usually, you’ll earn at least 1% cash back or 1 point/mile for every $1 you spend, but certain cards may have higher base earning rates and/or give bonus rewards on certain types of purchases.
4. The rewards post to your account. You typically won’t receive your rewards until after the end of the billing period during which you earn them. Certain rewards bonuses, like initial bonuses for spending a certain amount of money in the first few months, could take 1-2 full billing periods to post after you meet the requirements.
5. You redeem the rewards. If you have cash back rewards, you can typically redeem them for a statement credit, check or bank deposit. If you have points or miles rewards, you may be able to redeem them for things like travel, cash back, gift cards, merchandise, special experiences, charitable donations and more, depending on the card.
6. The rewards may expire. Your rewards may or may not expire after a certain period of inactivity (no rewards earned or redeemed), or simply a certain amount of time after you initially earned them. Any unredeemed rewards will also expire if you close your account. Read the terms and conditions of your credit card’s rewards program to make sure you don’t accidentally let your rewards expire.

You can learn more about how credit card points and miles work here on WalletHub.

Credit card rewards come in three basic currencies: cash back, miles, and points.

Cash back is undoubtedly the most straightforward type of rewards. With a cash back credit card, a certain percentage of what you paid for your purchases will be returned to you. The most common way to redeem earned cash back is for a statement credit, although some issuers will give you the option of receiving a check in the mail or a transfer to a bank account as well.

One percent cash back across all purchases has become the industry standard, though there are some cards that give more. Many credit cards offer 1% as a base earning rate that is supplemented by higher earning rates in specific spending categories. Unlike points or miles, cash back rewards cannot be devalued by credit card companies.

There are two types of credit card miles: those tied to a specific airline and generic miles that you can put toward any travel-related expense.

The former are offered by co-branded credit cards and are best for brand-loyal frequent travelers. The latter are great for people who travel often enough to make use of travel-oriented rewards but don’t want to be tied down to a particular travel provider.

You can typically redeem credit card miles for travel, gift cards, cash back, merchandise, experiences, and more. Miles can be devalued, which means the credit card issuer can change their value at any time. Technically, issuers aren’t supposed to do this, and they’ve been warned against it by the Consumer Financial Protection Bureau, but they may still do it anyway. For this reason, it’s important to redeem your miles often.

There are two types of credit card points: points associated with a certain hotel or merchant, and generic points. You can typically redeem points for the same options as miles: cash back, travel, gift cards, merchandise, experiences, charitable donations, etc.

You should only opt for points-based credit card rewards if you are sure that you’ll be able to redeem often enough to benefit consistently, avoid devaluation, and maximize their value. Before getting any points credit card, make sure that it offers a good amount of value toward your favored redemption option (for example, a card might offer 1 cent per point toward travel, but only 0.5 cents per point toward cash back).

In addition, watch out for offers that credit card companies advertise as “cash back” but actually provide points. Usually, these cards do give at least 1 point per $1 spent, which you can then redeem for 1 cent in cash back, but it’s a roundabout way to get cash which can then be subject to expiration and devaluation.

To learn more, check out WalletHub’s page focusing on the different types of credit card rewards.

You should focus on rewards if you have good or excellent credit and you pay your bill in full every month. If you have less than good credit, your first priority should be getting a credit card you can qualify for that doesn’t charge an annual fee, in order to help you build credit cheaply. Rewards can be your secondary priority in that case.

If you are in the market for a rewards card, the following tips can help you make the right choice:

• Consider fees: If the card has an annual fee, check to see if you will earn enough rewards in an average year to offset the cost of the annual fee based on your spending habits.
• Pay attention to bonus requirements: Don’t get a card that offers an initial bonus that can be achieved by spending $5,000 in 4 months when you normally spend no more than $2,500 in the same time frame, for example.
• Go for travel rewards only if you can redeem them often: Only opt for travel rewards if you will realistically be able to redeem what you earn for a free vacation within 12-18 months. Otherwise, you’ll be at risk of rewards devaluation, and you won’t be benefitting enough to make your rewards card as worthwhile as it could be.
• Focus on practicality, not just value: Don’t gravitate to the cards with the absolute biggest initial bonuses if you can’t actually use them. For example, a co-branded airline card with an 80,000-mile initial bonus will be useless to you if that airline does not fly out of your local airport.
• Use multiple credit cards: Choosing a single credit card to take care of all your needs will naturally leave you with mediocre terms across the board. Using multiple cards, each for a different purpose, such as a 0% APR credit card to pay off your debts and a rewards card for everyday expenses, will enable you to get the best possible financing terms as well as the most lucrative rewards for your spending habits.
• Don’t give up immediately after a rejection: If you don’t get approved for your card of choice and you believe that your credit standing and disposable income meet the card’s requirements, you may want to check your credit report for mistakes or even submit a reconsideration request.
• Choose a card based on your credit. If you have above-average credit, find the card that offers the highest cash back earning rates in your biggest recurring spending categories and make it your primary spending vehicle. If you have limited or damaged credit, your best course of action is to open a credit card with no annual fee in order to get positive information flowing into your credit reports. If you can score some rewards in addition to that, great, but don’t make it your priority at this point.

Much like rewards are offered in different currencies, they are also distributed to cardholders for different reasons.

It is common for credit card companies to offer well-qualified new customers what amounts to signing bonuses. More specifically, they’ll give you a lump-sum rewards bounty – 40,000 miles for example – as a result of spending a specified amount during the first few months that your account is open, or occasionally even for making your first purchase.

Taking advantage of an attractive initial bonus is a great way to supplement another card’s ongoing earning rate.

The most common way to earn rewards is by making purchases with your credit card. You should strive to get a card that offers attractive earning rates in your biggest expense categories. In most cases, you won’t receive rewards for cash advances, balance transfers, or the use of checks provided by your credit card company.

Some credit cards will even give you a free flight, hotel night, or a certain amount of points, miles or cash back each year on your account anniversary. This is often done to justify an annual fee, and you have to make sure the juice is worth the squeeze before agreeing to re-up.

Occasionally, cards might offer a bonus for things like adding an authorized user or referring the card to a friend who gets approved.

Most credit cards enable you to redeem the rewards that you earn in certain denominations (e.g. multiples of $25 cash back). You will generally be presented with a few different options in terms of how you can redeem your rewards as well. Your goal should be to redeem your rewards in a way that gets the biggest bang for your buck.

Statement Credit: Perhaps the simplest way to redeem rewards is via statement credit. This involves crediting your rewards balance to your account, which helps you pay your bill.

Check: You can generally request that your rewards balance be cashed out and mailed to you via check.

Bank deposit: You may be able to get cash back rewards transferred to a bank account.

Gift Cards: Many issuers offer gift card redemption. Redeeming a gift card from one of your favorite retailers is often better than redeeming your rewards directly for merchandise through a credit card shopping mall, which tends to be a poor value proposition.

Merchandise: You can often buy consumer goods – ranging from sporting equipment to electronics – in credit card shopping malls as well. Credit card companies often put a dollar figure (or a discount percentage) next to each item in their online shopping store, to make it look like you’re getting a good deal. However, that dollar figure is still likely higher than what you’re going to find at Amazon, for example.

Charity: Unbeknownst to most consumers, many credit cards allow you to redeem your rewards for a charitable donation. If your credit card company offers no such option, or you’d rather donate to an organization other than the one(s) affiliated with your issuer, you can always redeem for cash or a gift card and give back that way.

Special Experiences: Membership in certain high-end rewards programs enables customers to qualify for certain “unique experiences.” For example, this might entail exclusive access to event tickets, celebrity meet-and-greets, etc.

Rewards credit cards are worth it if you earn more value from the rewards than you spend on fees and interest, and if you don’t have to spend more than you usually would to earn the rewards. Some of the best rewards credit cards can save the average person $2,000+ over a two-year period, but if you plan on carrying a balance from month to month, the high interest rate can eat away at your savings.

If a rewards card has no annual fee, it’s pretty easy to determine the card is worth it. However, you shouldn’t rule out a card if it has an annual fee. A card may have enough rewards and perks to cover the cost of the annual fee. In addition, some cards’ initial bonuses can cover the annual fee for one or more years.

Below, we’ll provide some more tips on how to choose the best rewards credit card and avoid common pitfalls.

Sometimes, rewards programs have quarterly or annual earning limits – either in certain spending categories or across the board. This enables issuers to control their profit margins by applying a ceiling to the value that you get from their products.

Oftentimes, earning limits will have no practical effect on your situation. That would be the case if a credit card offers 6% cash back on supermarket purchases up to $6,000 annually and you only spend $3,000 at the grocery store each year, for instance. But in other cases, earning limits may prevent you from accruing rewards late in a given billing cycle or the calendar year. You should therefore always read a program’s fine print and consider how it applies to your spending habits before signing up.

Rotating categories enable issuers to advertise a high maximum earning rate. For example, you may have seen offers advertising the ability to earn 5% cash back in popular spending categories that change on a quarterly basis.

The problem is that you have to sign up for the ability to earn that rate each quarter when the updated discount categories are announced, so you can lose track of when to you need to sign up or forget entirely. In addition, it’s possible that the bonus for a certain quarter could be for a category you don’t spend much money on.

What can you redeem your rewards for, and do you stand to get good value on redemption? Those are two key questions that you must ask yourself when considering a rewards credit card. A big pile of rewards might seem appealing, after all, but it’s ultimately only as good as what you can get for it. That’s especially true when it comes to travel rewards, as not all points and miles carry the same dollar value, and not all issuers work with the same airlines and hotel chains.

In fact, consumer interest in redemption versatility is driving some issuers to expand their network of corporate partners in order to give customers more options and make their rewards programs more appealing.

“The more embedded your product/service is in the overall consumption patterns of a given consumer or consumer segment, the more likely your product is to become a habitual purchase,” said Hope Schau, a professor of marketing at UC Irvine. “The trend toward cobranding promotions and cobranded versatile rewards is likely to grow. If the partnership is well-conceived, it adds value to the consumer and inspires solidified preference and purchase decisions.”

When rewards are issued in the form of points or miles, issuers typically set plateaus you must reach in order to redeem these points/miles for certain goods and services.

However, these plateaus are not guaranteed to be static, and whenever an issuer increases the number of points/miles needed for redemption, the points/miles you have saved can effectively become worth much less all of a sudden.

In order to avoid rewards devaluation, we recommend redeeming your points/miles as frequently as possible. This will not only minimize the number of points/miles that are vulnerable to devaluation at any given time, but will also allow you to benefit from your rewards credit card more often.

While most issuers have done away with expiration dates in the face of consumer anger, certain rewards programs may still have them. That’s why it’s so important to search through the fine print of a credit card offer for mentions of the word “reward” to make sure you don’t miss any key terms (hint: on your keyboard hold down the CTRL and F buttons to enable your browser’s text search function).

It’s also important to note that you can’t keep the rewards you’ve accrued when you close an account. So always make sure to cash out before saying goodbye.

Don’t spend a lot more than you ordinarily would just to earn some rewards, even if the prize you’re chasing is a hefty initial bonus. This is an all-too-common pitfall.

“Appealing loyalty offers may drive actual increased consumer spending as consumers modify normal spending to take advantage of compelling offers,” Dan Horne, a professor emeritus of marketing at Providence College, told WalletHub in explaining the value of rewards programs to the companies that offer them.

There are essentially two types of rewards-based overspending, according to Hope Schau. “Consumers may be inspired to purchase a given product or service earlier than anticipated to take advantage of a loyalty promotion or stockpile,” Schau said. “In rarer cases, consumers might be inspired to purchase something they would not ordinarily purchase or thought they could not afford based on a loyalty program.”

Either way, there’s no sense in adding to the billions of dollars that we collectively owe to credit card companies just to score a few miles or a bit of cash back. Rewards only benefit you if they’re used to subsidize ordinary spending habits.

For cash back cards, your rewards are already in the form of dollars, but on miles and points-based credit cards, it’s more difficult to determine what your rewards are really worth. Credit card companies will try to push you toward less lucrative redemption methods, which means you should know how to calculate the dollar-value of any non-cash redemption option before using it.

For example, with 10,000 points, you may be able to get $50 cash back, a $75 gift card, a flight that normally costs $200, etc. By comparing your options in this manner, it will become abundantly clear which one will provide the best return on investment.

WalletHub conducts quarterly analysis of the credit card landscape, including rewards earning rates for different credit segments and types of cards. This information will give you a sense of what to expect from a rewards card and can serve as a useful point of reference when you’re comparison shopping. It may also help you spot trends.

1. How do loyalty programs affect consumer spending habits?
2. How do you see the trend of companies establishing versatile rewards partnerships with other businesses playing out over the next few years?
3. How do companies go about selecting their rewards partnerships?
4. How do companies use loyalty programs differently for customer acquisition vs. customer retention?
5. How are credit card-based loyalty programs different from others?