An all rewards credit card is a credit card designed to earn rewards—typically cash back, points, or miles—on every purchase you make, regardless of category. Unlike category-specific cards that offer higher rewards rates for groceries, gas, or dining, all rewards cards apply a single, flat earning rate across all spending.
These cards appeal to people who want simplicity: one card, one rewards structure, no need to track which card earns best for each transaction type.
When you use an all rewards card, you earn a fixed amount of rewards per dollar spent. The earning rate typically falls between 1% and 2% cash back on all purchases, though this varies by card and issuer.
Here's the basic flow:
Key distinction: You don't need to activate categories, track spending, or remember which card to use. Every swipe earns the same way.
The choice between these card types depends on your spending habits and how much complexity you're willing to manage.
| Aspect | All Rewards Cards | Category Cards |
|---|---|---|
| Earning Rate | Flat (often 1–2%) on all purchases | Higher rates (3–5%+) on select categories; lower on others |
| Complexity | Simple—no tracking needed | Requires remembering which card to use when |
| Maximized Rewards | Works well for balanced spending | Works well if spending is concentrated in bonus categories |
| Best For | People who value simplicity | People willing to manage multiple cards |
Example: If you spend $10,000 annually split evenly across groceries, dining, gas, and other purchases, a flat 1.5% card earns $150. A category card with 3% on groceries and 2% on dining but 1% elsewhere might earn $175—but only if you use it consistently for those categories.
Several factors influence whether an all rewards card works well for your situation:
Annual spending volume
Higher spending amplifies rewards earned. Someone spending $50,000 annually sees different dollar value from rewards than someone spending $5,000, even at the same rate.
Spending distribution
If your purchases fall heavily into specific categories (frequent travelers, heavy grocery shoppers), a category card might outpace an all rewards card. If your spending is scattered across many categories, the simplicity and consistent rate of an all rewards card may win.
Redemption preferences
Some cards limit how you redeem rewards. Cash back is straightforward; points or miles tied to specific partners require you to use their ecosystem or accept lower redemption value.
Annual fees
Some all rewards cards charge no annual fee; others do. A card with a $95 annual fee needs to generate enough rewards value to offset that cost—another reason your specific spending matters.
Sign-up bonuses
Many cards offer bonus rewards for meeting spending thresholds in the first few months. This can significantly boost early value, but only if you can meet the requirement responsibly.
An all rewards card works best when:
An all rewards card may be less ideal if:
Flat-rate card: Earns the same percentage on all purchases—the hallmark of all rewards cards.
Cash back: Rewards paid as actual money (either as a statement credit or direct deposit).
Points or miles: Alternative reward currencies that may have variable redemption value depending on how you use them.
Annual percentage rate (APR): The interest charged if you carry a balance. High rewards don't offset interest costs.
Sign-up bonus: Extra rewards (cash or points) earned for meeting a minimum spending threshold within a set timeframe.
Before choosing an all rewards card, consider:
The "best" card depends entirely on your habits, preferences, and financial discipline—not on general card attributes alone.
