Restaurant lovers who eat out regularly can convert those meals into real rewards by choosing the right dining credit card. The best card depends on how often you dine out and which restaurants you frequent.
Most dining rewards cards fall into two categories. Some offer a flat rate on all restaurant purchases, typically 2 percent to 3 percent cash back or points. Others provide bonus categories that deliver 3 percent to 5 percent rewards at certain restaurant chains or during promotional periods, then drop to 1 percent elsewhere.
Flat-rate cards work best for diners who visit a variety of restaurants without a strong pattern. Chase Freedom Unlimited offers 1.5 percent cash back on all dining purchases, with no annual fee. American Express Blue Cash Everyday provides 1 percent cash back on dining, also fee-free.
Cards with bonus categories suit people who eat regularly at the same restaurants or restaurant groups. The Chase Sapphire Preferred earns 3 points per dollar spent on dining, worth about 1.5 cents per point through most redemption options, making it roughly 4.5 percent value. It carries a $95 annual fee, so you need substantial dining spending to break even.
Consider your annual restaurant spending before paying an annual fee. A card with a $95 fee requires roughly $3,000 in qualifying purchases at 3 percent cash back to justify the cost. High-volume diners might earn $500 to $1,000 annually from premium cards, easily offsetting the fee.
Sign-up bonuses matter too. Many dining cards offer 50,000 to 100,000 bonus points on the first purchase, valued at $500 to $1,000 depending on redemption methods. New cardholders should factor these bonuses into their decision.
Check whether your favorite restaurants participate in any bonus program. Some