Why you should get a fixed-rate rewards credit card --[Reported by Umva mag]

Editor’s note: This is a recurring post, regularly updated with new information and offers.

For some people, tracking bonus categories and rotating rewards across multiple credit cards to earn the maximum points and miles possible can be overwhelming.

The good news is that you don’t have to expend much energy to accrue credit card points efficiently. Fixed-rate rewards cards earn a flat rate on all purchases, and many offer a respectable return, simplifying the reward-earning process if you’re not a fan of tracking where, how and which card you’re using to make purchases.

If you like the idea of a streamlined method for earning cash back and other rewards, these four cards exhibit the simplicity of a fixed-rate product. Plus, depending on the card you choose, you may also have the option to redeem your rewards for bucket-list travel items — more on that in a bit.

Best fixed-rate rewards cards

Capital One Venture Rewards Credit Card

Our first pick for the best fixed-rate rewards cards is the Capital One Venture Rewards Credit Card.

Sign-up bonus: Earn 75,000 bonus miles after spending $4,000 on purchases within the first three months of account opening. According to TPG’s October 2024 valuations, Capital One miles are worth 1.85 cents per mile, making this welcome bonus worth $1,388.

Annual fee: $95 (rates and fees)

Earning rate: Earn 2 Capital One miles per dollar on every purchase.

Redemption possibilities: There are plenty of ways to redeem Capital One miles; how you choose to redeem yours depends on whether you want to use them for gifts, shopping or travel.

For starters, you can redeem Capital One miles at fixed values at the following rates:

• Travel — 1 cent per mile
• Gift cards — between 0.8 cents and 1 cent per mile
• Shopping online with Amazon or PayPal — 0.8 cents
• Cash back — 0.5 cents

These are the options for those who value simplicity most. The top choice here is redeeming your miles for travel, as you’re guaranteed to get a value of at least 1 cent per mile.

However, if you’re willing to dive a little deeper, you can get even more value out of your miles by transferring them to airline and hotel partners. We estimate Capital One miles to be worth 1.85 cents each when you redeem your rewards this way.

Need help transferring Capital One miles to partners? We’ve got you covered — this guide walks you through how to do just that. Plus, you’ll be able to see how much value there is in using your miles this way.

To learn more, read our full review of the Capital One Venture Rewards card.

Learn more: Capital One Venture Rewards Credit Card 

Chase Freedom Unlimited

When used strategically, the Chase Freedom Unlimited® can be a powerful fixed-rate card.

Sign-up bonus: Earn an additional 1.5% cash back on everything you buy (on up to $20,000 spent in the first year), worth up to $300 cash back.

Annual fee: $0

Earning rate: 5% back on travel purchased through the Chase Travel℠  portal, 3% back on dining (including takeout and eligible delivery services), 3% back at drugstores and 1.5% back on all other purchases.

Redemption possibilities: The Chase Freedom Unlimited is a cash-back style card. You can transfer the rewards you earn with the Chase Freedom Unlimited to various airline and hotel partners if you also have one of the following cards:

• Chase Sapphire Preferred® Card
• Chase Sapphire Reserve®
• Ink Business Preferred® Credit Card

When you use your points this way, TPG estimates your rewards to be worth 2.05 cents each.

To learn more, read our full review of the Chase Freedom Unlimited.

Apply here: Chase Freedom Unlimited

Citi Double Cash Card

The Citi Double Cash® Card (see rates and fees) is a great option for anyone looking for a fixed-rate credit card.

Sign-up bonus: Earn $200 cash back after spending $1,500 on purchases in the first six months of account opening.

Annual fee: $0 (see rates and fees)

Earning rate: Earn 1% back when you make a purchase and 1% back when you pay off that purchase. You’ll effectively get 2% back for all expenses. Plus, earn 5% total cash back on hotel, car rentals and attractions booked on the Citi Travel℠ portal through 12/31/25.

Redemption possibilities: Earning 2% on everything is a solid return — and fewer cards are less complicated than this earning structure.

However, similar to the Chase Freedom Unlimited, the rewards you earn with the Citi Double Cash are even more valuable than they appear. If you hold a Citi card with access to their valuable airline partners, you can transfer your rewards to squeeze even more value out of them.

To learn more, read our full review of the Citi Double Cash.

Apply here: Citi Double Cash Card

The Blue Business Plus Credit Card from American Express

If you’re in the market for a business card, the Blue Business® Plus Credit Card from American Express is a fantastic option.

Welcome offer: Earn 15,000 points after spending $3,000 in purchases in the first three months from account opening. According to TPG’s October 2024 valuations,  this welcome bonus worth $300.

Annual fee: $0 (see rates and fees)

Earning rate: Earn 2 Amex points per dollar on the first $50,000 in purchases each calendar year (then 1 point per dollar for other eligible purchases).

Redemption possibilities: Like the above cards, the easiest ways to redeem points are not necessarily the best. For example:

• Use Amex Pay with Points to book airfare through Amex Travel at 1 cent per point
• Purchase gift cards for between 0.5 cents and 1 cent each (depending on the merchant)
• Reimburse credit card charges as a statement credit for 0.6 cents each

Again, there is value in simplicity. But you can get an astronomically greater return for your Amex points by transferring them to airline and hotel partners (around 2 cents in value per point, on average, according to TPG’s July 2024 valuations).

Check out our full guide on Amex Membership Rewards points to see how much value these rewards hold.

To learn more, read our full review of the Blue Business Plus card.

Apply here: The Blue Business Plus Credit Card from American Express

Bottom line

If the mental gymnastics of rotating bonus categories and promotional earning rates aren’t your thing, a fixed-rate rewards card might be exactly what you need.

You’re guaranteed to earn rewards every time you swipe without the extra step of rifling through offers and activating them. Plus, with our guides on maximizing your reward earnings, you can increase the value of your points by transferring or combining them with airline and hotel partners.

Related: Credit card transfer partners: Guide to transferring points and miles to airlines and hotels

For rates and fees of the Amex Blue Business Plus card, click here.

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