Brian J. Roberts is a freelance writer who’s been featured in Time, Inc., Entrepreneur, USA Today, CNBC, Huffington Post and others. Follow him here.
When it comes to credit cards, there’s no shortage of options. With over 500 different reward card options out there, that leaves room for a lot of unanswered questions. Questions like “What is the best credit card?” and “Which credit card has the best rewards?” These are just a few of the questions Growella, a financial education site for millennials, sought to answer.
Using data from the U.S. Census Bureau, the Bureau of Labor Statistics and publicly available data from the credit card issuers themselves, Growella performed an objective analysis in their “Most Valuable Rewards Credit Cards” study, ranking the top 40 cards.
The value of each rewards credit card was calculated by starting with the average spend for a person aged 25-34. This was based on government data, then applying that spending pattern to the rewards structures available via credit card issuers.
The study also accounted for bonus rewards including rotating cash-back offers and sign-up offers, travel benefits, such as free luggage on airlines and hotel room upgrades, and annual fees required, wherever applicable. Or, as Growella put it: “We used algorithms, and kept our research objective and scientific. There is nothing subjective in our rankings.”
Five types of cards were considered in the study:
- Travel rewards credit cards
- Retailer rewards credit cards
- Gas rewards credit cards
- Cash back rewards credit cards
- General rewards credit cards
And, according to the study, these are the top five reward credit cards:
1. Barclay Arrival Plus World Elite Mastercard
According to the Growella study, this card has an expected value of $871.66 in the first year and an expected value of $1436.98 over three years. Although names weren’t factored into the study, personally, this card definitely wins the mouthful award too.
2. Chase Sapphire Reserve
According to the Growella study, this card has an expected value of $971.66 in the first year and an expected value of $1414.97 value over three years.
3. Capital One Venture Rewards
According to the Growella study, this card has an expected value of $771.66 in the first year and an expected value of $1396.98 value over three years.
4. American Express Blue Cash Preferred Card
According to the Growella study, this card has an expected value of $598.10 in the first year and an expected value of $1294.30 value over three years.
5. Citi ThankYou Premier Card
According to the Growella study, this card has an expected value of $730.74 in the first year and an expected value of $1252.21 value over three years.