The post Best Credit Cards for Restaurants and Dining by Rebekah Brately appeared first on Benzinga. Visit Benzinga to get more great content like this.
If you enjoy eating out and ordering takeout regularly, a good financial move is to research the best credit cards for restaurants. These cards provide the greatest benefit when you spend money eating out and can help make the most of your funds. Find the best options based on your preferences and use cases.
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Quick Look at the Best Credit Cards for Restaurants and Dining
- Best for High Rewards with No Annual Fee: Capital One SavorOne Cash Rewards Credit Card
- Best for Dining and Travel Rewards: Chase Sapphire Preferred
- Best for Flexible Cash Back in Multiple Categories: Chase Freedom Ultimate
- Best for 3x Cash Back on Dining: Wells Fargo Autograph Card
- Best for Rewards Flexibility: Bank of America® Customized Cash Rewards Credit Card
What Are the Best Credit Cards for Restaurants and Dining?
If you’re seeking the best credit card for restaurants, you’ll find it on this list. Review your options alongside the pros and cons of each to find one that is right for you.
1. Best for High Rewards with No Annual Fee: Capital One SavorOne Cash Rewards Credit Card
Capital One SavorOne Cash Rewards Credit Card
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- 0% APR on balance transfers for the first 15 months, plus a 3% fee. After that, the APR is 19.99% – 29.99% (variable)
- Cash advance fee is 3%
- 3% cash back on groceries (excluding superstores like Walmart® and Target®), dining, entertainment and streaming services
- 5% cash back on hotels and rental cars booked through Capital One Travel (Terms Apply)
- Best For:
Points Never Expire
- A sign-up bonus that equals almost half the required expenditure
- No annual fee
- Can’t use rewards to book travel
Whether your passion for food is only in dining out or you enjoy creating savory dishes at home, you’ll get incredible cash back with the Capital One SavorOne Cash Rewards Credit Card.
You’ll have ample options for how to redeem your rewards and can enjoy them without paying an annual fee for the card. If you have a balance on other cards, the balance transfer intro annual percentage rate APR can help you pay it off.
Pros
- Unlimited 3% cash back on dining, entertainment, streaming services and grocery stores
- No annual fee
- No foreign transaction fee
- Balance transfer intro APR period
- Strong welcome offer with minimal spending requirements
Cons
- Applicants must have good credit
- Spending outside the main reward categories won’t earn much cash back
- Travel rewards require that you book through Capital One Travel
2. Best for Dining and Travel Rewards: Chase Sapphire Preferred
Chase Sapphire Preferred® Card
The Chase Sapphire Preferred® Card allows users to accumulate rewards quickly, offering a strong welcome bonus of 60,000 points when you spend $4000 in the first 3 months you hold the card. You can accrue rewards on travel booked through Chase Ultimate Rewards, dining in restaurants and general purchases, accumulating as many rewards as you like to bolster your finances.
- Best For:
Welcome bonus
- Healthy welcome bonus
- Wide variety of rewards options
- Affordable APR
- Welcome bonus only applies to new customers
- $95 annual fee
If your dining habits take you on adventures across town or across oceans, you’ll enjoy the Chase Sapphire Preferred card’s diverse dining and travel rewards. You’ll get five times the rewards on travel purchases through Chase Ultimate Rewards. Plus you’ll get nice perks including trip cancellation insurance and free access to DashPass for $0 delivery fees for one year.
While you’ll need to have good credit to qualify for the card, those who enjoy dining and travel will find that it offers some of the best rewards for those categories.
Pros
- Multiple bonus categories help you get the most from the card
- Enjoy premium travel protection
- Flexible reward redemption options
- Offers a strong new cardholder bonus offer
Cons
- $95 annual fee
- Uses points instead of cash back, which can be complicated to redeem and understand the value of
3. Best for Flexible Cash Back in Multiple Categories: Chase Freedom Ultimate
If you want to earn good cash back on all purchases and not just those at restaurants, the Chase Freedom Ultimate might be for you. It has stringent qualification requirements, which might make it hard for those with average or poor credit to qualify, but if you qualify, you’ll earn a flat 1.5% cash back on all purchases with no annual fee.
Enjoy a nice introductory welcome offer with matched cash back on what you earn in the first year after applying for the card. Redeem your cash back without waiting for it to accumulate to a certain threshold for redemption.
Pros
- Unlimited 1.5% cash back on all purchases
- No annual fee
- Excellent welcome offer of matching cash back earned in the first year
- Redeem cash back on your schedule without waiting to reach a certain threshold
Cons
- Balance transfer fee is high
- If you want to use your cash back for travel, you’ll need a companion card
- Not great for international travelers as there are foreign transaction fees
4. Best for 3x Cash Back on Dining: Wells Fargo Autograph Card
Enjoy three times the cashback on all dining, gas stations and electric vehicle charging stations year-round. You’ll also enjoy these boosted rewards on phone plans and streaming services you charge to the card. All other purchases earn one times rewards so you have to have most of your expenses in the more lucrative categories to make it worth it.
The card has no annual fee and offers a 0% APR intro offer on balance transfers, which can help you pay down debt in the first year of having the card. Those who enjoy international travel can also take advantage of the no foreign currency conversion fees.
Pros
- 3x the rewards for dining
- No annual fee
- Unique perk of up to $600 in cell phone protection for damage or theft if you pay your phone bill using the card
- Strong reward point categories
Cons
- Intro APR offer is somewhat weak compared to the competition
- Travel perks are limited compared to similar cards
5. Best for Rewards Flexibility: Bank of America® Customized Cash Rewards Credit Card
Bank of America® Customized Cash Rewards Credit Card
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The Bank of America® Customized Cash Rewards Credit Card offers a healthy welcome bonus, affordable rates and no annual fee You can earn rewards on every purchase, and you get enhanced rewards when you’re a Preferred Rewards member.
- Best For:
Enhanced Rewards
- No annual fee
- Robust welcome bonus
- Consistent rewards on purchases
- Limited perks for members outside the rewards
The Bank of America Customized Cash Rewards Credit Card is unique because it lets you pick your rotating bonus category. You can switch the category once per calendar month to adjust it to fit large purchases or when you experience an unexpected expense.
Enjoy 3% cash back on the category you pick each month as well as 2% cash back at the grocery store and wholesale clubs all the time. Just know that there is a spending cap on rewards. You’ll only earn 3% or 2% cash back until you reach a combined maximum of $2,500 in expenditures for that quarter. After that, you’ll get 1% cash back on all purchases.
Pros
- Choose what spending categories to get your best rewards in to best match your spending
- Generous APR period on balance transfers to help pay down debt
- Earn a $200 online cash rewards bonus when you spend $1,000 on the card in the first 90 days
Cons
- Quarterly reward categories are capped
- While the rewards program is lucrative, other rewards and perks are limited
- 3% foreign transaction fee
- 3% balance transfer fee
Dining Credit Card: Who is It Best for?
Foodies who enjoy dining out should consider getting credit cards for restaurants. You’ll maximize your rewards and get nice benefits with some cards, like hard-to-get reservations at exclusive or up-and-coming restaurants.
You might also enjoy these cards when you do a great deal of takeout or delivery ordering. Some cards provide free delivery fees for an introductory period to help you maximize your dining rewards.
Many cards designed for dining perks also feature excellent travel rewards. You’ll increase your rewards quickly if you enjoy dining and travel when you get these cards.
If you have larger spending categories in other areas, you might consider more universal reward credit cards or having a few different cards with varying lucrative reward categories. That way, you can maximize the benefits you experience from each card.
Factors to Consider When Selecting a Credit Card for Restaurants
Before signing up for one of the best credit cards for dining, review these factors that will help you determine the best card based on your needs.
1. Reward Program
Reward programs are a bit challenging to compare because each credit card handles it differently. Some use clear cash back where you earn a dollar when you spend a dollar elsewhere. But others use point systems and redemption of those points varies based on what category you’re redeeming for.
Review the reward system to understand how it works. Some cards with combo dining and travel rewards, offer unique travel perks where you can book your travel through the credit card’s travel partners for the most lucrative rewards. If you aren’t big into travel, these cards won’t be right for you because you won’t be able to take advantage of one of its major perks.
2. Annual Fees and Interest Rates
While you can find cards with impressive rewards, they often also come with an annual fee that can take away from the perks of the reward categories. Factor in the annual fee when calculating how valuable the card will be for you.
You’ll also want to review the interest rates before signing up. While it is always best to pay your credit card in full every month, you don’t want to ignore the interest rates in case you find yourself in a tough spot one month.
When reviewing interest rates, you might also think about balance transfers and intro rates, which could help you pay down balances left on other cards as you work to consolidate debt.
3. Sign-up Bonuses and Welcome Offers
A sign-up bonus can provide a lump sum cash bonus or point bonus you can use to redeem for rewards. The signup bonus might fluctuate as the financial companies work to attract new users during different times of year so watch for the best opportunities.
A welcome offer generally comes with some requirements that you spend certain amounts within the first 30 days to a year to earn the bonus. But for most consumers, the limits are quite attainable. Consider how these offers might make the card an even better deal for you.
4. Additional Perks and Benefits for Dining
Some credit cards come with added perks and benefits when dining out in addition to the added cash back or points you can get in that spending category. Some examples of special perks include the following.
- Access to exclusive dining programs
- Discounts
- Reservation privileges
- Extended warranties on purchases
- Purchase protection for expensive restaurant purchases
For those who dine out regularly, these added benefits and perks can be nice ways to enjoy a meal out.
5. Acceptance and Compatibility
Just because a card has great perks and strong cash-back bonuses doesn’t mean it’s good for you. For example, your favorite restaurant might not accept the card, meaning you’ll miss out on maximizing those benefits.
Choose a card that is widely accepted, such as a Visa or Mastercard. These two are also the most widely accepted internationally. When it comes to the least accepted, watch out for American Express and Discover. While they are working to expand their footprint, they don’t have nearly as many vendors that accept their cards as other card types.
How to Maximize Credit Card Rewards When Dining Out
To get the most from your credit card rewards, follow these steps.
- Ensure you have a dining rewards card as part of your credit card options. This will help you get the most from your card. Watch for dining to be one of the rotating quarterly categories to test out that new restaurant down the street.
- Read the emails from your credit card provider. This will tell you about special promotions or perks you should be aware of during that time.
- Join loyalty programs with restaurant chains to earn perks directly from them regardless of who your credit card is through.
- Look for special promotions from the restaurant, such as those that provide discounts or free menu items if you order online or pick up your order instead of having it delivered.
- Dine with the same restaurant chain regularly to earn perks like a free appetizer or other promo.
- Make your reservations through an app like OpenTable to earn rewards.
Maximizing Perks and Rewards from Your Spending
Getting one of the best dining credit cards is just one way to maximize the perks you experience from your spending. Consider which credit card reward programs will help you earn the most based on your spending and strategically choose a couple of cards to make part of your financial tools.
Frequently Asked Questions
Do dining and restaurant rewards apply to takeout and delivery?
It depends on the credit card issuer and its rules. Many do count takeout and delivery in the dining and restaurant category though.
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Do bars count as restaurants for credit cards?
Most bars will count as restaurants for credit cards. If the bar serves food, you can be more certain that it will get categorized as a restaurant expense.
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How do I avoid credit card fees at restaurants?
Before sitting down to eat, ensure that the restaurant you’ve chosen doesn’t charge additional fees for using a credit card. Most of the time, only smaller restaurants use this policy.
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Is it better to use debit or credit cards at restaurants?
So long as the restaurant doesn’t charge a fee for using a credit card, it’s better to use a credit card instead of a debit card. That’s because a debit card won’t earn you any reward points.
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Which credit card offers the most cash back for dining?
You have several outstanding options when it comes to a credit card for cash back on dining purchases. This includes the Capital One SavorOne Cash Rewards Credit Card, Chase Sapphire Preferred, Chase Freedom Ultimate, Wells Fargo Autograph and the Bank of America Customized Cash Rewards card.
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The post Best Credit Cards for Restaurants and Dining by Rebekah Brately appeared first on Benzinga. Visit Benzinga to get more great content like this.