Best Credit Cards for Dining Out: Maximize Rewards at Restaurants
Dining out is a delightful experience, and for many, it's part of their regular routine. Whether it's grabbing a quick bite after work or celebrating a special occasion at a fancy restaurant, the cost can add up quickly. Fortunately, there are credit cards designed to reward you for those meals, offering perks like cashback, points, and other incentives. These cards can significantly reduce the financial burden while letting you enjoy your favorite dishes guilt-free. In this guide, we'll look at the best credit cards available for dining out and how you can maximize the rewards they offer.
Top Credit Cards Offering Dining Rewards
Several credit cards cater specifically to those who frequently dine out. They offer high percentages of rewards in restaurants compared to other categories like groceries or gas. The right choice depends on your dining habits and personal preferences.
One popular option is the Chase Sapphire Preferred®, which provides 3x points on dining purchases. Cardholders also benefit from no foreign transaction fees, making it an excellent choice for international travelers who love trying new restaurants abroad. Points earned can be redeemed for travel through Chase's Ultimate Rewards program at a higher value or transferred to partner airlines and hotels.
Another strong contender is the Capital One Savor® Cash Rewards Card. This card offers an impressive 4% cashback on dining and entertainment, making it perfect for those who enjoy eating out and attending live events. While there is an annual fee, frequent diners can easily recoup this cost through cashback earnings.
If you prefer a no-annual-fee option, consider the Wells Fargo Propel American Express® Card. It provides 3x points on dining purchases without charging an annual fee or foreign transaction fees. This makes it appealing to people who want to maximize rewards without worrying about additional costs.
How Dining Rewards Work
Understanding how dining rewards work can help you make informed decisions when choosing a card. Most credit cards that focus on dining rewards either offer points or cashback based on your spending in that category. Some cards provide extra benefits when redeeming those points, especially if they are part of a larger rewards program like Chase Ultimate Rewards or American Express Membership Rewards.
- Points: Points-based programs allow you to accumulate points with each purchase at restaurants. These points can often be redeemed for travel, gift cards, or cash.
- Cashback: Cashback programs directly reward you with money back based on your spending, typically credited to your statement or deposited into your bank account.
- Multipliers: Cards often feature higher reward rates (e.g., 2x, 3x, or 4x) for dining purchases compared to other categories such as groceries or gas.
The key difference between points and cashback boils down to flexibility. Cashback is straightforward and tangible, it’s money back in your pocket. Points often offer more value but require some strategy for redemption, particularly when used towards travel or transferring to airline partners.
Comparing Dining Credit Cards: Annual Fees vs. Benefits
A critical factor when selecting a credit card is whether its annual fee is justified by the rewards you'll earn. Some dining-focused credit cards carry hefty annual fees but offer substantial benefits that can make them worth it, especially if you're someone who dines out frequently.
| Card Name | Rewards Rate (Dining) | Annual Fee | Foreign Transaction Fees |
|---|---|---|---|
| Chase Sapphire Preferred® | 3x Points | $95 | No |
| Capital One Savor® Cash Rewards Card | 4% Cashback | $95 | No |
| Wells Fargo Propel American Express® Card | 3x Points | $0 | No |
| Citi Premier® Card | 3x Points | $95 | No |
| American Express Gold Card® | 4x Points | $250 | No |
The Citi Premier® Card offers a competitive 3x points rate on dining along with other categories like air travel and hotels. It also has no foreign transaction fees, though it carries a $95 annual fee similar to the Chase Sapphire Preferred®. On the higher end of the spectrum is the American Express Gold Card® , which boasts an impressive 4x points rate on dining but comes with a $250 annual fee, best suited for those who spend heavily at restaurants.
Maximizing Your Dining Rewards: Tips & Strategies
Earning rewards from dining out is great, but maximizing them requires some thoughtful planning:
Diversify Your Credit Cards: Consider holding multiple credit cards that complement each other by offering higher rewards rates in different categories. For instance, use one card exclusively for dining while using another for groceries or gas purchases.
Take Advantage of Limited-Time Offers: Many credit card companies periodically introduce promotions where they increase rewards rates for specific categories or merchants. Keep an eye out for these offers to boost your earnings during such promotional periods.
Select Restaurants Wisely: Not all eateries classify themselves as restaurants when it comes to earning dining rewards. Fast food outlets or bars might not qualify under certain card issuers’ definitions of "dining." Review how your card issuer defines these categories before assuming you'll earn extra rewards everywhere you eat.
Loyalty Programs: Some cards offer additional bonuses when combining with restaurant loyalty programs. For example, if you're using a card that offers 4% cashback at certain chains and are also enrolled in that chain’s loyalty program (like Starbucks), you could double-dip on rewards while enjoying your coffee or meal.
Redeem Smartly: If using a points-based system like Chase Ultimate Rewards or Amex Membership Rewards®, consider transferring points to airline partners instead of redeeming them directly within the issuer’s platform; this often results in greater value per point.
The Bottom Line: Choose Wisely Based on Your Dining Habits
The best credit card for dining out ultimately depends on your lifestyle and how often you eat out. If you're someone who regularly enjoys new restaurants or travels frequently (and doesn't mind paying an annual fee) cards like Chase Sapphire Preferred® or American Express Gold Card® could provide substantial long-term value through their elevated reward rates and flexible redemption options.
If you'd rather avoid fees altogether while still earning decent rewards, Wells Fargo Propel American Express® Card offers solid returns without the overhead cost of an annual fee. Picking a card should come down to understanding what fits your spending patterns and preferences best, whether it's maximizing points toward travel or getting simple cashback from daily meals out.