If you own a credit card and use it regularly, you may want to consider a reward credit card. These credit cards enable you to earn something back for your purchases. Over time, these cards can add up, and you can earn some precious rewards. They are, strangely, not something that many people know about, but they are a worthwhile investment, and not only can you improve your credit score every time you pay back your balance, but you can receive rewards, such as vacations, products, and even cash back.

In this article, we will tell you everything that you need to know about reward credit cards to decide whether to get one or not. We recommend that you do, for they are a great and worthwhile investment that will be greatly appreciated once you begin receiving rewards.

How Do These Cards Work?

These cards work the same way that other credit cards do, except that they build your credit, and not only do they provide you with a credit limit, but they give you incentives. The more purchases that you make, the more rewards you are given; there are several types of cards, however, so you must select the one that best meets your lifestyle and the amount you shop. There are many tools available to help you pick the right card. One service, Your Best Credit Cards, is a credit card rewards optimization tool that allows you to enter your spending across various common categories, and the site calculates exactly which credit cards would earn you the most in yearly rewards or cashback. You can also view the best cards for common bonus categories like food or groceries.

What Rewards Can I Earn?

Loyalty Points

Another common reward offered is loyalty points. Over time, loyalty points can allow you to make purchases from supermarkets or clothiers for free [with your loyalty points]. You can also convert your loyalty points into vouchers or other rewards, often from the same retailers that the loyalty points are issued for in the first place.


Quite a lot of rewards credit cards will give you air miles with your purchases. Airmiles can then, when you have enough, be exchanged for hotels, holidays, flights, and all-inclusive packages. However, if you use your air miles to buy flights, you will still have to pay fees, and you will be taxed on them. Cards that offer air miles will also offer bonus points when you exceed a certain spending price, which will give you companion tickets, allowing you to take a relative or friend on a free vacation.


Cashback is undoubtedly the most popular and sought-after reward and likely the one you will be most eager to get. Cashback is as it sounds. Over time, as your rewards build-up, you are given money back. Generally, you tend to receive around five percent cashback of everything you spend within the first six months to a year of having taken out your credit card. Cashback can also be given monthly, though many prefer it yearly, for it is often a larger sum at the end of the year. However, with that said, your cashback may be capped at the end of the year.

Who Are They Best Suited To?

These cards are best suited to anybody who regularly uses a credit card. If you use your credit card for everyday purchases, then they are suited to you. If you rarely use your credit card, then they may not be a good option for you. Additionally, these cards often charge higher rates of interest because of the rewards offered, which means if you are on a low income, it may not be best to get one of these. If you default or fail to pay back your balance, you will be charged a large amount of money, and in addition, your credit score will be negatively impacted, which you will certainly not want.

What to Watch Out For

If you do want to get one of these credit cards, then you must watch out for cards with extremely high-interest rates. While with these cards, high interest is often unavoidable, you should still look for cards with lower interest rates than others. It will save you money and only cost you a bit more time. Saving money should be your main priority when looking for cards like these.

With the help of this page, you now know about reward credit cards, what they are, and what to watch out for. Reward credit cards are great, providing you have the income and the credit score to get one. You should definitely give them some consideration if you are thinking about getting a credit card.