Credit card rewards are benefits that credit card issuers offer to encourage cardholders to use their cards more frequently. There are many different types of credit card rewards, including points, miles, cash back, and more.
Here are a few examples of common credit card rewards programs:
- Points: Many credit cards offer a points-based rewards program, where you earn a certain number of points for every dollar you spend. These points can be redeemed for a variety of rewards, such as cash back, gift cards, travel, and more.
- Miles: Some credit cards offer a miles-based rewards program, where you earn miles for every dollar you spend. These miles can be redeemed for flights, hotel stays, and other travel-related rewards.
- Cash back: Some credit cards offer a cash back rewards program, where you earn a percentage of your purchases back in the form of cash or a statement credit.
- Other rewards: Credit card rewards programs can also include a wide range of other benefits, such as discounts on shopping and entertainment, extended warranties on purchases, and more.
How to compare credit card rewards
When comparing credit card rewards, there are a few key factors you should consider:
- Earning potential: The first thing you should consider is the earning potential of each rewards program. How many points, miles, or cash back do you earn for each dollar you spend? Are there any categories where you can earn a higher rate of rewards?
- Redemption options: You should also consider the redemption options available for each rewards program. Can you redeem your rewards for a wide range of options, or are there only a few choices? Are the redemption values good, or do you need to accumulate a large number of rewards before you can redeem them for anything substantial?
- Annual fee: Some credit cards charge an annual fee, which can eat into your rewards earnings. If you are considering a credit card with an annual fee, make sure the rewards you will earn are worth more than the fee you will pay.
- Other fees: Credit cards can also have other fees, such as balance transfer fees, cash advance fees, and foreign transaction fees. These fees can also impact the overall value of the rewards program, so be sure to consider them when comparing cards.
- Other benefits: In addition to rewards, credit cards may also offer a variety of other benefits, such as travel insurance, rental car insurance, and extended warranties. These benefits can add value to the card and should be considered when comparing rewards programs.
Air miles are a type of reward program offered by some credit cards and airlines. With an air mile rewards program, you can earn miles for every dollar you spend or every mile you fly. These miles can then be redeemed for flights, hotel stays, and other travel-related rewards.
Air mile rewards programs can vary significantly from one issuer to another, so it is important to compare the earning and redemption rates of different programs before choosing a credit card or airline loyalty program. Some programs may offer bonus miles for certain types of purchases, such as travel or dining, while others may have caps on the number of miles you can earn in a given year.
Air mile rewards programs can be a good choice for frequent travelers who want to save on the cost of flights and other travel expenses. However, it is important to be aware of any fees or restrictions that may apply to your air mile rewards, such as expiration dates or blackout dates when miles cannot be redeemed.