If you currently use a credit card for some of your purchases but you aren’t earning rewards, you might consider opting for a new rewards credit card. Although many credit cards offer rewards, there are different types of rewards credit cards out there. When choosing a new credit card, you should select one that has the types of rewards that resonate the most with you, and that are the best fit for your financial goals.
Here are some common rewards credit cards that you could potentially choose from:
- Cash Back Rewards Cards. A recent study by The Motley Fool found that 56% of Americans prefer cash back credit cards over other types of rewards cards. This popular type of credit card allows you to earn cash back on all purchases, and they often allow you earn a higher percentage of cash back on special spending categories. Cash back rewards cards typically allow you to earn anywhere from 1% to 5% cash back on your purchases.
- Travel Rewards Cards. If you travel a lot, whether for work or leisure, a travel rewards card can help you build up rewards points quickly. Travel rewards cards allow you to earn airline miles or points that you can use for hotel stays, rental cars, and more. Some travel cards can even provide you with additional perks such as access to airport lounges and priority boarding.
- Credit Cards with Rewards Points. Credit cards that offer rewards in the form of “points” are the most flexible type of rewards credit card. Typically, you earn a specific number of points for qualifying purchases, and those points can later be redeemed for a variety of rewards including cash back, gift cards, travel, and more. These types of credit cards also commonly offer bonus categories which can allow you to earn a greater number of points for purchases within that spending category. If you prefer the flexibility of getting to choose which types of rewards you’d like to receive every few months or so, a point-based rewards credit card could be a good fit.
While a rewards credit card can be a great way to get a little something extra from your everyday purchases, you’ll want to be careful not to accumulate credit card debt. If you have substantial credit card debt, you should consider transferring your credit card balances to one low-interest or no-interest credit card, so you can pay off your credit card debt faster. While you work toward becoming debt-free you might consider a rewards debit card instead of a rewards credit card. Since a debit card only allows you to spend the money you have, it can be a safer option when you’re focused on paying off credit card debt.
No matter what your financial goals are, chances are you can benefit from a rewards card, whether it be a rewards credit card or a rewards debit card. Bank5 Connect offers a variety of credit card options, as well a cash-back rewards debit card, to help you earn more on your everyday purchases.