How to Make Money While Eating Out
The average American spends $2,841 a year on dining out, according to CNET. With consumers tightening their budgets, dining rewards credit cards offer added value on restaurant and take-out purchases. Yes, you can get paid to go out to eat.
Top banks provide boosted rewards—cash back, points, or miles—for using certain credit cards to pay for dining. These rewards can accumulate over time, yielding hundreds of dollars in cash back annually, or points redeemable for travel. However, choosing the best card for your spending habits can be challenging. We analyzed six credit cards from well-known issuers and selected the top four for dining rewards and ease of use.
Bonus Bites
Many major banks offer rewards credit cards with points or cash back for dining, including Chase, Wells Fargo, and Bank of America. A key factor in selecting a card is the annual fee. Some cards have no fee, while others charge from $95 to $795. The top dining rewards cards with no annual fee are:
- Capital One Savor Cash Rewards
- Chase Freedom Unlimited
- Wells Fargo Autograph
- Bank of America Customized Cash Rewards
Each card offers 3 percent cash back or three points per dollar spent on dining. For a $100 dinner, you earn $3 or 300 points. You can check your balance via the banking app or online account.
Sign-Up Bonuses
Look for sign-up bonuses, typically a dollar or points amount earned after spending a certain sum in the first months. For instance, the Chase Freedom Unlimited awards $200 cash back if you spend $500 in the first three months.
Simplicity is Key
The easier a card is to use, the more likely you'll earn rewards. The Chase Freedom Unlimited and Capital One Savor are excellent choices. Both offer straightforward rewards systems, a $200 bonus for $500 spending in three months, and no annual fee. Note that designated dining rewards cards only earn points on dining purchases. Most restaurants and fast-food locations qualify, but check exceptions. For example, the Capital One Savor card does not earn points at bakeries, caterers, or meal-kit delivery services. The Chase Freedom Unlimited excludes purchases at sports stadiums, hotels, casinos, and theme parks. Non-qualifying purchases still earn the base rewards rate of 1 cent or 1 point per dollar.
Reap the Rewards
Redeeming dining rewards is simple. Cash back cards show a running balance via the issuer's app or website. Options include applying rewards to your balance, transferring to a checking account, or using them to pay for recent purchases. Points-based cards may allow redemption for cash, purchases through an issuer-sponsored portal, or conversion to travel points for flights or hotels.
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