How to choose the best restaurant and dining credit card for you

Summary

• The best dining credit card matches your spending habits and financial goals.
• Tiered rewards cards typically offer higher points or cash back on dining, while flat-rate cards earn the same rate everywhere.
• A welcome offer could help you earn rewards faster, but be sure to review the spending requirements.
• Redeeming rewards strategically may help you get more value from your card.

Using a restaurant credit card is like having a good friend who quietly picks up part of the check. Each time you dine out, your card helps you earn a little back. But how do you choose the one that serves you best?

The key is to find a credit card that best matches your dining habits. That starts with understanding how restaurant credit cards work and what factors to consider when deciding which one’s right for you.

How do restaurant and dining rewards work?

You earn restaurant and dining rewards simply by using a rewards credit card for meals at restaurants, cafés, or bars. Many restaurant cards also reward you for using delivery or takeout orders, and some might offer additional benefits, like dining credits, access to exclusive reservations, or discounts on food delivery apps.

Every time you swipe your dining card to grab lunch or order pizza, you earn rewards, either as cash back or credit card points. Once you’ve collected enough rewards, you could redeem them for travel, statement credits, merchandise, or other options, depending on your card.

The rewards you earn depend on whether your dining card offers tiered or flat-rate rewards. Let’s take a closer look at these alternatives.

Tiered rewards on restaurants and dining

With tiered dining rewards, you earn the most rewards for restaurant purchases and lower amounts for other spending categories. That’s how the U.S. Bank Altitude® Go Visa Signature® Card works. You earn at least one point per dollar on eligible purchases, plus additional points in select categories, and the highest rate when you use it for dining, takeout, or restaurant delivery.

Some cards, like the U.S. Bank Cash+® Visa Signature® Card, rotate which purchases earn the highest rewards. You might earn the most on restaurants one quarter, then see a different category rise to the top in the next.

Flat-rate rewards on restaurants and dining

Flat-rate rewards mean you earn the same amount on all purchases, whether you’re buying dinner, paying your phone bill, or filling up your tank. You’ll still earn rewards for using your card at a restaurant or for delivery; you just won’t see anything extra for those purchases.

Factors to consider when picking the best restaurant credit card for you

The best dining credit card is the one that fits your spending habits and supports your financial goals, and that’s mainly a matter of understanding the rewards and other features each card offers. Here are five factors to consider when picking a credit card for restaurant rewards.

How many rewards can you earn?

You could earn plenty — whether you get a flat-rate or tiered rewards card. Focus on choosing the program that best mirrors how you spend at restaurants. That way, you can earn rewards without putting in extra effort or risking other goals.

A tiered reward program that provides the highest return on dining could make sense if you regularly eat out or order in. You could even use your dining card exclusively for restaurant purchases and another card for everything else. Just keep in mind that tiered programs may have spending caps that limit rewards in top categories.

On the other hand, a flat-rate rewards card might be a better fit if you prefer cooking at home. You earn rewards when you do go out, and you don’t have to worry about tracking categories.

Welcome offers

While you’re exploring restaurant cards, you might come across one with a welcome offer — essentially, bonus rewards for opening a new account. Finding one that offers extra rewards for restaurant purchases could help you reach your goal even faster.

There are, however, a couple of caveats to keep in mind. First, the account typically needs to be new. If you’re already a cardmember or you’ve had the same card in the past, you may not be eligible for the offer.

Second, most welcome offers come with a spending requirement. For example, you might earn 20,000 points if you spend $1,000 in the first 90 days. The bonus could be valuable — as long as the spending requirement fits comfortably within your budget.

Credit card fees

Some of the common credit card fees providers charge for managing your account may affect the overall value of your dining rewards. For example, you may need to earn enough rewards to offset the cost of a high annual fee. Otherwise, a no-annual-fee card might be the better deal.

Another fee to watch for is a foreign transaction fee, which some cards apply to all transactions processed outside the U.S. Those charges could add up if you frequently travel abroad, even if you’re consistently earning rewards at restaurants.

Credit card interest

Like fees, credit card interest can also reduce the value of your restaurant rewards. Carrying a balance from one billing cycle to the next triggers interest charges, and over time, those charges could easily exceed the cash back or points you earn from dining. Paying your balance in full each month helps you keep the value of your dining rewards intact and get the most from your card.

Credit card rewards redemption

How you redeem your dining rewards can also make a difference in their value. Some redemptions, like travel or statement credits, often stretch your rewards further than others.

Matching your redemption options to your goals matters, too. If you’re hoping to buy holiday presents, merchandise or gift cards may be the way to go. But if you’re planning your next trip, travel rewards could help you save while you’re on the road.

Ultimately, the best dining credit cards have flexible redemption options that align with your lifestyle, allowing you to get the most from your rewards.

Find the dining card that fits you best

Choosing the best credit card for restaurant rewards comes down to how you plan to use it. By matching a card’s features to your spending habits, you can pick a dining card that complements your everyday life and supports your financial goals.