Guidelines for Choosing the Right Reward Credit Card

How to Select the Ideal Reward Credit Card

A reward credit card offers incentives such as cashback, merchandise points, or travel miles for your spending. Different cards feature varying reward schemes—some provide higher rewards for specific categories like groceries, dining, or travel. Typically, you earn points with every dollar spent on your card.

Rewards generally fall into three types: cash, points, and travel miles.

Cash rewards are simple, allowing you to redeem as a statement credit, check, or direct deposit. Some cards also offer gift cards from partner merchants, often at a discount.

Point-based rewards depend on your spending—usually one point per dollar—and can be redeemed online for merchandise or gift cards, often at a discount of 10-20%. There are specialized reward cards for auto expenses or hotel stays.

Miles or travel rewards can be exchanged for airline tickets. The number of miles needed varies per airline program, and transferring miles between programs may incur losses.

For instance, a Hilton Honors credit card helps you earn bonus points through daily spending, which can be redeemed for free nights and other perks.

Choosing the right card depends on your travel frequency, spending habits, and rewards preferences. Hilton Honors credit cards, for example, reward you with increased points per dollar spent. When booking Hilton stays, you earn ten points per dollar, with additional points if you pay with the card.

American Express and Citi Hilton Honors Visa Signature cards are suitable for those spending under $30,000 annually. The Citi card offers a 40,000 point bonus after spending $1,000 in four months, earning 6 points per dollar at Hilton hotels. The American Express version also offers 40,000 bonus points, with a lower spending threshold of $750, and earns higher points per dollar on Hilton and select categories.

For frequent travelers, the Hilton Honors Reserve Card provides a free weekend night each year for a $95 annual fee, ideal for those staying often at Hilton properties. The Surpass Card, costing $75 annually, offers the highest earning potential with 12 points per dollar spent at Hilton locations and opportunities to attain elite status with high annual spending.

Comparing these options, the American Express Hilton Honors card offers the best earning potential and lower minimum spending for bonus points. Both cards include complimentary Silver status, but American Express requires higher spend for Gold status.

Keep in mind that reward programs may change, and points can expire if unused within certain periods. Rewards are also forfeited if you miss payments. High-credit-score applicants benefit most, as premium reward cards often have strict qualification criteria.