How to find the best restaurant credit card
If you’re searching for a dining rewards credit card, there are a few things you’ll want to consider:
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Type of rewards: You can find competitive restaurant rewards rates from cards that earn cash-back rewards, points, or miles. Before you commit to a new card, look at the rewards redemption options. If you don’t travel often and prefer simple redemptions, cash back is probably much more useful for you. But if you’re looking for ways to save on travel purchases or you’re already a member of a specific rewards program, a points or miles rewards card could bring you much more value.
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Other rewards categories: Dining out is probably not your only regular expense — just like restaurant spending isn’t the only way you can earn rewards with a credit card. Take your potential new card’s other rewards categories into account, too. Some may offer comparable rewards on travel, while others might prioritize additional everyday categories like groceries or gas. You can also compare those added rewards categories to any cards you may already have in your wallet, so you don’t lose any potential value with overlapping rewards.
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Annual fee: The higher the annual fee your card charges, the more likely it is to offer higher rewards rates — including on dining purchases. Make sure you do the math to decide whether the improved rewards you’ll earn on your spending are worth the annual fee, compared to a no-annual-fee card that may offer a slightly lower return at restaurants.
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Other benefits: Additional benefits, from partner discounts to annual credits and complimentary access, can significantly increase your card’s annual value. Don’t forget to consider how these other perks fit into your spending habits.
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Credit score: Many top rewards credit cards require good credit to qualify. If you’re not sure of your chances of approval, you may want to check if you’re pre-approved for any dining credit card offers. Otherwise, consider a card you can qualify for that will help you improve your score — some credit-building cards also offer rewards.
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:
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American Express Gold Card
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U.S. Bank Altitude Go Visa Signature
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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.
Say you live alone and don’t cook often. You typically grab lunch near your office and either make dinner plans or pick up something on your way home most days of the week. Maximizing that frequent restaurant spending could save you hundreds of dollars each year on what’s likely already one of your largest expenses.
On the other hand, maybe you have a family and work from home. Weekly lunches and dinners typically 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 important 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.
In other words, if you’re not already dining out multiple times per week, don’t start adding hundreds of dollars in restaurant spending to your monthly budget just to earn 3% – 4% back. Not only will you spend more money than you otherwise would, but you could also risk taking on high-interest debt if you’re unable to pay down your total balance each month.
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 (made up of your previous purchases) 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.
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. 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.
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