Two Popular Kinds of Rewards Cards

When it comes to rewards credit cards, there are numerous options to choose from, but the two main ones are cash back rewards and travel rewards cards.

A rewards credit card is a card that goes beyond the regular function of a standard credit card.  Not only can you get the benefit of building credit and being able to purchase something and pay for it later, but you can also earn rewards every time you use it.  Some of these cards require a yearly fee while others are free to use. There are many different cards and practically every bank has a rewards card of some kind and perhaps even several different ones.  These cards are available with different limits and usually have several tiers that you can upgrade too.  The higher the tier, the better options for earning rewards.

A cash back reward system is pretty self-explanatory; Basically, you use the card and you get a percentage of cash back in your account.  So, the more you use it, the more cash you get back. Travel rewards offer a little more in terms of the number and types of rewards available.  These can include things like free travel insurance, free rental car insurance, points or miles towards flights, hotel rooms and car rentals and free or discount tickets to various events.

It’s easy to acquire one of these cards if you have all the typical criteria required to get a credit card.  The easiest way is to search online for reward cards and sign up for the one you want right from your home computer.  If you prefer to speak with someone about which card would be best for you, you can speak with someone at your bank and they will provide you with the options available and guide you as to which is best for your situation.

You can acquire a travel rewards card at your local airport. You know those pesky people behind the booths offering a free pen if you sign up for a credit card?  Well, they may be worth listening to as they often have special sign up benefits for people who sign up right there.

Now, you may be wondering how you earn points on these credit cards.  The easiest way to earn cash back or travel rewards is to use the card.  The more you swipe, the more you earn.  Other ways include shopping at partner websites and stores and looking out for promotional deals that offer more points than usual.  The best way to find out about these deals is to sign up for alerts from your card and partner newsletters.  These newsletters are usually full of coupons, tips and upcoming deals.

When it comes to deciding which rewards system is better than the other, there really is no answer as they all generally provide great options.  Cash back is great for those who are not particularly interested in travel and like to save extra cash for something special for themselves or perhaps for holiday shopping.  Travel rewards provide numerous benefits to travelers so if you travel a lot, this would perhaps be the better bet for you.

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