Are you planning to get a reward credit card but not sure which one to get? Some credit cards offer cash back while others offer non-monetary rewards such as gift certificates, free travel, hotel stays, merchandise, etc. In this article, let’s discuss basic facts about cash back reward credit cards and reward credit cards to help you come up with the right choice.
Cash Back Credit Cards – Cash Incentives for Your Spending
Cash back reward cards will pay you cash based on your credit cards spending. Typically, you can get 1 cash back point for every dollar spent on your card. Some issuers may give double points for every dollar spent on selected purchases. After collecting the minimum required points, you can receive money that is worth the equivalent of the points you collected. The money is sent through check and the cardholder can spend it at leisure.
Reward Credit Cards – Thank You Bonuses from Merchants
Some reward credit cards are sponsored by different merchants such as department stores, drug stores, supermarkets, boutiques, airlines, hotels, etc. Merchants partner with credit card companies as part of their marketing strategy. By sponsoring a credit card, they can also boost their sales, attract more customers, and enhance their company’s image.
Sponsored reward credit card usually give more points (2% to 5%) for every dollar spent as long as the purchase was made from their store or from affiliate merchants. When the cardholder has collected sufficient points through credit card purchases and bill payments, he/she has the option to exchange points for rewards.
For instance, if your credit card is sponsored by an airline, you can get a travel ticket and fly for free. If your credit card is sponsored by a gasoline company, you may get the chance to exchange your points for free fuel, auto service, etc. Credit cards that have partnerships with department stores and boutiques usually offer merchandise or gift certificates.
Which One Is For You?
SPONSORED LINK
Choosing between a cash back credit card or a reward credit card will largely depend on your lifestyle. If there’s a local shop where you purchase goods on a regular basis, you may consider a reward credit card sponsored by your favorite shop.
Nevertheless, if you only use your credit card occasionally for different purposes, a cash back reward credit card is a practical choice since it will give you more flexibility and you can be assured that you will earn points, regardless of the type of purchase you make. In addition, you will have the freedom to spend your cash rewards as you like to use it.
Ann Wilson is the head writer of Reward Credit Card Site. This resource provides consumers with valuable reviews and information on the best credit card reward programs. Its main objective is to help people to take advantage of reward credit cards and start earning reward points. Copyright © 2008
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