Should One Have a Cash Back and a Travel Credit Card?

iQuanti: Rewards credit cards are an incredible way to save on purchases you’re already making. But with so many options available, it can be challenging to understand which cards can help you maximize savings. If you’re stuck between whether to get travel or cash back credit cards, here’s why you may want to consider using both.
How do cash back credit cards work?
Cash back credit cards offer the cardholder a certain percentage back on each purchase that fits the card’s rewards criteria. For example, you may get a cash back card that offers 5% back on groceries, 3% on gas, and 1% on everything else. That’s money in your pocket for zero extra effort! 
Once you accumulate sufficient cash back rewards, you can typically receive the cash payment as a statement credit, paper check, or bank transfer. Some cards also offer the option to turn cash back into gift cards at popular retailers. From there, you can choose to spend the cash back you’ve accrued on whatever you want, with no restrictions.
Benefits of cash back credit cards
Cash back credit cards are a straightforward way to get money back for what you’re spending. Some of the benefits of these cards may include:
How do travel credit cards work?
Travel rewards credit cards offer cardholders points or miles for every purchase. And like cash back cards, travel credit cards may reward you differently based on your spending category. For example, an airline travel credit card may give you five miles per dollar for every flight you purchase, but only two miles per dollar for non-travel spending.
There are several categories of travel cards, including airlines, hotels, and general travel rewards cards. Depending on which card you choose, you may have abundant opportunities to redeem your rewards points or miles through various travel partners for flights, hotel stays, and more.
Benefits of travel credit cards
Many travel credit cards offer both travel and non-travel-related benefits, some of which may include:
Why use a travel and cash back credit card?
When you have both a travel and cash back credit card in your wallet, you can maximize rewards by using each card for specific purchases. For example, if you’re planning a holiday trip, you could use the travel card to book your flight, hotel, and rental car, then use your cash back credit card for eating out and general spending once you arrive. Having two cards can give you the best of both worlds where you’re getting benefits for everyday spending while ensuring you’re getting the most rewards possible.
For frequent flyers and hotel regulars, travel cards for your favorite airline or hotel can increase your travel enjoyment while decreasing the cost. Of course, if you rarely travel, then a travel rewards credit card probably doesn’t make sense. A cash back credit card can be the most practical choice for the average spender when you want rewards with a clear value that can turn into cash in your pocket.
The bottom line
Both travel and cash back credit cards give you valuable rewards for the money you’re already spending. So, if you enjoy traveling and want to maximize your rewards potential, holding a travel and cash back credit card in your wallet may be the right option. And if you’re deciding between the two, let your spending habits and lifestyle be your guide. As long as you’re paying off your balance in full every month, using a rewards credit card to receive perks is a smart move.
Source: iQuanti, Inc.