Cash Back Credit Cards vs Travel Rewards Cards vs Points Rewards Cards

November 17, 2023
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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.

Travel Rewards Cards
Travel Rewards Cards
  • Earn rewards toward free travel with your everyday spending
  • Rewards can be redeemed for air travel, hotel stays, gift cards or statement credits
  • Travel perks can include waived foreign transaction fees, travel insurance coverages and airport lounge access
  • Bonus offers – up to 50,000 points or miles
  • Credit Needed: Excellent/Good
  • Terms vary by partner. Please see individual application for product terms and conditions.
  • Clicking Apply Now will take you to CreditSoup.com to compare Travel Rewards Credit Cards from participating partners
Apply Online – Click Here
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
Cash Back Rewards Cards
Cash Back Rewards Cards
  • Earn up to 3% cash back on all purchases
  • Redeem cash back in the form of checks, statement credits, gift cards, merchandise or towards free travel
  • Earn sign-up bonuses after meeting initial spending thresholds
  • Terms vary by partner offer. Please see each bank’s application for terms and conditions.
  • Clicking will take you to CreditSoup.com to compare Cash Back Credit Cards from participating partners
Apply Online – Click Here
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
Best Credit Cards
Best Credit Cards
  • Compare our current best credit card offers to find the one that best suits your needs
  • See the best credit cards by category including cash back, travel, business and student
  • Earn 1.5% cash back on all purchases or 2X points on travel and dining expenses
  • Best card selections updated often – click to see the latest rankings
  • Terms may vary by partner offer. Please see each bank’s application for terms and conditions
  • Clicking will take you to CreditSoup.com to compare Best Credit Cards from participating partners
Apply Online – Click Here
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

Cash back credit cards

  • 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

Travel rewards cards

  • 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:

FeatureCash Back Credit CardsTravel Rewards CardsPoints Rewards Cards
RewardsCash backPoints or milesPoints
RedemptionStatement credits, checks, deposits into bank accountTravel expenses, merchandise, gift cards, cash backTravel expenses, merchandise, gift cards, cash back, transfer to loyalty programs
ProsSimple and easy-to-understand rewards, many cards offer introductory bonuses or welcome offersGood option if you travel frequently, many cards offer perks and benefitsFlexibility in how you redeem your rewards, many cards offer introductory bonuses or welcome offers
ConsCan be tempting to overspend just to earn cash backCan incur interest charges if you don’t pay your balance in full each month, some cards may have annual fees or other restrictionsCan 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.

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