Cash back credit cards, travel rewards cards, and points rewards cards are all types of credit cards that offer rewards for your purchases. However, they differ in the type of rewards they offer and how you can redeem them.
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Intro Rate: See website for Details* – Intro (Purchases): See website for Details* – Transfers: See website for Details* – Intro (Balance Transfers): See website for Details* – Intro APR Period: See website for Details* – Purchase APR Rate: See website for Details* – Annual Fee: See website for Details* – Credit Needed: Good/Excellent | |
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Intro Rate: See website for Details* – Intro (Purchases): See website for Details* – Transfers: See website for Details* – Intro (Balance Transfers): See website for Details* – Intro APR Period: See website for Details* – Purchase APR Rate: See website for Details* – Annual Fee: See website for Details* – Credit Needed: Average/Fair/Limited/Good/Excellent | |
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Intro Rate: See website for Details* – Intro (Purchases): See website for Details* – Transfers: See website for Details* – Intro (Balance Transfers): See website for Details* – Intro APR Period: See website for Details* – Purchase APR Rate: See website for Details* – Annual Fee: See website for Details* – Credit Needed: Average/Fair/Limited/Poor/Good/Excellent | |
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Intro (Purchases): N/A – Intro (Balance Transfers): N/A – Purchase APR Rate: 35.99%^ – Annual Fee: $75^ – Credit Needed: See website for Details^ Rates & Fees | |
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Intro (Purchases): N/A – Intro (Balance Transfers): N/A – Purchase APR Rate: 35.99%^ – Annual Fee: $39^ – Credit Needed: See website for Details^ Rates & Fees | |
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Intro (Purchases): See website for Details* – Intro (Balance Transfers): N/A – Purchase APR Rate: 29.99%^ – Annual Fee: $0^ – Credit Needed: See website for Details^ Rates & Fees | |
- Earn a percentage of your purchases back in cash
- Can redeem cash back for statement credits, checks, or deposits into your bank account
- Good option if you want simple and easy-to-understand rewards
- Many cards offer introductory bonuses or welcome offers
- Earn points or miles that you can redeem for travel expenses, such as flights, hotels, and car rentals
- Can also redeem points or miles for merchandise, gift cards, or cash back
- Good option if you travel frequently and want to save money on your travel expenses
- Many cards offer perks and benefits, such as airport lounge access, travel insurance, and statement credits for travel-related purchases
Points rewards cards
- Earn points that you can redeem for a variety of rewards, including travel, merchandise, gift cards, and cash back
- Can also transfer points to loyalty programs for airlines, hotels, and other travel partners
- Good option if you want flexibility in how you redeem your rewards
- Many cards offer introductory bonuses or welcome offers
Which one is right for you?
The best type of rewards credit card for you will depend on your individual spending habits and financial goals. If you want simple and easy-to-understand rewards, a cash back credit card may be a good option. If you travel frequently, a travel rewards card may be a better choice. If you want flexibility in how you redeem your rewards, a points rewards card may be the best option for you.
Here is a table summarizing the key differences between cash back credit cards, travel rewards cards, and points rewards cards:
| Feature | Cash Back Credit Cards | Travel Rewards Cards | Points Rewards Cards |
|---|---|---|---|
| Rewards | Cash back | Points or miles | Points |
| Redemption | Statement credits, checks, deposits into bank account | Travel expenses, merchandise, gift cards, cash back | Travel expenses, merchandise, gift cards, cash back, transfer to loyalty programs |
| Pros | Simple and easy-to-understand rewards, many cards offer introductory bonuses or welcome offers | Good option if you travel frequently, many cards offer perks and benefits | Flexibility in how you redeem your rewards, many cards offer introductory bonuses or welcome offers |
| Cons | Can be tempting to overspend just to earn cash back | Can incur interest charges if you don’t pay your balance in full each month, some cards may have annual fees or other restrictions | Can be difficult to maximize the value of your points if you don’t redeem them strategically |
No matter which type of rewards credit card you choose, it’s important to use it responsibly. Always pay your balance in full each month to avoid interest charges, and only charge purchases you can afford to make.
Opinions expressed here are the author's alone, not those of any bank, credit card issuer, hotel, airline, or other entity. This content has not been reviewed, approved or otherwise endorsed by any of the entities included within the post.
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