Choosing the Right Credit Card – Cash Backs vs. Other Reward Credit Cards

Some credit cards offer cash backs or rebates and some offer travel rewards, gas rewards and merchandise rewards. If you’re looking for the right reward credit card, which one should you pick- a cash back reward card or other reward credit cards?

Cash Back Credit Cards

A credit card that offers cash back rewards is the simplest of all types of credit card rewards. The cardholder earns points by simply using the credit card on their purchases. Some cash back cards may offer to give 1 point per dollar spent but there are also cards that give double points from selected types of purchases.

Cash back points can be redeemed as cash, check or as available credit to the cardholder’s account. And because credit cards with cash back rewards allow its cardholders to earn points on general purchases, it can be considered as the most popular type of reward credit card.

Other Reward Credit Cards

Then there are other credit cards that offer specific rewards such as Travel Reward Credit Cards or Frequent Flyer Miles Credit Cards, Gas Rewards Credit Cards, Hotel Rewards Credit Cards, Merchandise Reward Credit Cards and Car Rewards Credit Cards.

Most of these reward credit cards are sponsored by various merchants in the market. For instance, a Frequent Flyer Miles Card may be sponsored by a certain airline, a Hotel Rewards Card is often sponsored by a Hotel and Resort Corporation, a Gas Reward Card by a gasoline company, a Merchandise Reward Card by a famous shop, etc.

If you’re someone who frequently uses a credit card to purchase from a specific gas company or if you’re a frequent traveler who usually stays in your favorite Hotel and flies with your preferred Airline, then it’s great to consider applying for a reward credit card that offers the exact kind of reward that you can really enjoy.

Compared to cash back credit cards, credit cards that offer specific reward usually give back bigger points and bigger incentives since these are sponsored by larger companies and merchants. Thus, people who own these cards are given the opportunity to earn more points and redeem rewards at a sooner time.

However, the rules of the reward program for sponsored credit cards are generally more exacting than non-cash back reward cards. For this reason, it is crucial that you read and understand the Terms and Conditions of your chosen reward credit card before signing up and using your card. This way, you can use your reward credit card to your advantage and enjoy the privileges you well-deserved.


About the Author

Author: Ann Wilson

Ann Wilson is the head writer of 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 © 2012

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