How to Compare Different Types of Credit Card Rewards

iQuanti: When it comes to shopping for a credit card that’s right for you, there are a number of factors to compare and research such as annual percentage rate (APR), fees, interest rates, and more, including the kind of rewards the credit card offers.
There are three different types of credit card rewards: points, miles, and cash back. While you typically need a higher credit score to get the best rewards offers, credit card companies provide a variety of options when it comes to what the rewards are and how much you can earn.
Here’s some information about the different types of credit card rewards and tips for how to compare credit cards and choose the right card for you.
Different types of credit card rewards
Rewards cards let you earn points, miles or cash back on purchases made with the card. You can earn the same amount of rewards on each purchase, or you may get bonus rewards on certain categories or during particular times of the year. The type of reward you earn depends on the card you have.
Rewards points are earned when you make purchases in certain categories, such as dining, travel, gas, groceries and more. You’re able to earn points for dollars spent, such as 1 point per $1, or 2-5 points per $1 depending on the category and card. Then, you can redeem your points for cash, gift cards, statement credits, or travel rewards.
Miles are often earned with travel-related purchases, especially with travel credit cards or airline-branded cards. When you make eligible purchases with the card, you can earn miles for every dollar spent. Then, after earning enough miles, you can redeem them for airline tickets or other airline purchases.
Cash Back
Most cash back cards offer at least 1% cash back for all purchases, though some may also offer 2-5% on bonus or special eligible purchases or categories. This percentage can be earned and accumulated through each billing cycle, and may be redeemed for a statement credit, credit for online purchases, or gift cards.
What to consider when comparing credit card rewards
While rewards can be tempting, there are a few things to keep in mind when shopping for the best card for you.
Source: iQuanti, Inc.