5 Things to Know About the Bread Rewards Credit Card

The Bread Rewards American Express Credit Card — issued by Comenity Capital Bank, a subsidiary of Bread Financial — offers a high rewards rate on everyday spending like groceries, dining and gas, and it makes rewards redemption easy. Holders also get extra benefits because of the card's affiliation with American Express, for an annual fee of $0. Terms apply.

However, the card doesn’t come with a welcome offer like some competitors, and there are other no-annual-fee rewards cards that could better dovetail with your budget, depending on where you spend the most.

Here’s what to know about the Bread Rewards American Express Credit Card.

1. It rewards popular everyday spending

The Bread Rewards AmEx offers the following ongoing rewards:

• 3 points per dollar at gas stations, grocery stores, restaurants and on utility purchases. 

• 1 point per dollar on all other purchases. 

• 25% extra points every billing cycle that you make 20 or more purchases with the card.

• Terms apply.

It's rare to find a $0-annual-fee credit card that rewards you with triple points across such a wide swath of popular household spending categories. Plus, the potential 25% points boost — which is based on the total number of points you earn each billing cycle — can also be valuable. For example, if you make 20 or more purchases in one month and earn 1,000 points, you’ll get an extra 250 points added to your rewards balance.

If, however, you prefer a no-hassle card that doesn't require keeping track of rewards categories, consider a card like the Wells Fargo Active Cash® Card. For a $0 annual fee, you'll earn an unlimited and uncapped 2% back on eligible purchases. Rewards can be redeemed for statement credit, or as a direct deposit into a Wells Fargo checking or savings account, among other options. It also comes with a welcome bonus: Earn a $200 cash rewards bonus after spending $500 in purchases in the first 3 months.

2. Redemption is straightforward and flexible

Points earned with the card can be redeemed for cash back as direct deposit, statement credits, travel, gift cards, merchandise, Apple products and more.

Point values differ based on what you redeem them for. They’re worth one cent each when redeemed for cash back as direct deposit, statement credit and gift cards — which is on par with industry standards.

But when redeemed for merchandise, travel and Apple products, points are worth less than a penny each at $.008. This means that 1,000 points is equal to $8, for example.

Points can be redeemed online through comenity.net/breadrewards starting at a penny. Your points won’t expire once they're posted to your account.

3. There’s no welcome offer

Unlike similar rewards cards, the Bread Rewards American Express Credit Card doesn't come with a sign-up bonus.

Other no-fee rewards cards feature introductory offers worth $150 or more. They also might feature 0% APR promotions, which the Bread Rewards AmEx also doesn't offer.

For instance, the Capital One Savor Cash Rewards Credit Card charges a $0 annual fee (see rates and fees) and comes with the following welcome bonus: Earn a one-time $200 cash bonus once you spend $500 on purchases within the first 3 months from account opening. Plus, it features a 0% intro APR on purchases and balance transfers for 15 months; 19.24%-29.24% variable APR after that; balance transfer fee applies. The card also earns cash back on everyday spending: 3% back on dining, at grocery stores, on eligible entertainment and popular streaming services; 5% cash back on hotels and rental cars booked through Capital One Travel; 8% back on Capital One Entertainment purchases; and 1% cash back on all other purchases. Terms apply.

» MORE: Best credit card bonuses

4. You can pre-qualify

Typically, when you apply for a card, the card issuer conducts a hard inquiry on your credit report, which can temporarily lower your credit scores. But the Bread Rewards card has a pre-qualification process that can give you a good sense of your eligibility for the card, before you officially apply.

If, at that point, you do officially apply, the issuer will then perform the hard inquiry.

5. Take advantage of American Express perks

Because the Bread Rewards card runs on the American Express payment network, cardholders get access to certain AmEx perks. These include:

• Purchase protection.

• Zero fraud liability.

• Travel accident insurance.

• Early access to tickets for select events through Amex Presale Tickets and Amex Reserved Tickets.

• 30% off select hotels through Booking.com.

• Emergency assistance. 

• No foreign transaction fees.

• Terms apply.