Choosing Between Cash Back Credit Card and Rewards Credit Card

Would you like to apply for a a reward credit card but not sure which one to get? Some reward credit cards offer cash back while others offer non-monetary incentives such as free airline ticket, free hotel stays, gift certificates, merchandise, etc. This article compares cash back credit cards and non-monetary reward credit cards to help you decide which one best complements your lifestyle.

Cash Back Credit Cards – Cash Incentives for Your Spending

Credit cards that offer cash back rewards pay you in cash or cheque based on your monthly or annual spending. Typically, a $1 worth of purchase would be equivalent to $1 cash back point. That means the value of rewards you can get will match the amount of your spending. Thus, if you spend $500 on purchases, you will get $500 cash back rewards in return.

read more: Choosing Between Cash Back Credit Card and Rewards Credit Card

related rewards: Travel Reward Credit Cards

How to Get and Use the Rewards from your Reward Credit Card

Why are there so many card companies that issue reward credit cards? Well, one of the reasons for this is that card issuers keep on competing with banks and lending firms in getting bigger market share. They use unique credit card rewards to attract more consumers to apply for and use the plastic cards they offer.

Not only that. Card companies also use reward credit cards to retain the current set of consumers that they have. Through great reward programs, they can effectively reduce the chances of losing their cardholders to their competitors.

Common Credit Card Rewards
What are some of the usual rewards that you can get from reward credit cards? Well, some business establishments like hotel chains and airlines provide free hotel accommodations and free flights to their loyal patrons. Meanwhile, department stores and shops provide discounts, gift checks and freebies to reward credit cardholders.

read more: How to Get and Use the Rewards from your Reward Credit Card

related rewards: Cashback Reward Credit Cards