Life’s too short to leave rewards on the Credit Card!

Whether it’s saving on everyday purchases or earning miles for your next adventure, there’s a credit card out there that fits your goals.

How do you want to earn rewards?

When it comes to choosing a credit card, finding the right rewards can make all the difference in how you maximize your spending.

There are three primary types of credit card rewards: Cashback, Miles, and Points. Each caters to different spending habits and financial goals.

Let’s break down each option to help you figure out which one fits your needs the best.

1. Cashback: Earn Money on Everyday Purchases

If you’re someone who uses your credit card for everyday expenses like groceries, gas, or dining out, Cashback is the way to go.

This type of reward card gives you a percentage of your spending back as cash, which can often be applied as a statement credit, deposited into your bank account, or used to pay off part of your bill.

Cashback cards are ideal for:

• Families who want to save money on daily purchases.
• People looking for straightforward, easy-to-use rewards.
• Those with a goal of reducing their monthly expenses.

Most cashback cards offer anywhere from 1% to 5% cashback, with rotating categories or fixed rates.

Some even offer bonus categories, like higher percentages on groceries or travel.

2. Miles: Perfect for Frequent Travelers

For the jet-setters and adventure seekers, Miles are a great option.

Travel credit cards allow you to accumulate miles or points that can be redeemed for flights, hotel stays, and other travel expenses.

If you’re someone who flies often, either for work or pleasure, a card that earns miles can turn your daily spending into free or discounted trips.

Miles cards are best for:

• Frequent travelers looking to save on flights and hotels.
• People who prefer travel-related perks like lounge access and TSA PreCheck credits.
• Those who want flexibility in booking with different airlines or travel partners.

Many miles cards also come with travel insurance, protection against trip cancellations, and even lost luggage insurance.

These extra perks can give you peace of mind on your travels.

3. Points: Flexible Rewards for the Savvy Spender

Points-based cards are great for people who love flexibility.

With these cards, you earn points for every dollar you spend, which can then be redeemed for a variety of rewards, including gift cards, merchandise, travel, and even cashback.

Points cards are great for:

• Shoppers who like to choose from multiple reward options.
• People who enjoy dining, entertainment, or online shopping and want to redeem points for these categories.
• Those who prefer flexible redemption options—whether that’s paying for a new gadget or booking a vacation.

In many cases, points can be worth more when redeemed for travel or experiences, giving you even more value for your money.

Other Benefits You Can Expect with Credit Cards

Aside from rewards, credit cards can also come with a host of other perks that can help protect your purchases and give you peace of mind.

Here are some of the most common benefits:

Purchase Protection: If an item you bought with your credit card gets damaged or stolen, you might be reimbursed or covered for repairs.

Extended Warranty: Many credit cards extend the manufacturer’s warranty on electronics and other items, saving you from buying an additional plan.

Travel Insurance: As mentioned earlier, travel cards often include trip cancellation insurance, rental car insurance, and even emergency medical assistance when you’re abroad.

Cell Phone Insurance: Some cards offer protection against damage or theft of your cell phone when you pay your monthly bill with the card.

Fraud Protection: Nearly all major credit cards offer zero liability for unauthorized transactions, meaning you won’t be held responsible if someone steals your card or account number.

Credit Score Considerations

Not every credit card is accessible to everyone. Cards that offer the best rewards often require good to excellent credit.

However, if your credit score is lower, don’t worry. There are plenty of options designed for people looking to rebuild their credit.

Secured credit cards and some cashback cards offer rewards while helping you improve your score over time.

For those with a lower credit score, here’s what to consider:

• Secured Credit Cards: Require a security deposit but offer rewards similar to traditional cards. A good choice for rebuilding credit.
• Low-Credit Score Cards: Some cards are tailored for people with poor or fair credit and still offer decent cashback rewards.
• Credit Monitoring: Many cards also come with free credit score monitoring, helping you track your progress.