Credit cards have become an essential financial tool for millions of consumers worldwide, offering the convenience of cashless transactions, the ability to build credit, and rewards for spending. As we enter 2024, the competition in the credit card market continues to heat up, with issuers offering even more attractive rewards and lower interest rates to entice consumers.
If you’re in the market for a new credit card, you might be looking for one that combines high rewards with low interest rates. Fortunately, there are several options available that not only offer significant rewards on everyday purchases but also provide competitive interest rates to help you save money on balances you carry from month to month.
In this SEO-friendly article, we’ll explore the top credit cards with high rewards and low interest rates in 2024. We’ll cover different card categories, such as cashback, travel rewards, and balance transfer cards, while providing tips on how to maximize your rewards and minimize interest charges.
Why Choose a Credit Card with High Rewards and Low Interest Rates?
Many credit cards offer one of two main benefits: high rewards for spending or low interest rates for carried balances. However, finding a card that offers both can help you get the most out of your financial strategy. Here are a few reasons why you should consider a credit card that combines these two features:
- Earn More While Spending: High-reward credit cards offer generous points, miles, or cashback for everyday purchases like groceries, gas, dining, and travel. This can translate into substantial savings over time.
- Save on Interest: Low-interest credit cards allow you to carry a balance without being burdened by high interest charges. This is particularly useful for consumers who might need to carry a balance occasionally but still want to benefit from rewards programs.
- Flexibility and Savings: A credit card with high rewards and low interest rates gives you flexibility in how you manage your spending. You can enjoy rewards on every purchase while avoiding steep interest fees if you need to pay your balance over time.
- Best of Both Worlds: By choosing a card with both high rewards and low interest rates, you can avoid the usual trade-off between earning rewards and minimizing interest expenses.
Factors to Consider When Choosing a Credit Card in 2024
Before diving into the list of top credit cards for 2024, it’s important to consider a few factors that can help you select the best card for your needs:
- Rewards Rate: Look for cards that offer high rewards rates on categories you spend the most on, whether it’s groceries, gas, dining, or travel. Some cards offer flat-rate rewards, while others have bonus categories with higher rates.
- Interest Rate (APR): The interest rate, or annual percentage rate (APR), is key if you plan to carry a balance. Look for cards with a low APR to save money on interest charges, especially if you don’t pay your balance in full every month.
- Annual Fees: Some high-reward cards come with annual fees, but the rewards you earn may offset the cost. Consider whether the rewards outweigh the annual fee or if a no-annual-fee card might be a better fit for you.
- Introductory Offers: Many credit cards offer introductory 0% APR on purchases or balance transfers for a set period. These offers can help you pay off debt or finance large purchases without paying interest.
- Sign-Up Bonuses: Many cards offer sign-up bonuses for new cardholders who meet a spending requirement within the first few months. These bonuses can give you a head start on earning rewards.
- Foreign Transaction Fees: If you travel internationally, look for a card with no foreign transaction fees, which can save you 2-3% on each purchase made abroad.
Now, let’s explore the best credit cards with high rewards and low interest rates for 2024.
1. Citi® Double Cash Card – Best for Flat-Rate Cashback
The Citi® Double Cash Card continues to be a favorite among consumers seeking straightforward cashback rewards combined with a competitive interest rate. This card offers 2% cashback on every purchase: 1% when you make a purchase and another 1% when you pay it off. It’s one of the simplest cashback cards available, with no rotating categories to keep track of.
- Rewards: Earn 2% cashback on every purchase (1% when you buy and 1% when you pay).
- APR: Variable APR of 17.74% – 27.74%.
- Annual Fee: $0.
- Intro Offer: 0% intro APR on balance transfers for 18 months, then a variable APR of 17.74% – 27.74%.
- Best for: Consumers looking for a straightforward, flat-rate cashback card with no annual fee and a low APR on balance transfers.
The Citi® Double Cash Card is ideal for those who want to maximize cashback without worrying about bonus categories. Additionally, its low APR on balance transfers makes it a solid option for anyone looking to pay down existing debt.
2. Chase Sapphire Preferred® Card – Best for Travel Rewards
If you’re a frequent traveler, the Chase Sapphire Preferred® Card is one of the best travel rewards credit cards on the market, offering generous points for travel and dining, along with a reasonable interest rate for those who occasionally carry a balance.
- Rewards: Earn 5x points on travel purchased through Chase Ultimate Rewards®, 3x points on dining, 2x points on other travel purchases, and 1x point per dollar on all other purchases.
- APR: Variable APR of 20.49% – 27.49%.
- Annual Fee: $95.
- Sign-Up Bonus: Earn 60,000 bonus points after spending $4,000 in the first 3 months (worth $750 toward travel through Chase Ultimate Rewards®).
- Best for: Frequent travelers who want to earn valuable points that can be redeemed for travel, cash back, or gift cards.
With the Chase Sapphire Preferred® Card, you can maximize rewards on travel and dining purchases, plus enjoy flexible redemption options. Although it has an annual fee, the value of the rewards can easily outweigh this cost if you use the card strategically.
3. Discover it® Cash Back – Best for Rotating Categories
The Discover it® Cash Back card offers one of the most rewarding cashback programs with rotating bonus categories that change every quarter. You can earn 5% cashback on up to $1,500 in purchases in categories like groceries, gas stations, and restaurants, and 1% cashback on all other purchases. The best part? Discover will match all the cashback you earn in your first year, effectively doubling your rewards.
- Rewards: Earn 5% cashback on rotating quarterly categories (up to $1,500), and 1% on all other purchases.
- APR: Variable APR of 16.49% – 27.49%.
- Annual Fee: $0.
- Intro Offer: Discover will match all the cashback you’ve earned at the end of your first year.
- Best for: Consumers who are comfortable managing rotating categories and want to maximize cashback in specific spending areas.
The Discover it® Cash Back card is perfect for those who like to plan their spending around the bonus categories and take advantage of the cashback match offer in the first year.
4. Wells Fargo Active Cash® Card – Best for No Annual Fee and High Cashback
The Wells Fargo Active Cash® Card is a solid no-annual-fee option that offers unlimited 2% cashback on all purchases. Additionally, it provides a generous introductory APR period for both purchases and balance transfers, making it an excellent choice for consumers looking to avoid interest charges while earning cashback.
- Rewards: Unlimited 2% cashback on all purchases.
- APR: Variable APR of 19.49% – 29.49%.
- Annual Fee: $0.
- Intro Offer: 0% intro APR for 15 months on purchases and balance transfers, then a variable APR of 19.49% – 29.49%.
- Best for: Consumers looking for simple, unlimited cashback with no annual fee and a long 0% intro APR.
With no annual fee and a flat 2% cashback rate, the Wells Fargo Active Cash® Card is a great choice for consumers who want to earn rewards on all their spending without worrying about categories.
5. Blue Cash Preferred® Card from American Express – Best for Groceries and Gas
If you spend a lot on groceries and gas, the Blue Cash Preferred® Card from American Express offers some of the highest rewards in these categories. You can earn 6% cashback on U.S. supermarket purchases (up to $6,000 per year), 3% on U.S. gas stations and transit, and 1% on all other purchases.
- Rewards: Earn 6% cashback on U.S. supermarket purchases (up to $6,000 per year), 3% on U.S. gas stations and transit, and 1% on other purchases.
- APR: Variable APR of 19.49% – 29.49%.
- Annual Fee: $0 for the first year, then $95.
- Intro Offer: 0% intro APR for 12 months on purchases and balance transfers, then a variable APR of 19.49% – 29.49%.
- Best for: Families and individuals who spend heavily on groceries and gas.
The Blue Cash Preferred® Card is ideal for families who want to earn substantial cashback on everyday spending categories like groceries and gas. While it has an annual fee, the cashback rewards can easily cover the cost if you spend enough in the bonus categories.
How to Maximize Rewards and Minimize Interest
To get the most out of your high-rewards, low-interest credit card, follow these tips:
- Pay Your Balance in Full: If possible, pay your credit card balance in full each month to avoid interest charges and maximize your rewards. Interest charges can quickly erode the value of any rewards you earn.
- Take Advantage of Introductory Offers: Many cards offer 0% APR for an introductory period on purchases or balance transfers. Use this time to pay down existing debt or finance a large purchase without accruing interest.
- Monitor Rotating Categories: For cards with rotating bonus categories, like the Discover it® Cash Back, make sure to activate the categories each quarter and plan your spending around them to earn the maximum rewards.
- Redeem Points Wisely: For travel rewards cards, consider transferring points to airline or hotel loyalty programs to get more value for your rewards. Cashback cards often allow you to redeem for statement credits or direct deposits, which can be a practical way to use your rewards.
Conclusion
In 2024, there are many excellent credit card options that combine high rewards with low interest rates, making it easier than ever to earn valuable rewards while keeping interest charges to a minimum. Whether you’re looking for flat-rate cashback, travel rewards, or rotating categories, there’s a card that fits your needs.
When choosing the right credit card, consider your spending habits, whether you plan to carry a balance, and how much value you’ll get from the rewards and benefits. With the right card, you can enjoy both the rewards and savings that come with smart financial management.
