The Best Rewards Credit Cards of June 2020

If there’s a rewards card known for its travel perks, its undeniably the Chase Sapphire Preferred card. This card gives account holders the freedom to choose how they want to redeem their rewards — either through airlines or hotels — and consistently offers great sign-up bonuses (this card is also a Forbes’ pick for cards with the best sign up bonuses).

According to Chase.

Rewards: 2X points on travel, including airfare, hotels, taxis and trains; 2X points on dining worldwide; one point per $1 spent on everything else.

Annual Fee: $95

Bonus Offer: Earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $750 toward travel when you redeem through Chase Ultimate Rewards®

Other Benefits or Drawbacks: The Chase Sapphire Preferred card also comes with additional benefits, including:

• $0 foreign transaction fees
• Auto rental collision damage waiver
• Trip cancellation/interruption insurance
• Zero liability protection
• Baggage delay insurance
• 1:1 point transfer value

One drawback of the card is that the $95 annual fee isn’t waived for the first year, a perk offered by similar competitor cards.

You can read our full review of the Chase Sapphire Preferred card here.

Finding a great rewards card with no annual fee can be challenging, but the Discover it® Cash Back *delivers on both aspects. The cash back percentage (up to 5%) is higher than what most cards offer, and the bonus of having all cash back matched at the end of the year is impressive. This is a great card for everyday purchases, but be aware that the 5% rewards categories change each quarter that you activate and are limited to $1,500 in spending per quarter. All other cash back rewards pay 1%.

Rewards: 5% cash back in specified categories each quarter, including gas stations, grocery stores, restaurants, Amazon.com and more up to quarterly maximum of $1,500 in purchases; 1% cash back on everything else.

Other Benefits or Drawbacks: It can get tricky to keep up with a changing rewards category each month, but they’re typically geared toward everyday purchases like gas, restaurants and grocery stores. It’s also a bonus that cash back never expires and can be redeemed in any amount at any time.

College is a great time for individuals to build credit. Just because they don’t have a long (or perhaps any) credit record yet,  doesn’t mean students have to miss out on a rewards card. The Discover it® Student Cash Back * is a generous cash back card with 5% cash back rewards in categories students actually use, such as Uber, restaurants, grocery stores and more. There’s no limit to how much cash back students can earn with this card.

Rewards: Earn 5% cashback each quarter in selected categories that include gas stations, grocery stores, restaurants, Amazon.com and more, up to a quarterly maximum of $1,500; 1% cash back on everything else.

Other Benefits or Drawbacks: The 5% cash back categories change each quarter, so cardholders need to keep an eye on current offerings to maximize cash back earnings. Students with a GPA of 3.0 or higher receive a $20 statement credit each school year for up to five years.

A true cash back rewards card will do exactly that: Give you real cash back for your purchases. The Citi® Double Cash Card is Forbes’ top pick for the cash back rewards section based on its flat-rate rewards percentage and the option to redeem cash back as a physical check — some cards only let you redeem for statement credit. Plus, this card boasts no annual fee and no category requirements for what you can earn cash back on.

Rewards: 1% cash back on every purchase and 1% cash back when you pay for those purchases (totaling 2% cash back on everything).

Annual Fee: $0

Bonus Offer: None

Other Benefits or Drawbacks: Though the Citi Double Cash card is generous with its rewards, its 3% foreign transaction fee is one major drawback, making this card a domestic-use only option for those trying to stretch their rewards the furthest.
You can read our full review of the Citi Double Cash card here.

Small business owners require a card that has a simple rewards program but still has generous earning and redemption options. The Capital One® Spark® Cash for Business* is the best rewards card for small businesses thanks to its unlimited cash back rewards program and no-fee employee cards. This card was also featured on the Forbes Advisor list of best business cards.

Rewards: Earn unlimited 2% cash back that can be redeemed any time with no minimum. For a company spending $10,000 per month, that can equal $2,900 cash back in the first year (including the bonus offer).

Annual Fee: $0 intro for first year, $95 after that

Bonus Offer: Earn a one-time $500 cash bonus once you spend $4,500 on purchases within 3 months from account opening

Other Benefits or Drawbacks: Additional benefits include no foreign transaction fees, year-end summaries, Quicken, Quickbooks and Excel compatibility and more.

Having a damaged credit score doesn’t mean being banned from rewards while working to rebuild it. The Discover it® Secured* is a generous cash back card for individuals working on improving their credit scores

Rewards: Earn 2% cash back at gas stations and restaurants up to $1,000 each quarter; 1% cash back on everything else.

Other Benefits or Drawbacks: Benefits include:

• Cash back is matched at the end of the year
• Refundable deposit — A secured card means you have to put a deposit down as collateral; these funds will then be used to determine your “limit” (you can’t spend more than you put down).
• Option to convert to an unsecured card with responsible use
• No late fee on first late payment

Choosing an airline rewards card is not easy. There are multiple things to consider, including how often you travel, where you’re traveling, how likely you are to use lounge access and how much the miles are actually worth.

Most major U.S. airlines have rewards cards that work in tiers. There is usually a starter card with no annual fee but low rewards. Then there is a mid-tier card with rewards and added benefits, like discounts to lounges. Finally, the highest-tier card comes with a hefty annual fee, high spend requirements to receive bonuses and really are only worth it for frequent travelers.

To choose the best airlines rewards card, Forbes looked at airline rewards cards and compared them based on mile earnings, mile values, annual fees, discounts and additional benefits, including TSA Pre✔ or Global Entry credits. A great airline rewards card will also have no foreign transaction fee — what’s the point of taking a card with you on your travels if it will cost you big bucks to swipe it during your adventure?

The Citi/AAdvantage Executive Mastercard checked off every benefit on our list and then some — it pays Pre✔ or Global Entry in full. Instead of giving discounted access to its lounge as some other cards do, it gives complete access to the cardholder andauthorized users. This is an impressive card, and travelers who want to be rewarded for both domestic and international travel should consider being loyal to American Airlines with this card.

Rewards: Earn two miles for every $1 spent on American Airlines purchases; earn one mile for every $1 spent on everything else.

Annual Fee: $450

Bonus Offer: Earn 50,000 American Airlines AAdvantage® bonus miles after making $5,000 in purchases within the first 3 months of account opening; plus, Admirals Club® membership

Other Benefits or Drawbacks: This card comes with:

• Admirals Club membership ($650 value and includes access for authorized users)
• Global Entry or TSA Pre✓ application fee credit
• First bag checked free on domestic including for up to eight travel companions
• Priority boarding
• VIP check in including eight companions
• 25% discount on inflight food and beverage purchases.

One drawback: This card doesn’t offer companion certificates, as some other airline rewards cards do.

Families with a Costco membership should jump on the opportunity to sign up for a Costco Anywhere Visa card. This card’s rewards program ventures outside of Costco stores, even rewarding cardholders while at the gas pump.

Rewards: 4% cashback on gas worldwide, including gas at Costco (eligible for discount up to $7,000, then 1% cashback on gas after); 3% cash back on eligible restaurant and travel purchases; 2% cash back on all purchases from Costco and Costco online; 1% cash back on everything else

Annual Fee: $0

Bonus Offer: None

Other Benefits or Drawbacks: You can use this card anywhere — there’s no foreign transaction fee and you don’t need to be at a Costco store for it to work. This card also offers damage and theft purchase protection, as well as extended warranties on purchases. One drawback is that the cash back rewards are paid out as an annual certificate, although they are redeemable for cash.

The HSBC Premier World Elite Mastercard is one of the most generous travel rewards cards out there, and its hefty 50,000 Rewards Program Bonus Points offer is worth a whopping $750. This travel card also comes with great additional perks, such as airport lounge access, TSA TSA Pre✓ reimbursement and more.

Rewards: Earn 3X points on new travel purchases, including airline, hotels and car rentals; Earn 2X points on dining purchases; Earn 1X points on everything else.

Annual Fee: $395; each authorized user $65 per year

Bonus Offer: Earn 50,000 Rewards Program Bonus Points worth $750 in airfare – when booked online through HSBC Rewards – after spending $4,000 in the first 3 months of account opening

Other Benefits or Drawbacks: Though the annual fee is big, the bonus offer makes up for it.

Additional benefits include:

• Unlimited point earning
• Free membership to 850 plus airport lounges
• Up to $100 annually in reimbursement for travel purchases
• $85 TSA PreCheck application reimbursement
• $100 annual statement credits for Uber and Lyft rides
• Unlimited Boingo wi-fi
• 10% discount on hotel or vacation home reservations through Expedia, Agoda and Onefinestay

If you’re going to be loyal to a hotel chain, it’s worth going all out with a high-tier credit card to help make it happen. The Marriott Bonvoy Brilliant card comes with a wealth of rewards and a general sign-up bonus that make its hefty $450 annual fee pay for itself — and then some.

Rewards: Earn six points per $1 spent at participating Marriott Bonvoy hotels; earn three points per $1 spent at U.S. restaurants and flights booked directly with airlines; earn two points per $1 spent on everything else.

Annual Fee: $450

Bonus Offer: Earn 75,000 bonus Marriott Bonvoy Points after you use your new Card to make $3,000 in purchases within the first 3 months

Other Benefits or Drawbacks:

• One free night award every year after your anniversary (redemption level at 50,000 Marriott Bonvoy points or less — but keep in mind there might be resort fees you are responsible for);
• $300 Marriott Bonvoy statement credit;
• No blackout dates for free nights.
• Global Entry credit or TSA Pre✓ statement credit.
• No foreign transaction fees.
• Access to a Global Assist hotline
• Return protection
• Premium roadside assistance up to four times per year
• Priority Pass Select lounge access for the cardholder and up to two guests.