Finances

Find out all about rewards credit cards and their pros

Some credit card companies offer rewards to their customers just for continuing to use their cards. Read this article and understand the pros of rewards credit cards!

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by José Gonçalo

07/26/2022 | Updated on 08/05/2022

Enjoy great benefits with rewards credit cards

Learn how to make money with your credit card without any additional effort. Source: Adobe Stock

Indeed, today, many credit card companies offer more than the basic service: they offer rewards every time you spend!

However, is it really advantageous to participate in these programs? Read this article and understand the pros of rewards credit cards.

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Credit cards can be excellent for those who love to spend and earn rewards at the same time. So, read on to learn more about the pros of rewards credit cards!

How do rewards credit cards work?

In effect, credit cards are normal credit products for paying bills and using your money.

However, these offer their customers an extra edge. With these, every time you spend, you get a reward. These rewards can come to you in three ways:

  • Cash (cash back);
  • Points in a special rewards program;
  • Miles.

Below, learn about each of these programs and the advantages of rewards credit cards:

Cashback programs

Pocket with credit card and money bills
Get back the money that should never have left your pocket. Source: Pixabay

Currently, most cards that reward their customers with cash do so through cashback programs. In effect, this means that you will get back a percentage of the money spent.

For example, the Upgrade Triple Cash Rewards has a 1.5% cashback program.

Additionally, there are cash back programs that reward more in specific purchase categories. In fact, the Fortiva® Mastercard® Credit Card with Cashback Rewards is an example.

This card pays 1% cash back for general purchases. However, spending on gasoline, for example, generates up to 3% cash back.

In addition, reward programs are also different in the way you redeem your money.

Some cards only allow you to use your reward to pay your card bills. Other cards allow you to receive them in your checking account, for example.

Scoring programs

In this type of reward, you earn a certain amount of points for spending. In general, these points can be redeemed for cash or perks.

This includes discounts on airline tickets, hotel rates and restaurant reservations.

Among these, we highlight the BMO eclipse Visa Infinite credit card. This card gives 5 points for every $1 spent on groceries, dining and takeout, and others, for example.

Miles programs

This type of program offers miles as rewards for your spending. These are a type of points that can be used to primarily fund airfare and common travel expenses.

Capital One’s Venture family of cards are good examples of this type of reward program.

Pros and cons of rewards credit cards: learn how to benefit from it

However, you should be wary when banks offer too many benefits. After all, are there only pros to rewards credit cards or is there a downside too?

Below, we have separated a list of the main advantages and disadvantages of programs like this. So, read on and find out what’s behind advantages like these:

Pros

  • Earn money without making your everyday purchases;
  • In addition to cash, you can receive other types of benefits, such as discounts on airline tickets, online purchases and cash to pay your card balance;
  • There are those who finance vacation trips with credit card rewards alone;
  • It is possible to find good cards that offer rewards without charging annual fees for doing so.

Cons

  • To increase your earnings, you can try to spend more. For some people, this can increase their risk of indebtedness;
  • When redeeming your rewards, you may have to pay fees that reduce the amount you earn or lose points when you try to convert them to cash;
  • Some cards place limits on the amount of rewards you can receive per month or quarters;
  • Some cards put an expiration date on your rewards, which forces you to spend them faster than you’d like;
  • The best reward programs may be on cards that charge an annual fee and or that require an extremely high credit score.

Choose the rewards credit card that’s right for you: 4 best options

Credit cards laid out like playing cards
Meet 4 good credit cards to take advantage of the reward program. Source: Flickr

Now that you know the pros of rewards credit cards, it’s time to take advantage of them.

Below, take a look at the top reward cards available on the market. Buy them and choose which one is the most profitable option for you:

Chase Freedom Flex℠ credit card

A frequent choice on best reward card lists, the Chase Freedom Flex℠ credit card is a great choice. Indeed, even without paying an annual fee, you are entitled to a 5% cash back in quarterly categories.

Credit ScoreGood/excellent (690-850)
Annual Fee$0
Regular APRIn the first 15 months, 0% APR. After, from 16.49% to 25.24% (variable)
Welcome bonus$200 reward after $500 spent in the first three months; 5% cashback if you spend $6,000 on gas station purchases in the first year
Rewards5% cashback on quarterly determined categories (up to $1,500); 3% on meals in restaurants and delivery and collection services; 3% on pharmacy purchases and 1% on other purchases

Not to mention the selected categories that pay up to 3%. To find out if you are eligible for this card, check out our post below!

Chase logo

Chase Freedom Flex℠ card: check out how to apply!

Learn about the application process to become the newest Chase Freedom Flex℠ card customer and gain access to a huge list of benefits, such as cashback and no annual fee!

Upgrade Bitcoin Rewards credit card

Innovation is the name of this credit card. Indeed, the Upgrade Bitcoin Rewards credit card is a pioneer in offering bitcoins as a reward.

We are talking about a currency that has appreciated 1,375.30% in the last 5 years.

Credit ScoreFrom average to excellent (630-850)
Annual Fee$0
Regular APR8.99% to 29.99% (fixed)
Welcome bonus$200 bonus if you make 3 deposits within the first 60 days after account opening
RewardsGet 1.5% Unlimited Bitcoin Cashback on All Purchases

Interested in receiving cryptocurrencies without having to mine them? Check out our post below and find out if you can have this card!

Upgrade Logo

Upgrade Bitcoin Rewards Card: check out how to apply!

Learn the step by step on how to apply for your Upgrade Bitcoin Rewards, the credit card that pays rewards in the form of bitcoins, the most valuable currency in the world!

Capital One Venture Rewards Credit Card

Are you looking for frequent flyer programs? Then count on the Capital One Venture Rewards Credit Card. This credit card will give 2 to 5 miles for every $1 spent.

Plus, you can earn 75,000 miles as a welcome bonus. In the table below, check out the main features of this credit card!

Credit ScoreExcellent (780-850)
Annual Fee$95
Regular APRFrom 17.49% to 25.49% (variable)
Welcome bonusEarn 75,000 miles when you spend at least $4,000 in 3 months
RewardsEarn 2 miles for every $1 spent (unlimited); 5 miles per $1 spent on hotels and car rentals (valid for Capital One Travel)

If you love this card’s features, check out our post below to learn about the application process!

Capital One logo

Application for the Capital One Venture Rewards Credit Card

The Capital One Venture Rewards Credit Card could be a good option for you. It offers miles that can be used for travel rewards, and it's easy to use. In this post, we'll explain how you can apply for it!

Citi Premier® Card

Indeed, it is impossible to talk about points programs without mentioning the Citi Premier® Card. This credit card can offer 3 points for everyday purchases, such as those at the supermarket.

Gasoline spending is another category that offers this amount of points. So, take a look at the table below and find out if this card is for you:

Credit ScoreFrom good to excellent (690-850)
Annual Fee$95
Regular APRFrom 17.49% to 25.49%
Welcome bonus80,000 points if you spend $4,000 in the first 3 months
Rewards3x points for every dollar spent on restaurants, supermarkets, gas stations, air travel and hotels; 1 point on all other program purchases (ThankYou®)

Before you leave, get to know a list of credit cards for a special audience. Check out our list of cards for people with excellent credit scores!

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Credit cards for excellent credit: 5 options for a world of possibilities

Exclusive bonuses, rewards, and perks. Discover how to make the most of your excellent credit score: here are 5 cards for excellent credit.

About the author

José Gonçalo

I started reading about finance only to find better options than savings. Since then, I have never stopped studying finance, and I believe that writing about it is the best way to help individuals feel fulfilled and have a healthy financial life. Today, I balance finance and medical school studies.

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