How to Find the Best Restaurant Credit Card

When searching for a dining rewards credit card, there are several key factors to consider. Firstly, you’ll want to look at the type of rewards offered, such as cash back, points, or miles. It’s essential to understand the rewards redemption options, as they can vary significantly between cards. For instance, if you don’t travel often and prefer simple redemptions, cash back might be a more useful option for you. However, if you’re a frequent traveler or a member of a specific rewards program, a points or miles rewards card could bring you much more value.

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Another crucial aspect to consider is the other rewards categories offered by the card. While dining out is likely one of your regular expenses, you may also want to earn rewards on other categories, such as travel, groceries, or gas. This can help you maximize your rewards earnings and make the most of your credit card.

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The annual fee is another critical factor to consider when choosing a dining rewards credit card. While higher-fee cards often offer higher rewards rates, including on dining purchases, it’s essential to do the math and decide whether the improved rewards are worth the annual fee. If you’re not willing or able to pay the higher fee, a no-annual-fee card with a slightly lower return on dining purchases might be a more suitable option.

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Additional benefits, such as partner discounts, annual credits, and complimentary access, can also significantly increase the annual value of your card. Don’t forget to consider how these other perks fit into your spending habits and whether they align with your financial goals.

Lastly, your credit score can also impact your eligibility for top rewards credit cards. Many high-rewards cards require good credit to qualify, so if you’re unsure of your chances of approval, you may want to check if you’re pre-approved for any dining credit card offers. Alternatively, consider a card that you can qualify for, which can help you improve your credit score and potentially qualify for better cards in the future.

Credit Cards Offering the Highest Rewards on Dining Out

Among the dozens of credit cards we compared, the highest rewards rate you can find for restaurants today (without spending caps or other restrictions) is around 4% cash back or 4x points. The cards we like best with a similarly high rate include:

• American Express Gold Card
• U.S. Bank Altitude Go Visa Signature
• Capital One Savor Cash Rewards

For even higher rewards rates (typically 5% back or more), you’ll take on some added restrictions. For example, some credit cards with rotating quarterly categories or with choice rewards categories offer 5% on dining purchases, but only up to a certain amount each month or each billing cycle. There are also co-branded travel cards that offer 5x rewards or higher on dining spending, but you’ll be limited to redeeming them within the brand’s loyalty program.

Is a Restaurant Rewards Credit Card Worth It?

Choosing a credit card specifically for its dining rewards is only worth it if a large portion of your monthly budget goes toward dining out. If you live alone and don’t cook often, maximizing your frequent restaurant spending could save you hundreds of dollars each year on what’s likely already one of your largest expenses.

However, if you have a family and work from home, weekly lunches and dinners might revolve around Sunday grocery hauls, quick weeknight meals, leftovers, and meal prep. In this scenario, you’re more likely to eat out maybe only once or twice per week. While you can still save money with restaurant rewards, you may be even better off prioritizing a grocery rewards credit card.

It’s also essential to remember not to use potential credit card rewards as an excuse to spend more than you can afford. Just like with travel rewards cards, look for ways to save on what you’re already spending, rather than an aspirational version of your perfect budget.

Frequently Asked Questions (FAQs) about Credit Cards for Restaurants

How do dining rewards credit cards work?

Dining rewards cards work like any other credit card. You can use the card to make any purchase where it’s accepted, and you’ll earn rewards in eligible categories. Each month, you can pay down your card balance in full to avoid accruing interest. If you don’t pay in full, you’ll take on interest charges at your card’s assigned variable APR.

Should you use credit cards at restaurants?

Credit cards are a great way to pay at a restaurant if you want to earn rewards. If you’re at a restaurant in another country, a card with no foreign transaction fees can help you save on the cost. However, there are times when you may not be able to pay with a card. Some restaurants only offer cash payment options, for example, while others may charge an extra fee when you use a credit card to pay.

Where can I earn credit card rewards on dining?

If you have a credit card with rewards on dining, you’ll likely earn rewards at most types of restaurants, from sit-down meals to fast food. Rewards can differ for takeout or delivery, so be sure to check with your issuer or your card’s rewards program agreement for the full details on whether these types of restaurant purchases count toward your dining rewards.