Finding the best rewards credit cards that will help you save on travel, meals, and gas can be challenge. There are tons of different credit cards out there will all kinds of different offers that it can be kind of confusing. Don’t worry though. We are here to help you sift through the duds and find the right credit card for your budget and lifestyle.

Credit cards have always been a way to make immediate payments in a convenient and fast manner. In exchange, credit card companies charge a fee to offer the service of acquiring a product or service that can be paid for at a later date.

Today, there is a new breed of credit cards that not only assist you to purchase items, but they also give you an incentive to make these purchases. These cards are known as Reward Credit Cards.

The rewards that one can get from these credit cards are based on what you buy via them. They can be redeemed for cash back, points that you may collect and use to buy products and services or in travel miles. All these rewards are gained based purely on purchases made. So, if you own a rewards credit card but have restricted activity on it, or do not use it at all, you will not receive any cash back, points, or miles.

Most credit companies offer a cash back amount in a check or a direct deposit right to your bank account. Sometimes, they are redeemable as gift cards. Reward points scored can often be worth more than the cash back amount so some people prefer points, but a majority still vouch for a cash back amount which they can spend as they like. The miles that you accumulate can be used for air travel. Reward credit cards allow returns in specified lots or in a staggered format.

It’s important to find out all such details before you sign up for a rewards credit card as interest rates on these cards are higher than regular credit cards.

So, let’s analyze the top rewards cards in the market today and discuss their features.

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Compare the Top Rewards Credit Cards in 2020

Here’s a list of the best rewards credit cards with the right offers to help you save on gas, travel, and everything else.

• Chase Sapphire Preferred® Card – Travel Rewards
• Discover it@Cash Back – Cash Back Rewards
• Bank of America® Premium Rewards® Visa® – Premium Travel Rewards
• Capital One® Savor® Cash Rewards – Dining Rewards
• Discover it® Student Cash Back – Student Rewards
• Credit One Bank® Unsecured Visa® – Poor Credit Rewards
• Capital One® Spark® Cash for Business – Small Business Rewards
• Capital One® Quicksilver® Cash Rewards – Balance Transfer Rewards
• Discover it® Chrome – Gas Rewards Credit Card
• Chase Freedom Unlimited® – No Annual Fee Reward

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Best Travel Rewards Credit Card

Chase Sapphire Preferred® Card

The Chase Sapphire Preferred Card is a popular one for the traveling community: business and personal. It also has dining advantages linked to top restaurant chains. Apart from being a product from the highly reputed Chase collection, this card offers massive bonus points and high value points with a few but solid features going for it.

Benefits

Bonus point system

You will be rewarded 60, 000 bonus points on spending $4,000 in the first 3 months. If you redeem this bonus amount via Chase Ultimate Rewards, you get $750 worth of travel. That’s a good deal. Another way to score bonus points, is by referring friends and receiving 15,000 per approved friend. The limit is 5 friends per year.

Travel and dining gains

Spending on dining and travel via the Chase Sapphire Preferred Card earns you 2X points per purchase. The list of airlines, hotels, restaurants and cafes, where this card is eligible is long and wide. On any other purchase made, will get you 1 point per $1.

In fact, when redeeming for hotels, cruises, air travel and even car rentals, you get 25% more value than if redeemed in any other way.

Added to these, there is an easy 1:1 point transfer facility to 10 prominent airlines and 3 top hotel travel partners. There aren’t any foreign transaction fees which many travel cards provide but the travel and purchase coverage is premium.

Cons

• The annual fee of $95 per year

Hence, every reward card has its advantages and disadvantages. But if you are not too troubled by the list of cons, and find the features exciting, that one could be the rewards card for you!

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Best Cash Back Rewards Credit Card

Discover it@Cash Back

Discover is a very renowned credit card brand that majorly functions in the United States of America. The biggest standout features offered includes no annual fee, a really high credit limit that would benefit all the people. One other impressive feature is that Discover offers you an incredible cash bonuses every time you purchase with your credit card.

In addition, Discover also have a very useful cash over program that allows you to get valuable cash backs from several stores. The enormous benefits include their customer-friendly rates, fess, customer-service, cash back at checkout, bonuses and provides the free FICO credit scores. You must also remember that there is no expiration time for the cashbacks that you earn. You can redeem your rewards whenever you desire. In addition, Discover makes it a routine to inform their customers with changes in the credit system, rewards, and also inform about their new features.

Benefits

Discover’s incredible range of rewards and benefits:

Introductory APR and term period.

With Discover, you can enjoy a 0% Intro APR for a period of 14 months on purchases as well on the balance transfer. Discover it^® will also provide you an effective cash bonus at about 5% each quarter whenever you purchase at places like restaurants, grocery stores as well as the gas stations.

Annual Fee

There is no annual fee charged by Discover when you opt for the Discover it@ Cash back. This is very advantageous as you need not worry about the generic annual fee while you make your purchases.

Regular APR

After the introductory period of 14 months, the APR would still continue to be minimum. The APR will fall within the range of 13.49% to 24.49%. You will be charged a minimal fee of 5% for the future transactions.

Minimum Credit Required

In order to obtain the Discover it@ Cash Back credit card, you will need a minimum of credit score of 700. Discover it secured and student credit card does not have any kind of minimum credit score.

Automatic CashBack Feature

Discover will match the cashback amount that you have earned totally at the end of your very first year. You need not enroll for this cashback match feature as Discover would automatically take care of this process. Another interesting benefit is that there is no limit on the number of matches during the yearly cashback match.

Referral Bonus System

Discover also offers an interesting refer a friend where you would get a 50$ credit reward every time your friend signs up for the card through the discover link you shared. Maximum 10 referral rewards can be earned.

Who should get the Discover it@Cash Back credit card?

When it comes to the security aspect, Discover stands tall. You would get timely alerts whenever there is a suspicious account activity which is very helpful. The reward system at Discover is most talked about when it comes to offering productive credit card services with a good bunch of benefits to the people. The huge list of useful real-time benefits make Discover credit cards, a must try especially for students and people who purchase at different stores. People who are interested in cash-back bonuses, cask-back match must definitely get a Discover credit card.

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Best Premium Travel Rewards Credit Card

Bank of America® Premium Rewards® Visa® credit card

This Bank of America Visa Premium Travel Rewards credit card is prominently a Travel rewards card for all frequent fliers jetting around the world. With a clear and focused target market, this card offers its traveling customers the incentive of 2 points for every $1 you spend on travel and dining related expenses. The point value drops to 1.5 points for any other purchase made via the Bank of America Premium Travel Rewards card.

The Bank of America Premium Travel Rewards card has been awarded the title of the ‘Best Rewards Card’ by USA Today 10 Best Reader’s Choice Awards.

Benefits

APR, Annual Fee and Balance Transfer Fee

The introductory APR on this card is zero while the standard APR, post the introductory period, is from 17.49% to 24.49%. There is a minimal annual fee of $95 and a balance transfer fee of 3% for each transaction which should be a minimum of $10.

No limit on number or time

The top advantages of this card are that you may spend and gain as many points as you desire. Also, these points may be redeemed as per your convenience. There is no expiry date or limitations on how you wish to redeem accumulated points. The terms for cash back amounts are a BoA savings or checking account, or Merrill Edge or Merrill Lynch accounts that meet the requirements.

You may also receive a credit to your statement, or purchase gift cards and other services from the Bank of America Travel Center. Apart from Bank of America and the two Merrill accounts, there is a list of 529 accounts which are linked to this card and are able to receive cash back amounts into them.

Introductory Bonus Offer

Within the first 90 days of opening an account for this rewards card, when you spend an amount of $3,000 or more using this card, you receive 50, 000 bonus points which are equivalent to $500.

 Travel Statement Credit Rewards

• An amount of $100 or less can be credited to you, per year, as Airline Incidental Statement Credit for purchases like baggage fees, air lounge fees, upgrades, and in-flight services.
• Every four years, you may get up to $100 as Airport Security Statement Credit towards TSA Pre or as Global Entry Application fee.

No Foreign Transaction Fee

This is a profitable feature for a frequent traveler and can result in major savings over time. Most countries levy a foreign transaction charge on every purchase made within their borders. Purchases made through The Bank of America Premium Travel Rewards Card in any international location, outside the Unites States will not cost you extra for these transactions.

Cons

• You need a pretty high investment in Bank of America to get this card
• The reward rates are average
• A high annual fee is discouraging

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Best Dining Rewards Credit Card

Capital One® Savor® Cash Rewards Credit Card

The Capital One Savor Reward Credit Card is categorized as a Dining & Entertainment Credit Card. It gains you multiple rewards in various forms that boost your dining, entertainment, grocery and travel experiences.

Under the category of Capital One Savor Dining Rewards, there are two cards to choose from – The Savor Rewards Credit Card and the SavorOne Rewards Credit Card and each has its own offerings and terms.

Benefits

Annual Fee and Purchase Rate

The Savor rewards card doesn’t have an annual fee for the first year, but from the second year on, there’s a fee of $95 that is levied for its services. The SavorOne Rewards card however, charges no annual fee at any point of the membership.

The Purchase rates for both cards also vary – The Savor Rewards charges between 16.24% and 25.24% APR while SavorOne offers zero APR for the first 15 months and between 15.74% to 25.74% post that. There is also no transfer free levied on the Savor Rewards card while SavorOne charges 3% transfer fee in the first 15 months on each amount transferred in that period.

Introductory Offers

Both Savor cards extend a one-time cash bonus if you spend a certain amount in the first 3 months. The Savor credit card offers $300 on the first $3000 spent while SavorOne earns you $150 on the first $500, making SavorOne a more profitable choice in this regard.

Rewards

The cash back percentage on dining and entertainment expenses vary for both cards. With the Savor card, you get 4% cash back and with SavorOne, there is a 3% cash back. Both cards offer 2% cash back on amounts spent at grocery stores and 1% on any other payments made. The Savor credit card has a tie up with Vivid Seats till May 2020 which enables a card holder to earn 8% cash back when you book a ticket.

The Capital One Savor Cards are also backed by benefits such as travel accident insurance, complimentary concierge services, round-the-clock travel assistance, extended warranties and more. Added to which, the company has exciting tie-ups with premium entertainment, sporting and dining events that allow exclusive access and ticket packages to all customers. Some of these include The Capital One Orange Bowl, the OpenTable app and the Food Network & Cooking Channel South Beach Wine & Food Festival.

Cons

• The high annual fee
• Your entertainment or dining bills need to be quite high get the full benefit from this card

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Best Student Rewards Credit Card

Discover it® Student Cash Back

The Discover it Student Rewards Card is a sound training card for students to learn the management of reward credit cards. Like most student credit cards, the Discover it card has a high cash back percentage, quick paybacks, education results-based incentives and zero annual fees. The Discover it Student card is handy during the academic years due to the many expenses incurred on stationery, travel, clothes, books etc.

Benefits

No limit cashback match

Most reward cards offer cash back percentages on amounts spent, but the Discover it Student Rewards Card matches that cash back amount and gives it to you at the end of the year. So, if you’ve earned $300 dollars worth of cash back in the whole year, Discover will pay you $300 more! Plus, there is no limit to cash back match and the payment is direct and seamless.

Cash back rewards

There are multiple opportunities to earn 5% cash back with the Discover it Student Rewards credit card, at gas stations, restaurants, grocery stores, via Amazon.com, and other select categories. Purchases made outside of these categories will earn you 1% cash back.

Good grade rewards

A GPA score of 3.0 or more wins $20 as statement credit, each academic year for 5 years.

The Discover it Student Cash Back Card caters to student related issues such as the ability to switch off the card in case of loss, zero liability for unauthorized purchases, credit score information and a helpful customer service cell.

Cons

• The cash back percentage tends to change each quarter and for those purchases that don’t qualify, you get only 1% cash back.
• The bonus rates also rotate every quarter and one is required to sign up each time this happens.
• The APR post the first 6 months is higher than the accepted student card average rate.

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Best Rewards Credit Card for Poor/Bad Credit

Credit One Bank® Unsecured Visa®

This Credit One Cash Back Card is designed to approve most customers, even those with a disturbed credit record. It has a low cash back percentage but a good credit card to keep for those who wish to get their credit score up in a safe and easy way.

Benefits

Cash back rewards

The 1% cash back available on this Credit One Bank Cash Back Reward card is applicable on a variety of eligible commodities such as gas, groceries, mobile phone usage, and even satellite TV, cable and internet services. Ideal for everyday living costs and expenses.

Increases in credit limit

Holders of this card are regularly evaluated for increases in their credit line. As you prove your credit worth, your credit limit will be raised steadily. This is the ideal way in which to inculcate credit card usage habits and keep your spending in control. You may also keep track of your credit score via the free Experian credit score report that is available with this card.

Cash back and rewards

The 1% cash back can be redeemed in cash amounts and various reward options.

Attractive card designs

The Credit One Bank Cash Back Reward card is available in 20 different attractive card designs which can be applied for a small fee.

This card also has a zero-fraud liability rule which is comforting, and your account can be accessed from any device via the easy and smooth Credit One online application.

Cons

• A very high APR rate
• The card is not applicable in common shopping outlets like Target or Wal-Mart
• The annual fee gets automatically deducted from the credit amount

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Best Small Business Rewards Credit Card

Capital One® Spark® Cash for Business

This is another reward credit card from the Capital One collection. Spark Cash for Business, however, is a Small Business Rewards credit card positioned for small-scale entrepreneurs and local businessmen and women.

Benefits

Introductory cash bonus

In the first 3 months, upon spending the first $5000 via this card, you get a $500 cash bonus and if you manage to spend $50,000 within the first 6 months of getting the Capital One Spark Small Business Rewards card, you will receive $1,500.

Annual fee and cash back percentage

The Capital One Spark Small Business Rewards card doesn’t have an annual fee for the first year and following which amounts to $95 annually. The cash back percentage for this card is 2% of the amount spend, no matter how big or small it is.

Easy payment options

The monthly payments on this card are automated so you are not distracted from your business responsibilities every month. Plus, you may choose a monthly payment date that suits you. There this also the facility to download purchase records via suitable formats.

Employee access

With the Capital One Spark Small Business Rewards card, you may issue employee cards to your team and earn rewards from their purchases.

 Safety features

This card ensures safety of your money and information with business-grade protection with a card lock system, security and fraud alerts, 0% fraud liability and fingerprint or pattern login.

Plus, there are discounts available on business related commodities and travel benefits such as rental car accident cover, miles transfers to preferred airlines, travel assistance and no foreign exchange fees.

All these points makes the Capital One Spark Small Business Rewards card a recommended rewards card for small business owners.

Cons

• A short list of transferable airlines

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Best Balance Transfer Rewards Credit Card

Capital One® Quicksilver® Cash Rewards Credit Card

This is the third Capital One rewards card from our list and a good second card. The Capital One Quicksilver Cash Rewards Credit Card specializes in balance transfer matters. This means that there is only 3% transfer fee charged every month during the first 15 months.

Benefits

Apart from this, here are a few more features:

Introductory bonus and regular rewards

Within the first 3 months, if you spend $500 via the Capital One Quicksilver Cash Rewards Credit Card, you get $150 dollars as a bonus. As a regular return, you will receive 1.5% cash back on each purchase, on an unlimited basis. There is no expiry date on cash back redemption.

Purchase rate

The introductory APR in the first 15 months is nil. After which, it varies between 15.75% and 25.74%.  

Cash, purchase cover or gift cards

You may redeem your cash back amounts as a check or cash deposit into your bank account, a cover for a recent purchase or as a gift card.

The Capital One Quicksilver Cash Rewards Credit Card charges no annual fee, zero foreign transaction fees, travel accident insurance, complimentary concierge services and others.

Cons

• There are limited redeeming options beyond cash back and no travel option
• One can’t transfer rewards to other cards or loyalty programs

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Best Gas Rewards Credit Card

Discover it® Chrome

The Discover it Chrome Gas Rewards card is similar to the Discover it Student Rewards Card but with an emphasis on higher cash back based on gas and restaurant purchases.

Benefits

Cash back

There is 2% cash back available on gas station purchases and restaurant bills together on up to $1000 per quarter.

Cash back match

This card gives you a cash back match on all cash back earnings for the year. So, if one earns $350 in a year through purchases done on this card, they get $350 extra for it.

Good grade rewards

A GPA score of 3.0 or more wins $20 as statement credit, each academic year for 5 years.

It also offers the means to switch off the card in case of loss, zero liability for unauthorized purchases, credit score information and a helpful customer service cell.

Cons

• Limited usage for only gas and restaurants
• Only earn 2% cash back on the first $1000 in a quarter
• Paying with rewards on online shopping sites won’t get you cash back

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Best Rewards Card With No Annual Fee

Chase Freedom Unlimited®

Chase is a leading name in the US banking sector offering a plethora of financial services to satisfied household users all over the country. These include mortgages, business loans, car financing, personal banking and of course, credit cards.

The Chase Freedom Unlimited card is among the newest and most popular credit cards from the Chase with multiple cash back opportunities, a low intro APR and no regular annual credit card fees.

However, in order to really understand the advantages of the Chase Freedom Unlimited card, let’s explore its rewards and benefits in detail:

Benefits

Chase Freedom Unlimited Rewards and Benefits:

Freedom Bonus Offer

The most tempting feature of the Chase Freedom Unlimited card is the assured cash back. Within the first 3 months of starting your Chase credit card account, for every $500 you spend, you get back $200. That’s a 40% return and one of the best being offered currently.

Freedom Bonus Offer Terms

This bonus is only applicable to new Freedom Unlimited card owners. Purchases during the 3-month period do not include balance transfers, travelers checks, cash advances, money orders, foreign currency, or similar betting transactions. It also includes checks that access your account, interest and fees. It takes 6-8 weeks t0 attribute bonus points to your account.

Unlimited 1.5% cash back

Post the initial 3 months, you are rewarded with 1.5% cash back on every purchase made on the card. It doesn’t matter how large or small it is. That’s quite a jump down from the initial cash back arrangement but it stands strong till your account lasts with Chase and is applicable on every little purchase that you make. Over time, the savings amount to a considerable lot.

Cash back and Points

The reward or cash back system under the Freedom Unlimited card work in this way. Each $1 equals to 100 points. You earn points every time you make an eligible purchase, not including returns and refunds. You may use these points in exchange for the many reward options made available to you. These can include cash, gift cards, travel deals and even certain products and services offered to you via the Freedom Unlimited program. There is no expiry date on your points so you may use them whenever it suits you.

No and Low APR

There is no Annual Percentage Rate normally charged on every purchase or balance transfer in the first 15 months. However, if you transfer a balance (minimum amount $5) in the first two months of your account, you will be charged a 3% balance transfer fee.

Post the introductory phase, the APR continues to remain low at 16. 49% to 25.24%. Whereas balance transfer fees are charged at a steady 5% of the amount, which again needs to be at least $5.

No Annual Fee

Unlike many credit cards in the market that charge an annual fee for its services, features etc, the Chase Freedom Unlimited card doesn’t have a fee for card holders. Hence, it is known as a zero annual fee credit card.

Ways to redeem Cash Back Rewards on the Freedom Unlimited card

The most prominent attribute of the Chase Freedom Unlimited credit card is that one can redeem a cash back amount on any purchase, costing as little as possible. You can redeem this cash back amount as a statement credit that builds over time or can be directly deposited into your US checking or savings bank account for you to use freely.

Redeem with Amazon

If you’re among the 85 million Americans who shop from Amazon, linking this card to your Amazon account will get you instant cash back, as soon as you checkout. The amount eligible for cash back includes taxes and shipping costs on every purchase.

Reclaim with Gift Cards

Chase has tied up with a wide variety of brands, restaurants, venues and more for a steady stream of gift cards for its Chase Freedom Unlimited card holders list. You will have innumerable options to choose from in the areas of shopping, dining and entertainment.

Earn by Traveling

Booking your travel tickets with the Chase Freedom Unlimited card via the Chase Ultimate Rewards program will get you great deals and flexible payment options for all your upcoming trips.

Refer Friends and Get Paid

Once you have a Chase Freedom Unlimited credit card, you may refer your friends for the same scheme. With each approval, you will receive $100 cash back and you may earn up to $500 in a year. That’s a total of 5 referrals permitted each year by every customer.

Contactless and convenient payments

The contactless indicator on the back of the Chase Freedom Unlimited credit card simply means that is belongs to that elite range of tap and pay cards that are storming the market these days.

This contactless system not only saves time and effort but is also a more secure way to make payments, with the card never leaving your hand! As the popularity of this technology increases, there is a higher number of retailers offering the tap and pay option. Currently, there are restaurants, grocery stores, vending machines and even coffee shops who have switched to the contactless card method. It is equally beneficial for them and you, in terms of saving time and effort.

Security features with the Chase Freedom Unlimited card

The Freedom Unlimited credit card offers a range of security measures that protect you in case of card theft or damage.

Due to the easy tap and pay system, there is also the chance of quick purchases post a card theft incident. Chase realizes this and assures its customers of ways to safeguard your interests and money.

Fraud Protection and Instant Alerts

All activity on your Freedom Unlimited credit card is monitored in real time using a technology simply known as Real-Time Fraud Monitoring. You will receive alerts each time an unusual activity is detected via your preferred mode, via a call, text or email. If you respond confirming that it is not you doing that activity, immediate action is taken to protect you.

Zero Liability

You will not be held responsible for any unauthorized purchase using your card or information. So, you’re safe.

Purchase Cover

Every purchase made by you with the card will covered for a period 120 days up to $500 per claim with a max of $50,000 per account. This protection is against theft and damage.

Extended Warranty

You get an added 1 year extended warranty to the US manufacturer’s warranty period, on any eligible warranty of 3 years or less.

Who should get the Chase Freedom Unlimited credit card

Due to its convenience and links with Amazon and the like, this card is suitable for most working professionals. It’s a handy tool for housewives and travelers while the rewards programs and benefits make it suitable for all kinds of spending.

You can maximize your benefits by with a Chase Sapphire Preferred or Sapphire Reserved card by transferring points to the Sapphire card from the Freedom Unlimited card. This can also give access to more ways to use them such as with select airlines or hotels.

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What is the Best Rewards Credit Card?

Rewards Credit Cards	Best For:
Chase Sapphire Preferred	Travel Rewards
Discover it Cash Back	Cash Back
Bank of America Premium Rewards	Premium Travel Rewards
Capital One Savor	Dining Rewards
Discover it Student Cash Back	Student Rewards
Credit One Bank Unsecured Visa	Poor Credit Rewards
Capital One Spark Cash for Business	Small Business Rewards
Capital One Quicksilver Cash Rewards	Balance Transfer Options
Discover it Chrome	Gas Rewards
Chase Freedom Unlimited	Zero Annual Fees

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Common Reward Credit Card Questions

What is a General Cash Back Rewards Card?

Cash back reward cards are credit cards that offer spending incentives to the cardholder by returning him or her a certain percentage of the money he or she spends. Rewards can also be in the form of points which are additional to the cash back amount received. Credit card companies are able to offer cash back owing to the interchange fee that merchants pay to them. A portion of this is redirected to customers as a cash back amount on each purchase.

General cash back reward cards can offer bonus amounts, a flat percentage amount or even tier-based rewards. These can be redeemed by card holders in the form of direct deposits into bank accounts, statement credit amounts, products or service purchases or donations.

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What is a Travel Reward Card?

A travel reward card is a credit card that offers rewards, deals and discounts based on travel expenses such as hotels, airlines and airport facilities. One can expect airline ticket upgrades, free tickets and even the occasional free hotel stay with a travel reward card.

There are general travel reward cards and then, specific airline or hotel credit cards in this category. Though the reward points are higher and better when one utilizes a travel card while traveling, these cards can also be used as standard credit cards at gas stations or grocery stores. The rewards however are lower when utilized in this manner.

Some more travel related benefits include:

• Zero foreign transaction fees
• Free baggage check-in at airports
• Upgrade in hotel room
• Airline ticket upgrade to first class
• Access to premium airport lounges

Choose a travel card based on rewards programs that makes better sense to you based on your travel and lifestyle habits.

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What is a Gas Reward Card?

A gas reward card is a credit card designed to offer rewards on gas purchases. These rewards can be received as cash back amounts or even certain deals or discounts on travel or select product purchases.

Every gas reward card is applicable at its own set of gas stations. Plus, every gas reward card offers various discounts, perks and benefits. Its relatively easier to be issued a gas reward card than a regular credit card. One can apply online for one or even at the gas station that you prefer.

Since a gas reward card can be used only at gas stations, it results in safe and easily controlled spending. Plus, there are cash backs, discounts, deals and points to receive. So, it is recommended for individuals trying to build their credit score.

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What is a Dining Reward Card?

Dining reward credit cards are naturally used to pay for restaurant bills. The rewards for these cards span across various travel, entertainment, gift cards, points and cash back. They also enable discounts on your meal bills and unique dining experiences like chef tasting sessions or special access to food festivals.

Most dining reward cads charge an annual fee and each card is linked to its own specific list of restaurants. So, it’s important to check whether your favourite restaurants are on the list of the dining reward card that you choose.

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What is a Student Reward Card?

Student reward credit cards are good beginner cards for youngsters to learn credit card usage as they have very low, sometimes no credit limits and no annual fees.

Most student reward cards give cash back while some offer school grades-based returns. A higher GPA can result in more statement credit.

Banks offering these cards aim at educating the students about how to spend responsibly and build a solid credit rating for themselves. They provide a sound training ground for the future and incentivize accordingly.

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What is a Small Business Reward Card?

A small business reward card is a helpful reward-based credit card to possess when trying to build a small business or start-up. It offers cash back on purchases made towards the business and helps to save money during this crucial time. Rewards for small business card holders include discounts and deals on office supplies and products, airline tickets, gas, marketing and promotional tools and more.

These cards not only assist businesses with cash back and discounts on items and services to grow, but they also help them to achieve a good credit rating. Small business rewards cards are issued on a business name, rather than an individual’s. This comes in handy for future borrowing and developmental plans for that particular business.

Small business reward cards can also be issued to freelancers or sole owners of any line of business. They only require a Social Security number and Tax identification number and are therefore, easy to get.

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How to Choose a Rewards Card?

When choosing a rewards card, there are certain factors that should be considered, based on your needs and requirements:

Do you prefer cash back, points or travel rewards

Depending on your habits and preferences, you can choose a card that gives you money back into your account or certain travel related deals such as discounts on airline tickets or hotel bookings.

How does one earn or redeem the rewards?

Find out details about the exact earnings and rewards per purchase. If there are points, how much each point worth and when do they expire?

What is the minimum spending requirement to begin earning rewards?

Understand how much you need to spend to actually start to earn rewards in terms of cash back, discounts or deals. Don’t assume anything!

Other aspects you should check include:

• Annual fees
• Foreign transaction fees
• Sign-up bonuses
• Perks
• Reward limits
• Exclusions
• Merchant list
• Expiry date on rewards

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Who should use a rewards credit card?

A rewards credit card  is great for individuals who have inculcated good credit habits. If you are a regular month to month credit card amount clearing customer, then you may opt for a rewards card.

This is purely due to the fact that rewards credit cards have high interest rates so carrying over payments to the following months is not a good idea and could end up costing more than the cash back and other rewards.

On the other hand, if you are eligible and well trained to sensibly utilize a rewards credit card, it could be the best decision you ever made. In the initial months, the cash back percentages are the highest and so should be your card activity. After the introductory period, you will experience a lesser amount of cash back but with a steady flow of points, discounts and deals. This makes a reward card a much more profitable deal than a regular credit card.

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Do annual fees reduce rewards?

If you are able to make a high number of purchases and in turn receive immense cash back and rewards, you will be able to afford an annual fee. You will find that the annual fee is costing you more than you thought it would only if you are not using a rewards card to its full potential.

A reward card with an annual fee pushes customers to spend more and earn more.

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Credit Card Cash vs Credit Card Points – Which is Better?

The cash or points debate depends on your spending habits. If you love shopping and high activity, then you will prefer points as they have the possibility of resulting in high value rewards than the cash equivalent.

But if you are a limited spender, then cash back is a better option as it will be directed straight to your bank account and stay there, till you are ready to spend or invest it.

Plus, with cash, you have the freedom to spend as you like. The available travel, hotel or commodity related points-based returns may not be tailored specifically to your needs.

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How many reward credit cards should I have?

A good credit history allows multiple reward credit cards with high interest rates. Maybe two or even three.

Then, depending on your spending habits, that is, what you choose to spend most for, you could accumulate maximum benefits, with more than one active rewards card eg: One for travel and another for your small business. It is especially easy to keep track of expenses with separate, dedicated credit cards and it is highly beneficial for your credit rating if you are able to own and manage more than one rewards card.

Though many people keep a second credit card for emergencies, a rewards credit card is not recommended for rare or urgent situations. Reward credit cards should be used regularly and cleared monthly for maximum benefits.

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What are the downsides to reward credit cards?

Here is a summary of all the disadvantages of rewards credit cards to ensure you use it wisely and towards maximum benefits:

High Interest Rates

Since reward cards offers so many returns, they make up for it with their exceedingly high interest rates that are much more than regular credit cards. Some reward cards can charge up to 30% Annual Percentage Rates and that works out well only if you clear your monthly balance in entirety each month. Only if you stick to this payment schedule will you reap any true benefits of a rewards card.

Implication of Missed or Late Payments

Normally a late credit card payment is not too much of a folly. It can be covered in the following month and all is fine. But with a rewards card, due to the high interest rate, a strong of late payments can result in a direct impact on your credit rating. This hampers your future chances of securing better rewards cards, loans and mortgages. Even if you do get approved for one, it will be a higher interest rate than is profitable.

High Annual Fees

Some rewards cards don’t charge annual fees but the ones that do, could put a dent in your cash back and rewards plan. This is especially true in cases where customers spend less via rewards cards and end up paying more in annual fees than gaining in rewards.

High Foreign Transaction Fees

This point is especially relevant to international travelers who visit other countries for business or on holidays. Before you begin using your rewards card in a foreign location, find out the rate of foreign transaction fees being levied on each international purchase. There are many reward cards that don’t charge this fee and if you are a regular traveler, it would be better to get one of those.

Now that you are aware of all types of reward cards and how they work, you are in a better position to choose a rewards credit cards that best suits you.