A restaurant credit card is a card issued by a bank or credit company that you use to pay for meals at restaurants, bars, and food delivery services
The card itself works like any other credit card — you charge purchases, receive a bill, and pay it back. What makes it different is the rewards structure. Most restaurant cards give you extra points or cash back when you eat out, but fewer points (or none) when you use the card at gas stations, grocery stores, or other merchants. Some cards also offer perks like dining credits, priority reservations, or discounts at partner restaurants.
The catch is that restaurant cards usually charge an annual fee — sometimes $95, sometimes $450 or more — and that fee only makes sense if you eat out frequently enough to earn back more in rewards than you pay in the fee. A card that costs $95 per year needs to generate at least $95 in value through rewards or credits to break even. If you eat out twice a month, it probably won't. If you eat out three or four times a week, it might.
Key Takeaways
- Restaurant cards reward dining purchases with points or cash back, but charge annual fees that range from $0 to $450 depending on the card.
- The card only saves you money if the rewards and credits you earn exceed what you pay in annual fees.
- Your credit score affects which cards you can get and what interest rate you'll pay if you carry a balance.
- Carrying a balance on any credit card costs money in interest, so these cards work best if you pay the full bill each month.
- Restaurant cards often come with bonus points for new cardholders, but those points have real value only if you redeem them for something you would actually buy.
How rewards and points actually work
When you use a restaurant card, you earn points or cash back on each dollar spent. A card might give you 3 points per dollar at restaurants and 1 point per dollar everywhere else. Those points sit in an account until you redeem them — usually for a statement credit (money off your bill), a gift card to a restaurant, or a travel booking through the card's travel portal.
The real value of a point varies by card and how you use it. A point might be worth 1 cent if you redeem it for a statement credit, but worth 1.5 cents if you use it for a specific airline ticket through the card's travel portal. Cards with higher annual fees often have points worth more per redemption, which is how they justify the fee. But that only matters if you actually redeem the points for something you want.
Many restaurant cards also offer a sign-up bonus — for example, 50,000 points if you spend $3,000 in the first three months. That bonus has real value only if you were going to spend that $3,000 anyway. If you charge $3,000 just to hit the bonus, you've spent money you wouldn't have otherwise spent, and the bonus doesn't save you anything.
Annual fees and when they make financial sense
Restaurant cards with no annual fee exist, but they offer lower rewards rates — typically 1.5 to 2 points per dollar at restaurants instead of 3 or 4. Cards with annual fees of $95 to $450 offer higher rewards rates and perks like dining credits or statement credits that offset part of the fee.
A $95 annual fee makes sense only if you earn at least $95 in value from rewards and credits in a year. If a card gives you 3 points per dollar at restaurants and each point is worth 1 cent, you'd need to spend about $3,200 at restaurants annually to earn $96 in rewards — just enough to cover the fee. If you spend less than that, you're paying for a card that costs you money.
Some cards include a dining credit — for example, $100 per year in statement credits at certain restaurants — which effectively reduces the annual fee. A $195 card with a $100 dining credit costs you only $95 in real terms if you use the credit. But if you never eat at the partner restaurants, that credit is worthless.
Interest rates and what happens if you carry a balance
Restaurant cards charge interest on any balance you don't pay in full by the due date. The interest rate (called the APR, or annual percentage rate) varies by card and by your credit score. Someone with excellent credit might get an APR of 16%, while someone with fair credit might get 22% or higher.
If you carry a $1,000 balance at 20% APR and make only minimum payments, you'll pay roughly $200 in interest before the balance is gone — money that wipes out any rewards you earned. This is why restaurant cards (and all credit cards) only save you money if you pay the full balance each month. The rewards are designed for people who don't carry balances. If you do carry a balance, the interest cost almost always exceeds the rewards value.
Before you open a restaurant card, be honest about whether you pay your credit card bills in full each month. If you don't, a rewards card is not the right tool for you, no matter how good the rewards rate looks.
How your credit score affects which cards you can get
Credit card companies use your credit score to decide whether to approve you and what interest rate to offer. Most premium restaurant cards (the ones with high annual fees and high rewards rates) require a credit score of 700 or higher, and many require 750 or higher. If your score is below 700, you may not be approved for those cards, or you may be approved but at a higher interest rate.
Your credit score is built from five factors: payment history (35%), amounts owed (30%), length of credit history (15%), credit mix (10%), and new credit inquiries (10%). Opening a new credit card creates a hard inquiry, which temporarily lowers your score by a few points. If you've opened several cards in the past few months, your score may be too low to may have access to for premium cards right now.
You can check your credit score for free through AnnualCreditReport.com (the official site for your free annual credit reports) or through many banks and credit card companies that offer free score monitoring. Knowing your score before you explore for a card prevents the disappointment of being denied.
Restaurant cards versus cash back cards and travel cards
A restaurant card is one type of rewards card. A general cash back card gives you 1.5% to 2% cash back on all purchases, with no annual fee. A travel card gives you extra points on flights and hotels. The right card depends on where you spend most of your money.
If you eat out frequently but rarely travel, a restaurant card makes sense. If you eat out occasionally but travel several times a year, a travel card might earn you more value. If you're not sure where you spend the most, track your spending for a month or two before opening a new card. A card that rewards your biggest spending category will always beat a card that rewards a smaller one.
Some people carry multiple cards — a restaurant card for dining, a travel card for flights and hotels, and a general cash back card for everything else. This works only if you can manage multiple bills and remember which card to use where. If you tend to forget to pay bills or carry balances, one straightforward card is better than three complicated ones.
Common mistakes to avoid
The most common mistake is opening a card for the sign-up bonus and then not using it. You pay the annual fee but earn no rewards because you stopped using the card. If you're not going to use a card regularly, don't open it.
Another mistake is spending more money just to earn rewards. A card that gives you 3 points per dollar is only valuable if you were going to spend that money anyway. If you charge $200 extra per month just to earn points, you've spent $2,400 per year to earn maybe $72 in rewards — a losing trade.
A third mistake is not redeeming points before they expire. Some cards let points expire if you don't use them within a certain time frame. Check your card's terms to see whether points expire and set a reminder to redeem them before that happens.
Frequently Asked Questions
Do I need excellent credit to get a restaurant credit card?
Most premium restaurant cards require a credit score of 700 or higher, and many require 750 or higher. If your score is lower, you may still be approved for a no-fee restaurant card or a general rewards card, but at a higher interest rate. Check your score before you explore.
What's the difference between points and cash back?
Points are abstract units that you redeem for statement credits, gift cards, or travel bookings. Cash back is actual money credited to your account. Cash back is simpler because it's always worth the same amount. Points can be worth different amounts depending on how you redeem them, which makes them harder to compare.
Can I use a restaurant card if I'm trying to build credit?
Yes, but only if you pay the full balance every month. A credit card helps build credit by showing that you can borrow money and pay it back on time. Carrying a balance and paying interest doesn't help — it just costs you money. If you're building credit, use the card for small purchases you'd make anyway, then pay it off when ready.
What happens to my points if I close the card?
This varies by card. Some cards let you keep your points after you close the account. Others cancel your points when you close. Check your card's terms before you close an account, and redeem your points first if the card cancels them upon closure.
Is a restaurant card worth it if I only eat out once a month?
Probably not. If you eat out once a month and spend $50 each time, you spend $600 per year at restaurants. A card with a $95 annual fee and 3 points per dollar would earn you about $18 in rewards — far less than the fee. A no-fee card earning 1.5% cash back would earn you $9, which is better than losing money, but still modest.