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The different types of Rewards Credit Cards

Your banks and credit cards are pushing rewards credit cards now more than they ever have. Most cards have some sort of reward linked to them, if they don’t, they are the minority. There are several types of rewards credit cards, and choosing the right one requires a smart credit card shopper to compare rewards credit cards before applying for just any. Currently there are cash back rewards cards, travel rewards credit cards, hotel rewards credit cards, gas rewards cards, airline miles rewards cards, points rewards cards… do you get the picture.

Cash Back Rewards Credit Cards

Probably the consumers favorite, who doesn’t like getting cash back? Cash back credit cards offer anywhere from 1% up to 20% currently for purchases. Typically the higher percentages are for purchases made through online partners, and are purchased through the creditcards’s online mall. Many of the cards will offer 3-5% on special purchases either made during certain times of the year, or reward you based on your most popular categories of purchases. Cash back rewards are typically mailed to you as a check, a statement credit, a loadable visa/mc, or deposited directly in your account.

Travel Rewards Credit Cards

These cards are recommended for frequent travelers. Rewards are usually in points or miles, which are redeemable for free hotel stays, free airline tickets, free cruise lines and other travel benefits. Most points or miles are based on a 1 point/mile per dollar spent, with the ability to earn bonus miles on special purchases or buying from parters. These cards many times will have an annual fee (but not all), so make sure the rewards are worth the fees. The best travel rewards cards have no annual fees, no blackout dates, no limit to points/miles earned, no expiration, and the ability to use any hotel/airline/cruise ship.

Gas Rewards Credit Cards

Gas rewards cards normally offer cash back or discounts on the price per gallon at the pump. There are many gas cards that are specific to the company they represent. For example, the BP Gas Card gives a much higher rebate at their pumps than at an Exxon gas station. It is recommended that, like the travel rewards credit cards, you look for a card that isn’t taylored specifically to an individual gas company, but a Gas Card like the Discover® it™ Credit Card, or the Chase Freedom Card.

There are many varieties of rewards credit cards to choose from, and after reading the above articles about some of the rewards cards offered, hopefully you will be able to make an informed decision on what type of rewards credit card that works best for you.

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