Blog

The card_name and card_name have quite a bit in common, including that they both earn flexible rewards. That said, these cards vary quite a bit when it comes to their earning rates and perks, as well as their redemption values and options for rewards.

If you’re looking for a travel credit card and are considering both the card_name and card_name, you’ll want to think about how each card’s earning rate aligns with your spending, how useful the points are for the way you travel, and how much you want to pay in fees each year. Read on to find out how the cards compare and how you can decide which travel credit card works best for your needs.

How the cards stack up

While the card_name was the clear winner in three different categories, you’ll want to do a deep dive into the rewards programs from both card issuers. While Capital One Miles and American Express Membership Rewards points can both be used for a range of redemption options, they each have their own set of transfer partners that may work better (or worse) for your needs.

Welcome bonus winner

The card_name wins this category easily. With this card, you will bonus_miles_full, whereas the with the card_name, you will bonus_miles_full.

With that said, we do concede that both welcome offers are generous. It’s also true that the bonus on the card_name Card is easier to earn, as you have six months to reach the $4,000 spending threshold.

Our advice? Pick the card_name for its welcome offer if you can easily spend $4,000 within three months, or at least $1,334 per month, on regular spending and bills for three consecutive months in a row. If you need more time, however, you can sign up for the card_name and reach the spending threshold with at least $667 in monthly card spending on regular purchases and bills for six consecutive months.

Rewards winner

The card_name also edges out the card_name in terms of its rewards structure, but that’s not all. The card_name also offers better non-travel redemption options and more flexibility when it comes to how you can redeem your miles.

Let’s start with its earning rate. The card_name gives you a flat 2x miles on all purchases you make and 5x miles on hotels and rental cars booked through Capital One Travel. While the card_name does offer a juicy earning rate for restaurants, U.S. supermarkets, and eligible airfare purchases, these bonus categories may not leave you with more rewards unless you’re a foodie who spends a ton at U.S. supermarkets and restaurants or happens to spend considerable amounts on airfare every year.

Our internal figures showed that the average household might earn 55,578 miles with the card_name over the course of 12 months, compared with 54,656 points with the card_name. The advantage with the card_name is notably small, but it still comes out ahead.

Now let’s talk about redemption options. Both cards come with their share of airline and hotel transfer partners, which we delineate below:

American Express transfer partners

Capital One Transfer Partners

While the two rewards programs have some transfer partners that overlap, we consider these options pretty even for most travelers. That said, you’ll want to look at these transfer partners to see which ones you might actually use, as that’s all that matters here.

The card_name comes out ahead for rewards flexibility, because you can redeem your miles for travel statement credits, travel through Capital One, gift cards, and more at a rate of one cent per point.

The card_name does not offer the same generous redemption rates. You’ll only get 0.5 to 0.7 cents per point in value for most gift card redemptions with the Amex Gold, and you’ll only get 0.7 cents in value per point when booking hotels or rental cars through Amex. If you need to redeem your Amex points for statement credits, you’ll only get 0.6 cents per point in value.

If you know for sure you want to transfer your points or miles to airline and hotel partners, these redemption values may not matter much to you at all. However, you may find yourself with some excess rewards you want to use, and the card_name makes that a lot easier and more fruitful. You also know that sometimes your travel plans may just fall through, and the card_name makes it easier to cash out and still get a good value for your miles.

Annual fee winner

The card_name wins in this category as well, as it has a annual_fees annual fee, while the card_name has a annual_fees annual fee (Rates & Fees). Either card’s annual fee can technically be worth it if you earn enough in rewards or take advantage of all the cardholder benefits you receive, but paying a lower annual fee can help you justify keeping your travel credit card for the long haul.

APR winner

Both of these travel credit cards have identical annual percentage rate (APR) ranges, and they are both high. This means the two cards tie in this category, but you won’t want to carry a balance on either one if you can help it.

The card_name does come with the ‘Pay It Plan It’ feature, which lets you pay off small purchases quickly or spread out payments on larger purchases of $100 or more with no interest and a fixed payment plan and plan fee. However, there are better cards to consider if you want to carry a balance from time to time, including rewards cards that offer a 0% introductory APR on purchases, balance transfers, or both.

Foreign transaction fee winner

Like most travel credit cards, neither card charges foreign transaction fees. This means both cards are equally suitable for international travel. See Rates & Fees for the card_name.

Additional perks

This category was a little tricky to compare, as the card_name appears to offer more perks at first glance. However, statement credit offers from American Express are notoriously difficult to use, and this played a factor in our decision.

First off, the card_name comes with a $120 dining credit and $120 in Uber cash per year. However, these credits are doled out on a monthly basis ($10 per month), and they don’t roll over if you don’t use them. This means you have to spend at least $10 per month on eligible dining purchases and Uber rides or Uber Eats purchases to maximize them. Diving deeper into the fine print, you’ll also find out that the $120 dining credit on the Amex Gold is only for purchases at Grubhub, the Cheesecake Factory, Goldbelly, Wine.com, Milk Bar, and select Shake Shack locations.

On top of these benefits, the card_name comes with a handful of mid-tier travel insurance perks including a Global Assist hotline, a baggage insurance plan, and secondary auto rental coverage.

The card_name comes with automatic Hertz Five Star status, a fee credit of up to $100 toward Global Entry or TSA PreCheck® membership that can be used for anyone (not just the cardholder), and two free entries into Capital One airport lounges (retail value of $65 per visit) in Dallas/Fort Worth International Airport (DFW), Dulles International Airport in Washington D.C. (IAD), and Denver International Airport (DEN).

As a side note, these two airport lounge passes can also get cardholders into 100+ Plaza Premium airport lounges around the world.

Which card earns the most?

Which card earns the most in rewards depends on how you normally spend with a credit card. It’s easy to argue in favor of either card: the card_name due to its flat rate of two miles per dollar on all spending or the card_name for its bonus categories.

To help you figure out which card might leave you ahead, we came up with some calculations for how the average household spends money throughout the year and assigned rewards totals based on these figures. The charts below show how much you might spend in different categories throughout the year with either card and how much in rewards you would get with the card_name or the card_name. (The first two figures come from Bureau of Labor Statistics consumer expenditures data on spending for food at home and food away from home.)

card_name Spending Example

card_name Credit Card Spending Example

As you can see, the card_name edges ahead of the card_name in terms of rewards potential due to its flat rate of two miles per dollar on everyday spending. That higher flat rate on regular purchases makes racking up rewards considerably faster, and it’s enough to beat the bonus categories on the card_name.

Then again, you have to look at these two charts and see how our spending estimates line up with how you actually spend money throughout the year. If you spend a lot of money annually on dining out and groceries, the card_name could easily leave you with a bigger rewards haul at the end of 12 months.

Our Recommendations

Why we recommend the card_name

card_name has a lower annual fee, plenty of rewards flexibility, and some pretty nice perks. The first year welcome offer on the card is hard to beat as well, especially when you consider that meeting the minimum spending requirement would net you 83,000 points (with 2x miles per dollar spent) within the first three months, which is worth $830.

It’s not only that. You can redeem your miles for a better redemption value if you decide not to transfer to Capital One’s airline and hotel partners. These factors combined led to the card_name beating the card_name in this card comparison.

Why you would still opt for the card_name

You may still want to consider the card_name and that’s perfectly OK. This card’s bonus categories can be especially lucrative for certain types of spenders.

In particular, if you’re a foodie the card_name can leave you with considerably more points over the course of a year. As an example, let’s say you spend $2,000 per month at restaurants and U.S. supermarkets. In this case your $24,000 in annual spending in these two categories alone would net you 96,000 American Express Membership Rewards points over the course of 12 months.

That’s a lot more than you would earn with the card_name, and it’s more than enough to justify this card’s higher annual fee of annual_fees.

Bottom line

Both of these rewards credit cards offer plenty of value, and either one could work for you based on your spending habits and how you want to redeem rewards. The Capital One Venture pushed out ahead in our card comparison, but that doesn’t mean it is the best card for every type of spender.

If you still can’t decide between the Capital One Venture and the Amex Gold, there are plenty of other rewards credit cards, air miles credit cards, and rewards programs to compare. Also, take the time to check out the best Capital One credit cards and best Amex credit cards to explore other options that can work.

For rates and fees of the card_name, please visit this URL.

Frequently Asked Questions (FAQ)

How much are Capital One miles worth?

Capital One miles are worth one cent each when redeemed for travel through Capital One, gift cards, and travel statement credits. Redemption values vary when you transfer your miles to Capital One partners, but it’s possible to get two cents per mile in value or more.

Which is the best Amex card to get?

The best Amex credit card for you depends on the categories in which you spend the most, the benefits you want, and how you plan to redeem your rewards.

Can I get card_name if I already have the card_name?

It’s possible to have both of these travel credit cards at once and having both cards could help you maximize your rewards haul. You may also be eligible to earn the welcome offer on both of these cards, which can make having both well worth it—especially the first year.

Can I switch from card_name to card_name?

You cannot upgrade one of these cards to the other, as they are from different card issuers. However, you can apply for both cards separately and get both or apply for one card after you have already been approved for the other.

American Express Membership Rewards® Points and Chase Ultimate Rewards® are the best—and the most popular—flexible rewards programs among travel enthusiasts, and it’s easy to see why. Points from both programs transfer to an array of airline and hotel partners that let users get more value with each redemption, and cardholders can also use their points to book travel through a portal.

Amex points and Chase points also offer other flexible redemption options, such as statement credits and gift cards, albeit at varying rates. Each program also comes with a choice of rewards credit cards that let users earn generous sign-up bonuses and points for each dollar they spend.

At the end of the day, you’ll want to compare these programs based on their points values, transfer partners, and redemption options before you focus all your card spending on either one. This in-depth guide does exactly that. Read on to learn how these dynamic programs compare in all the categories that matter most.

Key insights

• Amex points and Chase points can be earned via credit card spending, and eligible cards from both issuers are geared to consumers with good-to-excellent credit.
• Amex Membership Rewards are best for serious travelers who have no intention of redeeming their points for non-travel options, whereas Chase points work for people who travel but also love cash back.
• People who mostly travel in the U.S. may want to focus on Chase points due to the program’s transfer partners, whereas international travelers often prefer Amex.
• If you can’t decide between Amex and Chase, you can do what many other frequent travelers do—earn points in both programs at once.

American Express Membership Rewards Points vs. Chase Ultimate Rewards Points

When you start to compare Amex points to Chase points, you’ll notice fairly quickly that both rewards currencies have several things in common:

• Both American Express Membership Rewards points and Chase Ultimate Rewards points are earned via credit card spending.
• Both programs offer lower-tier travel credit cards and premium travel credit cards.
• Each program has its own selection of frequent flyer and hotel loyalty partners, and some of these partners overlap.
• You can use both types of rewards for statement credits, gift cards, and other flexible options. Whether you should is an entirely different issue.

Earning points with credit cards

As we mentioned, both Amex and Chase offer a selection of credit cards that earn points in their programs. However, there are more American Express credit cards in general, as well as options with no annual fee. For the most part, that’s what sets Amex apart from Chase in the point-earning realm. You cannot earn Chase points that transfer directly to its airline and hotel partners without paying an annual fee for the year.

That said, the details get a little murky. You can earn points with a no-annual-fee Chase card and transfer them to partners if you pair your card with one of its travel credit cards. For example, you can earn cash back with the card_name or Chase Freedom Flex, pool your rewards in your card_name or card_name account, then use your points for superior travel redemptions.

With all these details in mind, here are the cards from both programs that earn points that transfer on their own (with no need to pair with another card):

American Express Membership Rewards credit cards

Chase Ultimate Rewards credit cards

Pro Tip: Not all Amex credit cards earn Membership Rewards points, just as not all Chase cards earn transferable points. Make sure you know which cards offer these rewards before you apply.

Transfer partners

Generally speaking, both Amex points and Chase points can be worth approximately 2 cents each when redeemed for travel with transfer partners. Of course, you can get outsized value in specific cases. If you are able to transfer points to an airline partner for an international flight in a Business or First class cabin, for example, it’s not uncommon to get 3 to 5 cents per point in value or even more.

At the moment, Amex Membership Rewards has 20 transfer partners and Chase has 14 transfer partners. Here’s a rundown of the transfer partners of both of these programs, plus their respective transfer ratios.

Chase transfer partners (all transfer at a 1:1 ratio)

• Aer Lingus AerClub
• Air Canada Aeroplan
• Air France (Flying Blue)
• British Airways Executive Club
• Emirates Skywards
• Flying Blue Air France KLM
• Iberia Plus
• JetBlue TrueBlue
• Singapore Airlines KrisFlyer
• Southwest Airlines Rapid Rewards
• United MileagePlus
• Virgin Atlantic Flying Club
• IHG One Rewards
• Marriott Bonvoy
• World of Hyatt

Amex transfer partners

• Aer Lingus AerClub (1:1)
• Aeromexico (1:1.6)
• Air Canada Aeroplan (1:1)
• Air France KLM (Flying Blue) (1:1)
• ANA Mileage Club (1:1)
• Avianca LifeMiles (1:1)
• British Airways Executive Club (1:1)
• Cathay Pacific (1:1)
• Delta SkyMiles (1:1)
• Emirates Skywards (1:1)
• Etihad Guest (1:1)
• Hawaiian Miles (1:1)
• Iberia Plus (1:1)
• JetBlue TrueBlue (2.5:2)
• Qantas Frequent Flyer (1:1)
• Singapore Airlines KrisFlyer (1:1)
• Virgin Atlantic Flying Club (1:1)
• Choice Privileges (1:1)
• Hilton Honors (1:2)
• Marriott Bonvoy (1:1)

Redemption rate for travel purchases

Both Amex points and Chase points can be used to book travel through their respective travel portals, yet Chase comes out ahead in this category for more reasons than one.

That’s because the three Chase cards offer 25% to 50% more value for points when you redeem them for travel bookings through Chase. In fact, the card_name gives you 50% more value when you redeem for airfare, hotels, rental cars and more, and the card_name and card_name give you 25% more value.

As you can see in the screenshot below from my card_name account, a hotel booking at the Park Hyatt Chicago that would cost $661 including taxes through Chase would only set you back 44,024 points.

On the flipside, Amex points are worth one cent each when redeemed for airfare through AmexTravel.com. However, you’ll only get 0.7 cents per point in value for hotels, cruises and rental cars.

Travel portals

Both Chase and American Express have their own travel portals that let you book travel directly with points. Both portals are similar in that they let you book travel with points, cash, or a combination of the two.

AmexTravel.com

The Amex travel portal lets you seamlessly book airfare, hotels, vacation packages, rental cars, and cruises using your points. We already noted how you’ll get one cent per point in travel if you redeem your Amex points for airfare, but that you’ll only get around 0.7 cents per point in value for options like cruises, hotels and rental cars.

American Express also has the Fine Hotels + Resorts program that’s exclusively for Amex Platinum cardmembers. This program lets you use points, cash or a combination of the two to book exclusive, luxury properties that come with added perks such as free breakfast and room upgrades (based on availability).

Chase travel portal

The Chase travel portal works similarly to the Amex portal, except you can get 25% to 50% more value for your points depending on which Chase travel credit card account you are using. This portal lets you book flights, hotels, cruises, rental cars, as well as “activities.” The activities you can book are almost entirely excursions, but you can also use points to book airport transfers and other miscellaneous items related to travel.

In London, for example, the activities tab through Chase lets you book excursions such as a River Thames sightseeing cruise or an original Harry Potter tour.

While these options may not be as valuable as point transfers to airlines, I really like the fact you can score low-cost tours and day trips with points, and still get 25% to 50% more value for booking with rewards.

Also note that Chase has the Luxury Hotel and Resort Collection, which offers premium hotel redemptions with upgrades such as free breakfast, early check-in, and more. This collection is available to Chase cardholders with a wider range of card options, including the Chase Sapphire Reserve® and several United Airlines credit cards.

Redeeming points for purchases

Chase lets you cash in points for purchases at Apple at a rate of one cent per point, and some Chase cards let you pay with points at Amazon.com or using PayPal.com. Both of these options will only net you 0.8 cents per point.

That said, Chase is still offering slightly better value when you redeem points to cover certain types of purchases through its Pay Yourself Back program. However, it’s worth noting that this program is tweaked all the time, and that options depend on the card you have.

As an example, the current Chase Pay Yourself Back promotion for the card_name® gives you 25% to 50% more value for your points when you redeem them to cover gas station purchases, grocery store purchases, the card’s annual fee, and eligible charitable donations.

If you want to shop with Amex points, on the other hand, you’ll get 0.5 cents per point in value. In this scenario, you would be better off making the purchases you want with your card, then redeeming for statement credits instead. While you won’t get a lot more value redeeming for statement credits (as you’ll see below), it’s better than half a cent per point.

Of course, Amex also lets you “pay with points at checkout” at select retailers. This option will net you 0.7 cents per point at stores like Amazon and Best Buy.

Cash out and statement credit rates

Both programs also let you redeem points for statement credits or cash back. Again, Chase Ultimate Rewards comes out ahead in this category. As you can see in the screenshot below, you can redeem Chase points for cash back at a rate of one cent per point.

Not only does Chase let you redeem for a statement credit to your account at a rate of one cent per point, but you can have the money deposited into a Chase checking or savings account if you have one.

Pro Tip: Since you only get 0.8 cents per point for Amazon and PayPal purchases with Chase cards that offer this option, you would be better off paying for the purchase with your card then just redeeming for a statement credit to cover it at a rate of one cent per point.

In the meantime, the American Express Membership Rewards program only gives you 0.6 cents per point when you redeem rewards to cover charges to your account. Further, you can’t get actual cash back sent to you with Amex points.

Redeeming points for gift cards

Cashing in your points for gift cards isn’t always the best option, but it can be a good way to use up extra rewards or get value from your points when you don’t have a trip coming up.

Note that, in this realm, redeeming Chase points for gift cards is typically (but not always) a better deal. That’s because Chase gift cards are offered at a rate of one cent per point or better. Chase frequently has “gift card sales” that let you buy gift cards with points at 10% to 20% off.

Meanwhile, Amex points are typically worth less than one cent per point when you redeem for gift cards.

At the moment, Amex is showing a value of 0.7 cents per point for gift cards associated with brands like Delta and Hilton. However, many of its restaurant gift cards and some travel options give you the full one cent per point in value or somewhere in between.

Pooling and transferring points

American Express automatically pools all your Amex Membership Rewards points in a single account, which is nice when you have several Amex credit cards. You cannot transfer your Amex points to a spouse directly. You can, however, transfer your points to an authorized user’s frequent flyer account.

In other words, your spouse or partner (or other family member) has to be an authorized user on your Amex credit card in order to pool points with them.

On the flipside, Chase lets cardholders pool their own points into the card account of their choosing. That said, remember that point transferability only applies if you have a Chase travel credit card (card_name, card_name, or card_name).

Meanwhile, Chase does let you pool points with members of your household. You used to be able to transfer points to household members after adding their card to your combine points page online. Now you have to call in (with the number on the back of your card) to have new card accounts for household members added.

Here’s what Chase has to say online about its points-pooling policy:

“You can move your points, but only to another Chase card with Ultimate Rewards belonging to you or one member of your household or owner of the company, as applicable.”

Top award redemption points comparison

So, which points will leave you better off in the end with Amex or Chase? Let’s take a look at their top award redemption options and what points are worth with both programs.

The bottom line: Which program is best?

As you can see from the chart above, Chase points usually offer a better value but not always. This means that, ultimately, the right rewards program for you boils down to how you actually plan to use your points.

Amex points are typically best for:

• International travelers who can utilize various Amex airline partners for premium redemptions
• Delta flyers who want to transfer their points to the SkyMiles program
• Cardholders who are unlikely to redeem points for gift cards, merchandise, or statement credits

Chase points are typically best for:

• Cardholders who want the option to transfer points to IHG Rewards, Southwest, United MileagePlus, and World of Hyatt
• Cash-back enthusiasts who may redeem their rewards for statement credits or gift cards from time to time
• Cardholders who may want to book travel through a portal versus transferring to airlines or hotels

If you still can’t decide, you can also consider signing up for travel credit cards that work in both programs. Since many of the transfer partners with Amex and Chase overlap, this can even be a great way to boost your rewards haul for a premium travel redemption.

In the meantime, you may also want to check out other flexible programs associated with Capital One credit cards (Capital One Miles) or the Citi ThankYou Rewards program. By comparing all the top programs, their transfer partners and their travel credit cards, you’re bound to find a combination of cards that works for the way you travel.

For rates and fees of the card_name, please visit this URL.

For rates and fees of the card_name, please visit this URL.

For rates and fees of the card_name, please visit this URL.

For rates and fees of the card_name, please visit this URL.

For rates and fees of the card_name, please visit this URL.

For rates and fees of the card_name, please visit this URL.

For rates and fees of the card_name, please visit this URL.

Frequently asked questions (FAQ)

How much are 50,000 Amex points worth?

If you transfer your Amex points to an airline partner for a premium redemption, 50,000 points can be worth $1,000. However, 50,000 points are worth $500 if you redeem for airfare through Amex Travel, or worth $350 if you redeem for cruises, hotels, car rentals or other travel options.

Chase Sapphire Preferred vs. Amex Gold: Which is better?

The card_name has a lower annua card_name, yet the card_name has a higher rewards rate in bonus categories. At the end of the day, you’ll want to compare these cards based on their welcome offers, rewards rates, perks, and features before you decide.

Can I earn Chase Ultimate Rewards points with no-annual-fee credit cards?

Chase does not offer any no-annual-fee credit cards that earn points that transfer to airline and hotel partners. However, you can pool points earned with a Chase cash back credit card into a Chase travel credit card account for premium travel redemptions.

Small-business credit cards offer valuable perks for business owners and entrepreneurs, but not everyone picks up a business card for the same reason. Some business owners want to earn rewards on their spending, whereas others want an easy way to keep business and personal purchases separate for accounting purposes. Still other business owners love all the luxury perks they can get with a credit card, such as airport lounge access, annual travel credits, and automatic travel insurance coverage.

Which small-business credit card is right for you? That depends on how much your business spends each month, the type of rewards you want to earn, and how much you want to pay in annual fees. TIME Stamped compared several dozen of the best small-business credit cards available today based on their features, benefits, and ongoing costs. The cards below are our top picks.

Best Small Business Credit Cards: Summary

Our recommendations for the the best small business credit cards

The best credit cards for small businesses and entrepreneurs come with a range of perks and features, as well as rewards for spending. The cards below made our ranking based on their rewards rates, welcome offers, and ongoing benefits for members.

Best for office supply stores: card_name

Why we chose it: We chose the card_name due to its generous rewards on all types of business purchases. Specifically, this card offers 5% cash back on up to $25,000 spent in combined purchases at office supply stores and on internet, cable, and phone services each year (then 1% back), 2% cash back on up to $25,000 spent in combined purchases at gas stations and restaurants each year (then 1% back), and 1% back on other purchases. The exception is Lyft rides, which earn 5% cash back through March of 2025.

Card details:

• ‌Cardholders can bonus_miles_full and an additional $400 after spending $6,000 on purchases in the first six months after account opening.
• Earn a one-time 10% Business Relationship Bonus of all eligible cash back earned in your first year on your cardmember anniversary if you pair this card with a Chase Business Checking account.
• ‌This business credit card comes with a intro_apr_rate,intro_apr_duration (followed by a reg_apr,reg_apr_type).
• ‌annual_fees annual fee.

Best for simplicity: card_name

Why we chose it: The card_name is best for simplicity due to its generous flat rewards rate of 1.5% cash back and the fact there’s no annual fee. These features make this card a great option for small business owners who want to earn basic rewards for spending without worrying about bonus categories or complicated rewards programs.

Card details:

• New cardmembers can earn bonus_miles_fullbonus_miles_full.
• Earn 1.5% cash back on all purchases, plus 5% cash back on car rentals and hotels booked through Capital One Travel.
• The annual fee is annual_fees.

Best for bonus categories: card_name

Why we chose it: We chose the card_name based on the fact that you earn 4x Membership Rewards points on up to $150,000 in combined spending in two business categories per year (then 1x points), plus 1x points on all other purchases.

Card details:

• New card members can bonus_miles_full.
• Business categories that earn 4x points include airfare purchased with airlines, U.S. advertising purchases with select media, U.S. purchases at gas stations, U.S. purchases with select technology providers, U.S. purchases at restaurants, and U.S. purchases for shipping.
• This card offers American Express Membership Rewards points that can be used for merchandise, gift cards, travel through AmexTravel.com—or point transfers to Amex airline and hotel partners.
• A annual_fees annual fee applies (Rates & Fees).

Best for travel rewards: card_name

Why we chose it: card_name is best for earning travel rewards, as the points it earns fall within the flexible Chase Ultimate Rewards program. This program lets you redeem points for cash back, statement credits, gift cards, travel through Chase with 25% more value, or point transfers to Chase airline and hotel partners.

Card details:

• New card members can bonus_miles_full.
• Cardholders earn 3x points on up to $150,000 spent in eligible spending categories each year (then 1x points) and 1x points on other purchases.
• Business spending categories that earn bonus points include shipping purchases, advertising with select media sites, travel—and internet, cable, and phone services.
• A annual_fees annual fee applies.

Best for 0% APR: card_name

Why we chose it: The card_name is one of a handful of business credit cards that offers 0% APR on purchases for a limited time. If you select this card and are approved, you’ll automatically get intro_apr_rate,intro_apr_duration (followed by a variable APR of reg_apr,reg_apr_type) (Rates & Fees).

Card details:

• Cardholders also bonus_miles_full.
• Earn 2% cash back on up to $50,000 in spending each year, then 1% back.
• annual_fees annual fee (Rates & Fees).

Best for cash back: card_name

Why we chose it: We chose the card_name for earning cash back due to its flat rewards rate of 1.5% back on all purchases with annual_fees annual fee.

Card details:

• Cardholders can bonus_miles_full.
• This card also comes with a intro_apr_rate,intro_apr_duration (followed by a variable APR of reg_apr,reg_apr_type).
• There’s annual_fees annual fee.

Best for office supply stores: card_name

Why we chose it: We chose the card_name due to its generous rewards on all types of business purchases. Specifically, this card offers 5% cash back on up to $25,000 spent in combined purchases at office supply stores and on internet, cable, and phone services each year (then 1% back), 2% cash back on up to $25,000 spent in combined purchases at gas stations and restaurants each year (then 1% back), and 1% back on other purchases.

Card details:

• Cardholders can bonus_miles_full.
• This business credit card comes with a intro_apr_rate,intro_apr_duration (followed by a variable APR of reg_apr,reg_apr_type).
• annual_fees annual fee.

Best for no annual fee: card_name

Why we chose it: We recommend the card_name because it earns flexible Amex Membership Rewards points with annual_fees annual fee required.

Card details:

• bonus_miles_full.
• Also earn 2x points on up to $50,000 in spending per year, then 1x points.
• Benefit from a intro_apr_rate,intro_apr_duration (followed by a variable APR of reg_apr,reg_apr_type) (Rates & Fees).
• annual_fees annual fee (Rates & Fees).

Best for luxury perks: card_name

Why we chose it: The card_name is a good option for business owners who want luxury travel benefits, such as broad airport lounge access around the world, a $200 airline incidentals credit, a 35% airline bonus when booking flights with points, and a fee credit toward Global Entry or TSA PreCheck membership.

Card details:

• New cardholders can bonus_miles_full.
• This card also earns 5x Membership Rewards points on flights and prepaid hotels booked through AmexTravel.com, 1.5x points in key business categories and on purchases of $5,000 or more (on up to $2 million in eligible purchases per year), and 1x points on other purchases.
• More than $1,500 in statement credits come with this card, including offers for Adobe, Dell, Indeed, wireless telephone service, and more.
• A annual_fees annual fee applies 9Rates & Fees).

Best for everyday spending: card_name

Why we chose it: The card_name is best for everyday spending, as it earns a flat rate of 2% cash back on all purchases. Just remember that it’s a charge card and not a credit card, meaning you have to pay your balance in full each month.

Card details:

• bonus_miles_full.
• Get the annual_fees annual fee refunded each year you spend at least $150,000 on purchases.
• Adapts your credit limit to your spending habits and payment history.

Best for gas: card_name

Why we chose it: The card_name comes with 4% cash back on up to $7,000 in eligible gas and EV charging purchases worldwide each year (then 1% back), 3% back on restaurant and eligible travel purchases, 2% back on purchases at Costco and Costco.com, and 1% back on other purchases.

Card details:

• This card is only for Costco members and has no annual fee with a paid Costco membership.

• Bonus rewards on gas apply at all gas and EV charging stations worldwide, not just at Costco.

• ‌annual_fees

  Costco Anywhere Visa® Card by Citi

  Credit score needed

  credit_score_needed

Best for flights: card_name

Why we chose it: The card_name is the best business credit card for flights due to its high bonus offer and frequent flyer perks, with no annual fee the first year.

Card details:

• ‌bonus_miles_full.
• Cardmembers also earn 2x miles on American Airlines purchases, cable and satellite purchases, gas purchases, select telecommunication merchants, and car rentals, plus 1x points on other purchases.
• ‌A annual_fees.

Best for fair credit: card_name

Why we chose it: The Capital One Spark Classic for Business is for business owners with fair credit who need a leg up when it comes to building their credit. You can be approved even if you have only a “fair” credit score, which means a FICO score from 580 to 669.

Card details:

• Cardholders earn 1% cash back on all purchases.
• Also earn 5% cash back on hotels and rental cars booked through Capital One Travel.
• There’s $0 annual fee.

Best Small Business Credit Cards Comparison Chart

Our methodology

To find the best small-business credit cards, we compared options based on their rewards rates, ongoing benefits, and regular fees. We gave preference to card options that come with generous cash-back rates or travel rewards, as well as perks that are commensurate with the annual fee required.

Other factors taken into account include the value of rewards points earned, overall rewards flexibility, intro APR offers, regular APRs, and travel and consumer protections. We also only considered business credit cards that offer cards for employees upon request (with or without a fee).

What defines a small business credit card?

Small business credit cards are unique in the fact they’re typically available to very small companies that may only have one employee. Where some business credit cards for small business require an Employer Identification Number (EIN) to apply, others are available to sole proprietors and self-employed business owners who don’t have an EIN but want to apply with their Social Security number (SSN) instead.

Small business credit cards typically offer free employee cards as well, which makes them a smart option for small companies and start-ups that want an easy way to track all workplace purchases under one umbrella and within a single account. Many small business credit cards also offer rewards (cash back, points or miles) that are for the business owner’s personal use, although they can be used by the company as well.

Note that small business credit cards require a personal guarantee, which means the business owner is legally responsible for repayment even if their company fails.

Why small-business owners should get a business credit card

There are several reasons to pick up a small-business credit card if you don’t have one already, although the motivation to sign up typically varies from person to person. Some notable reasons to get a business credit card include:

• Separate personal and business spending. Having a dedicated business credit card helps keep personal expenses separate from business spending. This can make business accounting a considerably easier task.
• Make filing taxes easier. Having personal and business spending separate can also make filing taxes easier, as you already have all your business purchases in a separate account.
• Earn rewards for spending. The best credit cards for business tend to offer travel rewards or cash back, which can add up over time.
• Enjoy a range of benefits. While business card perks can vary, many business owners benefit from annual statement credit offers, travel perks—even consumer protections such as purchase protection and extended warranties.
• Manage cash flow better. Having a business credit card lets you charge purchases for convenience throughout the month, then pay a bill for your regular business spending only once each billing cycle.
• Get employee cards. Business credit cards typically also let you get free cards for your employees, which means you can manage their purchases more easily and earn rewards for each dollar your employees spend.

How to pick the best small-business credit card for you

To pick the best small-business credit card for your needs, you’ll need to think about the type of rewards you want to earn and the benefits you want the most. You’ll also need to look at your own personal credit rating, keeping in mind that the best credit cards for small business are typically for consumers with good to excellent credit.

Factors to compare among the best cards include:

• Annual fees. Only consider business credit cards with annual fees with which you feel comfortable or that are cost less than all the perks and rewards you’ll receive.
• Cardholder perks. Look for cards that offer travel benefits, consumer protections, or statement credit offers you feel you can use.
• Redemptions for rewards. Make sure cards you’re considering offer a range of ways to redeem your rewards, or at least redemption options you genuinely want.
• Rewards rates. Pick a card that offers either more rewards in categories your business spends a lot in or a generous flat rewards rate on all purchases.
• Welcome offers. Also consider business card sign-up bonuses, but make sure you can meet the minimum spending threshold to earn one without overextending yourself.

Whether you want to keep business spending separate from personal expenses, earn rewards on purchases your business makes, or both, a small-business credit card may be exactly what you need. Spend some time comparing the best card options on our list until you find one that best suits your needs.

For rates and fees of the card_name, please visit this URL.

For rates and fees of the card_name, please visit this URL.

For rates and fees of the card_name, please visit this URL.

For rates and fees of the card_name, please visit this URL.

Frequently asked questions (FAQs)

What are the different types of business credit cards?

Business credit cards can include travel credit cards, cash-back credit cards, 0% balance transfer cards, bad-credit credit cards, Mastercard credit cards, American Express credit cards, and more.

What are the requirements to apply for a small-business credit card?

Small-business credit cards typically require a personal guarantee, which means your personal credit will be considered for the purpose of qualification. A personal guarantee also means you are legally responsible for repayment of the balance on your card, even if your business ultimately fails.

You will also need a proven income to get approved, as well as enough time in business according to the standards of the card issuer. You may be able to apply for a business credit card with your Social Security number (SSN) if you’re a sole proprietor, but you can also apply with an Employee Identification Number (EIN).

How long does it take to be approved for a business credit card?

You may be able to get approved for a business credit card in a matter of minutes. Or, it can take several weeks to hear back after you submit an application.

How do I maximize my benefits from a small business credit card?

To make the most of your small-business credit card, you’ll want to use it for regular business purchases and bills in order to boost your rewards haul. That said, you’ll want to charge only purchases you can afford to pay in full, as most small-business credit cards have high APRs that make carrying a balance costly.

Also make sure you understand which perks your business card offers, so you can take advantage of them. If your card comes with several annual statement credit offers, for example, keep this information in mind and utilize these offers when you can.

Can you get a small-business credit card with bad credit?

There are some small-business credit cards for bad credit on the market today. These include secured business credit cards and corporate cards that do not check your personal credit.

Can I use a business credit card for personal purposes?

Yes, you can. However, doing so will likely complicate matters when it comes to accounting purposes.

The card_name is an intriguing option among no-annual-fee credit cards, as it earns generous rewards in several popular categories. Plus, there is a welcome bonus, and your points never expire. It’s not for everyone, though—frequent flyers and those who prefer home-cooked meals will want to consider other options.

TIME’s Take

The card_name is a great choice if you want big bonuses in categories such as dining, groceries, gas, and streaming. It’s an even better choice if you want those bonuses without paying an annual fee. However, some no-annual-fee cards earn better bonuses, and the U.S. Bank card’s lack of transfer partners makes it less than ideal for frequent travelers. U.S. Bank’s customer service record isn’t the best among credit card users. Still, it’s a good choice if you want to earn bonus points without paying an annual fee.

Pros and Cons

Rewards

The card_name rewards earning rates are excellent, especially for a card with no annual fee. Here’s what you can earn using this card:

• 4 points per dollar on dining, takeout, and restaurant delivery
• 2 points per dollar at grocery stores, grocery delivery, streaming services, gas stations, and EV charging stations
• 1 point per dollar on all other purchases

In addition to the 4 points per dollar on restaurant purchases, it’s also notable that this card earns 2 points per dollar on streaming services and EV charging.

The card_name is also eligible for shopping deals. Shopping online with your card_name card lets you earn more points.

Welcome bonus

You can bonus_miles_full. Because points are worth 1 cent each, the welcome bonus is worth $200 toward any of the redemptions available with this card.

Points redemption

You can redeem points by visiting the Rewards Center when you log in to your account on the U.S. Bank website. You can also log in to the mobile app and choose “redeem” or “view my rewards.” Lastly, you can call the 24-hour Rewards Center at 888-229-8864.

While you can earn unlimited rewards with this card, and the points never expire, you are limited in your redemption options. You can redeem them for cash or a statement credit, or deposit them into a U.S. Bank checking account. The latter requires at least 2,500 points. You can also redeem for gift cards, merchandise, or travel. You can also enroll in Real-Time Rewards, which lets you redeem points instantly via text message at participating retailers. This redemption appears as a statement credit on your monthly statement.

One of the downsides to this card is the lack of transfer partners. You can’t transfer points to airline or hotel partners; point values are capped at 1 cent each. There’s no way to increase their value.

Benefits

In addition to travel rewards, this card has a number of other benefits. Some of those are thanks to its status as a Visa Signature card, but it also adds some extra features:

• Streaming bonus: Get a $15 annual credit for streaming services, including Netflix, Apple TV+, and Spotify.
• ID Navigator from NortonLifeLock: Gain access to tools that will alert you to threats that may affect your identity.
• Visa Signature Luxury Hotels: Enjoy special guest status at 900+ Visa Signature Luxury Hotel properties worldwide.
• Visa Signature rental car privileges: Get up to 25% off base rates from Budget and Avis, plus up to 15% off qualifying rentals from Audi on demand.
• Lounge access: Gain access to more than 1,300 airport lounges worldwide with Priority Pass.
• Zero liability: Includes Visa Zero Liability Policy, which means you won’t be held responsible for unauthorized transactions.
• Extended warranty protection: Extends your manufacturer’s warranty up to 1 year on eligible warranties of 3 years or less.
• Trip delay reimbursement: Receive up to $300 when you’re stuck for more than 12 hours due to a covered hazard.
• Cellphone protection: Pay your monthly wireless bill with your card and get reimbursed if your phone is damaged or stolen ($50 deductible).

Fine print

Interest rates:

• Regular purchase APR: reg_apr,reg_apr_type
• Regular balance transfer balance_transfer_rate
• Introductory purchase APR: intro_apr_rate,intro_apr_duration
• Introductory balance transfer APR: balance_transfer_intro_apr,balance_transfer_intro_duration

Fees:

• Annual fee: annual_fees
• Balance transfer fee: balance_transfer_fees
• Cash advance fee: cash_advance_fee
• Foreign transaction fee: foreign_transaction_fee

Application process

The card_name application is entirely online and should take about 5 minutes, according to U.S. Bank. The form requires you to fill in basic information, such as your name, email address, and phone number. While U.S. Bank doesn’t provide specifics about the credit score you will need to apply, it says its credit products are generally for those with established credit with a score in the good to excellent range.

Customer service

Customers who have used U.S. Bank’s credit products tend to give the company poor ratings for its customer service. Common customer complaints include long wait times, difficulty updating personal information, and unsatisfactory fraud resolution. One customer, who used the card_name, was asked to provide collateral even though they claim their credit score is over 800. Due to these frequent negative experiences, you may want to exercise caution if strong customer support is a priority.

Who is the card for?

This card is best for those who want to earn generous rewards without the annual fee often charged by rewards credit cards. For example, you will likely appreciate this card if you routinely order takeout and binge-watch your favorite shows. That scenario simultaneously taps into two of this card’s best bonus categories: restaurants (4 points per dollar) and streaming (2 points per dollar).

This card is also a good option if you want a low introductory APR. It has a intro_apr_rate,intro_apr_duration and a balance_transfer_intro_apr,balance_transfer_intro_duration, provided you complete balance transfers within the first 60 days of account opening.

How to decide if the card is right for you

Consider its unique combination of perks and benefits. The previous section includes an example of a good match. The $15 annual streaming credit is also a nice perk that you’re unlikely to see often. In addition, if you can’t stomach annual fees, this card is worth considering.

While it also earns 2 points (or 2 cents) per dollar on groceries and gas stations, other no-annual-fee credit cards fare better in those categories. For instance, the card_name earns 3% cash back (or 3 cents per dollar) on up to $6,000 in combined purchases on groceries, gas, and online buying.

Why you might want a different card

While the card_name has some solid rewards, you might want a different card if you frequently fly or stay in hotels. This card does not earn bonus points for travel and doesn’t have transfer partners. In other words, you can’t increase the point valuation by transferring points.

The other reason you might want a different card is if you want the best rewards rates on gas and groceries. While 2 points per dollar are better than nothing, some credit cards earn 3 points—even more in some cases.

In addition, the base rate on this card is 1 point per dollar, meaning you won’t earn a bonus for any purchases that fall outside its bonus categories. Some credit cards earn 1.5 points or even 2 points per dollar on these purchases, but that isn’t the case for the card_name.

How Altitude Go Visa Signature Stacks Up

*Note: Earning cash back on purchases means that for every dollar you spend, you get a certain number of cents (usually one cent for each percentage cash back). For example, 4% cash back means you get 4 cents for every dollar spent on that category of purchases. card_name points are valued at one cent per point.

What Are the Best Cards to Complement This Card?

Ideally, you should pair this card with one or more that pick up the slack in some of its weaker areas. For example, you might pair it with cards that earn the following rewards:

Flexible travel rewards: Cards like the card_name and the card_name earn 5% cash back on travel booked through Chase Ultimate Rewards. You can transfer those points to Chase’s travel partners to earn potentially higher redemption rates.

High bonus rates: The card_name mentioned in the previous section earns 8% cash back per dollar on Capital One Entertainment purchases and 4% cash back per dollar on dining, entertainment, and streaming. Another card to consider is the card_name. It earns 6% cash back per dollar on up to $6,000 in grocery purchases per year. However, it has a annual_fees.

Frequently asked questions (FAQs)

Can I transfer balances from other credit cards to the card_name?

Yes, this card supports balance transfers. There is a balance_transfer_intro_apr,balance_transfer_intro_duration APR. However, you must complete balance transfers in the first 60 days from account opening.

card_name vs. card_name — which is better?

The better choice depends on your spending habits, and there isn’t a clear winner between the two. For instance, the card_name earns 5% cash back on travel booked through Chase Ultimate Rewards, 3% on drugstore purchases, and 1.5% on all other purchases. While all these rates beat anything the card_name has to offer, it does earn 4 points per dollar on dining, plus 2 points on groceries, gas, and streaming. In these categories, the U.S. Bank card wins. Because the two cards have different strong points, they may be better as compliments to each other instead of as a choice between two cards.

Can I combine Altitude points?

You can combine Altitude points in some cases, but not all. For instance, if you have an Altitude Reserve credit card, you cannot combine those points with points from the card_name. You can only combine points from two Altitude Reserve cards.

Is card_name metal?

The card is partially made of metal. It features a metal layer between two plastic layers. This gives the card a thick, premium feeling.

Cash back credit cards allow you to earn a percentage of your card spending back each month. The U.S. Bank Cash+® Visa Signature® Card and card_name credit card sit among the best cash back cards on the market today. card_name earns bonus cash back in specific spending categories, while the U.S. Bank Cash+ card offers rotating bonus cash back categories. Both come with welcome bonus offers, intro annual percentage rate (APR) offers on purchases and balance transfers, and no annual fee.

In this side-by-side comparison, we’ll look at the rewards, benefits, fees and other card details offered by both cards to help you determine the best option for you.

How the Cards Stack Up

U.S. Bank Cash+ Visa Signature Card and card_name offer bonus cash back with no annual fee and lengthy 0% intro APR periods. See how the two cash back cards stack up when compared side-to-side.

Welcome bonus

The U.S. Bank Cash+ Visa Signature Card and card_name offer nearly identical welcome bonus offers. The difference lies in the spending requirements and time frame to earn the bonus. With the card_name, you bonus_miles_full. With U.S. Bank Cash+, you earn a $200 bonus after you spend $1,000 in the first 120 days of account opening.

While the U.S. Bank Cash+ requires double the spending, it also provides an additional month to do so. Regardless, both cards feature low spending requirements that should be relatively easy to reach for most cardholders.

Welcome bonus winner: Tie

Rewards

Both credit cards earn bonus cash back in multiple spending categories. U.S. Bank Cash+ offers a unique reward structure, which allows cardholders to choose how they earn cash back:

• 5% cash back on your first $2,000 in combined eligible purchases each quarter on two categories you choose, then 1% back).
• 5% cash back on prepaid air, hotel and car reservations booked directly in the Rewards Travel Center.
• 2% cash back on one everyday category.
• 1% cash back on all other eligible purchases.

Cardholders have several 5% cash back categories to choose from, including:

• Fast food
• TV, internet and streaming
• Cell phone
• Home utilities
• Department stores
• Electronic stores
• Sporting goods stores
• Movie theaters
• Gyms & fitness centers
• Furniture stores
• Ground transportation
• Select clothing stores

You must activate Cash+ categories each quarter to earn cash back. The 2% everyday categories include grocery stores and grocery delivery, restaurants and gas stations and EV charging stations.

With U.S. Bank Cash+, you can redeem cash back for a statement credit, rewards card or direct deposit to an eligible U.S. Bank account. The minimum redemption amount is $25, and cash back rewards expire 36 months after the billing cycle in which they were earned.

card_name features more defined cash back categories:

• 5% cash back on travel purchased through Chase Ultimate Rewards.
• 3% cash back on dining at restaurants, including takeout and eligible delivery services.
• 3% cash back on drugstore purchases.
• 1.5% cash back on all other purchases.

card_name cash back rewards never expire if your account is in good standing. You can redeem cash back for a statement credit, direct deposit into an eligible linked bank account, shop with points at Amazon.com, gift cards or travel booked through [Chase Ultimate Rewards](https://time.com/personal-finance/article/chase-transfer-partners/). You can increase the value of your rewards by pairing Freedom Unlimited with select premium Chase travel rewards credit cards.

U.S. Bank Cash+ Visa Signature Card has a wider range of spending categories, but card_name offers more flexible redemption options, and rewards never expire.

The better card for earning rewards comes down to your spending habits and whether you can earn enough in chosen spending categories with U.S. Bank Cash+. Both cards feature somewhat complex reward structures, especially U.S. Bank Cash+, which may require extra time and energy to track spending to maximize rewards opportunities. With the card from U.S. Bank, you must also remember to activate spending categories each quarter to earn bonus cash back. card_name earns 50% more on non-bonus spending.

Rewards winner: Tie

Annual fee

Annual fees are an added cost card issuers charge in exchange for access to a credit card and its rewards and benefits. Paying an annual fee lessens the value of a card unless you earn enough rewards to capitalize on its perks to offset the extra charge. Neither of these cards has an annual fee.

Annual fee winner: Tie

APR

The two cards come with similar intro APR offers. With card_name, you receive intro_apr_rate,intro_apr_duration from account opening on purchases and balance_transfer_intro_apr,balance_transfer_intro_duration. Once the introductory period ends, the card switches to its regular variable APR range of reg_apr,reg_apr_type.

With the U.S. Bank Cash+ Visa Signature Card, you receive 0% intro APR for the first 15 billing cycles on purchases and balance transfers. After that, the card switches to a regular variable APR range of 19.74% to 29.74%. Balance transfers must occur within the first 60 days of account opening to be eligible for the introductory APR.

Both cards charge a fee for balance transfers. card_name has an introductory fee of either $5 or 3% of the transfer amount, whichever is greater, on transfers made within the first 60 days of account opening. After that, the fee increases to $5 or 5% of the transfer amount, whichever is greater. With U.S. Bank Cash+, cardholders pay $5 or 3% of the transfer amount, whichever is greater.

With similar intro offers and APR ranges, either card is a good option for financing purchases or paying off existing card balances over time without interest charges.

APR winner: Tie

Foreign transaction fee

If you’re a frequent traveler, the last thing you want is to pay extra fees on purchases. Neither card has foreign transaction fees, making them great international travel options. Purchases made outside of the U.S. do not carry additional fees.

Foreign transaction fee winner: Tie

Other benefits

U.S. Bank Cash+ and card_name are Visa Signature cards, with access to additional benefits through Visa. The Visa Signature benefits program contains various features and perks, but it’s up to the card issuer which benefits are included with a card.

The benefits included with U.S. Bank Cash+ focus primarily on exclusive experiences, discounts or customer service. The card also comes with two travel protections—roadside dispatch and travel and emergency assistance services.

card_name benefits primarily revolve around travel and purchase protections. Like the U.S. Bank card, card_name comes with travel and emergency assistance services but also includes other protections like:

• Purchase protection
• Extended warranty protection
• Trip cancellation/interruption insurance
• Auto rental collision damage waiver

Cardholders also have access to partner benefits with DoorDash, Lyft and Instacart and free credit score access through Chase Credit Journey. With the added protections, c offers more value regarding card benefits.

Other benefits winner: card_name

Which Card Earns the Most

The earning power of card_name and the U.S. Bank Cash+ Visa Signature Card will vary depending on your spending habits. The U.S. Bank card offers more opportunities to earn 5% cash back in multiple categories, but spending is capped for each quarter. card_name only offers 5% cash back on travel purchased through Chase Ultimate Rewards, and 3% on dining and drugstore purchases, but there are no restrictions on how much you can earn. It also offers a higher cash back rate on other eligible card purchases.

The best way to know which card will earn you more cash back is to compare your current spending habits and monthly budget to the bonus cash back categories offered by each card. The answer may vary from person to person, depending on where they spend the most money.

Our recommendations

Why we recommend card_name

card_name offers more straightforward rewards, making them easier to track. It also offers a higher base rewards rate for spending outside bonus categories. card_name offers more protections on purchases and when traveling and partner benefits with popular companies like DoorDash and Lyft.

Why you might still opt for U.S. Bank Cash+ Visa Signature Card

The two cash back cards feature similar benefits, welcome bonus and intro APR offers, and no annual fees. Depending on your spending habits, the U.S. Bank Cash+ Visa Signature Card may earn more cash back than card_name.

TIME Stamp: Choose a card that aligns with your spending habits

With similar intro APR and welcome bonus offers, and no annual fees, the better option comes down to which card’s rewards structure aligns more closely with how you spend money. Determine your needs before considering either card.

Frequently asked questions (FAQs)

What is the minimum credit limit for card_name?

card_name comes as either a Signature or Platinum Visa based on creditworthiness. The Signature version has a minimum credit limit of $5,000, while the Platinum version has a minimum credit limit of $500.

What is the credit limit for the U.S. Bank Cash+ Visa Signature Card?

Credit limits vary based on creditworthiness and other factors set forth by the card issuer. The minimum credit limit for the U.S. Bank Cash+ Visa Signature Card is $300.

What is a Visa Signature Card?

A Visa Signature Card offers additional features and benefits beyond a standard Visa credit card. Card issuers decide which perks are included with a particular Visa Signature Card. Signature benefits may include car rental privileges, partner benefits with companies like Shipt and Skillshare, concierge services, access to exclusive experiences, airport lounge membership, travel and purchase protections, and cellphone protection.

The best gas credit cards are designed to help maximize your savings and lower the cost of trips to the gas pump. You may be considering a gas credit card if you have a long commute, a vehicle with a low miles per gallon (MPG) rating, or a family that treats you like a taxi.

Gas credit cards may reward you with cash back on gas purchases or offer a set discount per gallon of gas. This guide will explore some of the best-rated gas credit cards, so you can choose the one that works best for you.

Best gas credit cards: Summary

• Best for cash back: Chase Freedom Unlimited®
• Best for fair credit: Capital One QuicksilverOne Cash Rewards Credit Card
• Best for families: Blue Cash Everyday® Card from American Express
• Best for rewards: Citi Premier® Card
• Best for Costco members: Costco Anywhere Visa® Card by Citi
• Best for discounted gas: BPme Rewards Visa®
• Best for no annual fee: PenFed Platinum Rewards Visa Signature® Card

Why we recommend these credit card for gas

Best for cash back: Chase Freedom Unlimited®

Welcome offer: Earn an extra 1.5% on everything you buy (on up to $20,000 spent in the first year) — worth up to $300 cash back. That’s 6.5% on travel purchased through Chase Travel, 4.5% on dining and drugstores, and 3% on all other purchases.

Rewards rate: When you open a Chase Freedom Unlimited®, you can earn between 1.5% and 6.5% cash back in several different categories as follows :

Up to $20,000 spent in the first year:

• 6.5% cash back on travel purchased through Chase Ultimate Rewards®
• 4.5% cash back on drugstore purchases and dining at restaurants (takeout and delivery services included)
• 3% on all other purchases

Post $20,000 spent or first year:

• 5% cash back on travel purchased through Chase Ultimate Rewards®
• 3% cash back on drugstore purchases and dining at restaurants (takeout and delivery services included)
• 1.5% on all other purchases

Our take: Additionally, new cardmembers will get a special offer of 5% cash back at gas and grocery stores on up to $12,000 worth of purchases in the first year. This offer excludes Walmart and Target. Cash back rewards on the Chase Freedom Unlimited® don’t expire, so you don’t need to worry about rushing to use them.

Other benefits of the Chase Freedom Unlimited® include a 0% Intro APR on Purchases 15 months and 0% Intro APR on Balance Transfers 15 monthsand a $0 annual fee.

Best for fair credit: Capital One QuicksilverOne Cash Rewards Credit Card

Welcome offer: N/A.

Rewards rate: You can earn a flat 1.5% cash back on all purchases, including gas.

Our take: With a minimum credit requirement of 580, the Capital One QuicksilverOne Cash Rewards Credit Card is a good choice for those with fair credit. Capital One also provides access to CreditWise—a tool designed to help you monitor your credit health as you work to strengthen your credit history. Bonus: You don’t even need to have a Capital One product to use CreditWise.

Best for families: Blue Cash Everyday® Card from American Express

Welcome offer: Earn a $200 statement credit after you spend $2,000 in purchases on your new Card within the first 6 months.

Rewards rate: The card pays 3% cash back in both categories, making it an ideal choice for those who frequently ferry kids around town or have a growing family to feed.

Our take: Families who spend a lot of money at gas stations and grocery stores will appreciate the cash back options with a Blue Cash Everyday® Card from American Express. With a $0 annual fee (Rates & Fees), cardholders can rest assured that there won’t be any surprises with this card.

Best for rewards: Citi Premier® Card

Welcome offer: Earn 60,000 bonus ThankYou® Points after you spend $4,000 in purchases within the first 3 months of account opening. Plus, for a limited time, earn a total of 10 ThankYou® Points per $1 spent on hotel, car rentals, and attractions (excluding air travel) booked on the Citi Travel℠ portal through June 30, 2024.

Rewards rate: There’s a long list of rewards available for Citi Premier® Card holders, including 3% on gas that’s converted into ThankYou Points.

Our take: You can use your points to shop online with Amazon and Best Buy, or you can redeem them for gift cards to restaurants, home improvement stores, department stores, and more. There’s also an option to redeem your points for travel expenses on flights, hotels, and cruises. ThankYou Points don’t expire, and there’s no limit on the number of points you can earn.

Best for Costco members: Costco Anywhere Visa® Card by Citi

Welcome offer: N/A.

Rewards rate: Costco members with excellent credit scores can take advantage of 4% cash back on gas purchases with a Costco Anywhere Visa® Card by Citi.

Our take: There’s $0 annual fee (although you do need to be a Costco member to apply, so you’ll need to pay an annual membership fee). The 4% cash back on gas applies to the first $7,000 spent in this category each year—after that, it drops down to 1%. Cardholders can also get 3% cash back on travel and restaurant bills, 2% cash back on Costco or Costco.com purchases, and 1% cash back on all other purchases.

Best for discounted gas: BPme Rewards Visa®

Welcome offer: None.

Rewards rate: You’ll get 15 cents per gallon off at all BP and Amoco gas stations. In addition, you’ll earn 5% cash back on non-fuel purchases at BP or Amoco stations, 3% on groceries and dining, and 1% on all other qualifying purchases.

Our take: When you sign up for a BPme Rewards Visa, you’ll automatically receive a discount of 50 cents per gallon for the first 60 days after opening the account. In addition to the beneficial rewards structure, you can exchange your rewards for cash back, gift cards, account statement credit, or travel experiences.

Best for no annual fee: PenFed Platinum Rewards Visa Signature® Card

Welcome offer: 15,000 Bonus Points when you spend $1,500 in first 90 days.

Rewards rate: You can also earn 3x points on purchases at grocery stores, restaurants, and streaming services, and 1x points on all other purchases. For a driver who spends $500 per month, this would equal 2,500 points per month and 30,000 points per year.

Our take: In addition to a no annual fee and a generous rewards rate structure, this PenFed card offers 5x points earned on gas purchases or EV charging stations. Points can be redeemed for gift cards, travel, shopping, experiences—even charitable donations.

Best credit cards for gas comparison chart

Our methodology

When researching the best gas credit cards, we compared some of the top-rated cards in several important categories. Like with any type of credit card, we looked at annual fees and annual percentage rate (APR) to determine the costs of owning each credit card. We also reviewed cash back amounts for purchases at gas stations and looked for any extra benefits, such as a set amount per gallon of gasoline. The resulting list offers a good mixture of options for a wide range of customers.

How to select the best gas credit card for you

When looking for the best gas credit card, there are several considerations you’ll want to keep in mind.

• Annual fees. Some gas credit cards have a $0 annual fee; others may require you to pay a small amount in exchange for keeping your credit card open.
• APR. In general, you can expect to get a lower APR if your credit score is in the “excellent” range.
• Cash back or rewards. One of the main perks of a gas credit card is the ability to earn points or cash back on gas purchases, which you can then exchange for gift cards or other benefits.
• Introductory offers. Depending on the card issuer, you may get a certain amount of cash back for making a minimum number of purchases within a set time period after opening a card, or you may get an introductory APR of 0%. Check to see what is on offer and choose based on what’s most appealing to you.

Alternatives to gas credit cards

If you want to save money on gas without taking out a new credit card, here are two options to consider.

• Gas station loyalty cards. These cards give you points whenever you make a purchase from the specific gas station they’re tied to. The more you fill up there (or the more coffee or fountain drinks you purchase at the attached convenience store), the more points you’ll earn. You can then redeem the points for discounts on future gas purchases.
• Grocery store loyalty cards. Many grocery stores have loyalty cards that give you points for spending money in the store. If it has an attached gas station, you may be able to redeem your points for discounted gas. For example, Kroger Plus cardholders can use their points to decrease the per-gallon cost of gas at Kroger gas stations.

TIME Stamp: The best gas credit cards help you save on more than just gas

By opening one of these gas credit cards, you can enjoy cash back and other rewards just for making purchases you would already be making. Before choosing a card, it’s important to consider annual fees, APR, introductory offers, and the rewards you can earn for purchasing gas and other essential items such as groceries.

Frequently asked questions (FAQs)

How do gas credit cards work?

Gas credit cards work the same way traditional credit cards do; however, they tend to offer benefits tailored for cardholders who spend a lot of money on gas. For example, they may offer 4% or higher cash back for gas purchases, which can help you decrease your overall costs. Depending on the card, you may be able to redeem cash-back points for gift cards, travel expenses, or cash.

What are the different types of gas credit cards?

There are two main types of gas credit cards:

• Loyalty cards are not actually gas credit cards, though they can help you save money on gas. By using your loyalty card whenever you purchase gas, you can earn money off future gas purchases. These cards are designed to keep you coming back to the same gas station chain in order to maximize your savings while keeping a steady flow of business for the gas station.
• General purpose cards are the same as traditional credit cards, but they tend to have better cash-back opportunities for gas purchases. They may be issued in partnership with gas stations or independently through a bank or credit union. However, these cards can be used anywhere a regular card can be used—and they usually also offer cash back on groceries, travel, and other general expenses.

What are alternative credit cards that can still earn you points on gas?

Most credit cards offer some form of cash back or points. To earn the most back on gas purchases, look at the fine print of any credit card you’re considering to see how much you can earn back on purchases at gas stations.

What are fleet gas cards?

A fleet gas card is designed for business use. If the business has a fleet of commercial cars, the driver can use a fleet gas card to fill up at certain gas stations within a predetermined network. Fleet gas cards can also be used to pay for regular maintenance of fleet vehicles, so businesses can keep them running longer.

Federal tax rules for retirement income are pretty straightforward—state rules, not so much. Depending on where you live, you could pay as much as 4.7% of your annual income in state income taxes. Or as little as 0%.

Some states tax almost all forms of retirement income, while others don’t levy any income taxes. Since most retirees have fixed incomes and follow a strict budget, you may want to consider state taxes when deciding where to live in retirement.

Below are lists of states that do not tax certain types of retirement income. Since state tax laws change frequently, it’s a good idea to check your state’s tax website for the most up-to-date information.

Looking for financial advice regarding your retirement accounts? Consult with Empower’s team of experts

States with no income tax

The average American pays 2.1% of their annual income in personal income taxes to their state, though the percentage varies greatly depending on the state where you live and the type of income you earn.

In the eight states that do not have a personal income tax, your retirement income—no matter the source—will not be taxed. Those states are:

• Alaska.
• Florida.
• Nevada.
• South Dakota.
• Tennessee.
• Texas.
• Washington.
• Wyoming.

A ninth state, New Hampshire, currently taxes interest and dividend income above $2,400, but that tax will be phased out in 2023 and 2024 and repealed beginning January 1, 2025.

States that won’t tax your Social Security income

Including the eight states that don’t tax personal income—plus New Hampshire—the following 39 states do not levy an income tax on Social Security benefits:

• Alabama.
• Alaska.+
• Arizona.
• Arkansas.
• California
• Delaware.
• Florida.+
• Georgia.
• Hawaii.
• Idaho.
• Illinois.
• Indiana.
• Iowa.++
• Kentucky.
• Louisiana.
• Maine.
• Maryland.
• Massachusetts.
• Mississippi.
• Missouri.
• Nevada.+
• New Hampshire.
• New Jersey.
• New York.
• North Carolina.
• Ohio.
• Oklahoma.
• Oregon.
• Pennsylvania.
• Rhode Island.
• South Carolina.
• South Dakota.+
• Tennessee.+
• Texas.+
• Vermont.
• Virginia.
• Washington.+
• Wisconsin.
• Wyoming.+
• No state income tax

+No state income tax
++Not taxed but used to help determine filing status.

States that won’t tax your pension income

Most states tax at least a portion of your pension income, including defined benefit plans and government pensions. Seventeen states, however—including those with no income tax—do not levy any tax on pensions. Those states are:

• Alabama.
• Alaska.+
• Florida.+
• Hawaii.
• Illinois.
• Iowa.++
• Mississippi.
• Nevada.+
• New Hampshire.
• Pennsylvania.
• Rhode Island.
• South Dakota.+
• Tennessee.+
• Texas.+
• Vermont.
• Washington.+
• Wyoming.+
• No state income tax

+No state income tax
++Not taxed but used to help determine filing status.

States that won’t tax your TSP income

Retirement distributions from Thrift Savings Plans are not taxed in 12 states. These states include:

• Alaska.+
• Florida.+
• Illinois.
• Mississippi.
• Nevada.+
• New Hampshire.
• Pennsylvania.
• South Dakota.+
• Tennessee.+
• Texas.+
• Washington.+
• Wyoming.+
• No state income tax

States that won’t tax your 401(k) or IRA

Twelve states do not tax distributions from your 401(k) plans or IRAs. They are:

• Alaska.+
• Florida.+
• Illinois.
• Mississippi.
• Nevada.+
• New Hampshire.
• Pennsylvania.
• South Dakota.+
• Tennessee.+
• Texas.+
• Washington.+
• Wyoming.+
• No state income tax

States that won’t tax your pension, but do tax 401(k)s and IRAs

Three states tax income from 401(k)s and IRAs but do not tax pensions:

• Alabama.
• Hawaii.
• New Hampshire.

To avoid a surprise at tax time, consider enlisting the help of Beagle Financial Services, a financial concierge specializing in finding and helping people manage old 401(k)s.

States that won’t tax your estate or inheritance

Your estate will not escape the federal “death tax,” although the amount that can be excluded is relatively generous. At the state level, however, there are no estate or inheritance taxes in the following 38 states:

• Alaska.+
• Arizona.
• Arkansas.
• California.
• Colorado.
• Delaware.
• Florida.+
• Georgia.
• Idaho.
• Indiana.
• Iowa.
• Kansas.
• Kentucky.
• Louisiana.
• Maryland.
• Missouri.
• Montana.
• Nebraska.
• Nevada.+
• New Hampshire.
• New Jersey.
• New Mexico.
• New York.
• North Carolina.
• North Dakota.
• Ohio.
• Oklahoma.
• Pennsylvania.
• South Carolina.
• South Dakota.+
• Tennessee.+
• Texas.+
• Utah.
• Virginia.
• Washington.+
• West Virginia.
• Wisconsin.
• Wyoming.+
• No state income tax

States that don’t tax military retirement income (33)

When it comes to military retirement income, the following 33 states do not tax your pension:

• Alabama.
• Alaska.+
• Arkansas.
• Connecticut.
• Florida.+
• Hawaii.
• Illinois.
• Iowa.
• Kansas.
• Louisiana.
• Maine.
• Massachusetts.
• Michigan.
• Minnesota.
• Mississippi.
• Missouri.
• Nevada.+
• New Hampshire.
• New Jersey.
• New York.
• North Dakota.
• Ohio.
• Pennsylvania.
• Rhode Island.
• South Dakota.+
• Tennessee.+
• Texas.+
• Utah.
• Vermont.
• Washington.+
• West Virginia.
• Wisconsin.
• Wyoming.+
• No state income tax

TIME Stamp: Consider state taxes when you retire

While state income taxes are not the only consideration when choosing a retirement location, at up to 4.7% of income, they should at least be on the list. To put it in perspective, suppose you move to a state with an average 2.1% income tax, and your taxable retirement income is $100,000. That’s $2,100 in additional income tax, above and beyond federal income taxes. Put another way, if you could avoid that tax, you would have an additional $175 monthly to spend or save in a high-yield savings account.

There are other factors, including the cost of living, housing, property taxes, climate, closeness to family, and so much more. In other words, don’t base your decision purely on your state tax burden. As always, consult with a trusted financial advisor you know, or from a platform such as Empower.

Frequently asked questions (FAQs)

Which states won’t tax my 401(k), Social Security benefits, and military retirement pay?

If your retirement income stems from a 401(k), Social Security, or military retirement, three states do not tax that income: Illinois, Mississippi, and Pennsylvania.

Do you pay taxes on Social Security?

The IRS requires you to pay federal taxes on Social Security income above a certain level. For the 2023 tax year, income over $25,000 for an individual taxpayer and $34,000 for a couple filing jointly is subject to federal income taxes.

In addition, the following states also tax Social Security income: Kansas, Michigan, Minnesota, North Dakota, Utah, West Virginia, Colorado, Montana, Nebraska, and New Mexico.

Which states have no income tax?

Alaska, Florida, Nevada, New Hampshire*, South Dakota, Tennessee, Texas, Washington, and Wyoming do not tax income.

*No tax on earned income, but interest and dividend income above $2,400 will be taxed until 1/1/25.

Which states have the lowest tax burden?

Alaska had the lowest average overall tax burden—measured as total individual taxes paid divided by total personal income—at 5.4%, followed by Tennessee (6.3%), New Hampshire (6.4%), Wyoming (6.6%) and Florida (6.7%). According to USAFacts, in 2020, the average American contributed 8.9% percent of their income to state taxes.

A cash-out refinance might be a great option if you have equity in your home and need a lump sum of cash. This type of loan replaces your existing mortgage with a new one at a higher amount than you currently owe. The difference between what you owe and the larger refinance amount will be paid out in cash. You can then use that money to pay for anything from a home renovation to educational expenses for a family member.

Read on to see our top picks for cash-out refinance mortgages.

Our top picks for the best cash-out refinance mortgages

Our recommendations

Best for digital refinancing: Rocket Mortgage

Rocket Mortgage is known for its streamlined online mortgage process. The same process applies to refinancing customers—you can apply online and get loan options in seven minutes or less, and then customize your loan and complete your application via online chat or phone.

Once you’ve applied, you can log into Rocket Mortgage to check your loan status, upload documents, and more. Although Rocket Mortgage is a solid choice for digital refinancing, the company doesn’t have any physical branches, so customers won’t be able to work with a loan officer face-to-face.

Best for FHA loan refinancing: NBKC Bank

Unlike many lenders, NBKC offers FHA loan refinancing and loans for self-employed borrowers. Two FHA options are available through NBKC Bank: FHA Refinance and FHA Streamline Refinance. The former lets you tap into your home’s equity to finance purchases or reduce debt.

NBKC Bank also has a high Trustpilot customer satisfaction rating, averaging 4.6 out of 5 over 299 customer reviews as of February 2024. Knowing that existing customers recommend NBKC helps make up for the fact that the website doesn’t list mortgage rates or provide information about loan terms unless you enter your personal information.

Best for low APR: PenFed Credit Union

PenFed Credit Union has a relatively low APR for mortgage refinancing of 6.389%. Borrowers who qualify for this rate will pay less interest and fees over the life of their loan. It’s important to note that rates can change, but generally, you can expect a lower APR for your cash-out refinance through PenFed Credit Union.

To be able to refinance through PenFed, you must be a credit union member. However, there are no limitations to membership so anyone can sign up, and membership comes with several perks, such as member discounts, a financial hardship center, and an advice center.

Best for VA loan refinancing: Navy Federal Credit Union

Service members and veterans who want to refinance their mortgage and borrow from their home’s equity will want to consider Navy Federal Credit Union. Eligible borrowers can refinance their VA loan for up to 100% of their home’s value, which is ideal for those who don’t have a lot of equity in their home or need a larger sum of cash than a conventional refinance will offer.

You’ll need to become a member to get a cash-out refinance mortgage from Navy Federal, which adds an extra step to the process if you’re not an existing member. Membership comes with numerous perks, but it’s only available to customers with ties to the armed forces, Department of Defense, or National Guard.

Those who are eligible can access a service called HomeSquad, which will let them check the status of their loan, upload required documentation, and connect bank accounts to verify assets. This can help streamline the process for the borrower.

Best for loan term options: SoFi

SoFi offers four different loan terms for cash-out refinances: 10 years, 15 years, 20 years, and 30 years. This wide range means a Sofi refinance can be a realistic option for many borrowers. SoFi also offers a $500 discount on its home loan processing fee for borrowers who meet certain criteria (such as an existing SoFi personal loan or student loan or at least $50,000 in a SoFi investment account). SoFi also offers several resources to guide borrowers through the refinancing process.

SoFi only offers conventional and jumbo loan refinancing, so those looking for VA or FHA refinancing must go elsewhere.

Best for fast closing: Warp Speed Mortgage

For urgent refinance requests, Warp Speed Mortgage is an excellent option. The lender has a 14-business-day closing guarantee and will issue a $2,000 closing credit if the loan takes longer than 14 business days to close. This can help give you added peace of mind that your cash-out refinance will be completed quickly. However, there are several scenarios where the guarantee would not apply—the most notable being delays due to third parties, which would include appraisals, title requests, and more.

Additionally, Warp Speed Mortgage offers a fully digital experience. Its online application allows you to upload documents, communicate with your Client Manager, and even close online through the eClosing process.

Find more cash out refinance mortgage lenders

Methodology

When researching the best cash-out refinance mortgage options, we reviewed several lenders and compared their interest rates, APRs, loan terms, and credit score requirements. We then dove deeper into each lender to see what made them stand out among the competition. This left us with notable lenders offering cash-out refinance loans that will appeal to a broad range of borrowers.

How to pick the best cash-out refinance mortgage

Like any loan, it’s important to do your research when looking for a cash-out refinance mortgage. First, look into several options to compare interest rates, repayment terms, fees, and closing costs. You can also read online reviews of each lender and ask for recommendations from friends and family members.

In addition to researching and comparing lenders, consider your needs. Are you looking for a certain type of loan, such as a VA or FHA refinance loan? Are you a landlord who wants a cash-out refinance loan for a rental property? Whatever it is, you’ll need to ensure the lenders you’re considering can accommodate you.

Once you’ve chosen your loan, read the fine print before you sign any loan agreements. Pay attention to the closing costs to ensure you’re not surprised when you close the loan.

Finally, consult a mortgage professional to see if other options are better. Even if you think you’ve found the ideal refinance loan, a mortgage professional may be able to find an option with a lower interest rate or cheaper closing costs.

Alternatives to cash-out refinancing

Cash-out refinancing can be a great way to tap into your home equity, but it’s not the only way. Alternatives include home equity loans and home equity lines of credit (HELOCs).

Home equity loan

A home equity loan, also called a second mortgage, is a type of loan that borrows from the equity you have in your home. The home equity loan doesn’t replace your existing mortgage like a cash-out refinance; instead, it’s an additional loan you must repay in addition to your primary mortgage.

When you get a home equity loan, you’ll receive a lump sum of cash from your home’s equity and pay it back in monthly installments at a fixed rate. The rates for a home equity loan are often higher than for a cash-out refinance, but if you only need to borrow a small amount from your equity, it may save you money in the long run.

Home equity line of credit (HELOC)

A HELOC also uses the equity in your home, but it is a revolving line of credit that functions more like a credit card than an installment loan. When approved for a HELOC, the lender will allow you to withdraw funds up to a certain limit and repay the money similarly to a credit card.

The HELOC has two distinct periods: a draw period and a repayment period. The exact draw and repayment periods will vary by lender, but it’s common for a HELOC to have a 10-year draw period and a 20-year repayment period. During the draw period, you’ll only pay interest on your balance. Once the draw period ends and the repayment period begins, you won’t be able to withdraw any more money from the HELOC and begin repaying the balance.

HELOCs have variable rates, which means you may pay more or less interest than you would with a fixed-rate cash-out refinance loan.

More about cash-out refinancing

What is a cash-out refinance? How does a cash-out refinance work?

A cash-out refinance is a loan that replaces your existing mortgage with a new one at a higher amount. Any amount above what you owe on your current mortgage will be paid out in a lump sum. You can then use that cash to fund your expenses, such as home renovation, educational expenses, debt consolidation, or medical bills.

For example, if your home is currently worth $400,000, and you owe $200,000 on your existing mortgage, you can get a refinance loan for $250,000 and a $50,000 cash payout. You will one monthly payment, and you can use the cash for any purpose.

How much cash can you get from a cash-out refinance?

The amount of cash you can get from a cash-out refinance depends on how much equity you have in your home. In general, lenders will require that you keep at least 20% of equity in your home, though it’s possible to find lenders that will allow you to keep as little as 10% equity.

In the case of the $400,000 home with a $200,000 loan, you could get a cash-out refinance of up to $320,000 and still retain 20% equity in your home. That means you could get a cash payout of up to $120,000, though it’s not recommended to take out more cash from your equity than you need.

Pros and cons of a cash-out refinance

All loans have their pros and cons, and cash-out refinances are no exception. The following table breaks down the pros and cons of cash-out refinance loans.

Steps to getting a cash-out refinance

Follow these steps once you’re ready to move forward with a cash-out refinance:

• Check the lender’s requirements to make sure you qualify.
• Calculate how much cash you need to pay for the expense you’re funding.
• Fill out an application with your chosen lender and provide any necessary income documents.
• Wait for approval and receive your cash payment.
• Start repaying the loan each month.

Cash-out refinance requirements

The exact requirements for a cash-out refinance will depend on the lender. However, there are certain requirements that most lenders have, such as the following:

• Credit score requirements: You may need a credit score of at least 580 to qualify for a cash-out refinance. Conventional lenders may require you to have a credit score of 620 or higher.
• Debt-to-income (DTI) ratio requirements: Many lenders require borrowers to have a DTI ratio of 50% or lower. A DTI ratio is calculated by dividing your monthly debts by your total monthly income.
• Equity requirements: If you don’t have equity in your home, you won’t qualify for a cash-out refinance. Lenders often require 20% equity or more in your home to approve a cash-out refinance loan.

When is a cash-out refinance a good idea?

A cash-out refinance may be a good choice if you need a large sum of cash to finance a specific expense, such as a home improvement project, debt consolidation, or paying for a child’s college education. Cash-out refinances tend to have lower interest rates than other options, such as credit cards or personal loans, which can save you money in the long run.

TIME Stamp: A cash-out refinance can benefit you financially

If you have equity in your home and need a lump sum of cash, a cash-out refinance can provide you with the money you need rather than maxing out your credit cards or getting a personal loan. The best cash-out refinance mortgages will suit the needs of many borrowers, though it’s important to shop around with several lenders to find the one that best suits your needs.

Frequently asked questions (FAQs)

Can you get a 90% cash-out refinance?

Some lenders offer cash-out refinances up to 90%. If you need to borrow this much equity from your home, it’s important to shop around for a lender that offers loans with such a high loan-to-value (LTV) ratio.

How can I qualify for a refinance?

The qualification requirements for a refinance vary from lender to lender. However, most lenders will require the following:

• A minimum credit score of 620 (or, in some cases, 580).
• A debt-to-income (DTI) ratio of 50% or less.
• A loan-to-value (LTV) ratio of 80% or less (some lenders may approve refinances with a 90% LTV ratio).

Can I refinance my mortgage with bad credit?

The credit requirements for a mortgage refinance depend on the lender and the type of loan. Conventional lenders generally require borrowers to have a credit score of 620 or higher, while VA and FHA lenders may approve borrowers with as low as 580.

How long does a mortgage refinance take?

A mortgage refinance often takes between 30 and 45 days to complete; however, the exact amount of time will depend on several factors. When you refinance your mortgage, you’ll need to have certain third-party services performed, such as an appraisal and a home inspection. If you can schedule these quickly, you’ll likely have a shorter time to close.

Should I get a fixed- or adjustable-rate mortgage?

There are pros and cons to both fixed- and adjustable-rate mortgages. Opting for a fixed-rate mortgage means your monthly payment will remain the same for the life of the loan, while an adjustable-rate mortgage payment may periodically increase or decrease.

A steady payment amount makes it easier to budget, but you won’t benefit if interest rates drop, as you would with an adjustable-rate mortgage. If you’re unsure which option is best, consult a mortgage professional.