Overview
- Card designs differ by earning structure, with flat-rate, tiered, and rotating-category models determining where rewards accrue and typical ongoing rates topping out near 5%–6% with occasional limited higher offers.
- Sign-up bonuses deliver outsized value compared with everyday earn rates, exemplified by offers like 75,000 miles for $4,000 in early spending versus far higher spending to earn the same through regular use.
- Maximization strategies include pairing category bonus cards with a strong flat-rate card, tracking quarterly activations, and routing each purchase to the card that pays the highest return.
- Cash-back redemptions are straightforward through statement credits, bank deposits, or gift cards, while points and miles values vary by portal pricing and transfer partners.
- High APRs, annual fees, and overspending can erase gains, and the CFPB’s 2024 rule to lower typical late fees to $8 remains stayed in 2025 after litigation, leaving current fee levels unchanged for now.