Cash back or rewards?
Hi fellow Nerds,
My credit score is finally to a place where I can qualify for better cards than the one I have. I've been looking at a lot of cards on your website and I get tons of card offers in the mail also. I just can't seem to wrap my head around the difference between cash back or rewards. I will be doing more traveling for my job so maybe a travel card? But do cash back cards mean more money that I could spend in a more flexible way? Help!
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Official comment
Hi Anicca,
Thanks for reaching out to NerdWallet; I'm happy to offer some information about credit cards!"Cash back" cards refund a portion of the money you've spent. For example, a $100 purchase on a card that pays 1% cash back will result in a $1 credit. Different cards offer different ways of spending your cash back credits, and most include using your cash back to apply to a monthly payment.
"Rewards" cards give you back something of value other than cash. It might be something like 10 frequent flyer miles on a certain airline for each $100 spent, or a free night in a certain hotel chain for each $1,000 spent. If you find a rewards card that offers a reward you use frequently, you may prefer the reward product to cash.
While we aren't able to provide personalized financial advice, I've gathered some resources here that you may find helpful:- NerdWallet's Credit Card Hub - Start your credit card search with ease
- Credit Card Recommendations Quiz - Find a credit card for your specific needs
- Credit Card Reviews by NerdWallet’s Experts
- Travel and Airline Miles Credit Cards - Compare 5 Offers
Best Regards,
Victor
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