Rewards Credit Cards

'Credit card' is the general term, while 'rewards card' is a category of credit cards. A rewards card allows you to earn rewards like points, miles, or cash back for card use. If you want to gain additional value from using your credit card, opt for a rewards card.

Rewards credit cards comparison is based on the following essential features:

• Annual fees: Opt for rewards credit cards with no annual fee.
• Interest rates: Check the interest rate after the promotional introductory 0% APR.
• Cash-back spending cap: Lenders tend to cap the most lucrative spending categories. Compare those limits.
• Fixed vs. tiered rewards: Some cards have fixed spending rewards, like 1 point for every dollar spent, while others have tiered rewards, like 3 points for every dollar spent on travel and 1 point for every dollar spent on groceries.

Annual fees are common with rewards cards but do not apply to all. You can find an excellent rewards card with no annual fees and still earn points, travel miles, cash back, or other types of reward.