Best rewards credit cards for January 2022

With the Chase Freedom Unlimited® credit card, you earn 5% cash back on travel purchases through Chase Ultimate Rewards, 3% on dining, 3% on drugstore purchases and 1.5% flat-rate cash back on all other purchases. The Chase Freedom Unlimited card offers all-around great rewards, with one of the highest flat credit card rewards rates out there. 

New card members will also enjoy the welcome bonus, for which you earn an additional 1.5% cash back on up to $20,000 in purchases in your first year. This rewards credit card works well whether it’s the only card in your wallet or used to supplement a specific category card, which may offer higher bonuses for a particular type of purchase.

Alaska Airlines offers one of the highest-valued reward miles on the market — which is saying something of a card with only a $75 annual fee. The Points Guy values Alaska Airline miles at 1.8 cents per mile, meaning you receive approximately 5.4% value back on Alaska Airline purchases, and 1.8% value back on all other purchases. Though they fly to a handful of international destinations, the routes are generally domestic. 

The Alaska Airlines Visa Signature credit cardoffers other perks for your travels, including Alaska’s Famous Companion Fare from $121 ($99 fare plus taxes and fees from $22) and 40,000 bonus miles after spending $2,000 or more on the card within the first 90 days of account opening. You can also enjoy free checked bags for you and up to six guests on your reservation, no foreign transaction fees and the opportunity for instant approval.

The Chase Sapphire Reserve is a general travel rewards credit card, meaning you earn points on any travel or dining purchase, making it a great option for international travel. The Points Guy values points for this card at 0.02 cent, meaning you’re effectively earning a 20% return on hotels and car rentals booked through Chase Ultimate Rewards (10x points), 10% return on air travel through Chase Ultimate Rewards (5x points), 6% return on other travel and dining purchases (3x points) and a 2% return on all other eligible purchases (1x points). You can earn elevated rewards on all travel purchases after earning the $300 annual travel credit. And through March 2022, you can earn 10x points on Lyft purchases, effectively a 20% return based on The Points Guy’s value.

While the $550 annual fee for this Chase credit card is on the high side, an annual statement credit of up to $300 for travel purchases essentially brings the yearly commitment down to $250. The signup bonus earns you 50,000 Chase Ultimate Rewards points when you spend $4,000 in the first three months (worth $750 when redeemed for travel through Chase Ultimate Rewards). Chase Sapphire Reserve card holders also get a Priority Pass™ Select membership, giving them VIP lounge access at more than 1,300 airport lounges across the world for more comfortable traveling upon enrollment.

The Capital One Savor Cash Rewards Credit Cardboasts a headline rate of 4% cash back on dining and entertainment, which includes bars and restaurants, as well as tickets to movies, plays, concerts, sporting events, tourist attractions, theme parks, aquariums, zoos, dance clubs, pool halls and bowling alleys. But the rewards don’t end with dining and entertainment: You can pick up another 3% cash back on your grocery store purchases (excluding superstores like Walmart and Target), and 1% on everything else. And as long as you spend $3,000 in the first three months after opening your account, Capital One will give you a $300 welcome bonus.

With the Wells Fargo Active Cash Card, you don’t need to worry about activating rewards categories, rotating categories or which card gives you the most back. Things are kept simple via a 2% cash rewards rate on purchases — and no annual fee. Most credit cards offer only a 1% blanket cash rewards rate if at all, so you’re in good shape with this card. 

If you spend at least $1,000 in purchases on the card within the first three months of account opening, you earn a $200 cash rewards introductory bonus. Yet another perk is 0% introductory APR for the first 15 months from account opening on purchases and qualifying balance transfers (14.99% to 24.99% variable APR thereafter).

How do you value points and miles to compare cards?

To keep our comparisons accurate and consistent, we use The Points Guy for monetary valuations of points and miles. The Points Guy updates points valuations on a monthly basis and addresses inconsistencies across cards via a proprietary scoring algorithm.

Is cash back better than points?

While cash back is a more accessible concept, cash back and points both have their strengths and weaknesses. While cash back can be more universally applicable, points are often worth more in value than their cash-back equivalents. Depending on your shopping preferences and plans, you may find points or cash back to be more valuable to you.